Royal Mail has secured a stake in Market Engine Global Pty Limited, an Australian e-commerce technology start-up. Market Engine enables businesses to manage online shop fronts in global marketplaces that are fully-translated for the local market,
Through Market Engine’s unique market management system, which integrates into the world’s largest e-commerce sites such as Tmall Global, businesses can manage all aspects of their online retail presence in different markets across the world, without the need for a bricks-and-mortar presence. This includes local online shop front designs translated into the local language and integration with real-time business management and analysis systems, including inventory, reporting and sales analysis. Market Engine also creates custom-built online marketplaces, bringing businesses and consumers closer together.
The investment in Market Engine forms part of Royal Mail’s continued focus on digital innovation and building its e-commerce capability. It follows the company’s recent investment in Mallzee – the “personal shopping” app which featured on Dragon’s Den in 2015, and its acquisition of Storefeeder in February 2015 – the e-commerce technology specialist which provides order management, stock control, smart warehousing and courier integration for web merchants. Royal Mail will assist Market Engine by introducing its offering to businesses looking to expand their e-commerce presence in markets around the world.
Royal Mail’s investment in Market Engine reflects the increasingly technology-driven nature of the delivery market. It helps further align the company with the rapid growth in online shopping and e-retailing, with 81 per cent of online shoppers now purchasing goods from online marketplaces. It provides Royal Mail with exposure to new, high-growth revenue streams further up the value chain, as well as complementing Royal Mail’s existing parcel services.
Nick Landon, managing director of Royal Mail Parcels, said: “I’m excited to announce our investment in Market Engine. We think we can leverage our scale and expertise to help Market Engine expand and accelerate its entrance into new markets, while identifying opportunities to incorporate its technology solutions within Royal Mail’s existing operations.”
Royal Mail Investments is acquiring newly issued shares in Market Engine to further develop the business. The financial terms of the transaction are not material in the context of the Royal Mail Group as a whole.