Quarterly insights: E-commerce optimization
To respond to commoditization and sustain growth, point solutions give way to end-to-end strategies
Point solutions have dominated the e-commerce technology market for nearly two decades. With their singular focus on just one component of the e-commerce process, point-solution technology providers can amass deep expertise, concentrate organizational effort, and rapidly evolve to create best-of-breed capabilities. In the past few years, however, the balance has begun to shift toward end-to-end solutions. We see several factors prompting this shift, including commoditization of some point solutions, the drive to sustain or accelerate revenue growth, the need to profitably deploy cash accumulating on balance sheets, diminished concerns about channel conflict, and an increasing appreciation of the value companies can create by owning data streams from multiple e-commerce technology functions. We highlight some of the e-commerce technology areas we think will command the highest valuations and innovative companies leading in these areas. We also provide an overview of e-commerce optimization publicly traded stock performance and valuation, sector M&A activity, and private placements during the quarter.