Ecomm Breakthrough

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley shares hard-won lessons on the power of focus in scaling an ecommerce business. Drawing from personal experience and mastermind insights, Josh reveals five key things he’s saying “no” to—like low-volume product launches, unprofitable SKUs, and distracting sales channels. He emphasizes prioritizing high-impact opportunities, leveraging top-performing creators, and resisting shiny new trends like AI experiments. Josh’s disciplined approach highlights how saying “no” to distractions enables entrepreneurs to concentrate resources on what truly drives sustainable, exponential growth.Links and Mentions:Business Influencers & References"Alex Hormozi": "00:02:01"E-commerce Platforms & Tools"Amazon": "00:04:43""Shopify": "00:06:31""TikTok Shop": "00:06:31""Amazon Marketplace": "00:20:16""OpenClaw": "00:23:05""Vibe Coding": "00:23:05"Frameworks & Systems"Momentum Matrix": "00:08:26""Buckets for Product Management": "00:08:26"Business Concepts & Strategies"Hitting Singles vs. Home Runs": "00:04:43""Total Addressable Market (TAM)": "00:06:31""Lifetime Value Potential": "00:20:16""Operational Complexity": "00:21:14"Timestamps:00:00:00 Introduction to Business FocusJosh emphasizes prioritization, focus, and the importance of saying "no" in business strategy.00:01:03 Lessons from Mastermind EventsInsights from recent mastermind groups; entrepreneurs struggle with shiny object syndrome and diversifying too soon.00:02:58 The Power of Doubling DownAdvice to focus on one business for greater success, rather than splitting attention across multiple ventures.00:04:43 Saying No to Small Product LaunchesJosh now rejects launching products with small markets, focusing only on those with large total addressable markets.00:07:25 Prioritizing High-Impact SKUsNo longer trying to scale all 1600+ SKUs; products are categorized by impact and focus is on top performers.00:08:26 Product Momentum Matrix ExplainedBreakdown of four product buckets: sunset, maintenance, profit engines, and brand-defining SKUs.00:15:09 Focusing on Brand-Defining ProductsTeam spends most time on a few top SKUs that align with brand vision and have high growth potential.00:17:05 Saying No to Low Leverage Sales ChannelsRejecting channels like Temu, Shein, Walmart, and some international expansions due to low scalability and complexity.00:18:12 Sales Channel Momentum MatrixSales channels are categorized; focus is on scalable, high-leverage channels like Amazon, TikTok Shop, and Shopify.00:22:11 Rejecting AI DistractionsJosh avoids spending time on AI trends unless they directly drive business growth; team uses AI only for specific use cases.00:26:56 Focusing on Top-Performing CreatorsNo longer catering to all 5000 creators; focus is on the top 5% who drive 95% of TikTok Shop revenue.00:28:03 Conclusion: Focus Over DistractionReiterates the importance of focus and systems for scaling, and invites listeners to share the episode.TranscriptJosh Hadley 00:00:00  I will promise you like 99 times out of 100. The person who doubles down in one single business is going to have far greater returns and success than the entrepreneur that thinks they're going to split their time and diversify themselves across multiple different business units. Welcome to the Ecomm Breakthrough Podcast. I'm Josh Hadley. I've scaled my own ecommerce brand from 0 to 8 figures, and I'm actively building towards nine figures in sales. This podcast is where I document that journey and share the systems, the strategies, and the lessons learned in real time so that you can learn what actually matters and scale your own business. In today's episode, I'm going to be sharing with you guys exactly what I'm saying no to. In my business right now, that is one of the most important things as it relates to business strategy as a whole. I think that business strategy is less. These are the things that I am doing, and it's much more about these are the things that I am specifically not doing in my business and why business strategy is ultimately, hey, there are 1,000,001 different opportunities, but there are limited resources.Josh Hadley 00:01:03  And so really it's prioritizing which of those million and one opportunities do I actually want to take on with my limited time, resources and ability to be able to go execute? Because in general, if you want to see something really succeed, you've got to put some significant amount of time and energy and thought process behind it. So today I'm going to be sharing the five things that I'm saying no to in my own business. And I'm sharing this after coming off of the heels of three different events that I've attended within the last two weeks. So over the last two weeks I've attended a few different mastermind groups, some with e-commerce specific people involved and others with just kind of general entrepreneurs who are all over seven figure sellers. So here are some of like the takeaways. And I heard this over and over again at multiple events. I continue to hear people that they already have a successful busines...

