PURE-PLAY PROFITABILITY: CUSTOMER ACQUISITION IS NOT THE PROBLEM; FULFILLMENT IS

For a number of years, commentators have pointed to the unfavorable economics of Internet-only retailing. Higher customer acquisition costs, substantial fulfillment costs and high product return rates have raised alarm bells among commentators and some investors. Yet the hefty valuations… Continue Reading

Is Amazon a Threat to the Off-Pricers?

At Coresight Research, we’re often asked some variation of “Could Amazon put an end to the off-pricers’ strong run?” The top three US off-price retailers are TJX Companies (which owns T.J. Maxx and Marshalls, among other banners), Ross Stores (operator of Ross Dress for Less and dd’s Discounts) and Burlington Stores, and all three have enjoyed stellar growth in recent years: between 2013 and 2017, revenues grew… Continue Reading

Amazon Is Helping Entrepreneurs Start Delivery Businesses to Expand Its Own Fulfillment Network

Amazon recently announced a new initiative called Amazon Delivery Service Partners, which aims to help entrepreneurs build small businesses while also expanding its own delivery network. Through the program, Amazon will provide entrepreneurs with access to its delivery technology, hands-on… Continue Reading