regalinvestor, I am not here to defend StepOne but I think it is...

regalinvestor, I am not here to defend StepOne but I think it is business 101 that you have to really understand and get yourself familiarised with before making such comments. First of all, it is fairly common for retailers to stock goods from China and such product margins of (80 to 90% before other costs) are typical. You can try buy 100,000 of those from Alibaba yourself and before you know it, procurement, logistic, warehouse, labour, corporate and other costs will all add up, making your business unviable to compete with someone with scale such as StepOne. Your customer acquisition cost (Google ad spending, sponsorship, marketing) would alone likely cost more than the $20-$30 a pair that StepOne sells because of the lack of scale, lack of expertise of the new business. Don't believe me? Put it all in a spreadsheet and do some proper due diligence on all the associated costs of getting the underwear from China to the ending consumer, you can then see the amount of scale and operation efficiency you need to actually generate a positive EBITDA like what StepOne has done.

To cement my case further, there are only two transactions from your posted seller in the last twelve months, indicating that StepOne is likely to have got their inventory from a differentiated exclusive source. This indicates that your Alibaba supplier maybe of lower quality or a copycat version.

It is easy to say a competitor will flood the market just because they can get a pair from Alibaba for $3 but please, think deeper, how would anyone notice this competitor without it spending millions on CAC, what would make consumers feel comfortable that it is not a rip off when StepOne already has so many high rating reviews? It will take years and tens of millions of dollars of capital injection, time and effort to even have a chance of catching up to what StepOne has established and hence the $300m or so of market cap.

You may likely see this market cap breached upward if management continues to execute on offshore expansion and new product offering, which seems likely at this stage.

Hope this provides some context for you.