A Note From Me

How ShipBob can get their $4B Valuation

After 10 years in business ShipBob has announced their intentions to go public within the next year at a $4B valuation. That seems like a stretch unless they look at making a few key changes.

In 2014 Divey Gulati and Dhruv Saxena initially set out to create a software company. Their goal was to help e-commerce shippers manage their own operations by making label printing a little easier. They gradually expanded into picking up packages for their customers and eventually their customers asked them if they’d be willing to just hold their inventory and take care of all of this logistics stuff. Thus ShipBob was born.

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What We’re Reading

• A China-U.S. Decoupling? You Ain’t Seen Nothing Yet: With the intensifying economic separation between China and the United States, the current trade tensions may only be the beginning of a deeper and more extensive decoupling. There's also a growing divergence in technological, financial, and supply chain spheres, indicating a trend towards further economic disentanglement between the two global powers. (WSJ)

• Logistics Operators See a Shipping-Market Rebound Taking Shape: The challenges faced by businesses in managing and optimizing their inventory levels, emphasizing the importance of effective inventory management strategies for ensuring operational efficiency and customer satisfaction. Key factors such as demand forecasting, inventory turnover, and safety stock levels as essential components of a successful inventory management approach. (WSJ)

• Amazon’s Newest Competitors Are Stepping Into Its Territory—Literally: Amazon's traditional retail competitors are venturing into its domain by expanding their online offerings and investing in e-commerce infrastructure. As these companies seek to challenge Amazon's dominance, they are implementing strategies such as improving their digital presence and enhancing their delivery capabilities to capture a larger share of the online retail market (WSJ)

• Walmart Eases Supplier Delivery Demands as Stocking Pressures Recede: Walmart is adjusting its supplier delivery requirements to alleviate pressure on stocking amid supply chain challenges. The move aims to enhance flexibility for suppliers while maintaining efficient replenishment processes. (WSJ)

• Amazon-Business Acquirer Benitago Files for Bankruptcy: Benitago, a company that bought and resold goods on Amazon Business, has filed for bankruptcy. The firm struggled with cash flow and faced challenges with Amazon's inventory management requirements. (WSJ)

• Top Amazon aggregator Thrasio files for bankruptcy: Thrasio, a leading Amazon aggregator, has filed for bankruptcy as it faced increasing competition and challenges in scaling its business model. The company's bankruptcy filing comes amid a broader trend of consolidation and challenges in the e-commerce space. (CNBC)

• Imports Under Closely Watched U.S. Trade ‘Loophole’ Surge: Imports under a closely watched U.S. trade loophole have surged, raising concerns about its impact on domestic industries. The increase in imports through this loophole could exacerbate tensions between the U.S. and its trading partners and potentially lead to further trade disputes. (WSJ)

Aaron was quoted in The Informations’s ShipBob’s TikTok Deal Spurs Growth, but Profits Remain Elusive

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New Episode of Ecommerce On Tap

In our latest installment of "Ecommerce On Tap," we bring you a compelling analysis of Vuori's strategic approach to ecommerce that culminated in a groundbreaking $4 billion valuation.

🎧 Episode Focus:

- Bold Beginnings: Vuori's audacious $100K initial purchase order.

- Quality and Logistics: Examining Vuori's strategic decisions in fulfillment.

- Lean Growth Model: How Vuori's austerity contributed to their financial success.

- Anticipated IPO: Insights into Vuori's growth trajectory and market positioning.

🔎 Analytical Insights:

- Vuori's success through targeting an underserved male athleisure market.

- Effective tactics for customer acquisition and retention amidst fierce competition.

📈 The Broader Implications:

We deliberate the probable outcomes for Vuori, including potential acquisition by larger players in the sportswear industry.

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