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That is how most of the fashion sites start out. There's some point in time where they find a desperate luxury goods manufacturer willing to give them a deal, o
by rdouble 14y ago
That is how most of the fashion sites start out. There's some point in time where they find a desperate luxury goods manufacturer willing to give them a deal, or meet a guy who inherited his family's shirt factory and wants to try out something new, or they get lucky selling a few pieces of vintage clothing. Then for a while, the site does very well.
Eventually they run out of high margin stuff to sell, because they literally run out of the stuff (in the case of vintage clothing) or their suppliers start raising their prices. Then they need to sell more stuff, which requires more employees, and bigger warehouses, which continues to eat at the margins.
There's also many copy cat fashion sites, since between 2009-present "fashion internet" seems to have been a trend for fresh MBA grads. I'm not really sure how they get started, but I'm pretty confident they also don't make any money.