Jeremy Liew writes for Pando Daily about the success of select ecommerce startups in the past and present, and how leveraging inefficient marketing channels, paired with quick growth, made successful startups (Zappos, Groupon, etc) take off. Where are we today?
“The window for startup ecommerce companies to take advantage of social platforms is starting to close. Those that have achieved scale are safely through the window, but those starting today and hoping to grow through the Facebook ad channel will find it much harder going than the first generation did.
In each era, a new, scalable, and inefficient customer acquisition channel has emerged, and it has spawned the growth of a wave of new ecommerce startups. Once service providers emerge to make the channel efficient, the window closes for new startups. So is this the end of the current wave of ecommerce startups? I don’t think so. I believe there is a new, scalable, inefficient customer acquisition channel that is beginning to emerge and will explore that topic further in my next post.”