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

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