What are your thoughts about buying an eCommerce DTC business?

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October 04, 2020

by a searcher from Ivey Business School at Western University in Toronto, ON, Canada

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Reply by a searcher
from Columbia University in New York, NY, USA
D2C is really tough, not that it's unworkable. But I do think there is a day of reckoning coming for some of the high flying valuations: https://www.bloomberg.com/opinion/articles/###-###-#### /welcome-to-your-bland-new-world-of-consumer-capitalism

You need to be very certain you are not buying a commodity business. Consumer taste these days is so fickle, it's hard to predict almost any trend, I would stick with the boring stuff, but it's still risky.
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Reply by a searcher
from The University of Michigan in Las Vegas, NV, USA
^redacted‌ the rules of screening should be the same for a DTC ecommerce firm just as they should be for any other industry (Enduringly profitable, Sales/SDE targets, growth potential, etc.) With that said, I made a conscious decision 5-years ago to move towards businesses that were "un-sexy" and have been pleased with the focus (Construction, Manufacturing, and Professional Services). Hope that helps! Sam P.
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