added by sari · updated 2y ago
Shopify and the Hard Thing About Easy Things
- Customers win slightly - they have more choice on the surface, but we’re all offering the same thing, and because we’re paying so much to acquire them, we don’t have room for major discounts now that venture capital isn’t bankrolling us as heavily.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- UPS, FedEx, and USPS win - we’re fighting to bring customers online, and more customers shopping online instead of in store means more shipping.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- When the pandemic began, we bought 16% of our things online. Now, we buy nearly 34% of our things online. That’s the kind of hockey stick growth investors like to see, and the ecommerce infrastructure companies’ valuations are skyrocketing accordingly.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- Google and Facebook win - we’re all spending a ton of money on ads.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- Shopifywins - there are now four paying customers instead of one, and we’re all spending money to grow the market. Shopify takes a subscription fee and a cut of revenue.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- Here’s the hard thing about easy things: if everyone can do something, there’s no advantage to doing it, but you still have to do it anyway just to keep up.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- Sunglass and visor companies lose - by fighting against each other, we erode profit margins and enrich suppliers.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- If ecommerce is blowing up, why are there so few big DTC exits?
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago
- By making Direct-to-Consumer (“DTC”) easier, software like Shopify increases entropy and lowers the probability that any specific company will generate sustained profits.
from Shopify and the Hard Thing About Easy Things by Packy McCormick
sari added 3y ago