The popular marketplace platform dubbed ‘the future of Streetwear retail’ is raising their monthly marketing support for the 500+ brands and small retailers currently selling on TheDrop.com.
Las Vegas, Nevada – May 14th, 2020
TheDrop.com is the leading online marketplace platform for the Streetwear Industry supporting 100’s of brands’ direct-to-consumer strategies as well as the e-commerce efforts of small boutique retailers across the U.S. Focused on the Streetwear, Sneaker, and Skateboard markets, TheDrop serves as a marketing and communications platform for participating Merchants, functioning as a CPA (cost per acquisition) sales platform. This means that there is no cost to the Merchant until a customer places an order on the platform. TheDrop deploys aggressive marketing strategies to drive traffic and transactions resulting in Brands & Shops earning 80-85% of the final sale. After subtracting the overlapping costs that a Brand or Shop would incur on their own site – payments, fraud, customer service, etc, TheDrop’s fees make it a marketing channel with an 8-10x ROI for it’s Merchants. That ROI is often better than what most Merchants realize from their own internal marketing efforts. So why does TheDrop spend well into the 6-figures each month to support so many Brands and Shops?
“We maximize our budgets every single day to drive more Reach and Sales for the 100’s of Brands and Shops on our platform.”
CEO, Matt Falcinelli explains, “The Covid-19 pandemic has accelerated an evolution of the broader Streetwear industry that has already been underway for the last 3-4 yrs. The 1,000+ brands in our industry have been gradually shifting focus to DTC (Direct-to-Consumer) strategies after many big retailers went bankrupt between 2015-2018. 3,000+ boutique retailers have become reliant on their e-commerce sales in order to keep their physical shops afloat. Before the pandemic, we saw a need for a platform to help accelerate this digital evolution of the broader Streetwear industry to help good Brands and Shops, alike. Now, with the covid outbreak, this evolution we saw transforming gradually just went from 0 to 100 mph overnight and many across industry are in survival mode. We (TheDrop) maximizes our own budgets every single day to drive more Reach and Sales for the 100’s of Brands and Shops on our platform. With 20+ years experience executing e-comm and digital marketing at the highest level, we have built a platform where Brands and Shops can now plug-in within a few minutes and reap the efficiencies of a turnkey DTC channel that generates an 8-10x ROI. Brands maintain Price Control, Storytelling, and DTC Margins all within a niche ‘retail’ setting. Small shops are able to reach millions of eyeballs each week vs hundreds or thousands. We have created a no-risk platform to help brands and shops evolve faster than what they may be able to do on their own.”
Amidst the Covid-19 pandemic, TheDrop has not furloughed any members of their team and continues to increase their marketing spend, helping their Merchants grow in a time when others have closed completely. TheDrop.com has averaged 14% month over month growth for 26 months and is currently increasing their forecast for 2020. Although they do not share exact numbers, a majority of TheDrop’s annual totals stem from Brand DTC transactions. The margin dollars they expect to generate for their Brand-merchants in 2020 is comparable to that of a traditional retail account ringing $50-55 million per year.
TheDrop’s leadership team helped build e-commerce powerhouse Backcountry.com and it’s collection of e-commerce sites, including Dogfunk.com. From those early days, TheDrop’s team recognized that there were significant challenges and opportunities for Streetwear Brands and Shops who must now improve their digital presence in order to survive.
Chief Marketing Officer at TheDrop and 20 yr digital marketing veteran, Alex Gross, feels many brands are too quick to throw marketing budgets at low ROI channels in attempts to survive. “Even though close to 30% of the Brands in the US (plus a dozen or so int’l brands) are currently selling on TheDrop.com, it still kills us to see a good brand blindly spend money on increased Instagram or Google ads. Our data shows us that, at best, they are only realizing a 2-3x ROI on that spend. Now, I’m not advocating that brands abandon those channels entirely… but when a Brand or Shop can realize an 8x or 10x ROI from TheDrop without having to pay an agency to manage their spend, on top of the actual marketing costs, it should be a no-brainer for them. With our deeply experienced team of e-commerce and digital marketing experts, we know we can more efficiently manage marketing spend across multiple channels and pass on that efficiency, reach, and sales to the Brands and Shops who need it most.”
Many people in our industry are currently pondering what the future of retail will look like after the pandemic dust settles. However, niche marketplace platforms like TheDrop.com already have the future figured out. The pandemic only expedites their predictions and strategies, allowing platforms like TheDrop.com to help the global Streetwear industry endure hard times and prosper even more moving forward.
For more information: pr@thedrop.com
(833) THE-DROP / (833) 843-3767