Issue 127: the real state of DTC 👉👉

+ The FB Game Just Changed

July 25, 2024

5

Oooof, y’all!

What a week! Anybody get the license plate of the news cycle that just walloped us? Who’s nervous about the coming weekend? Seems like all sorts of fireworks are stocked up for our routine 48 hour breaks, this year.

Make no mistake, this season of America does not disappoint. 😤 

BTW! Believe it or not, we kind of aim to not only brighten your day but keep you informed as you slog it out on the battlefield of online digital commerce. We HOPE that you dig it as much as we dig doing it.

If you think this, or any other issue was worth sharing, can you ya know… do that? https://news.workspace6.io/subscribe?ref=PLACEHOLDER_CODE

Just share that 👆️ with your peeps and tell them it’s over between you and them if they don’t sign up post-haste.

And hay 🐴 … if we get enough traction out of this, we might just introduce some kind of swanky swaggy giveaway of either W6 merch or year long SaaS contracts or something for your efforts. Thanks again!

| TWEET OF THE WEEK

I’ve been thinking a lot about the current state of the DTC (direct-to-consumer) landscape, and I wanted to share some insights with you.

This newsletter is inspired by Anna Hensel's article "Zombie brands, fire sales & quiet closures are plaguing the DTC world.” Plus, I’ll be weaving in some key points from a recent post by Sean Frank, founder of Ridge, who has provided a sharp lens on what’s happening in the DTC world.

The Rise and Fall of DTC Giants

Remember when DTC brands like Blue Apron and Allbirds were the darlings of the retail world?

These companies promised a revolution, cutting out the middleman and delivering high-quality products directly to consumers.

Blue Apron, for example, had a vision of transforming the food system, but things didn’t quite go as planned. Despite an ambitious start and a significant investment in marketing, Blue Apron’s IPO flopped, and the company struggled to turn a profit. Fast forward to today, Blue Apron has been acquired by Marc Lore’s Wonder Group at a fraction of its once $2 billion valuation.

Similarly, Allbirds, once valued at $4 billion, has seen its market cap plummet to $200 million, and it’s been grappling with net losses that have doubled year over year. This trend isn’t isolated. Brands like Casper, Winc, and Parade have faced similar trajectories, with some filing for bankruptcy or being sold off in fire sales.

| YOUTUBE UNIVERSITY

Facebook Ads: MORE PROFIT and Easier Than Ever!

| TOGETHER WITH PARTICL

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| QUICK SHOTS

  • @MatthewGattozzi: How to write the perfect ad brief…

  • Preston 🩳 Rutherford: This thought would cross my mind at least monthly when operating…

  • @drewfallon12: There has been a lot of talk about the 'state of DTC' after an article from Modern Retail earlier this week. The article claims that 'zombie brands' are 'plaguing' the industry. While there are undeniable headwinds in our industry right now, theres actually a tale of 2 cities👇

  • @tahmmygiovanni: The two biggest levers for higher AOV are 1) offer structure 2) front-end copy (ads + LP)

  • Simon Robert: Headlines account for 80% of your ad performance. 3 headline variations for a weight loss brand:

| HERE FOR THE MEMES

| AND IN OTHER NEWS…

Meta Shares Tips on How To Avoid Paying Apple Fees on Ads [Infographic]

Some handy notes on how to avoid paying extra charges on your promotions.

The Weekly Closeout: Von Dutch is acquired and Bath & Body Works partners with Crocs

The fashion company was sold to WSG Brands, while the shoe collab is all decked out in gingham. 

The Reddit Influence: How Altra Running and The Home Depot Capitalize on Community and Context - Retail TouchPoints

Executives from the Home Depot and Altra Running recently shared how they're advertising on Reddit to build consumer trust and connect with context.

Shein unveils UK investment plans and launches 'circularity fund' - Retail Gazette

Shein is introducing a £169m (€200m) "circularity fund" which it claims will address fashion waste, as the brand continues to wait for its London IPO approval.

| GET LINKED

Ezra Firestone on LinkedIn:

💡 Growing up poor taught me resourcefulness, much like permaculture in farming—using every resource to its fullest. 🌱💧

Permaculture’s essence is reusing and maximizing everything around you. Capture rainwater to nourish your garden, use chicken manure for compost, and recognize the untapped potential in your surroundings. 🔄🌿

In business, just like in life, we often overlook the resources and opportunities at our fingertips. Documenting my e-commerce journey and sharing it led to a mastermind and innovative solutions like the one-click upsell. 🚀💼

Open your eyes to the abundance around you. Embrace resourcefulness and let’s grow together! 🌟🌍

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| STAT ATTACK 👊

| YOU’RE HIRED

Brand

SaaS

  • Outbound Sales Director (Hyros)

  • Content Marketing Manager (Talkable)

Got a job you want us to list? Let us know.

| THE OUTRO

Ya’ll make sure to tip your waitress and hug your loved ones, ya hear? Something tells us the next episodes are going to get spicy.

Adios! ✌️

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