‘Four strategies for getting rich in e-commerce’ – Internet Retailer
Don Davis says, “A new Internet Retailer report analyzes the value of privately held e-retailers and provides guidance on how to build the value of an e-commerce business.
Every entrepreneur starting an online retail business at her kitchen table dreams of getting rich. It can be done, even if Amazon.com Inc.’s growing dominance of online retailing makes it tougher, and Internet Retailer has produced a new, 32-page report that shows how.
The report, “Valuing America’s Top E-Retailers: A Guide for E-Retailers and Investors,” is based on an analysis of 553 privately held web-only and catalog retailers in the Internet Retailer 2016 Top 1000. It concludes that the typical privately held e-retailer can command a value of just under one times annual sales. But there is a big range, with larger retailers and those that sell private-label product not available elsewhere commanding significantly higher multiples.
The best way to compete with Amazon and all the other online and offline retailers is to sell merchandise they can’t offer. That gives an e-retailer something unique to offer consumers and means it isn’t as vulnerable to online price comparison because—if the consumer wants the product—there’s only one place to get it”.
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