Oren Charnoff’s Post

The DTC story reminds me a lot of the 2008 financial crisis. In 2008, the economy was brought to its knees after years of financial recklessness. DTC experienced a similar roller coaster over the past 6 years.  Let's take a look... In 2012, Shopify gains momentum, and a multi-year DTC bull market was born. In 2013, Instagram had been recently acquired by Facebook, and organic social media was crushing. In 2015, Facebook paid ads became a money printer.... It was like taking a $1 bill, folding it into a paper airplane, throwing it into the universe, and seeing it come back as a $5 bill. By 2018, the $1 dollar paper airplane now came back as a $20 bill. Generating revenue from FB ads became so easy, the obsession shifted to instant click and conversion, and less about real brand building. In 2020, Covid triggers massive demand for online goods. Thousands of new brands launch every week. Covid also fuels an era of cheap money. Fed slashes rates stimulating access to capital. Government hands out boat loads of free money. Free money  + Artificially inflated consumer demand + Cheap CAC + Departure from business fundamentals ________________________________ = A FROTHY bubble in DTC Remember in 2006, when a Cheesecake Factory waiter could qualify for a $1 million mortgage? And everyone quit their day job to flip houses or become a broker? The same happened in Ecom. During lockdown, everyone quit their job, and started an online brand. 2 million new brands were born overnight. The PEAK of the DTC market was Summer 2021. Then... iOS 14 happened. Customer acquisition costs shot up. Plus, post-Covid store reopenings triggered a pullback in online demand. “But wait, I thought this era of free money, low CAC, and artificially inflated Covid-induced consumer demand was going to last forever?” The WAKEUP call began. 30% of brands did not survive the first 9 month spike in CAC, going into 'zombie' mode. THIS is when founders had to learn how to REALLY run a business. You know… where profits actually matter. But the problem… No one knew how. With so many shortcuts taken to fuel growth, business 101 felt like a foreign language. 2022 was brutal. Cash crunch and layoffs blitzed the sector. DTC darlings that had IPO'd, became penny stocks. 2023 felt like a trough. Finally, there was mass acceptance that the "go-go days" were behind us. Now in 2024, while the environment is still hard, it's viewed as the "new normal." Pipe dreams of exponential growth have evaporated. The focus is on fundamentals and sustaining profitability, instead of a "growth at all costs" mindset. And as a result, brands are finally seeing business stabilize. THIS is why it's safe to call 2024... THE BOTTOM. And there's only ONE way to go from here.... UP. It’s also time to congratulate all the brands that have weathered this rollercoaster. If you made it this far, it’s a testament to your tenacity and ability to adapt. Brighter days are ahead. 💪🏼

🔥 When Craig Schweighoffer, Founder and CEO of growing eCommerce brands tbh Skincare & York St Brands saw their revenue spikes on the horizon, he knew it was time to find the perfect fitting funding partner. 💡 Enter Wayflyer's Revenue-Based Financing! 💡 Instead of getting tied down in the limitations of traditional loans, tbh Skincare & York St Brands chose financing that grows with them — no interest, no equity loss, just a small percentage of revenue until the advance is paid off. Don't take my word for it, listen to what Craig Schweighoffer had to say 💬 "Without them, it would have meant an equity raise which was not desirable. It was a really quick turnaround for funds in the bank and for 2 years now we have had an ongoing funding relationship with Wayflyer and look to them when we require funding to support the growth and also new product launches ❗ ❗ " The result? 4x sales last year with Wayflyer being able to offer ; 🔺 Flexible offers (tailored to your cash conversion cycle) 🔺 Competitive fees 🔺 Top-ups (in line with growth) So if you're brand is about to head into its Black Friday and EOY Spikes, why not get an offer in front of you from the team here at Wayflyer?

