Retailing is a difficult business characterized by high competition levels and low profit margins. But that's not the case for tech companies that help connect retailers with buyers. Done right, the middleman selling approach can translate into predictable sales growth and impressive cash flow -- all with relatively low financial risk.
(NASDAQ: ETSY) and Shopify (NYSE: SHOP) are both set up to take advantage of these favorable economics. The platform specialists don't carry expensive inventory and their profit margins are multiples of what you might find at a large national retailer.
Wall Street has far different expectations for these two marketplace platforms. So let's see which one most investors should prefer to have in their portfolios today.
Source Fool.com