I guess there's a reason for why I❤️E-commerce so much. These lessons are as important as the returns.
Sharing with few Fintwit friends. @saxena_puru @FromValue @dhaval_kotecha @richard_chu97 @adventuresinfi @BahamaBen9 @TMFJMo @7Innovator @borrowed_ideas @investing_city
Thank god I didn't wait for consistent GAAP profitability before investing in them (like I do for most other sectors). 😂
Positions : $MELI $AMZN $BABA $SHOP $ETSY $W $SE $CHWY
Watchlist : $JD $PDD $FTCH $MWK
Haven't analyzed much : $JMIA $OZON
E-Commerce is one of those sectors where you have to understand the Business model and lot of non-GAAP (but Business driving) metrics & KPIs.
I'm not an expert by any means, but these are some of the things I broadly think about.
✔️Is the Company a Marketplace (1st party, 3rd party, both?) or a Platform, a combination?
✔️Does it handle inventory?
✔️Does it handle payments in house?
✔️What other services is it offering to Merchants (Logistics, Shipping, Credit, Marketing ...)
✔️What other services is it offering to Buyers (Digital Wallet, fast shipping, loyalty rewards....)
✔️How is the Company leveraging the Marketplace or Data Network effects?