Failed 2020

    Brandless

    Selling generic products at $3 each with "no brand tax" doesn't work when Amazon and Costco already offer better prices at scale.

    Founded → Closed

    2016 → 2020

    Funding Raised

    $292M

    Industry

    E-commerce/DTC

    Country

    USA

    IdeaProof AI Failure Score

    72/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    30
    Burn Rate Risk
    85
    Founder Risk
    30

    Full Analysis

    Brandless sold everyday household products and food items at flat prices ($3, later $9) by eliminating brand premiums. SoftBank invested $240M in 2018. But the economics never worked: customer acquisition costs were too high, basket sizes too small, and Amazon's private-label brands offered equal or better value with Prime delivery. Brandless shut down in 2020, less than 2 years after SoftBank's mega-investment.

    Could This Failure Have Been Prevented?

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