Month: July 2024

Levi’s Focus on DTC: Why I Think the Brand Has What It Takes to Be Successful

Hot take: I think over 95% of businesses selling on large Amazon would fail miserably if they opened a DTC channel. Anyone can build a storefront on Shopify, list their product, pay $100 a month membership, and start selling. But how many entrepreneurs can sell profitably in significant volume via a DTC channel? People complain about Amazon’s fees without realizing that for many brands, CACs would kill them if they had their own channels.

On the other hand, some brands are seeing massive success with DTC. One of these brands is Levi’s, which claimed to have doubled their DTC revenues in the last decade and now making this channel a major part of their strategy. According to Michelle Gass, Levi Strauss & Co. president: “With the strong momentum and consumer permission, now is the time to accelerate our transition to D2C, where we will evolve our culture and operating model, and our consumer centricity will drive every aspect of how we operate.”

This brings me to think, what makes Levi’s a good candidate for a successful DTC channel, and when should a business stay away from it?

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Seller Support Shortcomings – How it Can Hurt a Small Business

Last week, I came across a great article by Spencer Soper in Bloomberg (link below, I recommend reading it) about how Amazon sold a returned used diaper, and hurt an American small business relying on the FBA program. I found that this story is the perfect example of the shit (no pun intended) Amazon sellers have to deal with every day. The process of the incident is complex, with many actors and tasks involved, and I’d like to break it down to identify what went wrong and what could have been done better. Then, I’ll give my opinion on what I think was the main issue here, and how frustrating it can be for millions of sellers.

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Amazon Plans to Facilitate Direct Shipping from China: Are Temu and Amazon Two Sides of the Same Coin?

Right before taking a vacation, I saw the news about Amazon planning to assist sellers based in China to ship directly to US customers, similar to what Temu does. While I recognized the importance of this move, the news didn’t surprise me. It’s been clear that China-based sellers have become a key part of Amazon’s strategy. We’ve seen several moves in the past to help Amazon compete with Temu and Shein, so this isn’t entirely new.

However, this might be Amazon’s boldest move to date. My initial thought was, “Some Amazon sellers are in big trouble.” After discussing this shift, I’d like to reflect on the convergence between Amazon’s and Temu’s strategies and review the potential impact on US-based sellers.

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