It’s no secret that 2022 was nothing short of a disaster for e-commerce stocks. Growth in the sector was nearly grounded to a halt due to macroeconomic headwinds and tough comparisons to the pandemic boom.
Since the high inflation numbers first appeared in early 2021 and supply chain costs skyrocketed, many e-commerce companies saw their demand drop and have traded at much lower valuations
Privately held aggregators such as Thrasio and Perch have seen tremendous success with valuations of $7.5B and around $1B, respectively, but Upexi, although a young company, seems to offer so much more.
If the pandemic did anything positive, it would help e-Commerce explode and generate a shift in consumer habits. Consumers largely shifted their purchasing habits from in-person to online ordering.
More people began working from home and avoiding indoor venues, including shopping malls and restaurants. Because of these consumer behavior changes; e-commerce has continued to grow and many brands have been pivoting their business strategies to remain competitive.
E-Commerce sales were $870 billion in the US in 2021, a 14.2% increase over 2020 and a 50.5% increase over 2019
Even though the e-Commerce arena was hit negatively, on Wall Street, it doesn’t take away from how the industry is still growing. Total e-commerce sales for 2022 were estimated at $1,034.1 billion, an increase of 7.7 percent from 2021!
While Wall Street companies may have taken a blow last year, it certainly doesn’t mean e-Commerce was dead.
For the fourth quarter, sales hit a record high of $299.12B according to a Digital Commerce 360 analysis of U.S. Department of Commerce figures.
And according to the Department of Commerce, e-commerce sales in the United States broke the $1 trillion threshold for the first time and totaled $1.02 trillion in the past 12 months last November. This comes despite soaring commodity prices and inflation that had been hampering sales.
And before 2022 came to an end, Wells Fargo analyst Brian Fitzgerald issued a note stating that he saw e-commerce growth starting to accelerate and that sales trends in e-commerce and brick-and-mortar stores would normalize.
The analyst said he saw growth in e-commerce and brick-and-mortar sales reverting to pre-COVID levels. For much of the last decade, e-commerce sales nationally grew by about 15%, according to the Census Bureau.
The lower valuations that many eCommerce stocks have endured may represent tremendous opportunities as the tide looks to be finally turning.
Not only that, but Upexi proved that they could handle any market with their diversification across eCommerce and retail sectors, fueling growth in both categories!
Upexi is a multi-faceted brand owner with established brands in children’s toys, health, wellness, pet, beauty, and other growing markets. The company operates in emerging industries with high growth trends and looks to drive organic growth of its current brands.
But it’s certainly not a conventional brand owner. It’s a fully owned, data-driven incubator, tapping into a $160B global Re-Commerce division that has fueled steady growth through big box retail partnerships (Walmart, BJ’s, Costco, Sam’s Club to name a few), an Amazon first-party relationship, and licensing deals with industry giants like the Walt Disney Company.
UPXI’s acquisitions are focused on profitable companies that have substantial consumer databases that allow the company to cross-sell existing products offered by its various brands.
Upexi has, and continues, to build big-box retailer and vendor relationships through acquisitions of promising resellers (Re-commerce). These acquisitions have helped lay the foundation for increased retail opportunities and eCommerce accounts. They have also helped expand distribution centers throughout the continental US to California, Nevada, Massachusetts, and Florida, with planned expansion into Texas, Tennessee, and more, to create an in-house 3PL service that is used for the company’s brands and its partners.
Upexi is focused on high growth, recession resistant companies with rich consumer data. The company’s differentiated strategy has several proven advantages:
With a diverse business mix of non-discretionary brands in health, wellness, pet, toys, and liquidation in wholesale, Upexi has a massive market.
The closing of the company’s acquisition of E-Core, Inc. and its subsidiaries; Tytan Products and New England Technology, Inc., was a tremendously strategic move to get into the children’s toy space.
