Neil here.
We’re in the middle of one of the biggest days for ecommerce that exists: Amazon Prime Day.
Starting at midnight yesterday, and running through midnight tonight, customers have access to massive discounts on thousands of different of goods… And it’s bringing those shoppers out in droves.
Since Prime Day launched in 2015, it’s quickly raked in more and more revenue each year.
During its first year, for example, Prime Day sales totaled a little under $1 billion. Last year, Prime Day sales broke a new record, hitting $10.4 billion, up 43% from the year before.
And this year, sales are expected to be even higher. By the time Prime Day wraps up tonight, Amazon is expected to bring in $11.79 billion in sales.
Now, it goes without saying that Amazon is an ecommerce powerhouse.
But the ecommerce space is still ripe with opportunity, even for the little guys. And if investors want to make bank this year and beyond, they should prioritize three different ecommerce-centric sectors.
Here’s what sectors I’m eyeing (plus an opportunity to check out in each)…
Even the biggest tech names out there are heavy Amazon competitors. Think Facebook Marketplace, Google Shopping, and eBay, for example.
And then there’s Shopify. In 2015, the ecommerce platform went public at a valuation of $1.27 billion. Today, the platform is worth around $184 billion, with over 1.7 million businesses in its ranks.
Overall, the ecommerce market is worth over $9 trillion worldwide and is expected to keep growing fast. Startups entering this space only need to secure a tiny sliver of the market to kick back massive returns to their investors.
Raising now? Social Media Gateways, a company building a platform for borderless ecommerce and mobile digital payments, starting in Africa and working its way across the world. Check it out if you’re interested in doing some diligence.
But in the context of ecommerce, supply chain is one of the greatest opportunities out there. Without a strong supply chain system, the goods we buy wouldn’t end up on our shelves or at our front doors when we order them.
Supply chain runs the gamut from transportation logistics, to distribution software, to data management, and everything in between. And if you’re trying to build out a high-growth potential portfolio, supply chain may be one of the best places to look.
The biggest opportunity? Acquisition. It’s completely possible that Amazon can and will buy out supply chain companies that can increase its scale and lower its distribution costs. That kind of an exit spells serious return potential, if you know where to look.
If you’re looking to get in right away, I’d check this out. It’s one of a series of stocks that experts believe will double in the next 18 months to two years. Get more details here.
Marketing is one of the most important tools for any company trying to sell product, whether its on Amazon or any other ecommerce platform.
Think about it. Amazon is about to hit 10 million unique sellers on its platform. It’s oversaturated, and its practically impossible for a small retailer to succeed without a solid marketing strategy in its toolbox.
But marketing in the digital age goes beyond just a few nice words and a series of good reviews. Sellers need to turn to digital marketing services that can analyze data, optimize performance, and help increase sales.
Raising now? Intellisea, a company combining big data and artificial intelligence to change the future of digital marketing. If you’re interested, start your diligence here.
Here’s the main lesson from all of this:
As angel investors, it’s important to look outside the box, especially when you’re dealing with an industry that’s so heavily dominated by one or two big guys.
Sure, you can look for direct competitors. Even if a startup doesn’t grow to overtake the pack (and trust me, it’s a hard job to do), there’s still a chance of scoring big on an exit event like a merger or an acquisition.
But sometimes, it can be helpful to consider the “supporting startups.” What startups are out there that can help the powerhouses do their jobs better?
That’s all from me for now, but I’ll be back soon with another update.
Until next time,
Neil Patel
We’re in the middle of one of the biggest days for ecommerce that exists: Amazon Prime Day.
Starting at midnight yesterday, and running through midnight tonight, customers have access to massive discounts on thousands of different of goods… And it’s bringing those shoppers out in droves.
Since Prime Day launched in 2015, it’s quickly raked in more and more revenue each year.
During its first year, for example, Prime Day sales totaled a little under $1 billion. Last year, Prime Day sales broke a new record, hitting $10.4 billion, up 43% from the year before.
And this year, sales are expected to be even higher. By the time Prime Day wraps up tonight, Amazon is expected to bring in $11.79 billion in sales.
