What: Farfetch is closing its Farfetch Platform Solutions (FPS) to refocus on its core marketplace operations.

Why it is important: The decision to shut down FPS reflects Farfetch's strategic pivot to strengthen its core business amidst mounting operational losses, which have negatively impacted its parent company Coupang’s profitability. This move also indicates a shift in the luxury e-commerce landscape as more brands choose to manage their online operations independently, challenging third-party platforms like FPS.

Farfetch has announced the closure of its e-commerce software service, Farfetch Platform Solutions (FPS), which provides online shopping tools for luxury retailers like Harrods. The company is redirecting its focus to its core marketplace business as it faces increasing operating losses, which have impacted its parent company Coupang’s profitability. The closure comes after several brands, including Neiman Marcus and Emilio Pucci, moved their e-commerce operations in-house, reducing FPS's client base. The move highlights a strategic shift within Farfetch to prioritise its core offerings and move closer to profitability, with further implications for its other business units like New Guards Group.

Farfetch to shut down e-commerce software service to refocus on core marketplace