New Study Finds That Ecommerce Deal Volume Is Down, but Deal Size Is 3x Higher

PHILADELPHIA, PA — (Marketwired) — 04/21/16 — A new study released by RJMetrics and Mattermark provides rich insights on the state of ecommerce investment. Data from Mattermark shows that while ecommerce deal volume has dropped from 731 deals in 2013 to 68 so far in 2016, deal sizes are getting larger. 2016 has seen a median deal size of $9.4M, much larger than the $3M median from 2013.

“Investors are still willing to write checks to ecommerce founders,” says Dawn Poulos, VP of Marketing at Mattermark, “Just to fewer companies. This report shows the KPIs and patterns that discerning investor should be looking for.”

Data from RJMetrics identifies those KPIs and provides insight in the patterns indicating a company–s potential. Highlights from the research include:

Top ecommerce companies generate during their first three years in business.

This revenue performance is driven by superior customer acquisition, after three years in business, paired with retention rates that remain stable during periods of rapid growth.

Loyal customers (4+ purchases) on their first order than the average

After three years, top quartile companies have , nearly 5k more than the other three quartiles combined.

“Success in ecommerce has always relied on the ability to retain existing customers during periods of rapid customer acquisition,” says RJMetrics CEO, Robert J. Moore. “The data in this report shows just how critical that balance is and shares the analyses that every investor should explore as part of their due diligence.”

RJMetrics is a cloud-based data infrastructure and analytics platform. It provides tools to consolidate and analyze the ever-growing volume of data available to every organization that does business online. RJMetrics customers include Walker & Co, Choxi, Threadless, and more. For more information on RJMetrics, read the , visit the , and follow them on .

At Mattermark, we–re accelerating sales through data and automation. Mattermark collects and organizes comprehensive information on the world–s fastest growing companies. In minutes, get actionable data that lets you pinpoint and prioritize the companies and people you need to know or do business with.

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