Scottish tech firm switches on to investors as part of US expansion plans

A Scottish tech firm backed by the Scottish Investment Bank and supported by accountants Johnston Carmichael, is seeking to raise further finance to fund expansion in the US for its online retail marketplace listings products.

Seller Dynamics, which previously raised £1.2 million from sources including the SIB and angel investors, is also planning improvements to its software to attract new customers in the UK.

The Stirling-based company’s investment drive comes as it reaches six years of developing its technology, which is provided to retailers via a SAAS (software as a service) model.

Its proprietary software allows retailers to list their stock on multiple marketplaces, including eBay, Tesco, Amazon and Rakuten, and on each of their international sites – eBay has 21 country specific websites and Amazon operates 11 sites. It also automatically reprices items according to the vendor’s requirements and manages stock to ensure retailers do not oversell.

The company has more than 100 customers ranging from owner-operated independent businesses to major High Street players. Its price model is based on a percentage of sales to make it affordable for businesses of all sizes.

Alex Ogilvie, founder and MD, said: “There has been a rapid growth of marketplace e-commerce around the world. Amazon alone lists over 1 billion items around the globe and has over 300 million buyers at any one time.

“What our software does is give one point of contact for retailers for all of their marketplace sales. Maximising global reach also helps retailers to increase their sales and profits. Our most successful clients have grown their sales by three-to five-fold in only 12-18 months.”

In addition to managing sales, the software integrates with couriers to arrange delivery in both domestic markets and overseas. During its last financial year, Seller Dynamics increased its income by 80% compared with the previous year and is now receiving increased enquiries from the United States. To capitalise on the interest, Seller Dynamics is now seeking to develop its distribution in the US.

Mr Ogilvie added: “If you look at the US, about half of all online sales take place through Amazon. There is a fantastic opportunity for us in the States, but we really need a partner to help us realise that potential.

“We have been working with Johnston Carmichael for about a year now, and the firm’s knowledgeable team are crucial to our plans to secure fresh investment and help us take the next step in our growth plans.”

Lyn Calder, corporate finance director at Johnston Carmichael, said: “The growth in online marketplaces is extremely exciting. With its clever software that removes the hassle of pricing and shipping for online traders, Seller Dynamics has the potential to become a global business.

“We welcome the opportunity to support the firm’s fundraising drive and we’re confident there will be strong interest among the investor community in the company’s ambitious plans to expand in the US.”

According to the 2017 Tech Nation report, in 2016 UK digital tech investment reached £6.8 billion – which is 50% higher than any other European country. The UK also has 1.64m digital tech jobs.