Bullet Points:

• Challenges entrepreneurs face in hiring qualified team members who underperform.
• Introduction of a structured 30-60-90 day onboarding framework.
• Breakdown of the onboarding process into three phases: Observance, Independence, and Ownership.
• Importance of clear role profiles and key performance indicators (KPIs) for new hires.
• Emphasis on frequent communication and structured meetings during the onboarding process.
• Use of tools and technology to enhance onboarding and performance evaluation.
• Strategies for assessing new hires' progress and readiness to advance through onboarding phases.
• Flexibility in the timeline for onboarding based on individual performance.
• Importance of documenting standard operating procedures (SOPs) for clarity and consistency.
• The impact of a structured onboarding framework on business scaling and team success.

Timestamps:

00:00:00 The Problem with Hiring
Entrepreneurs hire seemingly qualified candidates who underperform, leading to frustration and the belief that they must do everything themselves.

00:00:40 Introduction to the 30-60-90 Day Framework
A structured onboarding framework to set clear expectations and objectively evaluate whether a new team member is succeeding or failing.

00:01:11 Podcast and Host Introduction
Josh Hadley introduces himself, his e-commerce background, and the Econ Breakthrough Podcast before reintroducing the 30-60-90 day framework.

00:02:19 Why Onboarding Fails
Most entrepreneurs fail by having unclear expectations and assuming new hires can immediately perform miracles without proper guidance or systems.

00:04:29 The Entrepreneur's Hiring Mindset
Entrepreneurs must hire people smarter than themselves for both their weaknesses and strengths to compound business growth effectively.

00:05:34 The Importance of a Clear Onboarding Sequence
A dedicated onboarding process is crucial for clarity, speed, and objectivity, increasing a new hire's success rate significantly.

00:06:41 The Role Profile Template
Before onboarding, a clear role profile defining KPIs, success metrics, and tasks is essential to avoid ambiguity for everyone.

00:09:49 Using AI to Create Role Profiles
Leverage a custom GPT to quickly generate a comprehensive role profile template, completing 80% of the work for you.

00:11:24 Overview of the Three Onboarding Phases
A high-level look at the three phases: Observance (Days 1-30), Independence (Days 31-60), and Ownership (Days 61-90).

00:12:21 Phase 1: The Observance Period (Days 1-30)
New hires watch, follow, and re-document existing processes to demonstrate understanding before making any changes or executing tasks.

00:16:02 Meeting Cadence for Phase 1
The communication schedule includes daily 15-minute huddles, a weekly 45-minute one-on-one, and a daily end-of-day report.

00:18:50 The 30-Day Checkpoint GPT
Using a custom GPT to objectively evaluate a new hire's performance by answering questions about their impact and ownership behaviors.

00:23:11 Phase 2: The Independence Period (Days 31-60)
The new hire begins executing tasks in "draft mode," requiring manager approval before anything goes live, with reduced meeting frequency.

00:29:25 Phase 3: The Ownership Period (Days 61-90)
The team member takes full ownership, executing their role independently while the manager verifies work behind the scenes.

00:35:10 Onboarding Framework Summary
A recap of the meeting cadences and work expectations for each of the three 30-day phases in the framework.

00:36:33 Milestone-Based Progression
The 30, 60, and 90-day timelines are arbitrary; progression is based on milestones and demonstrating readiness to advance.

00:39:03 The Role of HR and Pre-Onboarding Prep
Before day one, ensure the role profile is complete and existing SOPs are documented to set the new hire up for success.

00:40:07 Why This Framework Matters for Scale
This system increases your hiring "batting average," ensuring new team members succeed more often, which is critical for scaling.

00:41:35 Call to Action and Access to Resources
Josh asks listeners to review and share the podcast in exchange for access to the presentation slides and resources.

Links and Mentions:

Role Profile Creation
"Role Profile Template": "00:07:38"
"Custom GPT for Role Profile Creation": "00:09:49"

Hiring and Team Evaluation
"YouTube Video on Hiring A+ Talent": "00:10:49"
"Custom GPT Checkpoint": "00:19:29"

Process Documentation
"Loom": "00:39:30"

Transcript:

Josh Hadley 00:00:00  Have you ever gone through an in-depth interviewing process to find A-level talent? And then you get the right person who has an incredible resume. They've passed all of your interviews and maybe even a case study or test project that you've given them. And then ultimately 30 days within the job, 60 days within the job. They're not performing. And you're frustrated, they're frustrated. And then you chalk it up to say, hey, I think I just need to go do this myself. Nobody can do this better than me. Screw it. With all of this hiring, if you've ever said that yourself, then this is for you. I'm going to walk you through the 30 60 90 day framework that we use to onboard every single new team member onto the team. That allows us to gain clarity not only from their perspective in terms of understanding their role, but from our perspective of understanding what the expectations are at 30 days, 60 days, and 90 days to where we know whether that new team member is winning or losing in their new role, and whether we should keep them, or if it's best to cut ties and free them back up to the marketplace to allow them to go do something that they are going to succeed at.

Josh Hadley 00:01:11  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. My name is Josh Hadley. First and foremost, I'm a man of faith. I'm a husband to a beautiful wife, and I am also the father of four children. I have been selling into e-commerce space for over a decade now, doing over $20 million in annual revenue and doing multi-million in revenue on different sales channels such as Amazon, TikTok, Shop and Shopify. I'm also the host of the number one business strategy podcast for ecommerce entrepreneurs, and that's ecomm breakthrough. Today we are going to be diving into the 30 60 90 day onboarding framework. This is the framework that we live and die by. Any new team member that joins the team, whether they are a entry level team member or whether they're a senior level, a leadership level hiring decision for us.

Josh Hadley 00:02...

Chapters:

Introduction and Guest Background (00:00:00)
Josh introduces Pat Yates, his background, and the episode’s focus on licensing and business exits.

Shark Tank Experience (00:02:06)
Pat discusses his Shark Tank appearance, the process, and what it was like pitching on the show.

Reality of Shark Tank Deals (00:03:36)
Pat explains how deals on Shark Tank often differ from what is shown, and his ongoing relationship with Robert.

Behind the Scenes of Shark Tank (00:04:45)
Pat shares details about the filming process, post-show counseling, and the impact of the experience.

Licensing Audits and Financials (00:05:44)
Discussion about licensing agreements, financial audits by licensors like Disney, and the importance of accurate documentation.

License Renewal Challenges (00:07:01)
Pat explains how license renewals work, what licensors look for, and the challenges with companies like Disney.

Transitioning and Subcontracting Licenses (00:08:57)
Pat describes how some licenses are transitioned to subcontracted arrangements and the benefits of this approach.

Direct vs. Subcontracted Licensing (00:09:18)
Explanation of the differences between holding a direct license and working through a subcontracted licensee.

Branding and Labeling in Subcontracted Licensing (00:10:27)
Clarification on branding, labeling, and legal requirements when selling products under a subcontracted license.

Actionable Takeaways for Business Owners (00:11:42)
Josh summarizes three actionable tips: IP protection, evaluating licensing, and preparing your business for exit.

Final Advice on Business Growth and Exit Preparation (00:15:11)
Pat offers final advice on analyzing business performance, seeking help, and preparing early for a successful exit.

Episode Wrap-Up (00:16:13)
Josh thanks Pat and encourages listeners to reach out for further advice on exiting their business.

Links and Mentions:

Consulting and Strategy
"Ecomm Breakthrough Consulting": "00:00:00"
"Email for Strategy Audit": "00:01:08"

Shark Tank and Related Experiences
"Shark Tank": "00:02:04"
"Robert Herjavec": "00:02:15"

Licensing and Partnerships
"DreamWorks, NCAA, NFL, Disney": "00:02:31"
"Licensing and IP Protection": "00:12:04"
"Consider Licensing": "00:13:12"

Intellectual Property
"IP Protection": "00:12:04"

Transcript:

Josh 00:00:00  Today, I'm speaking with Pat Yates, an M&A advisor at Quiet Light and owner of Happy Feet Slippers. And today we're going to be talking a lot about licensing and preparing your business to exit. This episode is brought to you by Ecom Breakthrough Consulting, where I help seven figure companies grow to eight figures and beyond. Listen, Pat, I started my E-comm business back in 2015, and it took me seven years to grow it to an eight figure brand. There were a lot of times that I struggled with the challenge of knowing whether my business could actually succeed financially, or if my brand could actually become a real well-known brand, or even myself as a leader. Whether I had the abilities and capabilities to lead a team and actually manage a group of people? Sure. For our listeners that have had similar experiences or hit similar plateaus, go to Ecom Breakthrough Comm and that's ecom with two M's. And you can learn a little bit more about how I can help you. And to our listeners, this month I'm giving away one $10,000 comprehensive business strategy audit session at no cost.

Josh 00:01:08  All you need to do is email me at Josh at Ecom breakthrough.com. And in your subject line just say strategy audit and then tell me why I should choose your business as the business to do the strategy audit for this month. And don't worry if you don't win this month because you'll be entered to win for future months to come. But I'm super excited to introduce you all to Pat Yates. Pat, as a seasoned entrepreneur with a focus on eCommerce, in 2014, he struck a deal with Robert Herjavec on the Emmy Award winning show Shark Tank. Pat grew a single slipper kiosk business into a multi-million dollar, e-commerce focused business. During that time, Pat has done licensing deals with Dreamworks, the NCAA, the NFL and Disney, and in 2015, he struck up a relationship with Mark, the founder of Quiet Light Brokerage, and continued, eventually leading him to becoming an M&A advisor. So welcome to the show, Pat.

Pat 00:02:04  Thanks. I appreciate you having me.

Josh 00:02:06  Pat. I watched your Shark Tank episode and loved, you know, everything you kind of went through in that episode.

Josh 00:02:15  You ended up doing a deal with Robert who who first kind of went out pretty early on, at least in the episode. And then he comes back in and kind of swoops up the deal. And at the last moment, how was that experience being on Shark Tank and going through that?

Pat 00:02:31  Yeah, it's something I've talked a lot about it over the past few years because, as one of the people that likes on the speaking circuit with me likes to call me the one of the OGs in Shark Tank because I'm on season five. They have so many seasons now, I'm like, I can't be old at everything. I hate that, but, I mean, it's it's a difficult process in the very beginning. You have to submit several videos and a lot of written documentation, a lot of due diligence. And, you know, I was turned down in season one or season two or something like that. And then they called me back as season five was coming because they were ramping so much, and I was one of the people that came down to the very end and had to fly out there and do my pitch in front of the producers to even see if they could keep me.

Pat 00:03:09  So, I did that. And then it aired in 2014 and it was awesome. I mean, the show was going, I mean, my, my time was going poorly in there for like 80% of it. The, you know, you're in there like an hour and 15 minutes. Most people don't realize that. And it's cut to eight. So for most of the time it wasn't going very well. But the end was pretty good. Yeah.

Josh 00:03:27  Yeah, that's that's amazing. How was it, you know, doing a deal with Robert and what kind of his involvement been since you did that deal with him?

Pat 00:03:36  Well, the deals that you do on Shark Tank and are are definitely theory and practice things. You know, one of you come up with a deal and then it closes or it doesn't. I mean, a lot of people that I talk to and I'm involved in a pretty deep Shark Tank group. You know, most of those deals don't close as you see them. And really, truly most deals don't close, period.

Pat 00:03:55  you know, our deal. We did not do the financial terms we saw on the show. We just did a relationship and we didn't do any kind of money transfer, just a small equity portion to be able to help. So the relationships been mor...

Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Rapid evolution of AI agents in e-commerce and business operations.
• Definition and functionality of AI agents that perform actions on behalf of users.
• Importance of governance and trust in deploying AI agents to prevent errors and misuse.
• Introduction of Barndoor AI and its role in providing connectivity and governance for AI agents.
• Practical use cases of AI agents in managing tasks across various platforms (e.g., Shopify, JIRA, QuickBooks).
• The necessity of setting strict policies to control AI actions and ensure safety.
• Integration of AI tools with existing software systems and the potential for low-code/no-code solutions.
• The significance of problem-solving and process design skills in effectively utilizing AI agents.
• Recommendations for starting small with AI and learning through practical application.
• Continuous evolution of AI tools and the importance of staying informed and adaptable.

