Motley Fool Money E-Commerce Overreached. Now What?
Oct 11, 2022
Bill Mann, a Senior Analyst at the Motley Fool, dives into the shifting landscape of e-commerce post-COVID. He argues that investments by giants like Amazon and Shopify aren't misguided. The conversation explores what to expect from online retailers this holiday season, highlighting the importance of inventory management as a crucial metric. With consumer behavior evolving and traditional shopping making a comeback, Mann shares insights on how retailers can adapt and thrive in this new environment.
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E-commerce Reversal
- E-commerce growth during the pandemic reversed, impacting companies like Shopify and Amazon.
- Despite the reversal, online sales are still up 3% from 2019 levels.
Shift in Consumer Behavior
- Pandemic-era e-commerce investments were costly but not delusional.
- Consumer behavior shifted back to in-person shopping as pandemic restrictions eased.
Watch Inventory Levels
- Watch inventory numbers in upcoming earnings reports for insights into retailer performance.
- Discounted inventory can benefit consumers but may signal financial challenges for businesses.