Latest news with #onlineRetail
Yahoo
6 days ago
- Business
- Yahoo
Online Cosmetics Retailer Oddity Draws in Big Money
ODD is an online cosmetics retailer offering its more than 60 million users an AI platform to shop and buy customized cosmetics. The company uses an algorithm to help match users to ideal products. It's emerged as a leader using its online-only strategy and its Il Makiage and Spoiled Child brands are gaining in popularity. On the earnings front, ODD's first-quarter fiscal 2025 report showed a 27% revenue increase, to $268 million. Adjusted EBITDA margin was almost at 20%, reflecting a reading of $52 million. The company's lack of debt and cash position of $257 million position it well for the future, as does its guidance. For the full year, ODD raised its gross margin outlook to 71%, adjusted EBITDA to an upward end of $161 million, and adjusted per-share earnings outlook to a high of $2.04. It's no wonder ODD shares are up 83% this year – and they could rise more. MoneyFlows data shows how Big Money investors are betting heavily on the forward picture of the stock. Institutional volumes reveal plenty. In the last year, ODD has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in ODD shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of staples names are under accumulation right now. But there's a powerful fundamental story happening with Oddity. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ODD has had strong sales and earnings growth: 3-year sales growth rate (+43.3%) 3-year EPS growth rate (+98.6%) Source: FactSet Also, EPS is estimated to ramp higher this year by +18.8%. Now it makes sense why the stock has been powering to new heights. ODD has a track record of strong financial performance. Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term. Oddity has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. It's made the rare Outlier 20 report multiple times. The blue bars below show when ODD was a top pick…supported by Big Money inflows: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The ODD rally isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in ODD at the time of publication. If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights. This article was originally posted on FX Empire Portugal: Persistent Political Fragmentation to Test Growth and Fiscal Prospects US Foods Seeing Inflows Market Outlook: Crypto Trading Big Money Buys LPL Financial Shares Should You Invest in European Stocks Now? Big Money Keeps Buying Palantir
Zawya
21-05-2025
- Business
- Zawya
How to drop-kick dropshipping risks and build a sustainable business?
By Grant Lapping, Digital Executive at midnight, the innovation agency of iqbusiness Over the past few years, the barriers to entry in ecommerce have crumbled, enabling nearly anyone to set up an online shopping presence within a matter of hours. You can easily set up a fully functional website with a product catalogue, secure billing and logistics for a relatively small investment in time and money. This has set the stage for explosive growth in 'dropshipping', a business model where an online retailer sells goods on to end-customers via third-party suppliers. The third-party distributor or manufacturer ships goods directly to the consumer. This eliminates the need for inventory management, storage costs, and upfront stock investment. Dropshipping is a booming market, which was valued at $366.76 billion in 2024 and is projected to grow to $3.47 trillion by 2033 at a compound annual growth rate of 28.4%. It's not easy to get a piece of the pie, but there are many entrepreneurs who have turned dropshipping into a lucrative business. A dropshipping business operates by maintaining control over the front-end ecommerce platform—usually a Shopify website or an Amazon storefront—while outsourcing order fulfilment to third-party suppliers. While this model offers a streamlined entry into online retail, it carries risks that warrant careful consideration. Entrepreneurs generate revenue by directing traffic to their site via SEO strategies, social media marketing, and paid advertising. The dream, for many people, is to develop their dropshipping business into a side hustle that generates passive income and requires little ongoing effort besides optimising their marketing. The pitfalls of a low-barrier market However, the ease of entry into dropshipping creates intense competition and attracts many fly-by-night operators. Arguably, the biggest challenge you will face if you set up a dropshipping business is establishing your credibility. Many consumers will hesitate to buy from unfamiliar sites, an obstacle that can be hard to overcome. Why should a consumer give you their card details, when they know and trust established marketplaces such as Takealot, Amazon, or Temu which offer similar products with a trusted brand name? Here, it's a matter of playing a longer game of earning positive reviews and building a good reputation. Product differentiation is another hurdle. Since dropshipping relies on third-party suppliers, you may struggle to offer unique products that stand out in the marketplace. It's easy to get caught up in price wars with competitors offering identical items, eroding your margins. Platform fees can also eat at profitability. Furthermore, your reliance on third-parties for fulfilment means you have no way of controlling the quality of the product that you sell and limited control over the fulfillment process. The result could be unhappy customers or financial losses due to product returns. Building a successful dropshipping business Dropshipping can be a rewarding venture, but it is not a get-rich-quick scheme. Like any other business, it takes patience, long-term commitment, and perhaps a bit of luck to succeed. Here are some of the best practices to consider for successful dropshipping ventures: Find reliable suppliers – It's essential to use suppliers that have solid reputations