  This is what Blinkit's co-founder has recently tweeted. This is the first time that IGP and FNP will compete with Quick Commerce". It made me curious why Quick Commerce (QC) would jump to the gifting category and whether this is just a Valentine's Day fling or a long-term power play. Why Blinkit entered the gifting space.....   ↗ Higher Order Value: Gifting boasts a 3- 4x higher average order value than regular purchases. ↗ Impulse Buys: Quick commerce thrives due to impulse buying, which aligns perfectly with last-minute gifting needs. ↗ Broader Reach: Beyond flowers, platforms like Blinkit can offer a variety of gifting options, including chocolates, cakes, and electronics. How Blinkit is winning the category.....   🔆 Speed is King: 20-minute delivery promises become a 'moat' for last-minute gifting scenarios. 🔆 Data-Driven Approach: Blinkit can predict local demand by leveraging user data and curating hyper-relevant gifting options. 🔆 Tech Focus: Blinkit invests heavily in tech solutions for efficient order fulfilment and supply chain management. Where the future lies, traditional players must invest heavily in technology since they receive most orders through their websites. However, the ordering process could be more user-friendly, and the app must also be revamped to offer more convenience at their fingertips. While the QC 'moat' is delivery, traditional players can stand out by prioritising personalised customer experience. The future of gifting is a blend of quick commerce's speed and convenience with conventional players' personalised touch and wider reach.   What are your thoughts on the evolving gifting landscape? Share your insights in the comments below! Source: X/Twitter #quickcommerce #gifting #blinkit #valentinesday

Subscriptions are more than just a trend - they're transforming how we shop, spend, and connect with brands. In our latest blog, we analyse ways the subscription economy is reshaping consumer behavior and what it means for the future of commerce. Key takeaways: 👉Consumer expectations are rising 👉Convenience is more valued than ever 👉Subscribers are seeking a sense of community 👉Subscriptions could change the way we consume fashion Read the full blog here: https://lnkd.in/eU4r3ZFD #subscriptions #ecommerce #ecommercetrends

We grew 300% in 2023 – a recap of an unbelievable 3rd year. Here's what happened at Shop2App: It was a landmark year for us, filled with firsts and significant milestones. Our team grew in size and spirit. (New faces, new ideas, same incredible vibe.) We focused more on Personalization this year and introduced features like Personalized Home Screen – making each interface as unique as the brand. This bet on personalization paid off, improving key metrics for our clients: - AOV up by 22% - LTV up by 15% - Repeat Ordering by 26%. Deepening our focus on subscriptions, we tailored our platform to cater specifically to subscription-centric brands. We are fortunate and grateful to all our partner brands including Public Goods, Bully Max & DryEye Rescue for trusting us with their most loyal customers. Thank you for believing in us. Overall, the brands (we work with) have retained more customers, with churn down by nearly 30%. All because we are the only mobile app builder that is improving the customer journey for subscriptions. Each innovation, each new partnership, and each feature (we added to our platform) was a step toward reimagining the future of subscriptions. And yes, we're just getting started. 2024 started with a bang! Last week, our team finally met in person. (The energy? Electrifying!) We launched RetainX, our new weekly newsletter, to share insights, trends, and more, marking a new chapter in our communication. Here's to making 2024 even more groundbreaking. 🥂

