There have been a growing number of startups and companies in the e-commerce segment right now. However, it is also a fact that there are a similar number of outgoing startups in the same industry too. This is because the competition has become so cutthroat that it is hard to compete without sufficient funding. However, we have a new report from Axios where a startup e-commerce business that had funding is also shutting down soon.
The startup we are talking about is Hollar which is known to be an online dollar store. A dollar store is basically a store where you will find the best deals and bargains and goods can be purchased under a dollar. Now, the dollar stores were only available offline but Hollar wanted to bring dollar store-like bargains online as well. They were also offering those bargains on branded products such as kitchen goods and beauty products.
One thing that every e-commerce business has to keep in mind is the logistics and shipping costs attached to buying a product. Since we are talking about dollar stores, these type of stores relies on people buying in bulk from them. While it does not matter that much for retailers, it does matter a lot for online stores like Hollar. The idea from Hollar’s founders was that people will buy items in bulk and thus, the shipping costs will be taken care of. However, this is where things went wrong for them as per reports. It was seen that Hollar’s customers did not buy multiple products and thus, the shipping cost economics got messed up.
Also, a retailer named Five Below is also in final stages of negotiation to buyout Hollar and we have been told that they will bring more assets and employees with them while we might see Hollar’s site and app both taken down or re-branded.