Insights

What is the Mid-Market?

With annual revenue well north of $400 billion, I think we can all agree that Wal-Mart qualifies as a large corporation.

And the local merchant down the road with a small presence on ebay marketplace can be safely categorized as a small company. That leaves a lot of room in between, a place occupied by the mid-market. But what exactly is the “Mid-Market”? The answer is it’s all a matter of perspective.

The two primary ways to categorize mid-size businesses are by total number of employees and annual revenue. Since employment numbers vary widely by industry, let’s look at revenue as a measure. But even here, there’s room for segmentation. Across all income sources, the general consensus is that the lower mid-market comprises businesses with revenue of between $10 million and $50 million, the mid-tier between $50 and $500 million, and the upper mid-market revenue falls between $500 million and $1 billion.

But when we apply these values specifically to ecommerce, those numbers simply don’t work. Ecommerce is growing at a pace that’s several times that of retail as a whole, but it’s still a relatively nascent sales channel that has a long way to go. Amazon, for example, which is the benchmark for ecommerce success, has annual revenues that barely total 15% of Wal-Mart’s. So, comparatively, when talking about the mid-market, we need to scale-down our definition proportionally.

In ecommerce, a better range for annual revenues might look like:

  • Lower Mid-Market: $2-$10 million
  • Mid Tier: $10-$50 million
  • Upper Mid-Market: $50-$150 million

And lest you think $2 million/year in sales is a little low to qualify as mid-market, that number would easily place a company among the Internet Retailer Top 1000 online merchants.

As we said, in ecommerce there is still plenty of room to grow. And as our long-standing vision has been to be the “go-to commerce solutions provider for mid-size business”, we’ll be here to solve the challenges of direct-to-consumer and B2B companies, and equip them with practical solutions that allow them to grow their ecommerce channels.