Hopping into the world of eCommerce sounds so tempting with the many success stories we hear, but without proper preparation, the chances of winning are not favorable. Adam shares his story of hitting millions in sales and his useful tips on getting into the industry with better positioning.
What does it take to set up your corner in eCommerce world? What is the formula for making sure that each product is worthwhile? Our guest, Adam Feinberg from Britech Inc, amazes us with his story of starting a business with $40,000 in capital, selling Bluetooth speakers. As his product line grew, his brand grew to over $80 million in sales. Ultimately, he sold his business for over $100 million! So, how’d he do it? In our interview, Adam advises on practical marketing tips, and he highlights the ways we can prepare ourselves for growth, success, and an ideal exit for our eCommerce businesses. He explains that if we can go the extra mile to enhance our sales processes and financial management, our chances of success are that much greater. With such an admirable story, our chat is filled with golden bits of advice and wisdom. Listen in and you’ll be on the road to taking action in no time.
Adam is the CEO of Britech Inc, a brand new e-commerce start-up, and Chairman for ClearSpace, an e-commerce company focused on storage solutions. He sold Web Deals Direct, an e-commerce firm which grew to over 80 millions dollars in annualized sales in less than 6 years, for 100M plus to Perch in spring 2021. Adam is currently working with the Perch team as a consultant. Prior to selling on Amazon, Adam was the CEO of a search engine optimization firm. Adam also has 15 years of enterprise software development experience, as a consultant with Accenture.
Listen and enjoy!
[00:01 – 10:10] From Making Websites to Amazon Success
- Adam Feinberg on discovering eCommerce
- Making websites and involvement in SEO
- Turning $40,000 bucks into $100 million
- It was simply about trying not to get jobs.
- Starting own logistics and growing the staff
- Keeping full stocks during COVID-19 as an advantage
[10:11 – 28:23] Marketing Tactics to Employ for Better Brand Positioning
- What was the marketing strategy behind selling multiple brands?
- Adding variety and selling in different categories
- Spending money on trademarks
- Come up with some backup.
- How do we decide between opening another brand or expanding the existing one?
- Doubling down what works
- Expanding from the US to Canada or UK markets
- Adding complementary products in the same brand
- How do we go from marketing tactics to selling?
- Coming into a realization of ongoing expenses
- Approaching private equity firms and getting the deal done
[28:24 – 52:55] The Realities of the eCommerce Space in Financials and Cashflow
- Where should eCommerce newbies focus on?
- Establishing serious financials and doing the books
- Ensuring accurate accounting for transparency
- Your net margins should be at least 15%.
- The significance of sufficient capital before starting
- The rise of aggregators changing the cash flow of the business
- The simplification of accounting – cash basis
- Being wary of the $26 million-dollar mark
- Tips on launching products
- Offering coupons to run ads
- Gathering reviews and minimizing ads
- Building additional storefronts as guidance
[52:56 – 56:25] Closing Segment
- Adam on the four rapid-fire questions
“I recommend in general, to spend money on trademarks, a couple of years in advance, of things you want, might want to do and come up with brands. And if you like a category, unfortunately, come up with some backup. ” – Adam Feinberg
“The most success that we had on web deals direct was taking something that was already working, doubling, tripling and quadrupling down on it.” – Adam Feinberg
“I honestly don’t recommend people going into the Amazon space, unless they have hundreds of thousands of dollars to spend right now.” – Adam Feinberg
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