Cettire just posted a rather impressive gross revenue for the last financial year... but it still can't get the right business model.
👉 Background: Cettire is an Australian e-commerce retailer that specialises in luxury fashion. We’re talkin' Gucci, Valentino and Balenciaga.
👉 What happened: Cettire just posted record gross revenue of $287 million for the last financial year. That’s a lot of Fendi Baguettes… But with all those sales comes $19.1 million of net loss over the past year.
👉 What else: The net loss is interesting because Cettire doesn't actually keep any purchase or hold any inventory of its own because it uses a drop-shipping model.
💡Drop-shipping is a business model where a business sells inventory that it doesn't own or hold and arranges for a third party to fulfil the order.
💡 For example: If you ordered some Gucci loafers from Cettire, they would never lay hands on the shoes at all, but rather tell their (highly secretive) luxury fashion suppliers to send them to the customer.
💡While this isn't uncommon for marketplaces like Amazon, Cettire is dealing in the luxury goods market where authenticity is key so it'll be interesting to see what this business does next.
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