In this episode of the Ecomm Breakthrough podcast, host Josh Hadley speaks with Oren Michels, founder and CEO of Barndoor AI, about the growing role of AI agents in business operations. Oren explains how AI agents can autonomously perform tasks within systems like Shopify, Amazon, and Slack, while emphasizing the critical need for governance and trust. He introduces Barndoor AI as a control plane that enables secure connectivity and policy-based guardrails, preventing unintended actions. Practical use cases include email management, JIRA ticket handling, and financial forecasting. Oren advises listeners to start small, experiment with multiple AI tools, and develop strong problem-solving skills.

Here are the 3 action items that Josh identified from this episode:

1. Start with low-risk automation
   Deploy AI agents on simple, non-critical workflows first (e.g., email summaries, reporting) to test value and build internal trust before scaling. 
2. Enforce strict governance from day one
   Define clear permissions, rules, and guardrails—never give blanket access. Every AI action should be controlled, logged, and auditable. 
3. Design processes before deploying AI
   Break workflows into clear steps and craft precise prompts. Strong process design + prompt clarity = better, safer AI performance.

Timestamps:

00:00:00 The Problem of AI Governance
Oren discusses lack of governance in current AI systems and the risks of AI agents forgetting instructions.

00:00:30 Podcast Introduction & Guest Background
Podcast is introduced, and Oren Michels’ background and achievements are highlighted.

00:00:44 The Rise of AI Agents in E-commerce
Josh frames the future of e-commerce as dominated by AI agents and introduces Oren as the guest.

00:02:06 Oren’s Perspective on AI Agent Adoption
Oren explains the rapid and slow pace of AI agent adoption, especially beyond coding tasks.

00:03:02 What is Barndoor AI?
Oren introduces Barndoor AI, focusing on connectivity and trust for AI agents in business systems.

00:03:40 How Barndoor AI Works
Details on how Barndoor AI enables granular control and governance over AI agent actions.

00:05:45 Security and Guardrails for AI Agents
Discussion on security risks, both from bad actors and unintended consequences by legitimate users.

00:06:33 Difference Between Barndoor and Other AI Tools
Oren explains how Barndoor adds governance missing from tools like OpenClaw and Claude.

00:09:24 Use Case: Email Management with AI Agents
Oren shares how he uses AI agents to manage and triage his daily email load efficiently.

00:12:04 Why Governance Matters in AI Actions
Explains the importance of restricting AI actions to prevent mistakes, especially in sensitive tasks.

00:13:00 Custom Rules and Granular Policies
Barndoor allows highly specific rules for AI actions, such as price-based restrictions in e-commerce.

00:13:58 Use Case: JIRA and Finance Automation
Examples of using AI agents for JIRA ticket management and automated financial reporting via Slack.

00:16:48 Enterprise Use Cases & E-commerce Optimization
Barndoor’s enterprise clients use AI for handling sensitive data and optimizing Amazon listings seasonally.

00:19:08 Customer Service and Contextual Communication
AI agents help draft personalized emails by pulling context from Salesforce and previous communications.

00:20:40 AI Agent Adoption is Still Early
Oren emphasizes that AI agent use is in its infancy and encourages experimentation in low-risk areas.

00:22:40 Personal Use Cases for AI Agents
Josh and Oren discuss personal productivity applications, like sports team management and scheduling.

00:24:14 The Evolving AI Tool Landscape
Discussion on the rapid evolution of AI tools, the importance of using multiple models, and specialization.

00:27:47 Future of AI in Business Operations
Speculation on the future: specialized AI tools for each business function, governed by platforms like Barndoor.

00:31:00 The Importance of Problem-Solving and Prompt Engineering
Success with AI depends on defining problems and giving clear instructions, akin to prompt engineering.

00:33:46 Actionable Takeaways for Listeners
Josh summarizes three action items: start experimenting, document processes, and stay flexible with tools.

00:36:44 Book Recommendation: Why Computers Think
Oren recommends a book that explains the probabilistic nature of AI and why it sometimes fails.

00:37:34 Favorite AI Tool and Personal Use
Oren shares his favorite AI tools and how he uses them for both work and personal learning.

00:38:49 Who to Follow: Aaron Levie
Oren recommends following Aaron Levie for insightful commentary on AI and business.

00:39:28 Where to Learn More About Barndoor AI
Oren directs listeners to Barndoor AI’s website and their personal product, Zenni, for hands-on experience.

00:39:45 Podcast Wrap-Up
Podcast concludes with thanks and a call to subscribe and leave a review.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com

Tools and Websites
"OpenClaw": "00:00:00"
"Barndoor AI": "00:03:14"
"

Bullet Points:

• Importance of consistent leadership communication for team alignment
• Introduction of a weekly CEO newsletter as a communication tool
• Challenges of team misalignment and competing priorities
• The "founder's trap" and its impact on team understanding
• Benefits of asynchronous communication over live meetings
• Structure of the CEO newsletter: wins, current constraints, core values, and vision
• Celebrating team wins to boost morale and motivation
• Identifying and addressing key business constraints
• Recognizing team members who exemplify core values
• Reinforcing the company's mission and vision to maintain engagement

Timestamps:

00:00:00 Introduction to the CEO's #1 Weekly Habit
Josh Hadley introduces the concept of a weekly CEO newsletter to improve leadership, clarity, and team performance.

00:01:50 The Problem: Team Misalignment and Lack of Cadence
Discusses why teams feel scattered and reactive, highlighting a cadence problem, not a communication problem, in leadership.

00:03:40 Why Teams Get Scattered
Explains that teams lose focus because they forget the mission, have competing priorities, and lack the CEO's full perspective.

00:06:22 The Solution: The Weekly CEO Newsletter
Introduces the asynchronous weekly newsletter, recorded via Loom, to maintain clarity and momentum without adding more meetings.

00:07:19 The Power of Asynchronous Communication
Advocates for asynchronous updates over meetings to avoid wasted time, task switching, and to increase team agility and output.

00:08:58 How to Create the Newsletter Content
Details the process of using Loom's transcription feature and an AI tool like Claude to draft the email content.

00:11:05 The Four-Part Newsletter Agenda
Outlines the four key sections of the weekly update: wins, the primary constraint, core value shout-outs, and the vision.

00:12:45 Agenda Part 1: Sharing Wins
Explains the importance of sharing wins to build morale and make the team feel like they are winning.

00:16:42 Agenda Part 2: Stating the Constraint
Focuses on naming the single most important bottleneck to align the entire team's energy and focus weekly.

00:21:05 Agenda Part 3: Core Value Shout-Outs
Describes how to use specific examples of employees living the core values to embed and reinforce company culture.

00:25:00 Agenda Part 4: The Vision Reminder
Emphasizes connecting daily work back to the company's long-term mission to create meaning and build endurance.

00:26:00 The CEO Update Flywheel
Summarizes how wins, vision, constraints, and core values work together to create belief, meaning, focus, and culture.

00:26:40 Five Mistakes to Avoid
Lists common pitfalls that can kill the newsletter's effectiveness, such as brain dumps and only sharing problems.

00:27:48 Your First CEO Update Prompt
Provides a simple, four-part prompt for creating the first newsletter, covering a win, a constraint, a value, and the vision.

00:28:20 The Leadership Lesson
Concludes that leadership is about creating a rhythm and clarity, not just more meetings, to magnify team output.

Links and Mentions:

Tools and Websites
"Loom": "00:06:22"
"Claude": "00:09:51"

Key Concepts and Practices
"Weekly CEO Newsletter": "00:01:50"
"Asynchronous Communication": "00:07:19"

Leadership Principles
"Core Values": "00:21:05"

Summary of the Four-Part Agenda for the Newsletter
"Wins from the Previous Week": "00:11:31"
"Identifying the Constraint": "00:17:20"
"Core Value Shout Outs": "00:21:05"
"Vision Reminder": "00:25:34"

Mistakes to Avoid
"Random Brain Dump": "00:27:27"
"Only Sharing Problems": "00:27:27"
"Generic Praise": "00:27:27"
"Changing the Message Weekly": "00:27:27"
"Making it About Yourself": "00:27:27"

Transcript:

Josh Hadley 00:00:00  If your team is always busy, they're a little scattered and unclear the direction the business is heading. They don't need more meetings. They need you to step up to be the true CEO and the leader that you are meant to become. In today's episode, I'm going to share the number one weekly habit that CEOs need to implement to be able to ten x their leadership output, increase the clarity inside the business, and get everybody rowing in the same direction so that your team maximizes their performance and output in the overall business. 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. Who am I? My name is Josh Hadley. First and foremost, I'm a man of faith. I'm a father of four and a husband to a beautiful wife.

Josh Hadley 00:00:56  I've been selling in the e-commerce space for over a decade now, doing over $20 million in revenue annually. And I'm selling multi-millionaires in three different sales channels Shopify, TikTok shop and Amazon. And I'm also the host of the number one business strategy podcast for ecommerce entrepreneurs. And that's E-com breakthrough. So let's face it, your team is busy, they're scattered, and they're unclear with the direction that the business is heading and specifically the role that they play inside the overall direction that your business is heading. They don't need additional meetings. What they do need from you is they need you to actually lead. So today, that's exactly what we're going to be diving into. And I'm going to share with you the number one habit that you need to adopt every week as the CEO. And that is the weekly CEO newsletter. Let's talk a little bit more about this. This is a 15 minute habit that you can do at the very beginning of every single week. So this is something that I've implemented in my own business every single Monday.

Josh Hadley 00:01:50  It's a 15 minute habit that keeps your team aligned, focused and connected and moving in the same direction, making sure that we are all building to achieve that overall mission and vision that you have established for the business. So let's talk about what the problem actually is. The problem isn't necessarily just like a lack of communication, because hopefully you already have existing meetings and you've been communicating with these team members. But what's happening is your team feels scattered. They're quiet. Maybe they're a little reactive. You wish they would be more proactive in solving problems in the business. They feel a little disconnected from the overall mission. Or maybe they even question like, why are we in business? Maybe they just feel like they're just there to collect a paycheck for you, and they're not really tied into the overall purpose and mission that your company is servi...

Chapters:

Introduction to Nathan Resnick and Sourcing (00:00:00)
Josh introduces Nathan Resnick, his background, and the Sourcing platform’s mission and achievements.

Negotiation Tactics and Understanding Factory Value (00:01:00)
Nathan explains how to assess your business’s value to a factory and leverage it for better payment terms.

Factory Cash Flow and Forecasting (00:02:01)
Discussion on factory cash flow challenges, importance of forecasting, and mutual understanding in negotiations.

Choosing the Right Factory and Negotiation Leverage (00:02:58)
Advice on evaluating if you’re the right customer for a factory and when to consider switching.

How to Find Out Your Importance to a Factory (00:03:55)
Nathan shares practical ways to determine your share of a factory’s business and the value of building relationships.

Building Relationships and Guanxi (00:05:27)
The importance of personal, transparent relationships with manufacturers, especially in Chinese business culture.

Balancing Primary and Backup Suppliers (00:06:19)
Strategies for maintaining a primary manufacturer while having backup options and when switching is worthwhile.

Re-evaluating Product Costs and Sourcing Quotes (00:08:31)
How to revisit product pricing, get competitive quotes, and the realities of sourcing platforms like Alibaba.

Three Actionable Takeaways (00:10:42)
Josh summarizes key takeaways: building relationships, revisiting unit costs, and warehousing outside the US.

Warehousing and Tariff Strategies (00:13:43)
Advice on warehousing in Mexico to save on tariffs and improve cash flow, including 3PL recommendations.

Closing and Contact Information (00:14:30)
Nathan shares how listeners can connect with him and learn more about Sourcing.

Links and Mentions:

Tools and Websites 
"Sourcify": "00:08:47" 
"Alibaba": "00:10:23" 
"Global Sources": "00:10:23" 

Key Concepts 
"Guanxi": "00:05:35" 

Actionable Takeaways 
"Build a Relationship with Your Manufacturer": "00:11:29" 
"Revisit Product Unit Costs Regularly": "00:12:33" 
"Start Warehousing Products Outside the U.S.": "00:13:43" 

Contact Information 
"Nathan Resnick" on LinkedIn: "00:14:44"

Transcript:

Josh 00:00:00  Today I am super excited to introduce you all to Nathan Resnick. Nathan is the founder of Sourcify, the fastest growing sourcing platform backed by Y Combinator that helps hundreds of companies manufacture products around the world. In the past, Nathan has brought dozens of products to market, ran three e-commerce companies. He's even sold one of them and has been part of projects on Kickstarter, raising over seven figures. He writes for media outlets like entrepreneur, The Next Web Business. Com, and can frequently be seen on CNBC. Nathan also used to live in China and he speaks Mandarin fluently. So with that introduction, welcome to the show, Nathan.