Transform your shopping experience with our revolutionary vision of " #eCommerce_to_Empower_Customers (#ETEC)." Unlike traditional eCommerce platforms that prioritize profit margins, our unique concept invites you to "Shop More - Save a Fortune!" Each dollar you spend at our store doesn't just get you high-quality, competitively priced merchandise—it also increases your equity in our company. This means that over time, as our company grows, so does your stake in it, providing a robust financial cushion for your future. Imagine a shopping platform where your purchases today can significantly contribute to your retirement tomorrow. Why settle for mere discounts when you can shop smarter and invest in your financial well-being? Join us, empower yourself, and watch your equity flourish as our company expands! Silent Features: Empower your financial future with every purchase. Enjoy competitive prices on a wide range of merchandise. Build equity in the company at no extra cost to you. Support your retirement by shopping with us. Summary of Benefits: Empower Customers with Equity: When you shop with us, every dollar spent contributes to increasing your stake in our company, allowing you to build significant equity without any additional cost. Transform Shopping into Investment: Unlike traditional eCommerce platforms, our model transforms your shopping experience into an investment opportunity, where your equity grows as the company expands. Retirement Support Through Shopping: By shopping at our stores, you are not just purchasing products at competitive prices but also securing substantial support for your retirement through the equity you accumulate over time. Shop More, Save a Fortune: Our unique #Shop_More_Save_A_Fortune concept ensures that the more you shop, the more you save, and your financial stake in our company increases proportionally, leading to long-term financial benefits. Competitive Prices with Added Value: Enjoy a wide range of merchandise at competitive prices, while simultaneously building equity in our company, ensuring that your shopping dollars work harder and smarter for your future. " #Shop_More_Save_A_Fortune " today and start building your fortune with every purchase! ** Terms & Conditions Apply.

Today, consumers aren't just after features and prices. They want an option to return and upgrade their new tech devices and products. 💡 👉 That's why preplanned #productbuyback is the new normal. 💯 The year started with a game-changing event as the buyback option was chosen by 50% of consumers in the smartphone product category. 📱🚀 At the largest e-commerce provider in the Nordics, Komplett Group. 👉 What led up to this?  1️⃣ Solving an actual problem ✅ People want to use the latest products, but hate the hassle of resale. It's inconvenient and cumbersome. Second-hand marketplaces rely purely on consumer action, which is why they’ve failed to deliver on the #circulareconomy. ♻️ 2️⃣ Convenient customer journey 👌 Brands and retailers can offer a seamless customer experience by simply adding product buyback at checkout as an additional payment option. No risks nor headaches of building complex payment systems. ⚙️ 3️⃣ Looming environmental disaster 🚯 Selling products without agreeing on buyback terms is causing an environmental disaster. In 2022, 5.3 billion mobile phones were thrown away, sending valuable materials to landfills. 🗑️ 🍀 The journey to #sustainable consumption has to start from the point of purchase.📍 Preplanned product buyback removes the hassle of resale by enabling consumers to return the product to exactly that point. 🏪 The product is then refurbished and resold, driving the circular economy and #productreuse. 🔄🌿 That’s why more and more brands see enormous value in product buyback. 👀 Read more: https://lnkd.in/dWdxEM9W #sustainability #ecommerce #payments #recommerce #sustainable #sustainablepayments #sustainablefinance #productasaservice #recycling #ewaste #financialtechnology

Do you know how many liters of water is required to make a smartphone? It's a shocking amount - 14 000 liters. Yet this is not even the saddest part. And the saddest part is that they are often left sitting on the drawer for the times "one might need them". If you have any old devices, please allow specialists to reuse them. And if you're going to buy any new products, be a smart and sustainable world citizen by choosing the buyback option when purchasing new device. 💡 And if you're retailer or merchant, allow your clients to choose preplanned product buyback. #circulareconomy

Snapdeal’s Himanshu Chakrawarti on the company’s earnings, growth strategy, and future roadmap #BrandWagon #media #company #growth #futureroadmap #revenue #repeatcustomers #ecommerce Snapdeal | AceVector Group Himanshu Chakrawarti

Are brands exhausting their customer base? After the acquisition boom through the pandemic, the tide turned. Consumer demand changed Platforms had challenges Business costs inflated Expectations shifted 2023 saw the cost of living bite. As inflation increased, so did interest rates. It was another hit on both consumer and business finances. The consumer pulled back, acquisition got tougher. To counter, brands are seeking to extract more value from existing customers to fill the revenue gap. With less acquisition, each existing customer is being worked harder. However, are brands leaning on this customer too much? Will the lack of acquisition bite in the near future? What's your take? ---------------------- Follow me Liam Hooper If you want more content like this 👍