This holiday season could mark a tipping point in the shift from brick and mortar to online shopping, said Andreessen Horowitz partner Jeff Jordan.
"You look at the early reports on the holiday, online's incredibly bullish, physical retail's incredibly bearish," said Jordan. "UPS is getting crushed under the surge of online orders."
Jordan highlighted a board meeting he attended with Marc Andreessen, general partner of the firm he co-founded, right after Black Friday as indicative of the trend. The company, which sells an electronics product, had expected the vast majority of its sales to come through physical stores, but found that almost half of its sales came from online.
"They built up this large apparatus to sell into these channels, to get the inventory there, to try to sell it through, and it turns out they should have just kept it in the warehouse and sold it online through their own website and Amazon," said Jordan. He declined to name the company.
"Marc and I were at the board meeting and we go like, 'Oh, s---, it's happening,' " he said.