In this episode, host Josh interviews Tyler Jefcoat, founder of The Seller Roundtable, about financial strategies for Amazon and e-commerce sellers. Tyler explains key metrics like COGS, Amazon fees, and advertising costs, and shares actionable tips on optimizing profit margins, managing inventory, and preparing for business exits. He emphasizes the importance of accurate accounting, SKU-level analysis, and disciplined habits for long-term success. The discussion also covers useful tools and resources, including Merchant Spring and the book "Atomic Habits." Listeners gain practical advice to build more profitable and acquisition-ready e-commerce businesses.Chapters:Introduction to Tyler Jefcoat and Seller Accountant (00:00:00)Tyler’s background, experience, and introduction to his work with e-commerce sellers.Key Financial Metrics for Amazon Sellers (00:00:38)Breakdown of revenue, cost of goods sold (COGS), Amazon fees, and advertising expenses.Profit Margins and Targets for Sellers (00:01:44)Discussion of ideal net profit margins, advertising spend, and benchmarks for healthy Amazon businesses.Net Profit Margin Benchmarks and Market Trends (00:03:59)Analysis of average net profit margins, market headwinds, and acquisition readiness.Preparing for Exit: Case Study and Best Practices (00:05:01)Advice and case study on preparing for business exit, including accounting and inventory management.Return on Capital and Product Portfolio Analysis (00:06:54)Explanation of return on capital, product-level profitability, and portfolio optimization.FBA Fees and SKU-Level Analysis (00:10:18)Importance of monitoring Amazon FBA fees, SKU-level analysis, and correcting fulfillment fee errors.Automating FBA Fee Audits (00:11:45)Discussion on automating FBA fee audits and best practices for large catalogs.Three Actionable Takeaways for Sellers (00:12:59)Summary of three key actions: solid accounting, SKU-level profitability, and price testing.Book Recommendation: Atomic Habits (00:15:40)Tyler recommends "Atomic Habits" by James Clear and discusses its impact.Favorite Software Tool: Merchant Spring (00:16:46)Recommendation and overview of Merchant Spring for multi-channel sales integration.Closing Remarks and Contact Info (00:17:28)Final thoughts, recommendation to contact Tyler, and episode wrap-up.Links and Mentions:Tools and Websites  "Merchant Spring": "00:16:46"Books  "Atomic Habits by James Clear": "00:15:49"Transcript:Josh 00:00:00  Today, I'm excited to introduce you to Tyler Jefcoat. Tyler is the founder and CEO of Stellar Accountant, where he exercises his passion for helping sellers maximize their businesses. Tyler provides financial coaching for sellers totaling more than 100 million per year in e-commerce sales. Tyler also leads the Sellers Roundtable, an exclusive mastermind group for seven and eight figure sellers. Before founding Seller Accountant, Tyler was the co-founder and managing partner for Care to Continue, a home health care company that grew from 0 to 100 employees in four years. So, Tyler, welcome to the show.Tyler 00:00:36  All right, Josh, thanks for having me.Josh 00:00:38  So you have your top line revenue. The next thing we have is you're going to have your cost of goods sold, right? So with your cost of goods sold, you said the average is about 30 to 35% is what you're seeing right now.Tyler 00:00:52  And this kind of landed cost. So if you kind of think about what it costs you to satisfy your Chinese Po and then do the duties freight into the states, I think.Tyler 00:01:01  Across the board, we're seeing literally pretty close to a third 33, 34%.Josh 00:01:05  So if you're below 30% or so, that's a good indication then. Right. Okay. Looking good. All