February 26, 2015

Royal Mail acquires third party solutions developer StoreFeeder

One of the benefits of providing solutions as a third party is that if a partnership is successful enough, the question of acquisition may be raised down the road. For software developers, this means implementing the most impressive and efficient solutions possible for a larger company in need of assistance. In the short term, these partnerships can yield income and visibility and in the long term, can set the stage for a lucrative acquisition. 

In Great Britain, Royal Mail is a leading provider of shipping solutions for businesses and consumers. In recent years, the explosion of ecommerce across Europe has heightened the demand for flexible, mobile-based shipping solutions. One app Royal Mail has rolled out with some success is Click and Drop, which allows ecommerce users to print labels for goods sold on eBay and other sites. This program was developed by StoreFeeder, a company which Royal Mail just acquired for an undisclosed sum. 

"Having successfully developed and launched our new shipping tool which has worked very effectively through the busy Christmas period, the acquisition of StoreFeeder was a clear strategic choice," said Nick Landon, Managing Director of Royal Mail Parcels, according to Post and Parcel. "I'm delighted that we will now be able to accelerate the development and release of even more tools to make shipping parcels with Royal Mail easier and more convenient."

The transition from third party developer to part of a corporate family is all about integration. StoreFeeder will now focus its primary attention on serving Royal Mail customers, a shift that comes with pressure to develop more effective tools for shipping consumers. As an acquisition strategy, the move demonstrates Royal Mail's commitment to enhancing the services it provides with greater focus on flexibility and convenience.