Edit: I’ll also add that unfortunately I agree with previous views regarding the user experience. I can’t really predict a very rosy future, especially since Amazon has officially arrived in Sweden.
Today, I ordered a 1TB M2 SSD from CDON as a trial. Let’s see how it goes. While browsing stores, I noticed that Gigantti, for example, also has similar “marketplace” operations. So, there definitely won’t be a lack of competition when other big players adopt a similar marketplace role.
{“content”:“I have a lot of personal experience as a customer. CDON.com used to be one of the top online stores for several years, until about 4-5 years ago when it started to fall behind. My last order was a couple of years ago, for some shoddy tablet covers that were supposed to be in stock. Delivery took about 2 weeks, and the quality was absolute trash. I find their website clunky, and the service and pricing are poor. I certainly won’t be a customer again. I don’t know how it works in Sweden, probably better. Hardly anyone I know buys anything from CDON anymore, although it was well-known over 5 years ago. Finland is, of course, a small market. \n\nIn my opinion, there’s a lot that needs developing, and they need to increase marketing costs if they want significant growth.”,“target_locale”:“en”}
@Aston_Livingstone, what positive drivers do you see in this case? The consumer comments weren’t very good, at least based on this thread, which doesn’t inspire confidence in the company.
Is it the future of the business that’s appealing, or just the stock’s pricing?
It’s worth remembering that the company just released a new platform version where a lot of back-end stuff has been automated. Previously, there was a lot of manual adjustment. A lot has been invested in this, and in the future, there will only be smaller updates. It’s also worth remembering that Sweden is the largest market and the company is seen in a much better light there than in Finland. At the same level as Zalando, etc. Not the same in Finland, but still around Top 5 in the Posti 2019 and 2020 survey.
2019 (everyone can download the report themselves, ranking included)
I bought this last week for over 280. Since then, it’s down 15%. Can anyone tell me where it will find support or how far down it will go and why? Should I cut my losses quickly?
My assessment of the situation is that because no analysis is available and the operational numbers are still unseen, the share price is drifting due to traders, etc. It seems that on the Swedish side, small investors are cashing in their profits after last week:
I don’t believe that this selling group has a very good sense of the stock’s potential 1-2 years out. Or if they do, they might not be patient enough to wait for it. This is just my own assumption commented on through CDON-colored glasses.
The rally that started on December 16 was apparently due to this article/analysis. The author is perhaps more of a trader than a long-term investor.
The preliminary numerical estimates I’ve seen from those wiser than myself regarding the CDON case would indeed suggest significant upside potential for the stock within a 12-month+ horizon. I’m more on the side of adding to my position if the price dips further and if the Q4 (TP) results confirm these assumptions.
Yesterday was finally a good time to watch this video. It was indeed a diamond of a piece, thanks for sharing! The video answered precisely the big question that was on my mind, at least, when considering the CDON case: what is the impact of Amazon’s entry into Sweden on the market? Especially the examples highlighted by Panu, such as from the Netherlands, made me believe that there is room in the market for local, already known players, and by investing in the right things, one can get a share of e-commerce growth.
Thus, CDON’s strong market position in Sweden is probably not threatened, at least in the short or medium term, even though competition will certainly intensify. CDON’s marketplace strategy seems just right for leveraging this megatrend. The key figures, in my opinion, suggest that the company has the potential to be exactly the Nordic mini-A mentioned in the title.
With these opening remarks, an initial position has been acquired.
I visited Cdon’s online store pages; some development needs to happen there. Sometimes product descriptions are only in Swedish, and generally there’s little information about the products. I understand this could become a strong player, but a lot needs to happen before that.
I wasn’t convinced to make an investment decision, or rather, the decision has been made and I’m skipping it. I used this online store myself a few years ago; I ordered a few DVDs for the kids, and one of them turned out to be wrong, so it didn’t go perfectly. The current online store doesn’t look very impressive, and price is largely what determines these things. We’ll see how they fare, but for me, €150M is too high a price tag given the current information.
It has been the lowest tier of these best-known online stores for a long time. There hasn’t been much to browse in recent years. Especially the discounts are just ridiculous. Sometimes a 600 euro product might be discounted by a euro or a few cents, and sometimes you see the other extreme, where the original price of gloves is 2595 euros and now they are -98% off
When you read customer experiences, for example, handling returns sometimes takes months. I was astonished when this thread appeared here. It was a surprise that this company is still around and an even bigger surprise that people are investing in it.
This will probably never appear in my portfolio, no matter how good the numbers and prospects are. Somehow, I just can’t invest in something where the basic operations are complete crap, starting from customer service. It’s clear that there must be potential here, because the toughest guys in the Smart Eye thread have invested in this
I’ve ordered quite a lot over the years. Sometimes there have been clear pricing errors downwards, meaning the product was very cheap. Of course, the service has deteriorated; for example, my wife decided she wouldn’t order anything from there anymore because delivery times have extended to 3 weeks. I’ve paid with a Klarna invoice, where payment is only due after the product arrives, and I’ve had to extend the payment period because the product was delayed past the due date and they started to demand payment even though the product hadn’t arrived yet. It used to be quite cheap compared to Finnish price levels, probably not much margin left, though the continuous devaluation of the Krona helps.
But it seems that other online stores, like Adlibris and Discshop, have the same products with similar product descriptions, though prices sometimes differ. Are these online stores connected in any way?
A quite viable investment, but only at a clearly lower valuation than the current one.
Excellent question. Of course, positive feedback would be nicer to see. But in Sweden and Norway, good feedback, especially Sweden, is important because it’s the largest market. E-commerce there is about 100 billion SEK. I recently listened to a podcast that talked about Marketplace. Especially in the beginning, feedback can be more negative because many low-quality merchants are involved. But as Marketplace grows, large merchants form an increasingly larger part of the volume. Then it’s important that their service and delivery work, which increases customer satisfaction on the platform. I also believe that the new automated platform will improve CDON’s handling of feedback, etc. Previously, there was a lot of manual work, which will now be easier. So, if everything goes according to plan, the Marketplace experience will improve because large customers form an increasingly larger part of the volume, and feedback handling will improve because the platform is more automated.
Certainly. As an owner, I would hope that CDON would also display merchant feedback more prominently on the product page. This would certainly have a guiding effect towards better merchants. For example, the average of the seller’s reviews could simply be placed in that section:
I’m not familiar with the company, but as a consumer, I haven’t ordered anything from them in years. The reason is simply that whenever I’ve looked for something, I’ve always found it cheaper elsewhere.
Most often from German Amazon or domestic online stores.
