Maternal and child website Zulily earnings secret is delayed delivery

[Abstract]Zulily take goods from suppliers in accordance with the order, with an average delivery time of more than 11 days. This reduces the company’s inventory costs.

 

Tencent science and technology news May 7th news, the United States and the United States and children’s products flash shopping site Zulily is not only the fastest growing speed, but also one of the slowest shipping Internet Co.

Zulily has been an average of two to three weeks before the goods can be sent to the hands of customers. This approach is in stark contrast to the Amazon, ShopRunner and other veteran e-commerce companies, has begun to provide users with two service.

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Zulily takes a very long time of delivery, the reason is very simple to make delivery system, which was founded only four years of e-commerce companies to achieve profitability in the fierce competition, some peers into the difficult situation. But delays in shipments not only disappoint consumers and complain, but also raise concerns about whether the company’s innovation in Seattle can expand as they expected.

Wall Street has been limited to the sale of discounted children and women’s clothing, toys, kitchen supplies Zulily high hopes. Since November last year, the initial public offering, Zulily shares have more than doubled to $47.27. But as investors are less enthusiastic about technology stocks, Zulily’s current share price has fallen by more than the record high of $73.50 in February.

, according to last Friday’s closing price of $47.35, Zulily’s market capitalization of $5 billion 900 million. Taking into account the Zulily sales this year is expected to exceed $1 billion 100 million, so the market value is obviously high. Zulily will be released on Tuesday after the U.S. stock market closed first quarter earnings. Market analysts are currently expected, Zulily quarter revenue will be more than 80% over the same period last year. Zulily’s revenue surge, thanks to the ability to allow women to regularly browse the company’s transactions, and allow consumers to actively participate in the company’s discount deals. Zulily has previously said that last year, 3 million 200 thousand users at least on the company’s Web site to complete a transaction, the number doubled over the previous year; users spend $219 on the Zulily site.

 

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but the delivery problem may be the only fatal weakness of Zulily. Last year, after the customer orders, Zulily needs an average of 11.5 days to be shipped from the warehouse center. This does not include the time required for the goods to be delivered from the warehouse to the customer. Why is this: because Zulily does not buy the vast majority of products sold in advance. On the contrary, after the end of the transaction, the company ordered products from suppliers. Supplier?

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