Investment Considerations for B2C E-commerce

Investment Considerations for B2C E-commerce

February 22, 2023
February 22, 2023

Share

Key Considerations for investing in B2C E-commerce


Stax was approached by an investor Client to evaluate the attractiveness of an investment in a B2C e-commerce player and its related market. 


The key objectives of this engagement were to understand:


  • The outlook for e-commerce platform spend
  • The Target’s competitive positioning
  • The Target’s core customer alignment

Additionally, we worked on assessing what steps the Target was taking to move up-market and upsell customers.


Planning Strategy


Stax relied heavily on primary research:


  • Web survey of customers/partners, non-customers, and industry experts
  • Targeted phone interviews customers, non-customers, and industry experts

Secondary research was then conducted to validate primary insights.


Trends in the Market

Our final deliverable quantified the annual addressable market opportunity available to the Target on a segmented basis (i.e., midmarket, enterprise, etc.) in the e-commerce market.


  • Stax mapped the e-commerce competitive landscape, Target’s positioning, and its right-to-win versus key competitors on a segmented basis. 
  • Outlined the customer purchasing process and the Target’s alignment to that process across key market segments, including alignment to agencies (creative, digital, etc.), systems integrators, and other potential partners.

We additionally conducted a growth outlook assessment for the Target based on: 


  • Forecasted annual market opportunity
  • Company win rates
  • Customer spend growth
  • Customer churn

This included an analysis on the Target’s current and future market share vs. key competitors on a segmented basis and its ability to move up-market to serve larger organizations.


A Deeper Look into the Market


Stax outlined the key investment considerations for the Target along with market opportunities, which helped our Client to make a more informed investment decision.


Key Considerations for investing in B2C E-commerce


Stax was approached by an investor Client to evaluate the attractiveness of an investment in a B2C e-commerce player and its related market. 


The key objectives of this engagement were to understand:


  • The outlook for e-commerce platform spend
  • The Target’s competitive positioning
  • The Target’s core customer alignment

Additionally, we worked on assessing what steps the Target was taking to move up-market and upsell customers.


Planning Strategy


Stax relied heavily on primary research:


  • Web survey of customers/partners, non-customers, and industry experts
  • Targeted phone interviews customers, non-customers, and industry experts

Secondary research was then conducted to validate primary insights.


Trends in the Market

Our final deliverable quantified the annual addressable market opportunity available to the Target on a 

segmented basis (i.e., midmarket, enterprise, etc.) in the e-commerce market.


  • Stax mapped the e-commerce competitive landscape, Target’s positioning, and its right-to-win versus key competitors on a segmented basis. 
  • Outlined the customer purchasing process and the Target’s alignment to that process across key market segments, including alignment to agencies (creative, digital, etc.), systems integrators, and other potential partners.

We additionally conducted a growth outlook assessment for the Target based on: 


  • Forecasted annual market opportunity
  • Company win rates
  • Customer spend growth
  • Customer churn

This included an analysis on the Target’s current and future market share vs. key competitors on a segmented basis and its ability to move up-market to serve larger organizations.


A Deeper Look into the Market


Stax outlined the key investment considerations for the Target along with market opportunities, which helped our Client to make a more informed investment decision.


Read More

Stax Sector Spotlight: Home Health
By Darren Buskirk June 13, 2025
From unskilled daily support to skilled clinical care, home health is transforming care delivery—and attracting serious investor interest in 2025. Click here to learn more about home health.
Navigating the Evolving Landscape of Youth Sports Management Platforms: Insights from the Field
By Owen Tindle June 13, 2025
From grassroots clubs to elite academies, youth sports software is becoming indispensable. Owen Tindle discusses how leading platforms are capturing share. Read more here.
Anuj A. Shah Featured on The Consulting Report's Podcast: Top Sustainability Consultant
By Anuj A. Shah June 11, 2025
Stax Managing Director Anuj A. Shah recently joined the Top Sustainability Consultant podcast hosted by The Consulting Report. Listen to the full podcast here.
Unlocking Value Post-Acquisition: How a Pricing Diagnostic Can Drive Margin and Growth
By Alex Erines June 11, 2025
Alex Erines outlines Stax Pricing Diagnostic product, designed to help sponsors and management teams pinpoint actionable insights and improve profitability fast. Click here to learn more.
Accelerating FSM Adoption in the UK and Emerging PE Opportunities
By Palash Misra & Andrew Keller June 11, 2025
UK FSM adoption lags behind the US—but structural tailwinds are aligning. Palash Misra and Andrew Keller explore how investors are capitalizing on a greenfield opportunity. Read more.
Six Key Takeaways from the Stax Consumer Survey
By Samantha Pinkes & Marko Begonja June 10, 2025
Stax Consumer group recently conducted a survey identifying consumer sentiment, revealing multiple key takeaways across several industries. Click here to see the results.
Show More