Sent Items #161: Monday, July 15, 2024

Pretty slow weekend, wasn’t it?  Geez!!

Unfortunately, another sick and angry person with an AR rifle captured world headlines. While this country will survive - and the next generation will be better than this one - we are in a lot of trouble today. Every which way I am conflicted in 2024.

Keeping this issue short as I’ve been busy with two big events:

Closed on a new home on Friday. Staying in Nashville, but moving around the corner. Of course it’s for our dog Henry who needs more space 🤗

We also listed our current house - if you are interested in owning a home in Nashville, one where yours truly spent the last few years, this is your chance. Pic of house for sale below.  Cash/Zelle/Venmo appreciated. 

The other big event is that I have taken over from my co-founder as CEO of Third Person. The business is achieving exciting milestones and I’m working on ramping it in the coming months. I’m kicking off a friends and family round of capital in the coming days - let me know if you are interested in learning more.

Onwards…

Tomorrow is Prime Day, a.k.a. Air Fryer discount day.

Amazon also quietly turned 30 last week (link). What’s next for one of the world’s largest tech companies? Yes, a once book seller, turned tech company masked as a retail marketplace.

I’ve had two clients recently ask about SPS Commerce. Their name comes up from time to time, I’ve just never been too involved on the tech/integration side of the house. But then I got excited when I learned they are publicly traded. It’s an $8 billion company and the stock has been on fire.

Over the last 5 years - July 2019 - well before COVID, SPS Commerce is up almost 300%… about 3x Shopify’s return:

Over the last 7 years, their returns are roughly the same (SPS Commerce = 589%, and Shopify = 630%). Impressive little run SPS has had.

I recently sat down with the Two Boxes team and shared thoughts on what brands should consider when choosing a 3PL for an stress-free returns process (link). If any of y’all are interested in learning more I’d be happy to connect you with their team (disclosure: I’m an Advisor).

Zombie brands, fire sales & quiet closures are plaguing the DTC world (link)

• Terrific piece by Modern Retail on The State of DTC eCommerce in 2024. In 2024, the DTC world grapples with the prevalence of zombie brands, fire sales, and quiet closures, posing significant challenges to founders. The decision-making process surrounding stagnant brands emerges as a pivotal issue, shaping the trajectory of the direct-to-consumer space.

• There has been no single cataclysmic event that has led to the creation of more zombie brands. There are the evergreen issues that can topple any startup at any time, from co-founder infighting to betting too much on a disastrous product launch. But the most straightforward explanation is that it has been a tough few years in the consumer business, challenges show no signs of abating and more founders are deciding they don’t want to slog it out through another tough year.

• Part of the issue can be traced back to consumer startups being incorrectly valued years ago. Now, domino effects are being felt as startups that raised at a sky-high valuation early on in their history are finding that acquirers and investors are no longer valuing them the same way.

Have a great week!

- Matt

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