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Which 10 online retailers are worth the most to investors?
[February 24, 2017]

Which 10 online retailers are worth the most to investors?


CHICAGO, Feb. 24, 2017 /PRNewswire/ -- Stock markets tell investors what public companies are worth every day, but there's no such transparency when it comes private companies. Now Internet Retailer, which has tracked web sales of North America's retailers for more than a decade, provides a primer for valuing top privately held web merchants.

Released this week, "Valuing America's Top Online Retailers: A Guide for Retailers and Investors," is a 32-page report based on an analysis of 553 privately held retailers ranked in the Internet Retailer Top 1000, the listing of North America's leading retailers by online sales. It includes estimates of the value of companies versus their web sales based on company size, type, online marketplace exposure and private-label assortment. For example, Internet Retailer estimates the typical e-retailer that primarily sells its own branded goods is valued at 1.04 times annual sales, versus only 0.54 times sales for other e-retailers.

"While we are not offering investment advice with this report,we are providing retailers and investors with valuable guidance on what adds value in online retailing today," says Molly Love, CEO of Vertical Web Media LLC, parent company of Internet Retailer. "We have combined our rich data collected over more than a decade of studying online retail sales with our own staff reporting and interviews with investment bankers and online retailers to analyze hundreds of online retailers and produce a report unlike anything that's been available before."



While the typical retailer in the study is worth 0.81 times annual sales, by Internet Retailer's estimate, some are worth much more. The report lists 10 e-retailers believed to be worth more than two times sales. They range from the more than a century-old outdoor apparel retailer L.L. Bean to relative newcomers like meal service Blue Apron and Poppin.com, which sells its own brand of colorful office accessories and modular office furniture.

"The value of online retailers has gone through big changes in recent years," says Don Davis, Internet Retailer's editor in chief and the principal author of the report. "Our research shows that the value of online retailers has trended down in recent years, probably due to the growing dominance of Amazon. But the recent big deals for e-commerce companies Jet.com and Dollar Shave Club could signal growing interest in e-retailer companies that are unique in some way."


"Valuing America's Top Online Retailers: A Guide for Retailers and Investors," is available now as a downloadable PDF for $199.

ABOUT INTERNET RETAILER®

The flagship brand of Chicago-based e-commerce publisher Vertical Web Media, Internet Retailer provides comprehensive e-commerce business intelligence through print and digital channels, including a monthly magazine, research reports and databases, webinars and newsletters. Internet Retailer, launched in March 1999, is the largest e-retailing monthly magazine with 44,500 subscribers. InternetRetailer.com is the most-visited informational website in e-commerce featuring daily industry news and market analysis. The site attracts more than 225,000 unique monthly visitors. IRNewsLink, a daily e-commerce newsletter, is sent to more than 45,000 subscribers.

For more information contact: Don Davis, Editor in Chief at [email protected]

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/which-10-online-retailers-are-worth-the-most-to-investors-300412767.html

SOURCE Internet Retailer


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