These 2 Mega-Trends Should Put This Recent IPO on Your Radar
Founded in 2013 and recently having gone public in May 2021, Global-e Online's (NASDAQ: GLBE) mission is to make global e-commerce border-agnostic, offering its clients a worldwide reach with a localized shopping experience. Through its volume-based sales model, Global-e earns revenue in two ways: service fees and fulfillment services. Service fees are simply what the company receives for integrating its platform into a merchant's sales system, while fulfillment services revenue comes from its shipping and handling offerings.
Essentially, the company simplifies the numerous intricacies of selling products internationally; language differences, currency changes, country-specific tax policies, and localized pricing adjustments are just a few examples. By doing the leg work for its merchants on these various fronts, Global-e increases their international sales success rate by 60%, highlighting how valuable its services are.
In just over seven years, Global-e has grown its gross merchandise volume (GMV), or the total amount of goods sold through its merchants, to $326 million as of the second quarter of 2021, leading to revenue of $57 million over the quarter. However, with a target addressable market (TAM) of $736 billion according to the economic research firm Forrester's 2023 cross-border e-commerce sales forecast, the company's growth story is just beginning.
Source Fool.com