Summary: If you haven’t heard, Amazon won ecommerce. Bezos’ juggernaut is the most powerful marketplace and brand the Western world has ever seen (<a href="https://thesyndicate.vc/the-amazon-apocalypse-of-ecommerce/">get my analysis here as an ex 7 figure Amazon seller</a>).<br> But it isn’t the only game in town.<br> Every year new startups appear, looking to compete and grab their piece of the pie. As an ex-Amazon seller (and host of a top Amazon podcast), I can say for certain that the majority of the action in ecommerce is on the brand side. It gets easier and easier to source and manufacture product and put your label on it.<br> These businesses ARE NOT fundable. There is no disruptive innovation, there is no world shattering business or venture scale profits in the pipeline. That is fine.<br> But if you are here, you want to go big. You’re an investor or an operator interested in venture scale ecommerce and looking for an edge.<br> There are two fundable categories of ecommerce: marketplaces and ecommerce brands. To date, the majority of the money and returns have been via marketplaces. Look no further than Amazon, Ebay and Etsy.<br> (NOTE: SaaS/Shopify for ecommerce merchants was not included in these categories as it is a B2B SaaS play.)<br> When it comes to marketplaces, I have covered the topic extensive. I will link to these articles here to avoid repeating myself.<br> <br> <a href="https://thesyndicate.vc/marketplace-monopolies-cult-like-religion-icos/" data-href="https://blog.markgrowth.com/marketplace-monopolies-and-the-cult-like-religion-of-icos-c858813dacd7" class="markup--anchor markup--mixtapeEmbed-anchor" title="https://blog.markgrowth.com/marketplace-monopolies-and-the-cult-like-religion-of-icos-c858813dacd7">The Cult-Like Religion of ICOs and End of Amazon?</a><a href="https://blog.markgrowth.com/marketplace-monopolies-and-the-cult-like-religion-of-icos-c858813dacd7" class="js-mixtapeImage mixtapeImage u-ignoreBlock" data-media-id="96c1d2f56ce40997f8f15b260ae79b91" data-thumbnail-img-id="1*ZdcB12TAbsj1Us1T_qSRIw.jpeg"></a><br> <a href="https://thesyndicate.vc/network-effects-unbreakable-unregulatable-monopolies-today/" data-href="https://medium.com/p/a5b54745eed2" class="markup--anchor markup--mixtapeEmbed-anchor" title="https://medium.com/p/a5b54745eed2">The 5 Types of Network Effects and How to Hack Them<br> </a><a href="https://medium.com/p/a5b54745eed2" class="js-mixtapeImage mixtapeImage u-ignoreBlock" data-media-id="ab9d609cc1a7b27ca524463b90572cb8" data-thumbnail-img-id="0*blguKMqrgSGMRg3a."></a><br> <br> Brand’s business models are getting more interesting, lets take a look.<br> There are 4 types of disruptive ecommerce businesses:<br> <br> Direct to consumer brands<br> Subscription companies<br> Delivery companies<br> Experiential commerce companies<br> <br> Let’s look at each of these, their outliers and what the future holds.<br> <br> Direct to consumer brands<br> Recently, mega companies have been created by disrupting traditional supply chains.<br> Brands like Casper, @Harry’s and Warby Parker are leading the way. These direct-to-consumer brands cut out the middlemen by selling online and owning manufacturing to give customers better value for their money. So while consumers save a ton; the brands get to boost their margins (fewer mouths to feed), control their supply chain and build defensibility into their business.<br> They all take it a step further as well. The brand becomes the experience.<br> Casper delivers a mattress in a box. Then it inflates automatically and ready to use. How cool is that.<br> <br> <br> And Harry’s and Warby Parker deliver premium products and a premium experience at pretty affordable price. Their focus on brand keeps consumers coming back because customers love their products. And their NPS and word of mouth work wonders for marketing (Warby Parker — NPS: 91) (Source: NPSBenchmarks.com)<br>
