Boston, MA – Capstone Headwaters released its E-Commerce & Internet Retailing industry update today. E-commerce demand has reached unprecedented levels amid COVID-19, with online sales rising 44.5% in Q2 year-over-year, accounting for over 16% of total retail sales, according to the U.S. Census Bureau. As consumer preferences for digital capabilities have accelerated, online marketplaces have captured heightened sales growth.
“Specialized online marketplaces are posting impressive numbers as increasingly educated digital consumers seek them out for more involved purchases. We believe this trend will only increase with time and have seen successful models across several segments including Large Discretionary Consumer Goods, Personal Care, and Health & Wellness. However, they are increasingly popping up across all consumer categories. As a result, strategic buyers are showing interest in acquiring specialized marketplaces and several private equity (PE) investors are taking notice of the area as well,” said Senior Director, Lisa Tolliver.
Online marketplaces often possess greater pricing transparency than product manufacturers, leveraging instantaneous customer feedback to gauge demand and implement the most effective price points. Following a slowdown in M&A volume in Q2 and Q3, deal activity has begun to stabilize in the E-commerce industry, leaving middle market online marketplaces with robust digital capabilities poised to attract strong strategic and private equity interest.
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For More Information Contact the Key Report Contributors:
Managing Director, Head of Consumer & Retail