Nathan 00:00:41  Josh, thanks so much for having me on.

Josh 00:00:43  I'm sure with your experience you have probably some good negotiation tactics. you've probably have a few case studies of people that you've helped, navigate getting better payment terms with their manufacturer. So would you mind just kind of diving in and sharing more there?

Nathan 00:01:00  Yeah, totally. I mean, I think first off, you got to understand how valuable your business is to your factory.

Nathan 00:01:06  Right. So I would do that by really trying to understand, you know, you make up most of their production output, you know, of all the factories, production volume that you work with, what percentage are you? Is it 30%, 10%, 50%, 80%. You know what? What is it? And then you kind of understand where you're at from a negotiation position, right? Because if you're a brand that makes up the majority of a factory's output, obviously you have a much stronger lever to pull if you're a kind of minority customer for them or a smaller customer for them, then, you know, maybe that's not even the right factory for you to be working with because you don't have a strong lever to pull. So I think, you know, number one, you've got to see eye to eye to eye with them in terms of forecasting and helping them better understand. Well, hey, you know, this year, this is how many units I'm planning to produce. And I think there's a big disconnect between supply chain teams and factories when it comes to forecasting, because a lot of supply chain team members don't understand.

Nathan 00:02:01  There are a lot of brand owners don't understand. You know, that factory has to go purchase raw materials to produce your products as well, so they have their own cash flow challenges when it comes to, you know, making sure they have enough factory workers to produce your product, making sure they have the raw materials to produce your product, and then they aren't getting paid, you know, for 30 or 60 days to produce your product if you're negotiating your terms. Well. And so you've got to understand it from their standpoint as well of, you know, hey, how is this going to help their factory grow? Because it can also put them in a cash flow position, which is challenging. And so that's something you need to be aware of when you go into your negotiations. So I think number one, I would just make sure you're seeing eye to eye with that factory that you're working with to understand, you know, how big of a customer am I for them? You know, what does their cash flow look like? And have I done a good job making sure they understand my forecast? And that's when I would go into the negotiation of saying, hey, you know, we're trying to grow and to grow.

Nathan 00:02:58  We need more, you know, cash flow to scale up our ads, to get more customers right. And so that's how I would approach it. I think if you're a brand that is, you know, a smaller customer like sub 10% of a factory's output, it's going to be really hard for you to negotiate that. And honestly, in that position, I might actually, you know, kind of take my option to of, you know, trying to ask yourself, am I the best customer for this factory? And can I find a factory where I'm, you know, a much larger customer that I can grow with more? so that's that's another kind of question that I would ask of, trying to understand, like if you already know your small customer for this factory, are they even the right factory for you? and then, you know, it's just.

Josh 00:03:41  Real quick, before you continue on that, my question would be on that. How do you have that conversation to say, hey, by the way, how much of your business do I make up, right? Like, that could be an awkward conversat...

Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Challenges of scaling seven-figure e-commerce brands
• Importance of differentiation and unique value propositions in the market
• Leveraging AI to manage complexity and accelerate growth
• The "10-80-10 rule" for product development and execution
• Evaluating when to persist with a project or pivot
• Product discovery process and its three modes
• Utilizing AI for comprehensive marketplace analysis and product viability
• Strategies for expanding existing brands and launching complementary products
• Educating the market for unique or nascent products
• Financial and operational metrics for informed decision-making in e-commerce

In this episode of the "Ecomm Breakthrough Podcast," host Josh Hadley interviews Sean Travis, a former LA County firefighter turned e-commerce entrepreneur and founder of Ecom for Heroes. Sean discusses his journey, the challenges of scaling seven-figure brands, and the importance of differentiation in today’s market. He introduces "Kaldon," his AI-powered platform that streamlines product development, branding, and marketing. The episode features a walkthrough of Kaldon’s capabilities, practical strategies for leveraging AI, and actionable advice for entrepreneurs aiming to build profitable, scalable e-commerce businesses efficiently and effectively.

Here are the 3 action items that Josh identified from this episode:

1. Apply the 10-80-10 Rule
   Own the first 10% (idea) and final 10% (strategy/polish), and delegate or automate the middle 80% using your team or AI. This is how you scale without burning out.
2. Prioritize Revenue-Generating Activities
   Focus only on work that drives growth—new products, new markets, new channels. Avoid getting distracted by “shiny” AI tools unless they directly increase revenue.
3. Audit Your Time Ruthlessly
   Track where your time goes. If you’re stuck in low-value tasks or optimization work, you’ll stay stuck. Shift your time toward high-impact activities that push you past the $1M–$5M “swamp.”

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com

Tools and Websites

• "Hello Frank": "00:11:15"
• "Jungle Scout": "00:21:39"
• "Helium 10": "00:21:39"
• "Data Dive": "00:21:39"
• "SEMrush": "00:21:39"
• "ChatGPT": "00:22:29"
• "Alibaba": "00:35:52"
• "Nano Banana 2": "00:38:45"
• "Veo 3": "00:39:31"
• "Freepik": "00:45:15"
• "Higgsfield AI": "00:45:15"
• "Claude AI": "00:45:15"
• "Perplexity AI": "00:45:15"

Books

• "The E-Myth by Michael Gerber": "00:01:04"
• "Buy Back Your Time by Dan Martell": "00:45:01"

People

• "Steve Jobs": "00:04:45"
• "Dan Martell": "00:09:36"
• "Ezra Firestone": "00:01:04"
• "Kevin King": "00:01:04"

Videos

• "Steve Jobs Movie (with Ashton Kutcher)": "00:06:16"

Concepts and Frameworks

• "108010 Rule": "00:04:45"
• "AI Chatbots": "00:12:06"
• "Customer Avatar": "00:27:23"
• "Pain Points": "00:27:23"
• "Blue Ocean Strategy": "00:32:31"

Product Ideas

• "Shift Force": "00:20:44"
• "Wooden Cocktail Smoker": "00:24:04"

Analysis and Reports

• "Product Viability Score": "00:35:08"
• "Market Opportunity Summary": "00:35:08"
• "Competitive Landscape": "00:35:08"

Contact Information

• "Sean (Email: sean@ecomforheroes.com)": "00:46:00"
• "Ecom for Heroes": "00:46:00"

Episode Sponsor

This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures. 

I started my business 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 email me at josh@ecommbreakthrough.com and in your subject line say “strategy audit” for the chance to win a $10,000 comprehensive business strategy audit at no cost!

Transcript Area:

Sean Travis 00:00:00  But if you want to do this grassroots or you want to do this with actual skill, because any fool can sell something for less. You need to be creative. And that's where 1080 ten rule AI is coming in hard. Helping with that. So like I said, billions of data points. I can't analyze that. So that's what we're super excited about is getting that piece of success.

MC 00:00:25  Welcome to the Ecomm Breakthrough podcast. Are you ready to unlock the full potential and growth in your business? You've alr...

Links and Mentions:

E-commerce Platforms 
"Shopify": "00:00:00" 
"Amazon": "00:00:00" 
"TikTok Shop": "00:00:00" 

Financial Concepts 
"Distributable Cash": "00:01:02" 
"Net Income": "00:01:02" 
"Cash Conversion Cycle": "00:02:09" 

Investment Recommendations 
"Life Insurance": "00:13:29" 
"S&P 500 VOO Index Fund": "00:15:24" 
"Roth IRA": "00:16:18" 
"REITs (Real Estate Investment Trusts)": "00:18:14" 

Books and Videos 
"Podcast Episode with Mike Olson": "00:14:31" 
"Podcast Interview with Dew Wealth": "00:17:18" 

Additional Notes 
"Speculative Investments": "00:19:55" 
"Oil Investment Opportunities": "00:20:39"

Timestamps:

00:00:00 Introduction & Host Background
Josh introduces himself, his e-commerce experience, and the purpose of the E-com Breakthrough Podcast.

00:01:02 The #1 Business Metric: Distributable Cash
Explains distributable cash, how it differs from net income, and why it's crucial for business health.

00:02:09 Importance of Working Capital vs. Owner Distributions
Discusses the need to balance reinvesting in the business with distributing profits to owners.

00:03:17 When to Reinvest vs. Distribute Cash
Describes scenarios for high reinvestment and sets a 33% distributable cash target for most businesses.

00:04:31 Why Distributable Cash Matters for Entrepreneurs
Explains the risks of relying on a future exit and the benefits of building wealth through regular distributions.

00:05:30 Risks of Operating in Others’ Sandboxes
Highlights the vulnerability of e-commerce businesses to platform changes and the importance of diversifying wealth.

00:07:23 Psychological Benefits of Distributable Cash
Describes how having cash outside the business reduces stress and enables better decision-making.

00:08:51 Common Mistake: Confusing Net Income with Distributable Cash
Shares a cautionary story about an entrepreneur who misused net income, leading to debt and financial trouble.

00:10:36 Key Lessons: Annual Distributions & Retaining Working Capital
Emphasizes the importance of annual cash distributions and not treating all net income as distributable.

00:11:29 What To Do With Distributable Cash: Josh’s Framework
Introduces Josh’s personal strategy for allocating distributable cash to build long-term wealth.

00:13:29 Bucket 1: Life Insurance
Explains using life insurance for creditor protection, steady growth, and as a financial safety net.

00:15:24 Bucket 2: S&P 500 Index Funds & Retirement Accounts
Advocates for steady, long-term growth via index funds and maximizing tax-advantaged retirement accounts.

00:17:18 Bucket 3: Real Estate
Recommends turnkey single-family homes over short-term rentals to avoid creating another business.

00:19:55 Bucket 4: Speculative Investments
Allocates a small portion to speculative assets like crypto or individual stocks for potential upside.

00:20:39 Bonus: Oil Investment Opportunities
Mentions investing as a limited partner in oil drilling for tax benefits and passive income.

00:21:32 Conclusion & Call to Action
Encourages listeners to share the episode, leave reviews, and spread the word.

Transcript:

Josh Hadley 00:00:00  Do you want to know whether your business is healthy or not? Whether you're going to be succeeding over the next five years or whether you're going to be struggling? Today? I'm going to be sharing with you the number one business metric that tells you the exact health of your business and whether you're about to continue to grow or decline. 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 first and foremost. Who am I? My name is Josh Hadley. I'm a man of faith. I am a father of four and a husband to a beautiful wife. I've been in the e-commerce space for over ten years, and I'm doing over $20 million and doing multi millions on Shopify, TikTok shop and Amazon as well. And also the host of the Ecom Breakthrough podcast, which is the number one business strategy podcast for ecommerce.

Josh Hadley 00:01:02  Let's talk about what the number one business metric is that allows you to know whether your business is healthy and that is distributable cash. Let's talk about what distributable cash is because it's actually different from net income. Net income is what is left over after you have, you know, basically run the business over the course of the month or over the year, right. So you're going to take out your cost of goods. You're going to take out fulfillment costs. You're going to take out advertising, your overhead expenses, salaries, etc.. What's left over is your net income. Here's where a lot of entrepreneurs and business owners go wrong. They mistakenly think that, oh, I netted whatever that net income amount is. And then they think that's my personal money. That's all distributable cash. And the reason why this is so important to delineate between distributable cash and actual net income is for the following reason. Your business needs working capital in order to grow. And so working capital is what allows you to go hire that next person, or to go invest into a new product that you have never released, or to reorder additional products that are already selling well, that are maybe growing quickly.

Josh Hadley 00:02:09  And so it's important that you do not a starve the business for the working capital that it needs, but be it is also very important that you are actually able to distribute a profit or distributable cash to the owner of the business. And here's why I argue that this distributable cash is the number one metric for a healthy business. If you have to take, let's say it's it's 90% of your net income and reinvest it into the business just to keep it afloat. It means a you probably have a really bad cash conversion cycle, which if you want to learn a little bit more about that, go check out some of my other podcast episodes where I do talk about the cash conversion cycle and how to optimize it so that you have a very healthy cash conversion cycle, even a negative cash conversion cycle where you get paid even before you've had to outlay any money for generating that revenue or that cell. It is possible, even inside a...

Chapters:

The Value of Operating Systems and Organizational Structure (00:00:00)
Yoni explains why strong systems and structure increase business value and exit multiples.

Building Leverage and Empowering Leadership (00:00:36)
Discussion on creating leverage by empowering teams and implementing clear systems for business growth.

Incremental Team Building and Org Chart Planning (00:02:23)
Advice on hiring incrementally based on KPIs and performance, with an example org chart for a growing business.

