eCommerce - Wednesday, April 27, 2005
CommerceHub - Profile
HQ: Albany, NY
Founded: 1997
Management: Frank Poore is President, CEO and founder and has been a CommerceHub lifer.
Investors: In January 2001, CommerceHub received a $4.65M investment from Interactive Technology Holdings, a joint venture of Comcast Corporation and QVC - QVC was an early user.
Business Model: CommerceHub's software manages supply chain management for drop-ship commerce. That means that when a buyer at Target.com purchases a lawnmower online, CommerceHub will take the order from the site and route it to John Deere lawnmowers which will ship the product directly to the consumer without having to touch Target warehouses. CommerceHub’s platform functions as a universal translator that allows its users to integrate with the disparate systems of outside suppliers without having to change its legacy systems. The companies that CommerceHub can name as users are impressive, including: QVC, CircuitCity, Target, Sears, KB Toys, Costco, Walgreens, and Staples. The company makes money by charging suppliers to work with CommerceHub.
Competitors: No strong direct competitors. CommerceHub competes with products like IBM Websphere which require more work.
Dirt: CommerceHub has done well to grow on its revenues. In the long run, the company will face troubles as suppliers get more sophisticated technology and a universal translator becomes less necessary. Given its client list, CommerceHub would make a nice acquisition for larger eCommerce software companies.
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