BVAccel cuts 25% of employees due to coronavirus' impact on DTC brands - Business Insider

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Ecommerce agency BVAccel has laid off or furloughed 25% of its staff as the coronavirus crushes direct-to-consumer brands

. Those cuts also hit every expense that DTC brands have, including the agencies and software companies that they work with in addition to costs like real estate, Cassidy said.

"If consumers are losing jobs and don't have money to spend or don't feel like spending it, it impacts all of our brands," he said.BVAccel primarily works with brands that sell on Shopify, where, similar to thein recent weeks, sales for essential products have seen sales spikes while sales for non-essential brands have slumped. Electronics and health are two categories that have seen spikes in sales, Cassidy said.

Cassidy said that the firm has also won business from brands that lean heavily on retail distribution and now are looking to build direct-to-consumer channels. With the new business, BVAccel has brought back a few furloughed employees. He expected that Shopify would not be hit hard by coronavirus because of its recurring contracts with brands that are based on how much brands sell on Shopify.Cassidy is the former CEO and chairman of adtech firm Undertone andBVAccel was his first big investment, and the fund has alsoCassidy's plan was to create a one-stop shop for e-commerce brands to handle everything from strategy to data.

"We are trying to build a 'mini-Accenture' for direct-to-consumer brands," he said in April 2019. "We want to be top-of-mind for all the brands in the $10- to $200-million range that are not Ford or American Express and are trying to figure out e-commerce.

 

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