MGR eCommerce Edge Weekly | August 12, 2020
Top News This Week
The USPS is in Trouble, Leaving eComm Companies in Limbo
The U.S. Postal Service is a vital part of the current eCommerce industry. In 2019 eCommerce accounted for nearly 30% of the USPS’s revenue, and in the midst of the pandemic that number has jumped even higher.
The biggest uphill battle that eCommerce will always face vs retail is in logistics. The cost of getting goods to customers is not just non-trivial, but can make or break a company’s ability to survive.
Currently congress is going back and forth on a bill that would provide the USPS with the additional funding it needs to stay operational. Whether you think the USPS should be subsidized by US taxpayers or not is a topic for another day, however there is no denying the gravity of this decision for the eCommerce space.
If this bill does not pass, it will be a major reckoning for nearly every company in eCommerce.
Other Notable Links:
1. Brooks Brothers does over $1.5B revenue in 2019, acquired this week for just $325M, ouch – NYT
2. BigCommerce goes public, now worth over $5B – PYMNTS
3. MSCHF has built a multi-million dollar brand with $0 spent on ads, how they are using viral stunts to acquire loyal customers – THE VERGE