Shares of Global software-as-a-service e-commerce platform BigCommerce Holdings (BIGC) closed 5% higher after the company announced its partnership with Amazon (AMZN) Multi-Channel Fulfillment (MCF) to make order fulfillment easier for its merchants.
BigCommerce offers services like marketing and security for small and medium-sized businesses, search engine optimization, online store creation and hosting to retailers. (See BigCommerce stock chart on TipRanks)
The deal will allow BigCommerce to use Amazon’s order fulfillment services even if it does not sell on Amazon. It will also provide BigCommerce merchants access to Amazon’s fast ship speeds, operational expertise, fulfillment network and lower fulfillment costs with scalable capacity and competitive rates.
The General Manager of Omnichannel at BigCommerce, Sharon Gee, said, “Adding Amazon MCF to our best-in-class tech partner portfolio brings tremendous value to our merchants by strengthening their omnichannel strategy to enhance their competitive edge and deliver a superior online shopping experience at every touchpoint. Amazon MCF will help our merchants to better plan, purchase and fulfill in a much more efficient way than they’ve ever been able to do before.”
The Vice-President of Amazon Fulfilment and Distribution Solutions, Gopal Pillai, said, “Amazon MCF strategically places merchant products close to customers to provide faster and more affordable delivery.”
On July 7, Piper Sandler analyst Brent Bracelin reiterated a Buy rating on the stock with a price target of $83 (18.5% upside potential). The analyst said, “The additional fulfillment partner (with Amazon MCF) strengthens the bull case that the BigCommerce OpenSaaS architecture is resonating with larger enterprise brands.”
Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 7 Holds. The average BigCommerce price target of $64.44 implies 8% downside potential. The company’s shares have gained 20.1% over the past year.
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