right then next you have your Amazon fees that are going to come up. Right. And I think I'm going to split these up with the advertising separate. So what is your Amazon fees that your 15% commission plus the pick and pack. All that goes into the Amazon ecosystem. You're saying 30 to 35% is what you're seeing there. Is that right?Tyler 00:01:34  To keep the numbers easy is probably another third. So you got about a third in your unit cost to Google. You got about a third and normal Amazon fees.Josh 00:01:44  okay. Cool. And then so all right. So at this point we have 66% right of our revenue going to Cogs in Amazon. And so what you're saying is that the last remaining portion for that POG number that you were talking about is your advertising expense specifically on Amazon. So with your advertising expense, you said ideally you want to be between that 20% to 25%, you know, net gross margin, including the advertising costs in there.Josh 00:02:16  So that means you're going to be needing to sit around somewhere between 15 to 20%. Correct.Tyler 00:02:22  So if we if you think about it, we've got it split into thirds, a third in cogs, a third name is on fee. So we've got 33 points left. I can spend between, you know, roughly 10% on tacos in that model. Let's assume that your cost of goods sold model. Then I'm really going to. So so right. Take another 10% away for ads. That leaves me with a 23% P&G or post advertising gross profit. And I would say that's a really good target. Like, again, I would rather aim for 25 and hit 23 than really flirt with 20 constantly. But yes. So that would be that would be a fairly prototypical private label or kind of brand building seller on Amazon is third, Amazon fees. Third product cogs are about a dime, about ten points going to tacos. And then I've got 22, 23, 24% after ads that I can put towards my overhead.Tyler 00:03:08  And mama wants a boat, you know, whatever it is, that's the money I want.Josh 00:03:12  Makes sense. Makes sense. So with that, and then the other thing you mentioned is, hey, if you have really good cost of goods sold, right, you know, you might be 10 to 20%, right? Well, then you could ramp up your advertising spend. Right. So you can kind of offset those things, but the more profitable you are, the better. Like you said, some people were 30 to 35% that were really getting some premiums, with all the acquisitions that were going on. So this is awesome. This gives us a lot to think about and great targets to shoot towards, especially like net profit margin. You said, you know, ten is kind of the average. You said, right. 15 means that you're really good. You know looking good. You're a good candidate to be acquired. Is that correct?Tyler 00:03:59  Yes. And honestly, coming out of like 2022, I would actually say that, you know, 10% was actually probably pretty good because we did see a lot of headwinds.Tyler 00:04:09  So give your give yourself some grace. Like if you're looking at your piano right now, you know, here in the middle of 2020 and you're like, well, boy, I got 5% last year, I must be dead. That actually might be more normal than you think it is. But don't don't think that that's going to be normal forever. I think we are we're, we're we're continuing to want to see the market get better and we want to we work too hard and we risk too much to take a 2% profit margin for too long. And so getting a 10% is really crucial. And then I think if you're going to exit, getting it closer to that 15% net profit. Yeah.Josh 00:04:38  Awesome, awesome super valuable content. Tyler thanks again. All right. So with that, let's talk about maybe some of the levers that people can be pulling, you know, as they prepar...

