Here at Shop Local, we’ve seen brands try to cut out indie stores. We’ve seen big-name companies close accounts in good standing and raise minimum annual purchase amounts in the toughest of times in order to cut out indie stores. Well, now some of these brands are back with hat in hand.
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“The miscalculation was the rising expense of acquiring customers online, they said. A flood of startups all buying Facebook ads and other digital marketing initially pushed up costs. Advertising online got more expensive after privacy changes by tech companies restricted how people are tracked as they move around the web.
“Beating customers over the head with marketing is far less efficient than shipping a crate of shoes to Nordstrom,” said Tom Nikic, an analyst with Wedbush Securities. “The cost of acquiring customers has been the big whoops,” Nikic added. “All these brands kept selling more stuff and losing more money.”