Top-Down vs. Bottom-Up Hiring Approaches (00:04:24)
Comparison of hiring strategies and the importance of hiring subject matter experts to build out teams.

Org Chart Walkthrough: Roles and Reporting Lines (00:05:28)
Detailed breakdown of a $20M e-commerce business org chart, including management structure and reporting lines.

Creative and Siloed Team Structures (00:06:36)
How to structure creative teams for efficiency, and the pros and cons of siloed versus shared resources.

Management Cadence and Preventing Silos (00:07:46)
Importance of management reporting cadence and strategies to avoid siloed functions within teams.

Level 10 Meetings and EOS Traction (00:08:47)
Introduction to the Level 10 meeting from EOS, its value for alignment, and how it supports scaling.

Operations, Launch, Brand Management, and Supply Chain (00:10:59)
Breakdown of operations function, including launch, brand management, supply chain, and their respective team structures.

Shopify/DTC vs. Amazon Team Distinctions (00:13:17)
Explanation of separate teams for Shopify/DTC and Amazon, and the use of external resources for specialized tasks.

HR and Admin Functions in Scaling (00:14:26)
The growing importance of HR and admin roles as the business scales.

Technology for Scalability: Project Management Tools (00:15:18)
Emphasis on the critical role of project management tools like ClickUp for SOPs, training, and workflow management.

Less is More: Focusing on Essential Tech (00:16:46)
Advice to focus on essential technology that moves the needle, rather than adopting every available tool.

Links and Mentions:

Tools and Websites
"YouTube": "00:03:32"
"EOS Traction": "00:08:47"
"ClickUp": "00:15:41"

Concepts
"Standard Operating Procedures (SOPs)": "00:01:08"
"The 80/20 Principle (Pareto Principle)": "00:02:09"
"Level 10 Meeting": "00:09:08"

Transcript:

Josh 00:00:00  Today I am super excited to introduce you all to Yoni Kozminski. Yoni is the co-founder of South Col, Escala and Multiply Mii. Yoni, you talked about seeing an opportunity to, increase the multiple when it comes time for exit because of the processes and team that you've built into a business. So why is it so important to focus on the operating system and organizational structure of a business in order to increase? And how does that increase the multiple that you will get? Yeah. Great question.

Yoni 00:00:36  Josh. So the way I would approach this, the way that I look at it, taking a step back before we get into the nitty gritty details here, is that what any potential acquirer is looking for or what all of us really are looking for in life, when when you really strip it back is more time, more money and more freedom. And if you can build leverage where you are not a critical part in the delivery and execution of what is happening inside of your business, and then that is a high value form of leverage.

Yoni 00:01:08  And so when you sort of bring that back into what SOPs, standard operating procedures, and I would say like more importantly, systems are inside of the business. If you can effectively achieve that in in a meaningful way, then ultimately, you know, I would say like, I'm not the poster child, but but I'm a I'm a product of what I preach in that I'm able to, you know, be involved in three businesses that are each growing at different rates with very different business models attached to them. And that's because we have really empowered the leadership team. We have real clear systems. And so coming back to it for an e-commerce business, the only way for you to grow is to get out of your own way. And so the reality is building systems, building processes, and empowering people to make the decisions. Most of the decisions. You know the predator principle. 80-20. And getting you out of your own way becomes fundamental in your ability to grow your business.

Josh 00:02:09  Here's what some different businesses in their organizational or their yeah, their or charts kind of look like for the audience just to spark some ideas.

Josh 00:02:18  And as they start to plan out, hey, how do I build up my team and and really scale?

Yoni 00:02:23  Yeah, absolutely. Well, actually, before we even dive into that and I'll share as much as I can, you know, there's only a certain number of slides, decks that I have where we've wiped out, like any client references and, and things like that. So I'll share gladly what I can. But you brought up a really important point, Josh, and I think this is where people get things are often really wrong, and I'm guilty of it myself. probably more times than I would care to admit. But you don't want to hire everyone at once, and you want to build incrementally based on the performance and the KPIs. And, you know, you really you keep that up perfectly, because what we're looking at right now on the screen is an org chart back in 2020 of a business that was looking to grow over the course of 2021 into a whole number of proposed roles here.

Yoni 00:03:16  So on the screen you can see existing roles, outsource roles, proposed roles and shared existing resources. So geez, I mean, I'd have to like sit here and list out every single person. I would just say, check out the YouTube and you can actually see.

Josh 00:03:32  Let's yeah, let's go through just yeah, high level. I mean, even just talking through the org chart, I think that the listeners would find this very, very valuable because again, that was the number one question at Camp Comm is what is your team look like? What is your team look like? so let's let's dive in and spend the time here. Yoni.

Yoni 00:03:51  Okay. I'm happy to do that. What I'll also say, and, you know, putting my multiply me hiring hat on, I turn so many people away from working with us as a business. And, you know, while that's not great for our business revenue and profitability growth, I think it's a smart move because if you haven't done this before, if you don't have the right experience, exposure, mentors the right people around you that you can turn to, you're likely going to get it wrong.

Yoni 00:04:24  So if you're building out a function or a team for the first time and you don't hire, you know, I like to hire a top down, whereby I'm loo...

Mansour is the Partner and Director of Advertising at Incrementum Digital, where he leads high-performance PPC Management strategies for 7- and 8-figure Amazon brands managing millions in monthly ad spend.  He also has his own brand that he manages as a seller.

Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Advanced Amazon PPC strategies for product launching and ranking
• Importance of conversion rates and product differentiation
• Case study insights on launching low-priced products
• Campaign structure and budget allocation for effective PPC management
• Differences in ad placement strategies for high-conversion vs. exploratory products
• Utilizing Amazon tools for analyzing conversion rates and keyword performance
• Strategies for managing PPC with limited budgets
• Leveraging long-tail keywords for improved ranking
• Approaches for optimizing mature products and managing TACoS
• The role of AI tools in enhancing PPC campaign management and data analysis

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews Mansour Norouzi, director of advertising at Incrementum Digital. Mansour shares advanced, data-driven Amazon PPC strategies for launching and ranking products, emphasizing the importance of conversion rates, focused keyword targeting, and campaign structure. He explains how to use Amazon’s analytics tools to optimize ad spend, discusses tactics for both new and mature products, and highlights the growing role of AI tools like Claude and OpenClaw in e-commerce workflow optimization. The episode concludes with actionable takeaways for effective Amazon advertising.

Here are the 3 action items that Josh identified from this episode:

1. Own and Understand Your Data
   • Build your own data warehouse.
   • Analyze at the keyword level, not just high-level reports.
   • Ensure data is clean and categorized for AI-driven insights.
2. Tailor Your Launch Strategy
   • Know if your product is a commodity or differentiated.
   • Adjust your PPC and placement strategy accordingly.
   • Use conversion rate benchmarks to guide your approach.
3. Mature Product Mindset
   • Don’t chase every keyword—focus on those that matter.
   • Use broader keywords for profitable sales, not ranking.
   • Accept that some keywords will never be winners for your product.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com

Tools and Websites

• "Brand Metrics": "00:10:39"
• "Product Opportunity Explorer": "00:11:46"
• "Search Query Performance": "00:12:46"
• "Helium 10": "00:25:03"
• "Amazon Advertising Console": "00:42:55"
• "Claude": "01:04:47"
• "OpenAI's Gemini": "01:05:43"
• "Open Claw": "01:05:43"

Books and Influencers

• "The E-Myth by Michael Gerber": "00:00:57"
• "Ellis Whitehead": "01:02:55"

Videos

• "Ecomm Breakthrough YouTube Channel": "00:12:51"

Templates

• "Keyword Research Template": "00:46:52"
• "Search Query Performance Template": "00:51:29"

Key Concepts and Strategies

• "Exact Match Campaigns": "00:19:52"
• "PPC (Pay-Per-Click) Advertising": "00:20:18"
• "Conversion Rate": "00:20:18"
• "Long Tail Keywords": "00:28:38"
• "Auto Campaigns and Phrase Campaigns": "00:38:56"
• "Understand Your Data": "01:02:55"
• "Product Launch Strategy": "01:03:00"

Episode Sponsor

This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures. 

I started my business 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 email me at josh@ecommbreakthrough.com and in your subject line say “strategy audit” for the chance to win a $10,000 comprehensive business strategy audit at no cost!

Transcript Area:

Josh Hadley 00:00:00  None of this that we're talking about is magic. Like, if you always do this, this will always happen. That's not the way it works. You have to have a conversion r...

Links and Mentions:

Cash Flow Management
"Cash Flow Forecasting Spreadsheet": "00:03:56"
"YouTube Video on Cash Flow Forecasting Tips": "00:04:56"

E-commerce Platforms
"Amazon": "00:01:00"
"TikTok Shop": "00:09:54"
"Shopify": "00:10:50"
"Shein and Temu": "00:10:50"
"Walmart.com": "00:10:50"

Business Strategies and Lessons
"Sales Cures All": "00:09:00"
"Creating a Playbook": "00:05:55"

Timestamps:

00:00:00 Introduction & Crisis Unveiled
Josh introduces himself and describes the January 2024 financial crisis: $30k in the bank, $300k credit card due.

00:01:02 Causes of the Crisis
Explains the series of bad product launches, heavy ad spend, and lack of financial forecasting that led to the crisis.

00:02:03 Complacency and Lack of Process
Discusses complacency in product launches and absence of a defined process to stop losses early.

00:03:02 Cash Flow Forecasting Lesson
Highlights the importance of cash flow forecasting and how not having it worsened the situation.

00:03:56 Implementing Cash Flow Forecasting
Describes adopting a cash flow forecasting spreadsheet and the benefits of forward-looking financial planning.

00:05:06 Key Lessons Learned
Summarizes three main lessons: forecasting finances, creating a playbook, and launching better products.

00:05:55 Building a Product Launch Playbook
Details the new process for product launches, including team communication and documenting lessons learned.

00:06:46 Launching Better Products & Calculated Risks
Emphasizes the need for better product selection and avoiding multiple risky launches at once.

00:07:58 Systems Breakdown & Exposure
Reflects on how the lack of successful launches exposed weaknesses in business systems and processes.

00:09:00 Immediate Actions: Focus on Sales
Describes the shift to focusing on sales growth and stepping away from day-to-day operations.

00:09:54 Growth Initiatives & Channel Diversification
Lists four growth actions: retail outreach, TikTok Shop, Shopify, and additional marketplaces like Shein, Temu, and Walmart.

00:10:50 Results of Channel Experiments
Shares outcomes: retail failed, other marketplaces had minor impact, Shopify showed promise, TikTok Shop was the breakthrough.

00:12:34 TikTok Shop Breakthrough
Explains how going viral on TikTok Shop quickly generated revenue and improved Amazon sales.

00:13:29 Advice for Entrepreneurs in Crisis
Encourages creativity and aggressive action to drive revenue when facing business crises.

00:14:25 Doubling Down on Winning Channels
Describes the strategy of testing multiple channels, then focusing on the one showing early success—TikTok Shop.

00:15:15 Building a Flywheel: TikTok Shop & Shopify
Explains how TikTok Shop content and insights fueled success on Shopify and created a virtuous cycle with Amazon.

00:16:15 Encouragement & Lessons from Setbacks
Offers encouragement, sharing that setbacks can lead to breakthroughs if you focus on growth and don’t quit.

00:18:21 Sports Analogy & Final Words
Compares business setbacks to sports, stressing the importance of learning from failures and persisting.

Transcript:

Josh Hadley 00:00:00  I had $30,000 sitting in my bank account with a $300,000 credit card payment coming due, and I had no idea what to do. 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. First and foremost, who am I? My name is Josh Hadley. I'm a man of faith. I am a father of four and a husband to a beautiful wife. I've been selling into e-commerce space for over a decade, doing multi millions in revenue on different sales channels such as Shopify, TikTok, shop and of course, Amazon. And I am also the host of the number one business strategy podcast in the e-commerce space. And that is E-com breakthrough. This was January of 2024 for me, and this was the first time where my back was severely up against a wall to where I felt like, is this where I have to declare bankruptcy? It was a very, very uncomfortable position to be in.

Josh Hadley 00:01:02  And to be honest with you, I felt like I had failed miserably as a business owner, and this has been the first time where I actually had to dip into my own personal bank account just to fund payroll. That wasn't even to cover the credit card payment that was going to be due. I had to cover payroll for the week, and I didn't have enough money in the bank account. I'm going to share with you, like, the actual things that I implemented in the business to get us out of this really, really sticky situation and to clear the way through what I thought was going to have to be us declaring bankruptcy for the overall business. So what happened here is basically a series of like, unfortunate events that kind of like compounded onto each other. So let's dive back in. Like what drove me to only have $30,000 sitting in the bank account with a $300,000 credit card payment coming due. Well, what happened is, number one, we had some bad product launches. So in the months of November and December, we had launched some new products and I was very optimistic about these products.