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews Julia Rubien and Nicolette Brunetti of Amie, a TikTok agency for beauty brands. They discuss effective affiliate marketing strategies on TikTok Shop, emphasizing the importance of strong shop operations, community building, and data-driven content. The conversation covers commission structures, contests, retainers, and creator engagement, highlighting the need for strategic planning and long-term investment. Key takeaways include selling the affiliate first, nurturing a supportive community, and ensuring operational readiness before scaling. The episode offers actionable insights for brands aiming to succeed on TikTok Shop.Highlight Bullets> Here’s a glimpse of what you would learn…. Strategies for success on TikTok Shop, particularly in affiliate marketing.Importance of having a multi-faceted approach to affiliate marketing, including acquisition, commission, and engagement.Financial expectations and ROI benchmarks for brands on TikTok Shop.The significance of community building and engagement with affiliates, particularly through platforms like Discord.Effective methods for attracting and nurturing affiliates, including personalized outreach and tailored incentives.The role of content quality and creator effort in driving sales and engagement.Challenges and lessons learned from past affiliate marketing strategies and contests.The necessity of strong shop operations and inventory management before launching affiliate marketing efforts.The importance of hiring skilled team members with expertise in TikTok Shop and affiliate marketing.Long-term investment and strategic patience required for building a successful affiliate ecosystem on TikTok Shop.Here are the 3 action items that Josh identified from this episode:Sell the Affiliate First (Not the Product) Shift your mindset: you’re recruiting creators, not just pushing products. Build a compelling commission structure, clear vision, and unique brand positioning so affiliates choose you over higher-paying competitors.Build a Creator Growth Ladder: Design a clear pathway:Start with onboarding + educationAdd retainers to build consistencyIntroduce contests + feedbackIncrease commissions/retainers as GMV growsMake it obvious how creators can level up with you.Fix Operations Before Scaling Affiliates: Before pushing growth:Ensure inventory is stableOptimize listingsSolidify shop operationsDon’t scale affiliate traffic to a backend that can’t support it. Get your foundation right first.Resources mentioned in this episode:"TikTok Shop": "00:00:36""EukaAI": "00:12:28""KaloData": "00:12:29""Reacher": "00:14:36""Fastmoss": "00:16:51""Discord": "00:19:08""GMV (Gross Merchandise Value)": "00:21:19""ChatGPT": "00:43:16""ecombreakthrough.com": "01:01:28"Special Mention(s):Adam “Heist” Runquist on LinkedInKevin King on LinkedInMichael E. Gerber on LinkedInRelated Episode(s):“Cracking the Amazon Code: Learn From Adam Heist’s Brand Scaling Secrets” on the eComm Breakthrough Podcast“Kevin King’s Wicked-Smart Tips for Building an Audience of Raving Fans” on the eComm Breakthrough Podcast“Unlocking Entrepreneurial Greatness | Insider Secrets With E-myth Author Michael Gerber” on the eComm Breakthrough PodcastSponsor for this episode...This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures. I started Hadley Designs in 2015 and grew it to an eight-figure brand in seven years.I made mistakes along the way that made the path to eight figures longer. At times I doubted whether our business could even survive and become a real brand. I wish I would have had a guide to help me grow faster and avoid the stumbling blocks.If you’ve hit a plateau and want to know the next steps to take your business to the next level, then go to www.EcommBreakthrough.com (that’s Ecomm with two M’s) to learn more.TranscriptJulia Rubien 00:00:00  I think clients think that sometimes it's as simple as, let's just invite everybody to a target plan, and that's that. And one time I had to write out for clients, like all the different strategies that go into affiliate marketing, and without showing the slide, I'll kind of rattle some off. But to us, we think there's acquisition strategy, there's commission strategy, there's engagement strategy, there's partnership strategy, there's sample strategy, tiering strategy, incentive strategy, event strategy, content strategy. So there's all these different strategies.MC 00:00:36  Welcome to the Ecom Breakthrough podcast. Are you ready to unlock the full potential and growth in your business? You've already crossed seven figures in sales, but the challenge is knowing how to take your business to the next level.Josh Hadley 00:00:50  Do you want to know what's actually working on TikTok shop right now? What are the strategies some of the top brands are implementing in order to grow their shop sells or attract new affiliates. Well, you're going to love today's conversation. Welcome to the Econ Breakthrough Podcast.Josh Hadley 00:01:05  I'm your host, Josh Hadley. I scaled my own brand from 0 to 8 figures in sales, and now my mission is to take it to over nine figures on my jour...

Practical tactics to stretch payment cycles and gain up to 55 days of float using credit cards and billing windows. How to forecast weekly cash flow with a 52-week spreadsheet to spot shortfalls early. Creative payment routes like Melio and Plum to pay suppliers and flip the cash conversion cycle. Actionable steps to avoid predatory loans and scale without outside capital.

Bradley Sutton, Amazon and e-commerce expert who launches products and masters keyword strategy, shares practical tactics. He talks about where to place keywords naturally across listings. He explains fast-indexing fields, seasonal keyword research with Historical Cerebro, new sponsored placements on page one, ad-driven launch tactics, and the value of inventory tools and alerting.

