Feedvisor: Connecting and Using Data to Help Amazon Sellers be More Profitable
I’ve had the opportunity to interview business leaders at a number of technology startups and discovered that many are emerging to offer a variety of services to support the 2 million worldwide sellers on Amazon. It seems obvious now, but admittedly, I didn’t realize how many ancillary organizations are jumping in on Amazon’s success. According to BigCommerce, there are more than 230 organizations offering Amazon seller services.
One such organization is Feedvisor, a company founded in Tel Aviv, Israel in 2011 with new offices in New York City. I recently spoke with the founder and CEO, Victor Rosenman, who revealed that the genesis for the company didn’t come directly from eCommerce, but rather out of an interest in the financial market.
“I noticed there was a lot of similarity between the path that eCommerce is taking and the path that the financial market has taken – especially the stock market. And when I look at the Amazon marketplace, it looks like the stock market of 20-30 years ago,” explained Rosenman.
“My assumption was that eCommerce will follow the same trajectory of development just as the stock market has and that’s how I arrived at the idea of Feedvisor to develop algorithmic pricing for Amazon sellers.”
The platform optimizes an Amazon seller’s business by eliminating the manual process of re-pricing goods, much like the stock exchange trade floor selling, and provides recommendations for other critical business decisions. More than 500 companies who sell products on Amazon marketplace are using Feedvisor to automatically re-price products, provide inventory recommendations, predict product trends and more based on different sources of data including: supply, demand, inventory fluctuation and the price of competitive offerings.
As the company and technology has evolved, one thing has remained the same. “The value for our customers comes from the better understanding of data and identifying actions to take,” said Rosenman.
Take an apparel company, which typically suffers from relatively high rates of returned merchandise. Some merchants don’t always reconcile the returns and think the product is doing great, but the profits don’t move. On the other end, the merchant may offer a product that doesn’t sell in such high volumes but has low returns.
“This is one example of unlocking value by simply connecting dots of data,” said Rosenman.
Feedvisor helps take this information into account and can help merchants make use of data to make decisions such as discontinuing a product or choosing which products to advertise more.
As the leader of the 100-person company, Rosenman puts a lot of emphasis on being data-driven and delivering value to help customers be smarter in how they operate their businesses.
The company is growing the team and looking for people who are, “open-minded, creative, talented and looking to make a difference, these types of people do well within the company.”
In terms of the company culture, Rosenman cites the innovative nature of the company’s Israeli heritage. “Israelis want to reinvent things and what we’ve found is that we’re trying to keep this innovative spirit and merge it with the approach of how to build for scale and repeatable operations. We’ve managed to benefit from both strengths of the New York and Israeli talent pools.”
Feedvisor most recently raised a $20 million series B round of funding and currently manages $2 billion in customer sales.