Josh Hadley 00:02:03  We placed some large purchase orders for them, and then we invested heavily into pay per click ads on Amazon, thinking that we knew how to rank these products well. Well, sadly, these products did not go over as well as I as I had thought. And so we accumulated a massive advertising budget for those products. And then they didn't even sell very well. And now I was stuck with a lot of inventory, but b I had a bunch of ad spend that was now added to my credit card bill that was going to be due. The other thing that I learned from that process is that, hey, we didn't have a really good process of launching products like up until that point, maybe I had just been like winging it, or I thought we knew the process to launch products successfully on Amazon....

Chapters:

Introduction & Guest Background (00:00:00)
Josh introduces Shannon Roddy, his background, and expertise in Amazon brand building.

Brand Building Fundamentals (00:00:41)
Discussion on the importance of value, understanding the market, and showcasing brand identity on Amazon.

Showcasing Brand Identity on Amazon (00:02:11)
Advice on using images, infographics, and videos to communicate brand mission and story.

Quality Product as Foundation (00:02:32)
Emphasizes the necessity of having a great product before focusing on branding and marketing.

Adapting Brand Presentation to Audience (00:03:03)
Examples of tailoring images, content, and style to fit the brand and resonate with customers.

Learning from Customer Feedback (00:04:01)
Importance of reviewing customer feedback and adapting listings to highlight what customers value.

Continuous Optimization & Discovery (00:04:57)
Brand building as an ongoing process of discovery and adaptation based on customer needs.

Adapting and Expanding Product Lines (00:05:52)
Necessity of updating listings, ads, and product lines to stay competitive and grow.

Executing the Fundamentals (00:06:46)
Success on Amazon comes from consistently executing business fundamentals, not shortcuts.

Case Study: Table Mate (00:07:42)
Example of a brand that grew by expanding and adapting its product line.

Three Actionable Takeaways (00:08:28)
Summary of key actions: define and showcase brand, innovate and expand, and protect your business.

Protecting Your Brand (00:10:59)
Discussion on intellectual property, defensibility, and creative ways to protect products and campaigns.

Most Influential Book (00:11:25)
Shannon recommends "Good to Great" by Jim Collins and explains its impact.

Favorite Productivity Tool (00:12:28)
Shannon highlights Calendly for scheduling and its new features that improve efficiency.

Most Admired E-commerce Leader (00:13:37)
Shannon names Jason Boyce as a respected leader and advocate for Amazon sellers.

Avenue Seven Media & Free Resource (00:15:16)
Information on Avenue Seven Media and a free checklist resource for Amazon sellers.

Episode Wrap-Up (00:15:55)
Closing thanks and final remarks from both Josh and Shannon.

Links and Mentions:

Tools and Websites  
"Avenue Seven Media": "00:15:16" 
"Calendly": "00:12:28"

Free Resource 
"Free Checklist (128 Things)": "00:15:43"

Books 
"Good to Great by Jim Collins": "00:11:35"

People Mentioned 
"Shannon Roddy": "00:00:00" 
"Jason Boyce": "00:13:37"

Transcript:

Josh 00:00:00  Today I'm super excited to introduce you to Shannon Roddy. Shannon is an Amazon expert. He's a speaker and a director of business development at Avenue seven media. He founded Marketplace Seller Courses, home of the Amazon Brand Success Academy, and has consulted with over 200 companies and individuals to launch, grow and protect their Amazon brands. Shannon is a passionate innovator who loves to inspire others to achieve greatness and his family. Currently resides in Atlanta, Georgia. So with that, welcome to the show, Shannon. Hey, Josh.

Shannon 00:00:34  Thanks so much for having me. I've been really excited. We planned this a several months back, so something I've definitely been looking forward to.

Josh 00:00:41  I am of the same agreement to yourself, Shannon, that there is more than enough room for all of us to compete. but to your point, you've got to bring value to the market, right? Long gone are the days, especially on Amazon, of just creating another meta product, and especially if you're in the US, like good luck trying to find something cheaper and more efficient.

Josh 00:01:05  Process like that's not your capability, right? But what you can do. And here's where a lot of the overseas competitors, you know, fail to kind of compete with us on. They don't understand our market, period. Yeah. They don't they don't understand the end consumer. All they know how to do is to make things cheaply. Right. Yeah. And so I think that's a that's a big mindset shift. Number one is approach everything even new product opportunities as to okay, here's what's out there in the market. But it's probably not serving everybody the right way. So bring something new to the market. But I want to wrap up this whole brand building thing. I know we've spent a lot of time on it, but I want to wrap it up by by one kind of, you know, action item here with you, Shannon, as you talked about specifically on Amazon being able to showcase who your brand is, what you stand for is your recommendation that you take one of your listing images and you turn it into this kind of infographic or lifestyle image.

Josh 00:02:11  and you kind of state your either your company mission or what your brand is about there. And then do you create a video, right. And obviously there's A+ content and premium A+ content. Like where what's your recommendation for like a seller? That's like I have none of that today. What should they actually go do?

Shannon 00:02:32  Yeah. I mean, you know, the one last piece to this. Again, you can't build a great brand if you don't have a great product, right? The foundation is you've got to have a quality product. Even if you sell it well, the reviews will come out in the end. Right. So I want to just, you know, go back and lay the foundation. You got to have a great product for any of this to work, you know. And so once you've got a great product, it really is about showcasing it. And and again, I think the answer is it depends. It depends on the brand. I worked with the tattoo company. They were very much about lifestyle.

Shannon 00:03:03  They hired tons of influencers out there. They had this very sort of sexy avant garde motif. And so the lifestyle images conveyed that. But they had things like, look, we don't do animal testing. It's cruelty free. It doesn't have these sort of nasty ingredients in it. And so it wasn't like one image that housed everything. It was sort of telling that story through the different product images and reinforcing the A+ content. And I think the video was just lifestyle, right? So that was their sort of style was the way to translate their brand to Amazon. And that's again, that's sort of what we do at Avenue seven because it's not a copy and paste platform. Right. You're really taking the essence of the brand and the product and translate it into Amazon. And there's, you know, their style was very minimalistic. Their bullet points were only one line long. And people go, oh, well, that's terrible for SEO. That's never going to convert. You have to do paragraphs, you gotta keyword stuff.

Chase has advised on over $200 million in ad spend across Facebook and TikTok, helping brands turn paid traffic into predictable, scalable revenue.

Through his experience running his own agency, Chappell Digital Marketing, and now as part of DOE Media, he’s helped DTC and e-commerce brands not only master ad buying but also build sales pages that convert and expand into new channels beyond Amazon.

Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Strategies for scaling e-commerce brands through paid media and multi-channel approaches.
• Importance of diversifying sales channels beyond Amazon, including Shopify and TikTok Shop.
• Unique challenges and opportunities presented by TikTok as a sales platform.
• The significance of creator management and engagement in driving sales on TikTok Shop.
• Effective messaging strategies for attracting and retaining creators.
• The role of transparency and feedback loops in creator communities to enhance performance.
• Compensation structures for creators, including commission models and incentives.
• The impact of TikTok Shop on overall brand awareness and sales across multiple channels.
• The necessity of an omnichannel mindset for successful e-commerce growth.
• Insights on leveraging AI tools for creative production and marketing efficiency.

In this episode of the "Ecomm Breakthrough Podcast," host Josh Hadley interviews Chase Chappell, a leading performance marketing expert, about scaling e-commerce brands beyond seven figures. Chase shares actionable strategies for channel diversification, creator management on TikTok Shop, and building omnichannel ecosystems. He emphasizes the importance of rigorous creator selection, transparent feedback loops, and integrating paid media with organic content. The discussion offers practical advice on leveraging TikTok’s rapid growth potential, nurturing creator communities, and adopting an all-in, omnichannel mindset to drive sustainable, scalable e-commerce success.

Here are the 3 action items that Josh identified from this episode:

1. Focus and Systematize: Nail your core operations (especially on Amazon) before expanding. Ensure supply chain and inventory are rock-solid.
2. Build Genuine Relationships with Creators: Authentic engagement, personalized outreach, and community-building are your competitive edge.
3. Adopt an Omnichannel Mindset: The future belongs to brands that integrate Amazon, Shopify, TikTok Shop, Meta ads, and retail into a cohesive ecosystem.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com

Tools and Websites

• "Doe Media": "00:01:01"
• "Chappell Digital Marketing": "00:01:01"
• "Shopify": "00:05:25"
• "TikTok Shop": "00:06:39"
• "AI Automation Tool": "00:13:41"
• "Amazon": "00:30:52"
• "Lovable": "00:48:54"

Books

• "The E-Myth by Michael E. Gerber": "00:01:01"
• "Rich Dad Poor Dad": "00:48:32"

Concepts and Strategies

• "Tiered Commission Structure": "00:23:25"
• "Ad Spend Credits": "00:23:25"
• "Creator Retention": "00:28:11"
• "Creator Network": "00:29:00"
• "Private Community": "00:30:14"

People and Brands

• "Hudson from Comfrt Clothing": "00:46:15"
• "Greg from Bloom": "00:51:16"

Social Media Links

• "Instagram @realchasechappell": "00:52:43"

Episode Sponsor

This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures. 

I started my business 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 email me at josh@ecommbreakthrough.com and in your subject line say “strategy audit” for the chance to win a $10,000 comprehensive business strategy audi...

Links and Mentions:

Tools and Websites
"Etsy": "00:08:09"
"Facebook": "00:08:09"

Key Concepts and Strategies
"Printable Files": "00:08:09"
"Virtual Party Invitations": "00:08:09"
"Stay-at-Home Family Celebration Party Kit": "00:08:09"
"Educational Posters": "00:10:57"
"Whole Life Insurance": "00:22:03"
"S&P 500": "00:22:03"

Lessons Learned
"Do not diversify too early": "00:14:51"
"Focus on building a cohesive brand": "00:16:41"
"Be willing to take risks in competitive categories": "00:19:12"

Timestamps:

00:00:00 Introduction & Background
Josh introduces himself, his business background, and the premise of the episode about overcoming a 90% sales drop.

00:00:55 Pre-COVID Life & Buying a New Home
Describes family situation, decision to buy a larger home, and the excitement and anxiety of making a big purchase.

00:02:44 Closing on the Dream Home & COVID Hits
Details closing on the new house in late February 2020, and the immediate onset of the COVID-19 pandemic.

00:03:39 Immediate Impact of COVID on Business
Explains how COVID caused gatherings to stop, leading to a 90% overnight drop in sales of party supplies.

00:05:27 Financial and Emotional Pressure
Discusses the stress of a new mortgage, loss of business income, and having just left a corporate job.

00:07:18 Initial Scramble & Early Pivots
Shares the first attempts to recover revenue, including printable files, virtual invitations, and new product ideas.

00:09:00 Experimenting with New Revenue Streams
Describes launching a family celebration kit membership and turning off Amazon ads due to poor performance.

00:10:01 Gradual Recovery & The Big Pivot
Outlines the slow sales recovery and the decision to make a bold move into educational posters for homeschooling.

00:10:57 Launching Educational Posters
Details the launch of educational posters in late August/early September 2020, quickly becoming a bestseller.

00:12:55 Lessons Learned: Focus on What Works
Reflects on the mistake of focusing on Shopify over Amazon, and the importance of doubling down on successful channels.

00:15:49 Lessons Learned: Brand Cohesion
Discusses the lack of a cohesive brand and the need to define and serve a specific customer avatar.

00:18:14 Lessons Learned: Take Bigger Risks
Emphasizes the importance of focusing growth, taking bigger swings, and not playing it too safe with product launches.

00:20:07 Action in Crisis & Doubling Down
Encourages taking action during tough times, experimenting, and doubling down on what works to drive recovery.

00:22:03 Preparing for a Rainy Day
Advises saving profits, investing in safe assets, and building a financial safety net for future downturns.

00:22:56 Conclusion & Final Encouragement
Wraps up with encouragement to focus on proven channels and make bold moves when facing adversity.

