Future Success Remains Uncertain for Zulily's IPO

E-commerce ventures have been quiet on the initial public offering (IPO) front this year, but that is no longer the case with Zulily Inc.'s (Nasdaq: ZU) announcement that it plans to raise $100 million with its IPO. The "deal of the day" flash-sales startup is utilized by nearly 2.2 million active users and focuses on products for moms, babies, and children.

The most recent internet IPO was launched by discount site RetailMeNot in July.  

Notably, venture capital firm Maveron, which holds a 23 percent stake in Zulily and is co-founded by Starbucks' CEO Howard Shultz, also helped take Potbelly Corp. (Nasdaq: PBPB) public last week. Potbelly's shares surged 120 percent as it entered trading.

Despite potential success for the flash site's IPO, its stock faces significant challenges in the near future.  Retail giants like Amazon (Nasdaq: AMZN) and Toys R Us will likely offer stiff competition. In addition, daily deal site Groupon (Nasdaq: GRPN) has had a lackluster first year of trading.

For more, see:
This Forbes article
This Wall Street Journal article
This Bloomberg article

Related articles:
Walmart Competes with Amazon on Massive Fulfillment Centers
Amazon Delivers Flowers, Just Not When You Tell it To
Target Announces Baby Item Subscription Service
Toys R Us Drives Toys for Holiday Season
How to Succeed in Flash Retail: Make Money Right Away

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.