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> * Startups were funded whose business models were dominated by inventory and logistics costs Wouldn't that describe the whole flash sale industry and hence i
by oijaf888 13y ago
> * Startups were funded whose business models were dominated by inventory and logistics costs
Wouldn't that describe the whole flash sale industry and hence its recent decline?
Although I don't think that any 1 point makes a bubble, it is interesting how some of them are recurring now.
- tptacek 13y agoAren't Fab.com's costs dominated by headcount and marketing? Do you understand what I mean by "dominated by inventory and logistics costs"? I mean companies who owned multiple warehouses full of inventory, and who assumed direct responsibility for getting that stuff to customers.
- oijaf888 13y agoI was thinking more like Gilt since I believe there were some articles a year or two ago about how they were sitting on a ton of unsold inventory. Although Fab did come to mind, does Fab not take any inventory risk on their products? Or would you not include either of those in that category since they don't do the actual delivery to the customers as WebVan did?
- codex 13y agoIt also describes Amazon, whose stock has been on a tear.
- tptacek 13y agoAmazon was funded during the '90s bubble.