Josh started his career at American Airlines (AA) and spent 5 years in their MBA leadership development program. Josh’s experience at AA further refined his leadership abilities and strategic decision making skills. While employed at AA Josh and his wife Becca started Hadley Designs. As the CEO of Hadley Designs, Josh led the business to gross $100,000+ in revenue within it’s first year and in 2022 Hadley Designs crossed the eight figure mark, grossing over $10,000,000 in revenue.In the ever-evolving world of e-commerce, standing still means falling behind. In a recent episode of the Ecom Breakthrough Podcast, host and eight-figure brand owner Josh Hadley pulls back the curtain on the real struggles and breakthrough strategies that have propelled his business from the brink of collapse to new heights. This episode is a masterclass for e-commerce entrepreneurs looking to scale beyond seven figures, with a special focus on leveraging TikTok Shop, affiliate marketing, and integrated sales funnels across Amazon and Shopify.Highlight Bullets> Here’s a glimpse of what you would learn…. Strategies for scaling e-commerce businesses on platforms like Amazon and TikTok Shop.Personal experiences of overcoming business challenges, including product failures and financial difficulties.The importance of targeted outreach and building relationships with creators for affiliate marketing.Utilizing TikTok Shop to generate significant gross merchandise volume (GMV) and create viral content.The role of effective sales funnel structures in improving conversion rates and average order value (AOV).Implementing subscription models to create recurring revenue streams.The integration of marketing efforts across TikTok, Shopify, and Amazon to enhance profitability.The significance of product differentiation and niche focus in e-commerce success.The challenges of maintaining profitability on Amazon and strategies to avoid market stagnation.The necessity of hard work and commitment in achieving success in the competitive e-commerce landscape.In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley shares his journey overcoming business setbacks and reveals his proven strategies for scaling e-commerce brands on Amazon, Shopify, and TikTok Shop. He details how he rebuilt his business using TikTok Shop affiliate marketing, building a network of creators, and optimizing sales funnels. Josh emphasizes the importance of creator partnerships, viral content, and subscription models, offering listeners a step-by-step blueprint for driving growth and profitability in today’s competitive e-commerce landscape. He also provides actionable tips and resources for brands seeking to break through stagnation and achieve lasting success.Here are the 3 action items that Josh identified from this episode:Target Niche Creators with Email Collection Use tools like Yuka AI to reach out to creators in your specific niche (not spray-and-pray). Before approving samples, collect their email and phone number to build direct relationships off TikTok. Add them to an automated email flow that nurtures engagement and tracks content creation.Require 30 Videos + Usage Rights Upfront Send a creative brief before sample approval and have creators commit to producing 30 videos in 60 days with unlimited usage rights. This gives you permission to repurpose viral content (100K+ views) as Meta ads without asking, and weeds out freebie seekers while maximizing ROI per sample.Turn Amazon Products into High-AOV Shopify Funnels Take viral TikTok videos and run them as Meta ads driving to dedicated landing pages (not your homepage). Bundle products together, add digital exclusives Amazon can't match, include pre-checkout upsells, and offer a subscription club—turning $25 products into $85+ AOV while generating recurring revenue.Resources & Links SectionJosh Hadley on LinkedIneComm Breakthrough ConsultingeComm Breakthrough PodcastEmail Josh Hadley: Josh@eCommBreakthrough.comTikTok ShopAmazonShopifyChatGPTEuka AIKalodataStreakWooCommerce

