S7 E2: The 2024 Shakedown: Bankruptcies, Bots, and Failed Brand Roll-Ups (Oh My!)

Limited Supply · January 10, 2024 · 47 min

Summary

The e-commerce landscape is facing a "shakedown" in 2024, characterized by increased bankruptcies, failed brand roll-ups, and the pervasive issue of bot traffic skewing ad spend. This episode analyzes the implications of these trends, offering insights into strategic adjustments for DTC brands, the evolving role of major platforms like Shopify and Amazon, and the critical importance of maintaining brand ethos amidst corporate acquisitions. It provides a stark look at the challenges and opportunities for e-commerce operators in the coming year.

Key takeaways

• Expect continued brand bankruptcies and consolidation; identify distressed assets as potential acquisition opportunities or refine your own financial resilience strategy.
• Re-evaluate your ad spend, especially on platforms vulnerable to bot traffic, to ensure genuine engagement and accurate ROAS measurement.
• Prioritize maintaining your brand ethos through any growth or acquisition strategy, learning from examples like VF Corp where corporate actions undermined brand identity.
• Scrutinize SaaS pricing models and value propositions, as the market is due for a correction, impacting your operational costs.
• Stay informed on competitive pressures facing major platforms like Shopify from Meta and Amazon, which could influence your platform strategy and investment decisions.

Themes

Topics covered

Episode description

Bankruptcies, failed roll-ups, and ad-spend-eating robots—sounds like the only proper way to kick off the New Year, yeah? Nik and Moiz are back, and they’re breaking down everything you might have missed during the holiday vacay, including the string of December bankruptcies that left several brands ringing in the new year with dashed dreams and bottles of champagne to kill the pain. Then, later they discuss the difference in thinking between first-time and second-time founders, the acquisition of several brands by Fraser’s Group and THG, and what happens when a corporation accidentally kills off its entire brand ethos (we’re looking at you, VF Corp). And it wouldn’t be the new year without two men behind a microphone dispatching their best predictions for 2024, now would it? The guys discuss why you might want to consider selling that Shopify stock you’ve been investing in (it’s been nice knowing you, buddy), why Amazon is threatening to go postal, and why Moiz simply can’t refuse sassing off about the price of SaaS.    00:00:27 - December: The Month of Bankruptcies and Engagements 00:01:34 - Which Ad Platform is Most Effective for Newsletter Ads? 00:05:13 - Maximizing Ad Spend on Twitter 00:07:15 - Building a Brand for Success 00:14:38 - The Impact of Sales Tax on E-commerce Businesses 00:25:47 - Recent Acquisitions: Distressed Brands Bought 00:26:49 - Building Multiple $50 Million Brands 00:30:41 - Balancing Corporate Functions and Brand Ethos 00:32:50 - Who's Failing at Brand Roll-Ups? 00:33:50 - Facebook and Instagram Threaten Shopify 00:39:25 - The Future of SaaS Pricing in E-commerce 00:40:36 - The Battle Against Bot Traffic   Want more DTC advice? Check out the Limited Supply YouTube page for more insider tips.   Check out the Nik’s DTC newsletter: https://bit.ly/3mOUJMJ   And if you’re looking for an instant stream of on-demand DTC gold, check out the Limited Supply Slack Channel for Nik and Moiz’s most unfiltered, uncensored thoughts.   Follow Nik: Twitter

Frequently asked about this episode

What does this episode say about finance & fundraising?

Expect continued brand bankruptcies and consolidation; identify distressed assets as potential acquisition opportunities or refine your own financial resilience strategy.

What does this episode say about dtc strategy?

Re-evaluate your ad spend, especially on platforms vulnerable to bot traffic, to ensure genuine engagement and accurate ROAS measurement.

What does this episode say about paid acquisition?

Prioritize maintaining your brand ethos through any growth or acquisition strategy, learning from examples like VF Corp where corporate actions undermined brand identity.

What does this episode say about brand & content?

Scrutinize SaaS pricing models and value propositions, as the market is due for a correction, impacting your operational costs.

What does this episode say about finance & fundraising?

Stay informed on competitive pressures facing major platforms like Shopify from Meta and Amazon, which could influence your platform strategy and investment decisions.

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