Now, it goes without saying that Amazon is an ecommerce powerhouse.
But the ecommerce space is still ripe with opportunity, even for the little guys. And if investors want to make bank this year and beyond, they should prioritize three different ecommerce-centric sectors.
Here’s what sectors I’m eyeing (plus an opportunity to check out in each)…
Ecommerce
Yes, there are still opportunities to make money in regular ecommerce. You see, beating Amazon in its own game is a tall order, but that doesn’t mean companies aren’t up for the challenge.Even the biggest tech names out there are heavy Amazon competitors. Think Facebook Marketplace, Google Shopping, and eBay, for example.
And then there’s Shopify. In 2015, the ecommerce platform went public at a valuation of $1.27 billion. Today, the platform is worth around $184 billion, with over 1.7 million businesses in its ranks.
Overall, the ecommerce market is worth over $9 trillion worldwide and is expected to keep growing fast. Startups entering this space only need to secure a tiny sliver of the market to kick back massive returns to their investors.
Raising now? Social Media Gateways, a company building a platform for borderless ecommerce and mobile digital payments, starting in Africa and working its way across the world. Check it out if you’re interested in doing some diligence.
Supply Chain
As consumers, it’s easy to forget about the importance of supply chain. We’re more focused on the products we’re buying, and not necessarily how they got there in the first place.But in the context of ecommerce, supply chain is one of the greatest opportunities out there. Without a strong supply chain system, the goods we buy wouldn’t end up on our shelves or at our front doors when we order them.
Supply chain runs the gamut from transportation logistics, to distribution software, to data management, and everything in between. And if you’re trying to build out a high-growth potential portfolio, supply chain may be one of the best places to look.
The biggest opportunity? Acquisition. It’s completely possible that Amazon can and will buy out supply chain companies that can increase its scale and lower its distribution costs. That kind of an exit spells serious return potential, if you know where to look.
If you’re looking to get in right away, I’d check this out. It’s one of a series of stocks that experts believe will double in the next 18 months to two years. Get more details here.
Digital Marketing
I’m a marketing guy, so it’s probably no surprise that I’m bringing this up.Marketing is one of the most important tools for any company trying to sell product, whether its on Amazon or any other ecommerce platform.
Think about it. Amazon is about to hit 10 million unique sellers on its platform. It’s oversaturated, and its practically impossible for a small retailer to succeed without a solid marketing strategy in its toolbox.
But marketing in the digital age goes beyond just a few nice words and a series of good reviews. Sellers need to turn to digital marketing services that can analyze data, optimize performance, and help increase sales.
Raising now? Intellisea, a company combining big data and artificial intelligence to change the future of digital marketing. If you’re interested, start your diligence here.
Here’s the main lesson from all of this:
As angel investors, it’s important to look outside the box, especially when you’re dealing with an industry that’s so heavily dominated by one or two big guys.
Sure, you can look for direct competitors. Even if a startup doesn’t grow to overtake the pack (and trust me, it’s a hard job to do), there’s still a chance of scoring big on an exit event like a merger or an acquisition.
But sometimes, it can be helpful to consider the “supporting startups.” What startups are out there that can help the powerhouses do their jobs better?
- In Amazon’s case, maybe it’s an up-and-coming supply chain startup that can get products delivered faster (there are even some big potential supply chain winners in the public space, too).
- For Facebook and Twitter, maybe it’s a cybersecurity startup helping to keep data safe and private.
- And for Google, maybe it’s a data analytics or marketing startup designed to help companies get to the top of the search results.
That’s all from me for now, but I’ll be back soon with another update.
Until next time,
Neil Patel
Follow @angelsandentrepreneurs
Thanks Neil, I overall liked the Social Media Gateways and went in. The Intellisea seems like a good idea, but I think the leadership team has a weakness. All the three founders are marketing guys, so they do not complement each others skill set, instead they duplicate their skillsets. If one or two of them was a strong programmer and AI wiz, I would probably go in, but I believe they will have to spend a fortune on their IT…