Potential Winners from Supply Chain Issues
- October 27, 2021
Etsy, Farfetch, and Amazon are Best Positioned
Rising COVID-19 cases in countries such as Vietnam and Indonesia are wreaking havoc on US retail supply chains with overseas factories; in addition, the rise in shipping costs and shutdowns are causing even more chaos compared to the peak of COVID-19.
Though many US-based companies such as Nike and Costco have already disclosed supply chain issues, it's highly likely the market has yet to digest all the issues in retail, such as home furnishings, decorations, and consumer electronics.
Oppenheimer analysts believe online marketplaces including Etsy, Farfetch, and Amazon stand to benefit the most heading into the holiday shopping season given their more resilient supply chain networks (local sourcing, multiple suppliers, majority of sellers in USA).