for quality products and efficient fulfillment. Poor service or low quality products can damage customer trust and lead to negative reviews. Try to sample products that you want to sell to make sure they are safe, functional and meet the supplier description. Identify a niche market – Successful dropshipping businesses focus on a niche where they face less competition and can establish brand authority. Consider combining your expertise or interests with your dropshipping business—for example, if you're a dog lover or fitness fundi, you'll understand customers who share your passions. Consider acquiring an existing brand – Instead of starting from scratch, you can acquire an established dropshipping store with positive customer reviews to get a head start. Platforms like Flippa, Empire Flippers and EcomSwap facilitate these acquisitions, though due diligence is required to ensure authenticity. Invest in brand building – Effective marketing through SEO and content-driven campaigns on platforms like YouTube and TikTok can help create brand recognition and drive conversions. Set aside some budget for advertising and monitor your costs for customer acquisition. Weigh Amazon vs. Shopify – Selling through Amazon grants access to an existing customer base but comes with strict regulations and a 15% commission on sales. Platforms like Shopify provides full control over branding and customer data but requires independent marketing efforts. Many dropshippers use both platforms to maximise reach. Final thoughts Dropshipping can be a viable business model, but it requires careful planning, strategic differentiation, and long-term brand development. Entrepreneurs who chase quick profits without building customer trust and a unique product offering are unlikely to succeed. However, those who focus on customer experience, branding and marketing can capitalise on a fast-growing market Article by Grant Lapping – Digital Executive at midnight, the innovation agency of iqbusiness, Africa's future-focused management and digital growth enabler.
Irish Times
20-05-2025
- Business
- Irish Times
EU to impose €2 tax on low-cost items in blow to Temu and Shein
The European Union (EU) plans to levy a flat fee of €2 on billions of small packages entering the bloc, mainly from China, in a fresh blow to online retailers such as Temu and Shein . Trade commissioner Maroš Šefčovič told the European Parliament he had proposed a handling fee on Tuesday to deal with the challenges of the 4.6 billion items annually imported directly to people's homes. The European Commission draft proposal, says the €2 fee will apply to direct sales but that items sent to warehouses will be taxed at €0.50. Some of the resulting revenues would cover the cost of extra customs checks, while the remaining money will be directed to the EU budget. READ MORE Mr Šefčovič has promised to tackle the surge in packages, which he said had led to an increase in dangerous and non-compliant goods and complaints by EU retailers of unfair competition. – Copyright The Financial Times Limited 2025
Yahoo
19-05-2025
- Business
- Yahoo
Germany's HDE projects 2025 online retail revenue up 4%
The German Retail Association (HDE) has revised its projections for the nation's online retail sector, now anticipating a 4% uptick in sales for 2025. The projected growth corresponds to sales of €92.4bn ($103.2bn). The HDE Online Monitor 2025 highlights the food and drugstore categories as primary contributors to this online growth trajectory. Since 2022, online market shares for the two segments have risen by more than 8% and 9% respectively. HDE deputy managing director Stephan Tromp stated: "After several weaker years, online retail is once again the clear growth engine for retail in Germany. Despite the overall unsatisfactory consumer sentiment, online retailers are managing to achieve significantly better sales than in the previous year." Data from the HDE Online Monitor show that online marketplaces now comprise 57% of Germany's total online sales. A significant portion of consumers inadvertently purchase items from international vendors. It is projected that foreign online retailers will generate €8.9bn in sales in 2024, accounting for 10% of the nation's online sales volume. Temu and Shein alone are estimated to contribute between €2.7bn and €3.3bn to these figures. Tromp continued: "The high figures and the strong momentum make it clear that it is high time for politicians to ensure fair competitive conditions with suppliers from the Far East. Competition stimulates business, but this Wild West situation must end: anyone offering goods in this country must adhere to all our rules. The current situation endangers domestic retailers and consumer safety." Meanwhile, the e-commerce industry is awaiting decisive and unequivocal action from both Germany's new government and the EU Commission. "Germany's HDE projects 2025 online retail revenue up 4%" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
19-05-2025
- Business
- Reuters
German trade lobby ups online retail forecast for this year
BERLIN, May 19 (Reuters) - Demand is growing for online retail in Germany, the HDE trade association said on Monday, increasing its forecast for the year despite subdued consumer sentiment. The HDE now expects 2025 online retail revenue in Germany to increase by 4% year on year to 92.4 billion euros ($103.6 billion), compared with previously forecast growth of 3%. "Online retail is once again the clear growth driver in retail in Germany after a number of weak years," HDE deputy head Stephan Tromp said in a statement. The HDE said particularly strong growth has been seen in online shopping for food and drugstore goods. German consumer sentiment has improved somewhat in recent months on hopes of economic stimulus under a new government but it remains firmly in negative territory, with trade tensions and a protracted downturn weighing on households. ($1 = 0.8916 euros)
