I recently started a podcast with my friend Jeremy.
We’re calling it Cart Overflow.
It’s a learning experience for both of us–the recording process, the content creation, and most importantly the deep dive into ecommerce topics.
Part of the reason that we decided to start a podcast now is because eCommerce is going through enormous changes.
1. There’s More Competition Than Ever
The barrier to entry has never been lower to start an ecommerce site.
It is easier to find suppliers (with Alibaba), launch a site (with Shopify), and do so with limited capital (like dropshipping or Print On Demand).
Warby Parker Co-Founder Neil Blumenthal confirms, “It’s never been easier or less expensive to start a business, but it’s also never been harder to scale one,”
2. DTC Brands Rely on Paid Channels
Facebook, Instagram, Google, Snapchat and more–running paid campaigns is the quickest and sometimes the most cost-effective, means to acquire new customers.
However, as a result of increased Cost Per Click pricing and more competition, these channels that were once highly profitable have become more expensive.
3. Venture Capital funding makes it even more competitive
eCommerce consumer brands have raised more than $3 billion since 2012, half of that in 2018 alone per Digiday.
Thus, DTC brands have deeper pockets to acquire customers, but also higher expectations to meet, in terms of how big, and how fast, they can grow.
4. Coronavirus and acceleration of ecommerce growth
The coronavirus and the forced lock-down of retail shops around the country has accelerated the move towards ecommerce.
According to Vivek Pandya of Adobe Digital Insights, ”It would’ve taken between 4 and 6 years to get to the levels that we saw in May if the growth continued at the same levels it was at for the past few years.”
All of this simply means that we are in a fascinating inflection point of ecommerce. Multiple forces are coming in to play that will drastically change how we shop, sell, and behave online.
This shift in behavior is exactly why we started Cart Overflow, we hope that you will join us for the ride (and the conversation)!