Transcripts:

Josh Hadley 00:00:00  I lost 90% of the sales in my business overnight. At that point, I felt like my business was done for. It was time to close up shop and find something different to do. Today I'm going to share with you the exact strategies, the tactics, and the lessons learned that I implemented in the business to be able to resurrect it from the dead and to get it where it is today of generating over $20 million in annual revenue. 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. First and foremost, who am I? My name is Josh Hadley. I'm a man of faith. I am a father of four and a husband to a beautiful wife. I have been selling into e-commerce space for over a decade, doing multi millions in revenue on different sales channels such as Shopify, TikTok, shop and of course, Amazon.

Josh Hadley 00:00:55  And I am also the host of the number one business strategy Podcast in the e-commerce space, and that is E-com breakthrough. So what drove a 90% decline in my sales? Well, before we get to that point, I have to tell you the story of where my wife and I were at at that specific moment in time before the 90% decline in sales happened overnight for us. Well, this was January of 2020, and my wife and I were looking at needing to move to another home. And that was because we had kind of, frankly, outgrown our existing home. We knew we wanted to grow our family. We had a three bedroom, two bedroom, three bedroom, two bath house. We had two kids at the time, and we knew we wanted to be able to expand our family and continue to grow. And, you know, especially working from home, that three bedroom, two bath house and being 1900 square feet became really small, really quick, especially trying to run a business out of the house.

Josh Hadley 00:01:49  And so we were trying to find like, where is the place that we need to be? Well, it came one Sunday. We were driving around and we stumbled upon an open house, and we went into this open house and we felt moved upon to move into this house. Now, this house was almost triple the size of our current home. This was figuratively like a dream home for us. It was in a dream neighborhood. We got to still attend the same church and be around the same family and friends that we were around at the time. And so we felt like with that, like this was our godsend. This was an answer to prayers and we need to go close on this home. And so although this was a very exciting time, it was also very nerve wracking for me because this was the biggest purchase that I was ever going to make in my life. I had never had a mortgage, a need to take out a quote unquote a jumbo loan for a mortgage, ever. And this was a lot of money, all of the money that we had been saving up for.

Josh Hadley 00:02:44  And, you know, basically taking profit from the business was going to go to a big down payment on this property. Well, guess what? We did close on this property of February 28th, 2020. And as many of you know, what was just around the corner was going to be Covid and basically the lockdown and the shutdown to the world as we knew it at the time. And so my wife and I, I remember this like it was just yesterday. My wife and I were there at target late at night just before, like it was closing time at target. And I remember, you know, thumbing through on my phone just kind of like the news and things like that. As I was waiting in line and I saw the information where it was, I think it was the jazz, it was the Utah Jazz and some other team. Maybe it was the Houston Rockets, I'm not sure. But that game was canceled and the NBA literally canceled that game before it was about to tip off.

Josh Hadley 00:03:39  Like people like people were ...

Chapters:

Introduction to Corey Apirian and His Expertise (00:00:00)
Josh introduces Corey Apirian, highlighting his 19+ years in supply chain, e-commerce, and channel merchandising.

Product Bundling Without Physical Kitting (00:00:49)
Discussion on creating product bundles and differentiated SKUs without pre-kitting, optimizing inventory and channel profitability.

Market Basket Analysis and Channel Merchandising (00:03:00)
Explains how market basket analysis informs merchandising, bundle creation, and channel-specific assortment strategies.

Optimizing Multi-Channel Fulfillment Beyond Amazon (00:06:42)
Debate on Amazon’s multi-channel fulfillment versus direct integrations, control, and agility for brands.

Limitations of Amazon’s Fulfillment Ecosystem (00:07:44)
Details the drawbacks of relying solely on Amazon FBA and multi-channel fulfillment, including cost, control, and data limitations.

Direct Integrations and Fulfillment Strategy Recommendations (00:09:50)
Advice for larger brands to use direct integrations and diversified fulfillment for better control and profitability.

Global Supply Chain Challenges and Recommendations (00:11:07)
Corey’s advice on hybrid inventory strategies, multi-sourcing, and supply chain agility in a changing global landscape.

Actionable Takeaways for E-commerce Brands (00:13:17)
Josh summarizes three key action items: hire a supply chain manager, diversify beyond Amazon, and leverage expert partners like DaVinci.

Closing Remarks and Contact Recommendation (00:15:43)
Josh encourages listeners to connect with Corey for tailored supply chain and merchandising insights.

Links and Mentions:

Tools and Services
"Davinci": "00:06:22"

Key Concepts
"Market Basket Analysis": "00:03:16"

Actionable Takeaways
"Hire a Supply Chain Manager": "00:13:17"
"Diversify Beyond Amazon": "00:14:29"
"Reach Out to Experts": "00:15:43"

General Advice
"Just-in-Time vs. Just-in-Case Inventory": "00:11:19"

Transcript:

Josh 00:00:00  Today I'm super excited to introduce you all to Corey Apirian, a seasoned supply chain and operations leader with over 19 years of experience. A key to his success was his ability to develop and execute strategies that drove significant growth, cost savings, and exceptional customer service. Specifically, he specializes in e-commerce and channel merchandising, aligning operational initiatives with corporate objectives and building and leading high performing teams through inclusion, collaboration and engagement. His experience includes product management, contract negotiations, continuous improvement, and implementing emerging technologies as well as cultivating key relationships. So with that, welcome to the podcast, Corey.

Corey 00:00:46  Thanks for having me, Josh. Excited to be here.

Josh 00:00:49  A seller could essentially come to you or a brand and say, hey, I've got here's a bunch of different products. I think some of these could be bundled really well together. I don't know which ones which, but obviously if you're doing that on Amazon FBA. You have to kit them together first and send them in before you can collect data. In your example, you don't actually have to have them kidded to actually create that skew and at least merchandise it on different sites.

Josh 00:01:15  Is that correct?

Corey 00:01:15  Yeah, it's exactly right. And like the cooler part about it is that all the excess inventory was then utilized on your merchant field, on your Walmart Marketplace and so on and so forth, so that you can create two packs, four packs, six packs of all the different core components. And really, you have no more waste, right? So you're utilizing now you can't force bundles onto consumers. I think we all know that. But by creating a different skew set a washcloth that's sold in a, in a in a traditional merchant store, you know, it might be $2 or $4, right? But when you when you bundle that as a four pack of washcloths, you know, I have two, two young boys, I don't just buy one washcloth like we buy a bunch of them at once. Right. And, you know, by able to have that differentiated assortment that's core to that demographic Online. You know, it really gives a fresh look at assortment and profitability and channel management.

Corey 00:02:09  And those are really important things. And then, you know, the efficiency of manufacturing those sets now in ships and in containers, reducing waste, creating efficiencies at the warehouse level also and profitability on freight and top line. I mean, those are all amazing things and all great success stories. And yeah, our tech allows that infinite permutation in a very targeted way, but also looking at the market baskets and suggesting what should be sold in a very targeted way. And that's the piece that I think people are really missing out there is combining the FDM, that front end merchandising with this concept of network optimization and inventory control, and how do you place goods and merchandise them on differentiated channel sets so that they're available for same day one day fulfillment, 1 to 2 day fulfillment, you know, through a physical location network. And again, that's exactly the problem that DaVinci is solving together.

Josh 00:03:00  That's amazing. Tell me a little bit more about that market basket analysis, right. That DaVinci is is doing some of the I, you know, to determine how you're going to merchandise different products or how to come up with the correct type of bundles.

Corey 00:03:16  Yeah, I mean, there's a lot of core principles of channel management and merchandising. You know, when you look at your club channels and having larger pack sizes, your mass channels having smaller, lower price point channels that interoperate also with what's in store? You know, a beauty manufacturer might have a 6.9oz bottle of shampoo. That's a proven bottle of shampoo and price point and cubic foot that has sat on a Walmart and Target shelf for the past 30 years and might have new updated packaging, new formula, ingredients. You know, that's the merchandising side of it. But like that, cubic foot turns and creates X number of dollars with the amount of profitability and cash flow turns that that has on shelf all the time. But when you when you ship that to target, they're going to merchandise that online and target in Walmart. You can have a buy in line pick up and store optionality to that. And they may offer it to ship to the end consumer in a myriad of different ways. But that same consumer might be adding two of those to their shopping cart.

Corey 00:04:14  They might be adding a 33 point ounce of the shampoo. Or at least, you know, five different bottles of that shampoo. That adds up to a 33.8oz and a 16.9 of conditioner, right? Maybe their ratios are different. So if you're a brand that's operating in that space, you now have the ability to directly merchandise som...

Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Integration of AI in e-commerce, particularly for Amazon sellers and brand management agencies.
• Challenges and considerations in adopting AI technologies for business operations.
• Importance of having solid standard operating procedures (SOPs) before automating processes with AI.
• The distinction between smaller sellers as early adopters of AI and larger sellers focusing on core business functions.
• The risks of "shiny object syndrome" and the need for a strategic framework when implementing AI tools.
• The necessity of human oversight in automated processes, especially in nuanced areas like PPC advertising.
• The role of data-driven frameworks in managing AI outputs and decision-making.
• Strategies for empowering teams to adopt AI tools effectively and fostering an "AI native" culture.
• The significance of maintaining brand authenticity and uniqueness in AI-generated content.
• Recommendations for newcomers on starting with foundational AI tools and focusing on high-impact tasks.

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley speaks with Lee Assoulin, founder and CEO of Stonecutter, a boutique Amazon brand management agency. Drawing on 12+ years of experience, Lee discusses how AI is reshaping Amazon brand management. Key topics include avoiding "shiny object syndrome," building solid SOPs before automating, keeping humans in the loop for critical decisions, and developing an "AI native" team culture. Lee also shares practical advice on recording team calls, refining documentation with AI, and empowering team members who genuinely embrace AI tools to drive sustainable business growth.

Here are the 3 action items that Josh identified from this episode:

1. Fix your SOPs before adding AI
   Document and refine your workflows first—AI should optimize proven systems, not automate messy processes. 
2. Use AI for execution, not strategy
   Automate repetitive tasks (PPC tweaks, reporting, emails), but keep humans in charge of high-impact decisions like pricing, positioning, and scaling. 
3. Adopt AI with a clear ROI filter
   Don’t chase tools—only implement AI if it solves a real bottleneck and delivers measurable time or profit gains.

Timestamps:

00:00:23 Introduction to AI in E-commerce
The host introduces the topic of AI for top Amazon sellers and teases the actionable advice from the guest.

00:01:01 Guest Introduction: Lee Assoulin
Host Josh Hadley introduces Lee Assoulin, founder of Stonecutter, highlighting his extensive experience managing major Amazon brands.

00:02:46 The Current State of AI in E-commerce
Lee discusses how AI is being adopted differently by large, established sellers versus smaller, scrappier ones in the mature Amazon marketplace.

00:04:31 AI and "Shiny Object Syndrome"
The discussion turns to the risk of entrepreneurs getting distracted by new AI tools instead of focusing on core business needs.

00:05:57 The "Aladdin's Cave" Analogy for AI
Lee uses an analogy to explain the danger of chasing countless small AI tools without a solid, overarching framework.

00:08:33 SOPs: The Foundation for AI
The importance of having proven, repeatable processes (SOPs) in place before attempting to automate them with AI is discussed.

00:10:00 The Right Approach to AI Automation
Lee explains that the best automation strategy depends on scale; larger brands require a more cautious, human-in-the-loop approach.

00:12:15 Can One Person Build a $100M Brand?
A discussion on the future of business structures, predicting small, highly-skilled teams enabled by AI will become the norm.

00:14:55 The Risk of AI Homogenization
If everyone uses the same AI strategies, there is no competitive edge. The human element provides the necessary differentiation.

00:16:27 Practical AI Use Cases for Beginners
Lee suggests starting by using AI to analyze content and rewrite copy based on frameworks like Amazon's COSMO paper.

00:19:24 The Dangers of Lazy AI Implementation
Warning against the pitfalls of lazy AI use, such as generic auto-generated emails that can damage brand perception.

00:22:23 Automating Your Executive Assistant
Lee shares a practical example of creating a virtual EA to manage his calendar, pre-meeting briefs, and task reminders.

00:24:10 Building a Company "Brain"
A complex use case is detailed: creating a central database that ingests all company communications for deep contextual analysis.

00:27:11 The Power of Personal Context for AI
The idea of feeding personal journals and thoughts into an AI to give it deeper context for decision-making.

00:29:47 How Top Brands Automate Operations
Lee shares a real-world example of automating Buy Box monitoring, where an AI agent detects losses and notifies the team.

00:32:14 Staying Compliant with Amazon's AI Rules
How to automate safely by using third-party APIs and keeping a human in the loop for actions inside Seller Central.

