Wix Acquires Modalyst to Provide Its Own eCommerce Supplier Marketplace and Native Dropshipping Solution

Rhea-AI Summary

Wix (NASDAQ: WIX) announces the acquisition of Modalyst, a premier dropshipping platform, to enhance its eCommerce services. This acquisition aims to enable Wix merchants to connect with a vast supplier marketplace, streamlining the sourcing and fulfillment of products. Currently, Wix merchants that utilize dropshipping see a 40% increase in Average Order Value and a 79% boost in revenues within four months. The integration will empower businesses to expand product offerings and enhance their operational effectiveness, significantly aiding eCommerce growth.

Positive

• Acquisition of Modalyst strengthens Wix's eCommerce platform.
• Wix merchants can access a wide range of suppliers and products, boosting their inventory.
• Existing partnership showed significant sales improvements: 40% increase in Average Order Value and 79% revenue growth.

Negative

• None.

NEW YORK, June 15, 2021 /PRNewswire/ -- Wix (Nasdaq: WIX), a leading global SaaS platform to create, manage and grow an online presence, today announced the acquisition of Modalyst, a leading marketplace and dropshipping platform. The acquisition will continue extending the Wix eCommerce platform and contribute to the success of businesses on Wix, connecting Wix merchants to a vast supplier marketplace where they can create lasting, scalable relationships and source millions of high-quality products synced directly to their store to sell and fulfill online.

As frequency for online shopping has increased, the importance for merchants to expand their inventory and efficiently fulfill orders is crucial to managing and growing an eCommerce business today. Dropshipping marketplaces have been a game-changer for both suppliers and retailers and is evident in the success of the existing partnership between Wix and Modalyst through the Wix App Market. On average, Wix Stores that add dropshipping products increase AOV (Average Order Value) by 40% and sales revenues by 79% within the first four months.

With the acquisition of Modalyst, Wix business owners can seamlessly connect their online store to an established marketplace of thousands of suppliers, manufacturers and wholesalers where they have access to products spanning name brands, trending items and independent labels with the option to white-label products with their own branding. Merchants then import the products directly to their online store, including details and image options from the supplier, which continually update with the suppliers' pricing and inventory. When a purchase is placed, orders are packaged and fulfilled by the supplier and can be fully branded for a full white-label solution. The merchant receives tracking numbers and is updated on the fulfillment status of each order via their Wix dashboard.

"We're proud to welcome Modalyst to expand the infrastructure of Wix eCommerce," said Arik Perez, Head of Wix eCommerce. "Connecting merchants directly to a full supplier hub allows them to expand their own product offering and helps new businesses establish themselves by connecting with vetted suppliers with access to private labels and dropshipping. This offers merchants a convenient way to sell a large variety of products, test new and trending markets and ultimately expand their reach. Merchants can significantly scale their businesses and in providing them with a native solution, we can help them continue to maximize their store footprint, all in one place from the Wix platform."

The Wix eCommerce platform powers businesses of all types, including online stores, service providers, restaurants, fitness, events and more. It provides merchants with a full omnichannel solution to create, manage and grow their eCommerce business to sell online and offline. Using Wix, merchants can sell through multiple sales channels including web and mobile storefronts, Wix Point of Sale, social media, online marketplaces, as well as manage and track inventory, orders and fulfillment to payment and brand marketing.

"As a dedicated partner of Wix, we're thrilled to officially join the team and continue our vision to help merchants grow their stores," said Jill Sherman, CEO of Modalyst. "Our solution reduces the hassle for merchants to manage inventory, fulfill and ship on their own, while ensuring they are connected with reliable, vetted suppliers who will provide high quality products. This empowers businesses to truly invest in their brand, community and broader strategic goals. We look forward to helping take Wix eCommerce to new heights."

Modalyst was founded in 2012 by Jill Sherman and Alain Miguel, both of whom will join Wix. Modalyst has been one of the most successful eCommerce applications in the Wix App Market and is a portfolio company of Wix Capital, a fund dedicated to investments in early stage companies that share Wix's vision of technology, innovation and development shaping the future of the web.

About Wix.com, Ltd

Wix is leading the way with a cloud-based website development platform for over 200 million registered users worldwide today. The Wix website builder was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Through free and premium subscriptions, Wix empowers millions of businesses, organizations, artists, and individuals to take their businesses, brands and workflow online. The Wix Editor, Wix ADI, Editor X, a curated App Market, Ascend by Wix and Velo by Wix enable users to build and manage a fully integrated and dynamic digital presence. Wix's headquarters are in Tel Aviv with offices in Austin, Be'er Sheva, Berlin, Cedar Rapids, Denver, Dnipro, Dublin, Kiev, Los Angeles, Miami, New York, Phoenix, San Francisco, São Paulo, Tokyo and Vilnius. 

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Download: Wix App is available for free on Google Play and in the App Store. 
For more about Wix please visit our Press Room

Media Relations Contact: 
PR@wix.com

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SOURCE Wix.com Ltd.

FAQ

What is the purpose of Wix's acquisition of Modalyst?

Wix acquired Modalyst to enhance its eCommerce platform by providing merchants access to a comprehensive supplier marketplace and dropshipping solutions.

When was the acquisition of Modalyst announced?

The acquisition of Modalyst was announced on June 15, 2021.

How will the Modalyst acquisition impact Wix merchants?

The acquisition will allow Wix merchants to expand their product offerings and improve inventory fulfillment through dropshipping, ultimately boosting sales.

What notable results have Wix merchants seen from dropshipping?

Wix merchants using dropshipping have reported a 40% increase in Average Order Value and a 79% increase in sales revenue within four months.

Who are the key individuals from Modalyst joining Wix?

Jill Sherman and Alain Miguel, co-founders of Modalyst, will join Wix as part of the acquisition.