In this solo episode of the Ecomm Breakthrough Podcast, host Josh Hadley shares his proven framework for hiring senior leadership in ecommerce. Drawing from personal experience, Josh outlines the costly pitfalls of bad hires and emphasizes the value of securing top 1% talent. He details a structured, three-part interview process focused on track record, culture alignment, and role competence, offering actionable tips for assessing candidates. Josh also discusses the legal and financial implications of hiring, underscoring the importance of systems and focus for business growth. The episode concludes with a call to share and review the podcast.Hiring the wrong person can be a costly "hiring mistake" for any business, impacting your bottom line significantly. This video dives into effective "recruitment" strategies and a robust "hiring process" to help you avoid these pitfalls. Learn about crucial "interview questions" and how to "how to hire" the right talent to propel your e-commerce brand forward. 💥 #BusinessTips #EcommGrowth #HiringSmart #shorts Timestamps:00:00:00 The Pitfalls of Charismatic HiresJosh warns against hiring based on charisma and first impressions, emphasizing the high cost of bad hires.00:00:30 Introduction & Podcast ContextJosh introduces himself, his ecommerce background, and the purpose of the episode: hiring top 1% senior leadership.00:01:59 Early Hiring MistakesJosh shares his initial lack of process, reliance on generic questions, and gut feelings when hiring.00:04:10 The High Cost of a Bad HireBreakdown of the financial, operational, and legal costs associated with hiring the wrong person.00:06:05 Legal and Tax Implications of Remote HiresExplains state-specific legal and tax burdens when hiring remote W-2 employees.00:08:07 The Power of Great HiresDiscusses the transformative impact of hiring the right senior leaders and the compounding effect on business growth.00:09:07 Overview of the Senior Leadership Hiring FrameworkIntroduction to the three-lens framework: track record, culture alignment, and role competence.00:10:03 Track Record of Performance InterviewDetails the first interview: assessing lifelong patterns of achievement, leadership, and initiative.00:11:06 Conducting the Track Record InterviewStep-by-step walkthrough of questions and techniques to uncover a candidate’s career trajectory and motivations.00:13:30 Truth Serum Questions & Reference ChecksHow to use reference-based questions to get honest answers and verify candidate claims.00:17:07 Identifying Top 1% PatternsWhat to look for in high school, college, and career history to spot elite performers.00:23:50 Red Flags and Non-Redemption PolicyWhy you shouldn’t hire candidates with inconsistent success or those seeking a “redemption” opportunity.00:24:49 Culture Alignment InterviewImportance of culture fit, how to structure the interview, and why it’s non-negotiable for senior hires.00:27:40 Core Values Deep DiveExamples of core values (Extreme Ownership, Relentless Innovation, Integrity) and how to probe for real-life demonstrations.00:29:42 Role Competence/Technical InterviewEvaluating if candidates can perform at a high level, think clearly, and bring deep expertise.00:30:40 Metrics and Business Impact QuestionsKey questions to assess if candidates understand how their role drives business results.00:35:25 Case Studies and Test ProjectsHow to design and use practical assignments to verify real-world competence, and tips to prevent AI misuse.00:39:10 Scoring and Rubrics for Test ProjectsThe importance of objective scoring, rubrics, and not advancing candidates who underperform in practical tests.00:40:03 Summary of the Three-Stage FrameworkRecap of the three interview stages and their combined power to identify and hire elite senior leaders.00:42:07 Closing Thoughts and Call to ActionJosh encourages listeners to implement structured hiring, leave reviews, and share the episode with peers.Links and Mentions:Tools and Websites"Indeed": "00:05:01""Workable": "00:05:01""ChatGPT": "00:37:15"Books"Who by Jeff Smart and Randy Street": "00:11:06"Videos"Seven Step Hiring Process Video": "00:38:11"Core Values"Extreme Ownership": "00:27:40""Relentless Innovation": "00:28:40""Integrity Above All": "00:29:42"Interview Frameworks"Career Track Record of Success Interview": "00:40:03"Podcast Platforms"Spotify": "00:42:07""Apple Podcasts": "00:42:07"Transcript:Josh Hadley 00:00:00  And honestly, one of the biggest mistakes that you can make is hiring somebody that is very charismatic, that can talk really eloquently in an interview and come off as though they are really polished and well put together. But then when they actually have to do the work, that's where they fall apart. And at that point it's way too late. You've already incurred some massive expenses in the business once you've actually initiated those hires for your business. Welcome to the Econ Breakthrough Podcast, I'm Josh Hadley. I've scaled my own ecommerce brand from 0 to 8 figures, and I'm actively building towards nine figures in sales. This podcast is where I document that journey and share the systems, the strategies, and the lessons learned in real time so that you can learn what actually matters and scale your own business. Have you ever made a hire and then 30 days later, regret