00:33:55 The Cost-Benefit Analysis of AI vs. Humans
A discussion on whether AI is always cheaper, concluding that building custom AI solutions can be a waste of time.

00:36:01 The Trap of "Sexy Dashboards"
Building custom dashboards is often a distraction; focus on the underlying data and analysis, which is what AI actually needs.

00:39:09 How to Onboard Your Team to AI
Lee shares his strategy of offering to pay for AI tools and courses for any team member who shows interest.

00:41:55 Three Actionable Takeaways
The host summarizes the episode's key takeaways: document skills, record everything, and enable your team to adopt AI.

00:45:26 Most Influential Book
Lee recommends "The Untethered Soul" by Michael Singer for its profound impact on his mindset and way of thinking.

00:45:59 Favorite AI Tool
Lee names Claude as his primary tool but highlights WhisperFlow for voice dictation as a game-changer for productivity.

00:47:01 Admired Person in E-commerce
Lee recommends following Sean Gill of Triquetra for his methodical, framework-first approach to building a successful brand.

00:48:32 How to Connect with Lee
Lee provides his email address and social media handles for listeners who want to connect with him after the show.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com

Tools and Websites
"Claude": "00:08:38"
"

Links and Mentions:

Tools and Websites 
"Amazon": "00:01:50" 
"Shopify": "00:01:50" 
"TikTok Shop": "00:01:50" 
"Walmart": "00:01:50" 
"Etsy": "00:26:43" 
"Temu": "00:26:43" 
"Shein": "00:26:43" 
"Meta Ad Library": "00:46:35" 
"Faire": "00:49:22" 

Videos and Masterclasses 
"Seven Step Hiring Process": "00:23:36" 
"CEO Dashboard": "00:25:44" 
"How We Generated Over 50 Viral Videos with Our Affiliates": "00:34:32" 
"How to Double Down on the Creators that are Actually Driving Sales for Your Brand": "00:34:32" 

Recommendations 
"Loom": "00:19:01" 
"ChatGPT": "00:20:01" 

Key Concepts 
"Omnichannel Strategy": "00:07:22" 
"CAC to LTV Ratio": "00:09:20" 
"Product Launch Checklist": "00:19:01" 
"Weekly Ad Optimization Processes": "00:19:01" 
"Inventory Forecasting Models": "00:19:01"

Timestamps:

00:00:00 Introduction & The Omnichannel Myth
Josh introduces himself, the podcast, and debunks the myth that simply adding channels guarantees growth.

00:01:50 Stages of E-commerce Brand Growth
Outlines the four stages: launch on Amazon, expansion optimism, hidden complexity, and the breaking point.

00:06:30 The Real Problem: Sequence, Not Product
Explains that chaos comes from scaling too soon without systems, not from product quality.

00:07:22 Channel-Specific Complexities
Breaks down the unique operational demands ...

Chapters:

Introduction to Will Russell and Russell Marketing (00:00:00)
Will Russell’s background, agency achievements, and book introduction.

Strategies for Building an Engaged Audience Pre-Launch (00:00:55)
Overview of paid acquisition, piggybacking/partnerships, virality, and organic growth for audience building.

Piggybacking and Partnerships Explained (00:01:20)
How to leverage existing communities and partnerships to access target audiences.

Virality and Organic Growth (00:02:47)
Discussion of viral marketing, influencer strategies, and the role of organic content.

Summary of Audience-Building Approaches (00:03:53)
Recap of paid, partnership, viral, and organic methods for audience growth.

Leveraging Existing Customer Bases for Product Validation (00:05:07)
Using current customers for product validation, feedback, and preorders to reduce launch risk.

The Value of Existing Communities in Launches (00:07:11)
How established audiences give a head start and lower costs for new product launches.

Applying the Five-Step Framework to Amazon Sellers (00:08:14)
Host introduces actionable takeaways, adapting Will’s framework for Amazon product launches.

Step 1: Product Validation Tactics (00:09:26)
Using product inserts, QR codes, and Amazon analytics to validate new product ideas.

Step 2: Audience Building and Customer Surveys (00:10:37)
Reaching out to existing customers, using surveys to identify pain points and refine products.

Step 3: Audience Engagement During Product Development (00:11:50)
Keeping customers involved in product design and updates to build anticipation and loyalty.

Step 4: Conversion Strategies and List Segmentation (00:13:05)
Segmenting email lists for staggered launch campaigns to optimize Amazon ranking and conversions.

Step 5: Scaling and Ongoing Audience Engagement (00:14:02)
Using product inserts and ongoing engagement to prepare for future launches and scale the business.

Review Research and Copywriting Insights (00:14:28)
Using competitor reviews for product development and marketing language.

Segmentation Strategies for Different Launch Models (00:15:19)
How to segment audiences for Amazon vs. crowdfunding launches, prioritizing likely converters.

Conclusion and Final Thoughts (00:17:01)
Recap, book recommendation, and closing remarks.

Links and Mentions:

Advertising Tools:
"Facebook Ads": "00:01:20"
"Google Ads": "00:01:20"
"Reddit Ads": "00:01:20"
"Amazon Brand Analytics": "00:10:37"

Books:
"Take Your Idea from Light Bulb Moment to Profitable Business in Record Time" by Will Russell: "00:00:52"

Marketing Concepts and Strategies:
"Piggybacking": "00:01:20"
"Virality": "00:02:47"
"Organic Growth": "00:03:53"
"Customer Surveys": "00:06:02"
"Product Insert Cards": "00:09:26"
"Segmentation for Email/Text Lists": "00:13:05"

Content and Influencer Strategies:
"User-Generated Content": "00:02:47"
"Influencer Marketing": "00:02:47"
"Referral Strategies": "00:02:47"

Transcript:

Josh 00:00:00  Today I'm super excited to introduce you to Will Russell. He is the CEO and founder of Russell Marketing. Russell Marketing is an innovative digital agency specializing in e-commerce launch marketing. To date, they have generated more than 25 million in revenue for over 300 new entrepreneurs. Will has been featured on Forbes, Business Insider, Crain's New York Start-Up nation and many more. Will also has launched the Russell Gibbs Foundation, a family foundation that offers grants and mentorship to 501 C3 partners committed to diversity, equity and inclusion. In November of 2022, Will's first book launch in five. Take your Idea From Light Bulb Moment to Profitable Business in Record Time, was published by Nicholas Brealey. So welcome to the show, Will.

Will 00:00:52  Thank you. Thanks for having me, Josh. It's a real pleasure to be here.

Josh 00:00:55  When you talk about building an engaged, you know, audience or, you know, building it up a The following. What are what are the channels or strategies to kind of build this following of people before you've even launched a product?

Will 00:01:15  By and large, most people are going to lean heavily into paid acquisition.

Will 00:01:20  And so, you know, that means paying Facebook or Google or Reddit for ad space and driving traffic using those methods. Now, not everyone has big budgets. They can just plug in. To do that, I always suggest paid acquisition because frankly, is the quickest and easiest way of getting from where you are to where you need to be. But I understand not everyone has the budget. So for those who don't have those budgets, or for those who don't want to rely entirely on those budgets, there's a few other avenues you really look to. One is piggybacking. And so by piggybacking, we're looking for partners or like minded communities that already we have the people we want, and we want to build a connection with the managers or the founders of those communities and essentially piggyback on top of the success they've had to get access to these people. So examples of that might be, maybe you don't want to put $10,000 into a Facebook ad campaign, but maybe you could purchase an advertising spot or in a particular media websites newsletter, or you could write a guest post, or you could do some sort of exchange post promotional exchange with them over a period of six months, where maybe front end of that relationship, they're helping you, but then towards the back end, you're going to balance that out more and start helping them in different ways.

Will 00:02:47  So piggybacking and looking at those kind of partnerships is a really good route. Another effort we're going to look to is virality. It's a tough one because it's you know, there are obviously elements to what makes something viral and, and checkboxes that you can go through. But there's always an element of luck there. You don't really know for sure whether a big effort to go viral is going to work. And so it can be a bit of a risk, but virality and that can be things such as word of mouth, marketing strategies, referral strategies and fun content, user generated content, things like ambassadors or affiliate marketing. We might even include some influencer marketing in that. So we've got the virality is certainly a good a good path to go. If you don't want to lean into pushing too much of your budget into paid ads, and then I mean, the fourth and longest one, I suppose is is the organic, you know, people that don't have big budgets and and maybe don't excel. I don't have any partners or I don't have.

Will 00:03:53  I can't make things viral. They can't ...

 Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Leveraging AI and data for scaling e-commerce businesses, particularly for sellers with seven-figure sales.
• Importance of establishing a proper data infrastructure before utilizing AI.
• The concept of a "data chain" consisting of four essential links: centralized data, capturing history, connecting disparate data sources, and constructing guardrails for AI.
• Challenges faced by e-commerce sellers regarding messy or disconnected data.
• The significance of capturing historical data for trend analysis and forecasting.
• The necessity of connecting various data sources to derive meaningful insights and metrics.
• The role of structured databases versus unstructured data storage solutions like shared drives.
• The impact of AI on decision-making processes and the importance of providing accurate context for AI tools.
• Recommendations for hiring the right talent to manage data infrastructure and AI integration.
• The critical need for a solid foundation before implementing AI to avoid compounding errors in business operations.

In this episode, host Josh Hadley interviews Ellis Whitehead, co-founder of Data Brill, about how seven-figure e-commerce sellers can leverage AI and data to scale effectively. Ellis outlines a four-step “data chain” for success: centralizing data, capturing historical records, connecting disparate data sources, and building guardrails for AI. They discuss common pitfalls, the importance of solid data infrastructure, and actionable hiring advice for building in-house data teams. The episode emphasizes that AI is only as powerful as the data foundation supporting it, offering practical strategies for sustainable e-commerce growth.

Here are the 3 action items that Josh identified from this episode:

1. Prioritize Data Infrastructure:
   Invest in building a centralized, historical, and connected data warehouse before layering on AI. This is a full-time job—don’t try to do it all yourself.

2. Make Data-Driven Decisions:
   Use live, visual dashboards to monitor trends, market share, and leading indicators—not just lagging P&L statements. Let data guide your strategic focus.

3. Leverage AI Only After Laying the Foundation:
   AI can scale your business—or your mistakes. Only deploy AI agents once your data is clean, structured, and governed by clear guardrails.

Timestamp:

00:00:00 Podcast Introduction
Leveraging AI and data for scaling e-commerce businesses.

00:00:58 Guest Introduction
Ellis Whitehead’s background and expertise in data, PPC, and Amazon seller growth are introduced.

00:02:00 AI Hype & Seller Challenges
Discussion about the overwhelming AI chatter among e-commerce sellers and the feeling of being left behind.

00:02:37 The Importance of Fundamentals
Ellis emphasizes sticking to business fundamentals despite rapid technological changes.

00:03:11 Common Data Mistakes in E-commerce
Ellis introduces the “data chain” concept and outlines common mistakes sellers make with data and AI.

00:05:07 Overview of the Four Data Chain Links
Ellis lists the four essential links: centralized data, capturing history, connecting data sources, and constructing guardrails.

00:07:29 Step 1: Centralizing Data
Detailed explanation of why a structured database (like Postgres) is crucial versus using spreadsheets or shared drives.

00:09:21 Technical Setup for Centralized Data
Differences between databases and shared drives, and why structure, speed, and reliability matter.

00:11:38 Non-Technical Founders & Getting Help
Advice for non-technical founders: learning, hiring, or consulting for proper data setup.

00:15:14 Ongoing Maintenance Caveat
Ellis explains that data systems require ongoing maintenance due to changing APIs and data sources.

00:16:45 Ways to Ingest Data
Different methods for getting data into databases: APIs, manual downloads, and handling multiple currencies.

00:19:15 Navigating Amazon API Access
Challenges and solutions for brands seeking Amazon API access, including using third-party services.

00:21:45 Step 2: Capturing History
Why historical data is vital for trend analysis, forecasting, and making informed decisions.

00:24:27 Use Cases for Historical Data
Examples of how historical data helps with leading indicators, seasonality, and strategic decision-making.

00:26:30 Pitfalls of Ignoring Trends
Dangers of relying on static data blocks and the importance of trend analysis for inventory and forecasting.

00:29:10 AI Automation Cautionary Tale
Risks of automating decisions without proper context and historical data.

00:31:01 Tracking Keyword Popularity Over Time
How tracking keyword trends can explain sales drops and inform campaign adjustments.

