Read on Twitter
1. A quick thread on $MWK: There are enough threads with the bull case, but I wanted to give you the risks, given I researched the $AMZN marketplace seller market. This does not mean I am negative on $MWK but I want us to go in with our eyes WIDE open.
2. $MWK: There are 2.5 M sellers on $AMZN- it is by far the biggest and most trafficked marketplace. $WMT and $WISH are not even close and $SHOP is still catching up.
Sellers are *dependent* on $AMZN and $MWK as well - 60% of revenues https://www.marketplacepulse.com/marketplaces-year-in-review-2020
Sellers are *dependent* on $AMZN and $MWK as well - 60% of revenues https://www.marketplacepulse.com/marketplaces-year-in-review-2020
3. $MWK: The most important element of "winning the buy box" on $AMZN is controlled by an $AMZN algorithm and they dont disclose why a certain SKU is listed #1. For context the #1 listed SKU on search gets bought 90%+ of the time
4. $MWK: The #1 listed SKU is NOT always the best selling, or the one with the most reviews or the best rated, or has the $AMZN choice button or most inventory.
$AMZN sellers know this so there is a black market of manipulation that goes on.
https://ecomcrew.com/chinese-sellers-manipulating-amazon/
$AMZN sellers know this so there is a black market of manipulation that goes on.
https://ecomcrew.com/chinese-sellers-manipulating-amazon/
5. $MWK: Imagine if you had a store in a mall and the mall owner determined who (of the people who came to the mall), entered your store. Worse: just outside your store entrance they placed ads for your competitors?
6. $MWK: I know from experience that ANY company that depends on a platform $TWTR, $FB, - e.g. $ZNGA etc. for its success needs to play by the rules of the platform. Else the platform changes the rules to benefit themselves
7. $MWK: MGK claims to use big data to get "most important SKUs and customer trends".
Just for context you and I could do the same with 3rd party data (but not as scalable or efficient for sure) in < 1-2 months with APIs from Keepa https://keepa.com/#!api or Jungle Scout.
Just for context you and I could do the same with 3rd party data (but not as scalable or efficient for sure) in < 1-2 months with APIs from Keepa https://keepa.com/#!api or Jungle Scout.
8. $MWK: The reality is most of the data is educated guesswork. What they all do is take # of reviews, ranking of SKU and extrapolate the popularity.
Besides $AMZN no one else really knows the real sales or margins these products have.
Besides $AMZN no one else really knows the real sales or margins these products have.
9. $MWK: Since $AMZN knows the data, it frequently launches "private labels" to compete with the 3P sellers with the intent to "serve the customer".
$AMZN has also been actively recruiting China based sellers actively (24% of sellers to 43% in < 7 years) to cut out cos like $MWK
$AMZN has also been actively recruiting China based sellers actively (24% of sellers to 43% in < 7 years) to cut out cos like $MWK
10. $MGK <Summary>
a) Keep your position active and fluid - give yourself room for trailing stop loss
b) If are ultra long, track https://sellerratings.com/amazon/usa every week / month to see how Mohawk is faring
c) Learn which metrics you need to track (Marketplace ratings, SKU ranking)
a) Keep your position active and fluid - give yourself room for trailing stop loss
b) If are ultra long, track https://sellerratings.com/amazon/usa every week / month to see how Mohawk is faring
c) Learn which metrics you need to track (Marketplace ratings, SKU ranking)