that decision and realized that you just made a bad hire? And would you like a framework that could increase your odds and success rate of hiring the right person and being confident that you have found top 1% talent? That's what I'm going to be diving into today.Josh Hadley 00:00:58  So today I'm going to be diving into the senior leadership, hiring and interview framework that I use in my own business to be able to assess whether I have a level talent, the top 1% talent, because this is honestly one of the best competitive advantages that you can have in your business, bar none. I don't care what happens with AI, I don't care what happens with the economy. I know that one thing will always exist throughout the entire lifetime of us as humans, and that is the arbitrage opportunity that comes from hiring the right person. The right person can have an outsized, massive ROI better than any stock return that you could possibly have, better than any new sales strategy that you're going to implement. Hiring the right person can provide an infinite ROI for your business. And that's why I'm so adamant about nailing this for my own business. So today, what I want to share with you is really what came over a period of time. First and foremost, my name is Josh Hadley. I am a man of faith.Josh Hadley 00:01:59  I am a husband to a beautiful wife and a father of four. I have also been in the e-commerce game for over a decade, and I'm an eight figure brand owner selling multi millions on multiple channels TikTok shop, Shopify and Amazon. And I am also the host of the number one business strategy podcast for ecommerce, Ecom breakthrough. Today, I'm going to be diving into the problem that I ran into first and foremost. When I began hiring for the first time, I started just jumping on zoom calls wit...

In this episode, host Josh interviews Pradeep, a scientist-turned-entrepreneur who built a seven-figure Amazon business in under a year. They discuss advanced strategies for Amazon sellers, focusing on negotiating cost of goods sold, building strong supplier partnerships, optimizing inventory and cash flow, and avoiding the pitfalls of launching too many products at once. Pradeep shares actionable tips on supplier negotiations, payment terms, and expense management, emphasizing the need for a sophisticated, business-minded approach to succeed in today’s competitive Amazon marketplace.Chapters:Introduction to Pradeep and His Background (00:00:00)Josh introduces Pradeep, his scientific background, and transition to Amazon e-commerce and asset acquisition.Beyond Basic Amazon Strategies (00:00:37)Discussion on moving past common optimization tactics to focus on COGS, supplier negotiation, logistics, and inventory.COGS Negotiation and Supplier Relationships (00:01:45)Pradeep explains the importance of negotiating COGS, exclusive agreements, and sophisticated supplier relationships.COGS Tracking and Unit Economics (00:04:19)Emphasis on tracking COGS, using software, and managing multiple brands and inventories.Inventory Management Pitfalls (00:05:44)Analysis of overstocking, poor forecasting, and leveraging inventory in distressed asset acquisitions.Amazon Warehousing Changes and Cash Flow (00:06:53)Transition to how Amazon’s warehousing changes impact cash flow and inventory strategies.Cash Flow Mistakes and Overspending (00:07:13)Discussion on unnecessary spending on consultants, poor HR choices, and excessive conference expenses.Negotiating Payment Terms for Cash Flow (00:09:42)Advice on negotiating 30-120 day payment terms with suppliers to improve cash flow and acquisition leverage.Launching Multiple Brands: Cautionary Advice (00:11:50)Warning against launching multiple brands/products without sufficient cash flow and the risks of overextending.Key Takeaways and Action Steps (00:13:04)Josh summarizes actionable steps: focus on supplier partnerships, negotiate terms, and improve cash flow management.Expense Management and Exit Planning (00:15:08)Highlighting the impact of recurring expenses on business valuation and the importance of efficient spending.Closing Remarks (00:15:57)Final thanks and acknowledgments as the episode concludes.Links and Mentions:Tools and Websites  "Jungle Scout": "00:12:30"  "Helium 10": "00:12:30"  Key Takeaways  "Supplier Partnership": "00:13:45"  "Negotiation with Suppliers": "00:14:10"  "Cash Flow Management": "00:15:08"Transcript:Josh 00:00:00  Today I am excited to introduce you to Pradeep. He is trained as a scientist at Oxford University and Harvard University, and then he became the vice president of Global Business development for a biotech company. During the pandemic, he