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A Vision Of eCommerce Post COVID
The next phase of growth for many brands is going to be far more tempest than tidal wave.
Here is what I see on the horizon...
(warning it's darker than I hoped)
The next phase of growth for many brands is going to be far more tempest than tidal wave.
Here is what I see on the horizon...
(warning it's darker than I hoped)
One year ago I wrote this piece:
https://commonthreadco.com/blogs/coachs-corner/uncertainty-action-ecommerce
Begging eCommerce brands to go ALL IN on what was proving to be a TIDAL WAVE of support for online shopping.
What followed was 12 months of hardship and pain for our species, but massive growth for our industry.
https://commonthreadco.com/blogs/coachs-corner/uncertainty-action-ecommerce
Begging eCommerce brands to go ALL IN on what was proving to be a TIDAL WAVE of support for online shopping.
What followed was 12 months of hardship and pain for our species, but massive growth for our industry.
Now 1 year later as I survey the landscape I see a much more ominous future.
Here are 5 serious challenges facing us all on the other side of COVID...
Here are 5 serious challenges facing us all on the other side of COVID...
1. Unreliable Data
Most eCom brands walk a thin cash line that depends on the ability to forecast demand with moderate accuracy.
Underforecasting leads to missed opportunities, over forecasting leads to death
2020 growth rates will lure many into overzealous inventory postions
Most eCom brands walk a thin cash line that depends on the ability to forecast demand with moderate accuracy.
Underforecasting leads to missed opportunities, over forecasting leads to death
2020 growth rates will lure many into overzealous inventory postions
2. The Return of Options
COVID is ending, retail, travel, nightlife, gyms, etc are all returning.
There is no doubt that during lockdown eCommerce grabbed a disproportionate share of consumer's wallets.
How will the money be spent as we go forward?
COVID is ending, retail, travel, nightlife, gyms, etc are all returning.
There is no doubt that during lockdown eCommerce grabbed a disproportionate share of consumer's wallets.
How will the money be spent as we go forward?
3. The FB Problem
eCommerce is so over-indexed on FB for its growth that even a moderate impact on its magical ad product would devastate the sea of small DTC brands.
Recent privacy restrictions from Apple, Google, and legislators pose a meaningful threat.
eCommerce is so over-indexed on FB for its growth that even a moderate impact on its magical ad product would devastate the sea of small DTC brands.
Recent privacy restrictions from Apple, Google, and legislators pose a meaningful threat.
4. Large Competitors Have Entered The Chat
Massive CPG players, retailers, and fortune 500 brands that previously ignored DTC as a major channel have now pushed hard into every corner of digital real estate.
From SERP's to IG feeds their war chests move markets.
Massive CPG players, retailers, and fortune 500 brands that previously ignored DTC as a major channel have now pushed hard into every corner of digital real estate.
From SERP's to IG feeds their war chests move markets.
5. Small Competitors Are Flooding In
Shopify touts that every 28 seconds a new store owner makes their first sale.
Q1 of 2021 was the largest filing of new businesses of any quarter in our country's history.
The barrier to start an online business has never been lower.
Shopify touts that every 28 seconds a new store owner makes their first sale.
Q1 of 2021 was the largest filing of new businesses of any quarter in our country's history.
The barrier to start an online business has never been lower.
I dive into all these dynamics in-depth, including some things you can do about it in my newest state of the industry piece released today:
The Tempest & the Tidal Wave: Five Challenges to Ecommerce on the Other Side of COVID https://commonthreadco.com/blogs/coachs-corner/ecommerce-after-covid
The Tempest & the Tidal Wave: Five Challenges to Ecommerce on the Other Side of COVID https://commonthreadco.com/blogs/coachs-corner/ecommerce-after-covid
And if you prefer video I recorded a breakdown of my thought process behind the piece.
To be clear I am as bullish as ever on the MACRO movement of eCommerce.
But just like @web wrote earlier this year, I believe:
"The Roaring Twenties weren’t everyone’s. The Roaring Twenties will not be everyone’s."
But just like @web wrote earlier this year, I believe:
"The Roaring Twenties weren’t everyone’s. The Roaring Twenties will not be everyone’s."
Only the disciplined, truly unique, and fundamentally sound will emerge from this next season.
If you found this content helpful at all here is what I ask.
- Share the link with a friend
- RT to your followers
- Leave a comment on how you see the coming future
If you found this content helpful at all here is what I ask.
- Share the link with a friend
- RT to your followers
- Leave a comment on how you see the coming future
