👉 Background: Cettire was founded back in Australia back in 2017 and sells luxury goods online. In fact, it sources and sells more than 500,000 products a year from more than 2,500 luxury brands at prices up to 30% cheaper than in-store.
👉 What happened: After a topsy turvy (and somewhat controversial) couple of years, Cettire has released some whopping numbers for the past 12 months. We're talking gross revenue up 87% and a net profit after tax over $16m. On top of that, it increased its number of active customers to over 400,000.
👉 What else: The best part for Cettire is that it takes none of the warehousing risk because it's a pure-play dropshipper.
💡Drop shipping is the order fulfilment method that doesn't require a business to keep products in stock. Instead, it 'sells' the product but passes on the sale to a third-party supplier, who then ships the product directly to the customer.
💡It's a very appealing model because it means you can operate as a 'capital light' business. These companies can achieve massive scale without the traditional baggage of inventory and warehousing.
💡But it's not without its challenges. Drop shippers are heavily reliant on these third-party suppliers. So if there's an issue on the supplier's end, it can seriously affect the reputation of the drop shipping business.
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