While researching international e-commerce for my startup last week, I came across this company called Farfetch.com, an international e-commerce site aggregating boutiques from around the world.
Now, the reason I started this blog was because I was tired of hearing myself tell my husband that “that was once my idea for a startup.” But back in the summer of 2010, I quit my job to devote myself to a startup whose goal was to aggregate independent boutiques online. I also decided to time this with having a third baby and a husband who works 80-hour weeks. Needless to say, I wasn’t exactly setting myself up for success, especially as I started with the goal of learning how to code. Coding and morning sickness, under the cloak of Berkeley’s summer fog, made for some pretty good times.
A couple months later, Google unveiled boutiques.com, and sadly, that was the nail in the coffin. There I was guzzling coffee, trying to combat the tiredness of my first trimester and the boredom of my online Ruby on Rails class, when I read from Cathy Horyn in the New York Times that Google had just spent millions throwing itself at this idea– the one I had quit my job for. For those unfamiliar with boutiques.com, it obviously didn’t work out as intended, but at first the site sounded like it was to be an aggregation of boutiques, whether from brick and mortar stores or just virtual ones. The site’s visual search technology was useful in finding products, but they seemed to have botched the boutique aspect of it. Regardless, someone across the pond had already started doing the more difficult schlep work of convincing boutiques to join his site. And two years later, he has attracted over 56,000 customers in 100 countries.
To prove the point again, that in the startup world, if you’re thinking about something, so is someone else– today Business of Fashion Managing Editor Vikram Alexei Kansara unveiled an exclusive article on Farfetch with its founder Jose Neves. The article mentions that they’ve raised $25 million to date and are poised to become the “next global independent franchise in online fashion and luxury.”
But I think it’s worth thinking about the larger trend Farfetch fits in, which is international e-commerce. Considering how mature e-commerce is in the U.S. and Europe, it’s surprising how complicated international e-commerce still is. It boggles my mind that in 2012 I still can’t order from Harvey Nichols in London. How hard can international shipping and figuring out taxes and duties really be? One thing I learned last week is that for Brazil, this is actually amazingly complicated.
In Brazil, trying to buy a pair of Isabel Marant boots from Net-a-Porter would cost you:
Boots price: $580 Taxes: $204 Duties: $348 Shipping: $42 Total: $1174I sure am glad I’m not in Brazil. But enabling e-commerce for Brazilians is probably worth figuring out for most e-tailers given its population of 200 million and relatively closed economy where products cost twice as much as elsewhere. Even if taxes and duties double the price of the product when buying abroad, in many cases Brazilians will still come out ahead.
2011 seemed to be the year many major U.S. retailers wised up, with Macy’s, Bloomingdales, and Barney’s announcing international shipping.
But with a site like Farfetch, I don’t think I’ll be waiting for Harvey Nichols to ship to me anymore…For most retailers, it might be too little, too late.






