This week’s podcast is about assessing specialty ecommerce companies (i.e,. the anteaters) vs. the ecommerce giants (i.e,. the lions). Which will survive? Which will thrive?

You can listen to this podcast here or at iTunes and Google Podcasts.

Here are my 5 questions (thus far) for assessing the viability of a specialty ecommerce company.

1. Is the company sufficiently differentiated in the user experience?
2. Can the company compete and/or differentiate in logistics or infrastructure without ongoing spending?
3. Does the company have a strong competitive advantage in a circumscribed market?
4. Is there a clear path to significant operational cash flow?
5. Has the company avoided markets and situations that are attractive or strategic for the major ecommerce companies?
6. Addendum: Don’t overestimate first mover, virality or growth hacks.

Here's my assessment of various specialty ecommerce companies:

• Thriving:
  • Etsy – huge suite of unique products for mass market by capturing unique merchants.
  • Oriental Trading Company – unique product for niche market by unique logistics.
  • Pinduoduo - engagement driven ecommerce.
• Survive, but questionable:
  • Global-e – cross border logistics
• I'm not optimistic:
  • Dingdong
  • Farfetch
• Situations that may be overestimating first mover, virality or growth hacks.
  • Delivery Hero:
  • Shein

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Related articles:

• Can Foodpanda / Delivery Hero Get to Profitable Scale in On-Demand Food? (Asia Tech Strategy – Daily Lesson / Update)
• Meituan vs. Ctrip vs. Alibaba: Who Will Win in China Services? (Jeff’s Asia Tech Class – Podcast 22)

From the Concept Library, concepts for this article are:

• Specialty Ecommerce
• Interactive and Engagement-Focused Ecommerce

From the Company Library, companies for this article are:

• Etsy
• Oriental Trading Company
• Pinduoduo

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I write and speak about digital China and Asia’s latest tech trends.

I also run Asia Tech Strategy, a podcast and subscription newsletter on the strategies of China / Asia tech companies.

This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.

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