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Issue 435
It’s Tuesday and here’s what you need to know…
Wowowow. It’s been a wild few days in the world of ecommerce.
It’s also Black Friday week — Basically the Superbowl of the DTC world. We’ve got a few content ideas for you down below in case you need some extra creative inspo! ✨
Let’s dive in: 👇
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Thrasio, the startup that could, is now filing for bankruptcy. The company had been focusing on acquiring, optimizing, and scaling Amazon FBA brands in the past few years and quickly became the largest Amazon aggregator in the space.
From 2018 to 2019 they focused purely on expanding their roster and earned 160 million purely on acquisitions but there was evidence of trouble earlier this year when they began laying off 20% of their staff.
So what went wrong?
The Amazon aggregator admitted many missteps led to their downfall.
While they hastily acquired brands during the first few years, a lot of these brands were overvalued and underperformed (meaning they overpaid and didn’t get their money back).
This comes as a huge shock since they raised a total of $3.4 billion dollars and seemed poised for success.
Pilothouse’s Lead Amazon Media Buyer shares: “Thrasio's strategy of acquiring brands later in their lifecycle proved costly, as earlier entry would have been riskier but more cost-effective.”
❌ Major mistakes they made:
🔧 How Thrasio plans to pivot:
Although the company filed for bankruptcy they aren’t done just yet. They plan on offloading underperforming brands and optimizing their top performing brands to stay profitable.
What this means for ecommerce (and in particular brands on Amazon):
Since Thrasio was a rising star in their industry, people are going to start being more hesitant in working with Amazon aggregators to supercharge their brand and sales.
The Takeaway? 👇
Ample funding cannot cover up a failing business model
For brands looking to sell their companies: They may be more apprehensive about working with ecommerce aggregators and do more of a deep dive into their expertise and resources.
For ecommerce aggregators in the game: Aggregating doesn’t come without risks. Be prepared to be met with an air of skepticism after the rapid rise and fall of Thrasio.
Learn to mitigate risk, diversify and manage portfolio closely, and do your due diligence when acquiring brands.
If new creatives are at the top of your holiday wishlist, you’re in luck. 🎁 The Pilothouse Studios team is here to help you cross it off your list with their limited-time holiday offer created just for you.
For a very limited time, until December 1st or spots are filled, you can get a package of tested, tried and true top-performing creative ad formats.
The Pilothouse Studios team does everything for you:
Access new target demographics and find more scale in your ad accounts when you work with Pilothouse Studios.
Need help keeping up?
👉 Click here to check out the full creative offer.
Welcome back to another edition of the DTC x Pilothouse Creative Corner!
We know the anticipation for the upcoming Q4 push is brewing, so we’re coming in this week with some fun content ideas you can steal to shake up your ad library and connect with your audience in new ways.
Let’s go! 👇
🍄 Four Sigmatic
Created by Pilothouse Studios
You know what they say, the proof is in the pudding! So we say, give them the goods!
It is very easy for brands to preach about the kind of results that their consumers have achieved with their product or service, but where it really gets good is when a brand can break down exactly how a result was achieved.
This proves that there really is a – data-backed – method to the madness and helps potential customers to better understand your offerings, how it could benefit them, and ultimately build trust.
The strategic use of CGC green screen content and a client testimonial really sends this ad across the finish line. The creator breaks down the important information from a real case study into bite-size chunks and walks the viewer through the entire process.
In doing so, the ad tells a story that’s keeping the viewer engaged, and the information becomes easier for the viewer to understand and recall. Add in a client testimonial that speaks to your credibility and you are set for a home run.
There’s more where this came from! Want to see how to integrate podcast generated content and creator authority into your ads? Click here to read on and view examples. ✌️
DTC Newsletter + Podcast reaches a highly qualified audience of Shopify merchants, eCommerce founders, and digital marketers. Talk to our team to learn more.
📸 Your UGC (probably) sucks. If your UGC strategy is marketplace ‘actors’ reading your scripts, your viewers are seeing straight through it. Use this free guide to learn how to get authentic UGC. *
🚬 Snoop Dogg goes smokeless…for an ad campaign? The longtime rapper fooled fans when he sent out a cryptic message about putting down the pipe.
🎁 How much are shoppers actually spending this holiday season? Take a peek into the consumer insights driving BFCM marketing strategies for your DTC peers. Get Klaviyo’s research report. *
📹 Meta drops AI video editing software called Emu Video. You can now create short video clips using text prompts and edit images using Emu Edit.
🪓 Instagram is axing Guides. If you use the feature for your business then it’s time to download your content and repurpose it elsewhere before it goes away next year.
🩷 Dove partners with animated social media star Lennnie to give us a daily dose of positivity leading up to Thanksgiving weekend as part of their Self Esteem Project. (And we will admit, the song is really catchy.) 🎶
WELP. 😅
Have you heard our latest podcasts?
Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)
Got an awesome DTC brand story to tell? Calling all brand-side founders and team leaders! Fancy joining us on the DTC Podcast as a guest? Tap the link to toss in your application.
DTC Newsletter is written by Rebecca Knight, Frances Du, and Michael Venditti. Edited by Eric Dyck.
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Please note that items in this newsletter marked with * contain sponsored content.