Scale does not equal profitability in eCommerce
– For years, eCommerce brands and retailers pursued growth while enticing investors with the promise of future profits once their company achieved scale
– As large public brick and mortar retailers have expanded into eCommerce, many have claimed the lack of profitability has been due to investments in logistics infrastructure, technology, and customer service
– While many of these companies have reached scale, few have achieved the level of profitability promised to investors or targeted by these companies
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