Southwestern Promocoup, an online market that sells products from Nike, Nike+ and other brands, has been the latest to jump into the market in 2018.
It’s already raised more than $30m in funding, and the market is growing at an astonishing rate, with a total of almost $100m in sales in the past three months.
The platform is a new way to market brands to customers, as well as allowing users to choose from over 20,000 items, such as Nike shoes, Nike hoodies, and Nike hoodie jackets.
But the platform’s business model has also been criticised by some investors.
The platform’s biggest rival, the e-commerce platform ebay, recently announced that it will shut down its Southwestern promocoutons business in 2019, and also stop offering any promocouching services.
EBay CEO Joe Lubin, who co-founded Southwestern in 2014, said the company has seen growth in the platform and its customers have also benefited from it.
“This growth has allowed us to bring the value of promocontrol to more people and to create new markets for Southwestern’s brands,” he told investors in a conference call.
“The Southwestern brand has grown to become a new and powerful platform to bring products and services to more consumers, and we’re looking forward to seeing the success of our customers and partners.”
The company is currently in the process of shutting down its Promocount service, with its remaining stock, but will be able to continue to offer the services until March 2019.EBay will also be shutting down the Southwestern app and will be offering new products at the same time.
“Southwestern is in a tough spot,” Lubin said.
“We need to be a leader in bringing new products and the value to our users.
We’re going to keep working hard to grow our platform and continue to invest in new services to further our mission.”
For now, however, Lubin is happy with the market, and said it is already generating more than a million new purchases every day.
“For now we’ve got a great business, and it’s growing,” he said.
As for Southwest’s business models, Lubins said it had to have a high-quality product to be able survive, but it had been able to grow at a sustainable rate.
If ebay shuts down its services, Lubs said Southwestern will have no choice but to shut down, with no further investments made.
Southwestern has also raised $2m from venture capital firm SoftBank, as it looks to expand into new markets.
“SoftBank’s investment in Southwestern demonstrates the growing value of the ecommerce platform in a competitive market,” said SoftBank Group President Hiroshi Yamamoto.
“Our new platform is already a powerful platform for brands to connect with consumers.”