With over $40 million in trailing twelve-month sales, E-Core provides Upexi with an entrance into the toy category as well as national retail distribution for owned and non-owned branded products. This is the company's Re-commerce arm that has fueled exponential growth for Upexi. Tytan, itself, has grown 100% over the past two years, with major retail distribution through some of the largest retailers in America.
E-Core has a never-ending list of partners that they’ve worked with for decades, which certainly contributes to the steady growth of brands.
The global toys market is projected to grow from $141.08 billion in 2021 to $230.64 billion by 2028 at a CAGR of 7.30% in the forecast period, 2021-2028.
Tytan is a children's toy brand and maker of popular magnetic tiles and building blocks and New England Technology is a national distributor for branded consumer products.
The Tytan Tiles line of STEM toys has seen such strong demand since its entrance into Walmart stores that the retailer placed an additional order, almost doubling its initial forecast for the first half of 2023, and will increase rollout of the brand to over 3,900 stores throughout the second half of 2023!
CEO Allan Marshall remarked, "The initial launch has surpassed all Company forecasts, resulting in additional orders to keep up with demand. We are committed to the category and have already committed to up to four new product launches in 2023/2024. With the start of Amazon's rollout and the current success in stores and online, Tytan Tiles is expected to exceed our internal sales forecasts for 2023."
The acquisition of UPXI’s International pet care brand, LuckyTail, Inc. was another strategic move as Lucky Tail has a strong presence on Amazon and its eCommerce store, offering grooming and nutritional products. Products are also available on leading pet care website Chewy.com.
According to Fortune Business insights, the global pet care market size was USD 207.90 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with pet care products witnessing a positive demand shock across all regions amid the pandemic.
Upexi has a strong footing in the health and wellness sectors, with physician formulated nutraceuticals from VitaMedica…
Another brand, Cure Mushrooms, that harnesses the power of medicinal mushrooms…
If you’d like a FREE product and/or a significant discount on any product, all you have to do is email the company and they’ll hook you up!
Now, with so much growth, its interesting to point out that some Amazon aggregators are pausing buying, such as Thrasio and Perch, who likely made few or no acquisitions in 2022,
UPXI, however, continues to increase their pipeline.
Allan Marshall - Chief Executive Officer
Andrew Norstrud - Chief Financial Officer
Gene Salkind, M.D. - Board of Directors
Thomas Williams - Board of Directors
Lawrence H Dugan - Board of Directors
Before he became CEO and Director of Upexi, Allan Marshall began his career in the transportation and logistics industry. He founded Segmentz, Inc. in November of 2000 and served as the Chief Executive Officer, successfully acquiring five distinct logistic companies, raising more than $25M of capital, and creating the infrastructure and business foundation that is now XPO Logistics Inc. with revenues in excess of $17 billion.
Prior to Segments, Mr. Marshall founded the U.S. Transportation Services, Inc. in 1995, whose primary focus was third-party logistics. And it was because of his innovative leadership and drive to help UST achieve its full potential that it sold to Professional Transportation Group, Inc. in January 2000.
Early in his career, Mr. Marshall served as Vice President of U.S. Traffic Ltd, a Canadian company. He founded their United States logistics division and had previously founded a successful driver leasing company in Toronto, Ontario, Canada.
Over the course of his long and storied career as a leader for companies all over the world, Mr. Marshall has proven himself to be a force to be reckoned with. His incredible growth story with XPO Logistics, Inc. shows the potential for any company with his name attached to it.
The e-commerce opportunity is hard to dismiss and Upexi, Inc. (NASDAQ: UPXI) is a quietly trading company that is raking in multi-millions….
They’ve taken an innovative approach by tapping into Re-commerce as well, utilizing decades of big box retail partnerships to fuel brands even more.
As a multifaceted brand owner, UPXI has established brands in the health, wellness, pet, beauty, and other growing markets and it may be just a matter of time before Wall Street fully uncovers the company.
It was in 2022 that the company executed a successful business model to acquire leading, profitable, data-rich brands. Revenue, gross profit margin, and adjusted EBITDA have increased YOY as a result.