found himself in a unique situation which led him to start his Amazon e-commerce business. He became a seven figure seller in just 11 months and now has a new business model of acquiring distressed assets, and he also owns a boutique Amazon account and launch management agency. So welcome to the podcast, Pradeep.Pradeep 00:00:36  Thank you so much.Josh 00:00:37  I love that you made the mention of when we go to conferences. And as you listen to speakers speak on stage or even listening to podcasts time and time again, we hear the same optimization strategies and the same keyword strategies, and it's just a new tool that people are using. But instead what you're saying is like, the hard stuff is what people aren't necessarily talking about. People aren't getting into the weeds of cogs and negotiating with suppliers and renegotiating on an ongoing basis, and the finer details of logistics and where you're warehousing things.Josh 00:01:14  And with Amazon, you know, reducing inventory limits across the board for people. What are people doing now to kind of prepare themselves for a world where Amazon does limit you completely and with maybe 1 or 2 months worth of inventory and that's it. And how are you staging your inventory and still winning on Amazon in that environment and then cash flow? I mean, all of these things are such great topics. So yes, let's do a deep dive into each of these. Let's start with the cogs first.Pradeep 00:01:45  Yeah, sure. so what we see is quite interesting with cogs. the cog numbers to start off with, sometimes a minimum, we say 3 to 5, but as Amazon and e-commerce goes more expensive, I think it's about 8 to 10. So if you're buying something for $1, you should be above 8 to 10 in terms of selling prices, if not more, right? What we see is again and again people are saying, hey, we have particularly beginners, hey, we have this 3 to 4, but with inventory, PPC, shipping and all these things, it's just the profits are gone.Pradeep 00:02:21  Before the pandemic or during the pandemic is very profitable. And this is, by the way, experienced. This sounds stupid. I find I find myself finding myself stupid explaining this to someone, but we actually see it every day. Seven, eight, nine figure sellers saying you want this brand because the cogs have gone too expensive because they haven't worked out. Fundamentally, the multiples and the multiples have to be really strong now and the bigger multiple margin to sell. So those cogs are fundamentally negotiable, and you have to have the right product and the cogs are cheap. Price number one. It sounds stupid, but that's what we see. Number two is the negotiation. Hey, we bought 100,000 units. Next time we're going to have three 400,000 units. But you're still selling for the same price. Why? Your your factory should be giving you a note or, you know, handle cash flow or a cheaper price because they're getting raw material cheaper. And what we see is, you know, I sign NDAs, but what we see is some of these aggregators and others who are famous when they go back and some of these factories are quite savvy, say, hey, you raise X amount of money.Pradeep 00:03:29  All of a sudden your cogs are gone up. So, you know. So I think that's again how you negotiate and how you have exclusive agreements for a period of time, particularly on your best selling products. We do this in pharma and other business tools all around the world. You want it for five years. This is the price. If the if if inflation goes down or if the market changes, this is going to be a price. We have the power to change it not you. So it might be having exclusive agreements. And that's how sophisticated you guys we have to get in e-commerce. Because this is no longer a, a mom and pop kind of operation. This has to be sophisticated. Even if your mom and pop or a guy in a basement. That's how you should be thinking. you know, solar. It could be a corporate on your own, but you've got to think like that. So, cogs and how you define the first cogs, the renegotiate the cost is very important.Pradeep 00:04:19  Then thirdly, how are you people storing cogs, right. How are you doing unit economics and how are you storing Excel sheet or software and so forth. And that has to be updated on a daily basis. we see fundamental mistakes and we see fundamental errors as well. You can pick it out straight away from, profit and loss statements as well. so that's something people have to be aware of. And it gets really hard because if you have multiple brands, multiple products, multiple inventory, you know, it's all over the place.

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