This company trading for just a few dollars is now well positioned through many acquisitions. With a strong cash flow, and a CEO who has previously helped another company reach $17B in revenues, there could be substantial growth ahead as UPXI delivers blowout quarters.
While recession and inflation concern plague Wall Street, savvy investors look for opportunity and this company doesn’t seem phased by economic uncertainty!
THIS IS A PAID ADVERTISEMENT
NO INVESTMENT ADVICE
Copyright 2023 © SCDalerts.com is owned and operated by the owner of SCD Media LLC.
Disclaimer and Privacy For more Information please contact email@example.com
This website provides information about the stock market and other investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for informational purposes only. The Author of this website is not a registered investment advisor and does not offer investment advice. You, the reader, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment. Nothing on this website should be considered personalized financial advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security.
SCD Media, its managers, its employees, affiliates, and assigns (collectively "The Company") do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above. To the maximum extent permitted by law, the Company disclaims all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete, or unreliable, or result in any investment or other losses.
You received this message as part of your subscription to SCD Alerts.
SCD Alerts is a financial news and information website. We do not directly sell any products or offer any personal financial advice, nor do we advocate the purchase or sale of any security or investment for any specific individual. We also do not make any guarantee or warranty about what is advertised above.
If you have questions or concerns about a product you’ve seen in one of our emails, we encourage you to reach out to that company directly. Disclaimer – Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions and is for entertainment purposes only. At most, this communication should serve only as a starting point to do your own research and consult with a licensed professional regarding the companies profiled and discussed. Conduct your own research. This newsletter is a paid advertisement, not a recommendation nor an offer to buy or sell securities. This newsletter is owned, operated, and edited by SCD Media. Any wording found in this e-mail or disclaimer referencing “I” or “we” or “our” or “SCD” refers to SCD Media. Our business model is to be financially compensated to market and promote small public companies. By reading our newsletter and our website you agree to the terms of our disclaimer, which are subject to change at any time. We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature and are therefore unqualified to give investment recommendations. Companies with low prices per share are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service, you agree not to hold our site, its editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters or on our website. We do not advise any reader to take any specific action. Losses can be larger than expected if the company experiences any problems with liquidity or wide spreads. Our website and newsletter are for entertainment purposes only.
Never invest purely based on our alerts. Gains mentioned in our newsletter and on our website may be based on end-of-day or intraday data. This publication and its owners and affiliates may hold positions in the securities mentioned in our alerts, which we may sell at any time without notice to our subscribers, which may have a negative impact on share prices. If we own any shares, we will list the information relevant to the stock and the number of shares here.
We do not own any shares in UPXI. We have been currently compensated up to Twenty Five Hundred Dollars Cash ($2,500) via bank wire transfer from a third-party Interactive Offers, LLC for landing page hosting for UPXI with a start date of 10/25/2023. SCD’s business model is to receive financial compensation to promote public companies. This compensation is a major conflict of interest in our ability to be unbiased regarding our alerts. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the hiring third party or parties. The third party, profiled company, or their affiliates likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Any non- compensated alerts are purely for the purpose of expanding our database for the benefit of our future financially compensated investor relations efforts.
Frequently companies profiled in our alerts may experience a large increase in volume and share price during investor relations marketing, which may end as soon as the investor relations marketing ceases. The investor relations marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur. Our emails may contain forward looking statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our email newsletters and on our website is believed to be accurate and correct but has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company’s website and press releases, but is not researched or verified in any way whatsoever to ensure the publicly available information is correct.
Furthermore, SCD often employs independent contractor writers who may make errors when researching information and preparing these communications regarding profiled companies. Independent writers’ works are double-checked and verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent contractor writer’s communications regarding the profiled company(s). You should assume all information in all of our communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the information contained in our written communications.
The information in our disclaimers is subject to change at any time without notice.