00:33:24 Step 3: Connecting the Dots
Combining disparate data sources to calculate advanced metrics and gain actionable insights.

00:35:53 Practical Tactics for Data Integration
How to use database views, scheduled calculations, and file storage for efficient data analysis.

00:37:05 Step 4: Constructing Guardrails
Building guidance and guardrails so AI can answer business questions reliably and avoid costly mistakes.

00:39:06 Guardrails in Action: Use Cases
Examples of how proper guardrails enable AI to deliver actionable, accurate reports and campaign strategies.

00:43:12 Building In-House Data Teams
Advice on hiring the right mix of technical talent or using consultants.

00:44:30 Three Actionable Takeaways
Summary of key actions: hire for data roles, let data drive strategy, and only use AI after building a solid data foundation.

00:47:38 Final Recommendations & Closing
Ellis’s final advice: start centralizing data in Postgres and set up guardrails for AI.

00:48:07 Book Recommendations
Ellis shares influential books: “Warren Buffett Accounting” and “1984.”

00:49:30 Favorite AI Tools & Workflow
Ellis describes his preferred AI tools and workflow: Claude, VS Code, TypeScript, Deno, Postgres, and git.

What is Git? (00:50:19)
Explanation of git as foundational versioning software for code and text files.

00:51:22 E-commerce Influencer Recommendation
Ellis recommends following George Meressa for advertising and e-commerce insights.

00:51:51 Where to Find Ellis Whitehead
Information on how to connect with Ellis and Data Brill for further help.

00:52:20 Podcast Outro
Closing remarks and call to subscribe and review the podcast.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Had...

Links and Mentions:

Tools and Websites
"TikTok Creator Engine": "00:01:12"
"Shopify": "00:01:12"
"Amazon": "00:01:12"
"WhatsApp": "00:09:34"
"CRM (Creator Relationship Management System)": "00:11:42"
"TikTok Shop": "00:10:40"
"Fulfilled by TikTok": "00:13:55"
"Amazon MCF (Multi-Channel Fulfillment)": "00:13:55"
"Beehive": "21:31"
"Discord": "22:31"
"ChatGPT": "23:39"

Videos and Playlists
"YouTube Onboarding Videos": "00:18:51"
"YouTube Playlist for New Creators": "24:27"

Concepts and Strategies
"Creative Briefs": "23:39"
"Creative Brief": "00:42:53"
"Bingo Card Game": "28:51"
"Ad Spend Strategy": "00:39:18"
"Performance Coach Role": "00:41:54"
"Affiliate Support Specialist Role": "00:41:54"
"VIP Program": "00:43:50"
"Monthly Contests": "00:44:43"
"Personalized Contests": "00:48:19"
"Weekly Creator Calls": "26:10"

Metrics and KPIs
"Contact Information Capture": "00:51:08"
"Performance Metrics": "00:52:56"
"Pareto Principle": "00:45:38"
"Gamification": "00:44:43"

Timestamps:

00:00:00 Introducing the TikTok Creator Engine
A systematic process to turn product samples into loyal brand evangelists, focusing on consistent revenue over viral moments.

00:01:12 Host Introduction
Josh Hadley shares his background as an e-commerce entrepreneur, father, and host of the E-com Breakthrough podcast.

00:02:17 Core Principles of the System
The system focuses on inspiring creators, tracking behavior, doubling down on winners, and ignoring the rest based on performance.

00:04:10 Common Problems with Creator Programs
Outlines issues brands face, such as creators not posting, one-off videos, wasted samples, and overreliance on TikTok DMs.

00:06:49 The Five Stages of the Creator Engine
An overview of the five distinct stages creators move through: Inactivated, Activated, Emerging, Performing, and Brand Evangelist.

00:10:40 The Required Team Structure
Details the three essential team roles needed to run the engine: Affiliate Support Specialist, Performance Coach, and Store Operations.

00:15:03 Stage 1: Inactivated Creators
Focuses on approving samples and, most importantly, capturing the creator's contact information to move them out of TikTok DMs.

00:17:53 The 30-Day Onboarding Sequence
A detailed breakdown of the first 30 days of communication, including emails and WhatsApp messages for new creators.

00:21:31 Tools for the Activation Program
Discusses essential tools for creator activation, including email newsletters, community platforms like WhatsApp, and detailed creative briefs.

00:24:27 The YouTube Onboarding Playlist
Outlines a mini-course for creators covering mindset, hook strategy, lighting, audio, and success stories to build relationships.

00:28:51 Gamifying Onboarding: The Bingo Card
A gamified "bingo card" system that incentivizes new creators to complete key tasks like posting multiple videos.

00:30:42 Stage 2: Activated Creators
Covers the team's actions once a creator posts their first video, including congratulations and providing initial feedback.

00:33:29 High ROI Move: Boosting Videos with Ads
A strategy to use small, targeted ad spend on new creators' videos to generate initial views and sales.

00:35:29 Stage 3: Emerging Creators
The goal for this stage is to build consistency with creators who have momentum but aren't posting regularly.

00:40:13 Stage 4: Performing Creators
Focuses on scaling the output of consistent creators by building a personal relationship and offering exclusive VIP program invitations.

00:45:38 Stage 5: Brand Evangelists
A high-touch strategy to retain top creators through personalized contests, gifts, and exclusive access to new products.

00:50:16 Collecting Creator Contact Info
Emphasizes the critical importance of capturing creator contact information and offers creative methods like auto-DMs and product inserts.

00:51:58 Key Metrics to Measure
A breakdown of the essential KPIs to track weekly, including samples sent, post rates, and GMV per stage.

00:54:48 Daily Roles of the Team
A summary of the daily action items for the Affiliate Support Specialist and the Performance Coach within the system.

00:55:50 Conclusion and Final Thoughts
A summary of the system's benefits, emphasizing that consistent action, refinement, and focus are the keys to success.

Transcript:

Josh Hadley 00:00:00  That activation stage is honestly the biggest miss that I see most brands like just completely skipping and they just go from inactivated creator to somebody went viral and it's as simple as that. And and that's all they're relying upon. Whereas we're going to methodically walk all of these creators through these five different stages. 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. Today, I want to share with you all the TikTok Creator Engine. This is how we're turning thousands of samples into thousands of brand evangelists. This isn't just about like sending out as many samples as you possibly can. The spray and pray approach, just hoping that somebody will go viral. Rather, this is a systematic process that we follow to ensure that every sample we send out actually has the chance of helping some of t...

Chapters:

Introduction to Amy Wees and Amazing at Home (00:00:00)
Amy Wees is introduced as CEO of Amazing at Home, specializing in private label product launches and e-commerce consulting.

Why Source from Mexico? (00:00:28)
Amy discusses the importance of diversifying manufacturing, highlighting Mexico’s advantages over China for sourcing and supply chain.

Mexico’s Manufacturing Capabilities (00:02:04)
Explains Mexico’s strengths in injection molding, electronics, labor costs, and free trade agreements compared to China.

Evolving Supply Chains and Workforce Trends (00:03:25)
Describes changes in China’s workforce, supply chain challenges, and the need for businesses to adapt and evolve.

Discovering and Building Trade Shows in Mexico (00:05:35)
Amy shares her journey in exploring Mexican factories and starting a multi-category trade show for sourcing.

Common Seller Mistakes: Not Knowing the Numbers (00:07:34)
Amy identifies the main mistake sellers make: not understanding their costs, margins, and unit economics.

Protecting Supply Chains and Supplier Relationships (00:10:12)
Emphasizes the importance of contracts, vetting suppliers, and protecting products from being copied.

Josh’s Key Takeaways for Sellers (00:12:16)
Josh summarizes three action items: know your numbers, build strong supplier relationships, and differentiate your products.

How to Connect with Amy Wees (00:16:35)
Amy offers a free listing review and shares how listeners can contact her for e-commerce advice.

Podcast Closing (00:17:05)
Josh thanks Amy for joining the podcast.

Links and Mentions:

Tools and Websites 
"Amazing at Home": "00:00:00" 
"Alibaba": "00:08:59" 
"Free Listing Review": "00:16:35" 

Books and Resources 
"Seller Accountant": "00:12:16" 

Key Takeaways 
"Understanding Your Numbers": "00:12:16" 
"Supplier Relationships": "00:14:37" 
"Market Evaluation": "00:15:57"

Transcript:

Josh 00:00:00  Today I'm super excited to introduce you to Amy Wees. Amy is the CEO of Amazing at Home E-commerce consulting, a world renowned company that has helped thousands of brands launch private label products on Amazon and beyond. Amy's knowledge in product development, sourcing, marketing and sales have enabled her to help countless entrepreneurs develop their own successful businesses. So welcome to the show, Amy.

Amy 00:00:25  Thank you for having me, Josh. I'm so excited to be here.

Josh 00:00:28  I love what you talked about in terms of, you know, diversifying your risk with manufacturing and supply chain, and you've been able to find a lot of that in Mexico. So why don't you tell us more about Mexico? Why have you been so invested lately into, you know, sourcing from Mexico?

Amy 00:00:49  Well, you know, it's really we used to go to China all the time. You can go twice a year during canton fair times. And and I still sourced from China. I, I love my manufacturers in China. They're wonderful people. They're very efficient.

Amy 00:01:04  Really great. So I don't think that there's anything wrong with China. But at the end of the day, one of the biggest things that all of us have to realize is that we have options and, and that, you know, we don't ever whether it comes to only selling on Amazon, putting your eggs all in that one sales channel basket or only using FBA. What happened during the pandemic? Everybody who is only using FBA, their stuff got stranded. Meanwhile, we tripled our sales because we were able to merchant fulfill. so that's that's, you know, a huge learning thing. And so many people are learning that the restock limits, we talked about that, you know, like, hey, maybe we need to start digging more into these other sales channels so that we are able to drive more traffic to Amazon and have even greater restock limits now that things are changing. Right. so I think it's important to never put all your eggs in one basket and to always know what your your options are.

Amy 00:02:04  And so Mexico was a natural, solution. Potential solution. If we look at injection molding and manufacturing around the world. Mexico's number two in injection will be right behind China. So, you know, when we look at even electronics, Latin America is just as high in electronics manufacturing as China is. And a lot of people don't realize that. One of our speakers on the Mexico trip, he's he's an engineer and he specializes in helping electronics companies move their supply chain from China to Mexico. big companies like Seagate have completely moved manufacturing to Mexico. Chinese factories, major factories in China are now reopening new facilities in Mexico. Why? It makes sense, right? It makes sense. You've got free trade. As long as your product is 70%, produced in Mexico. You've got the free trade. So that's a wonderful opportunity there. You actually have lower labor costs in Mexico than you do in China. China labor costs have risen. and you have a highly educated and motivated workforce in Mexico, which that is also changing in China quite a bit.

Amy 00:03:25  We're all finding with our factories and, you know, talking with my factory owners, every year after Chinese New Year, a lot of their employees do not return. It's very hard for them because e-commerce has really taken off in China. And so a lot of these, you know, it used to be you can walk through a factory in China a few years ago, and they didn't have, you know, they didn't sell it in e-commerce. Nowadays, that's nearly impossible to find a factory that doesn't sell. And so the workforce is evolving in China, and it's causing some, some issues in terms of supply chain, not only for labour. for quality control, you know, so there's even the Chinese are looking for alternatives to different places to open up factories and things like that. So I think that all of us have to evolve. We look at any company that does not evolve with the times what we find. You know, we look at like the toys R us stories and we look at, you know, the top 50 retailers in the United States of America.

Amy 00:04:30  Also on the e-commerce websites. So it's very important for us to pay attention and make sure that we're looking at, okay, what's next. And also when we look at, you know, how many. Issues did we have with, with, ports being backed up and with our. With our supply chain just being at a complete stoppage. and we were all talking about men. For Q4 this last year. You better get your stuff in by August, because there's no way the October timeframe is dead. because there was so much, you know, caught back up and everything prior to this Q4. So this year it was a little bit better. We had some catch up, but we really need to be paying attention. And so for me, I'm right here in San Antonio, Texas. I traveled to Mexico a lot. I love Mexico, and I always see all these things,...

 Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Current state and future of e-commerce for seven-figure sellers
• Impact of AI on e-commerce operations and marketing
• Decline of traditional private label Amazon business model
• Rise of social commerce platforms, particularly TikTok Shop
• Importance of building authentic brands and customer relationships
• Networking opportunities at events like Market Masters
• Challenges sellers face, including confusion and fear about the future
• Necessity of adapting to new technologies and automation tools
• Strategies for effective sourcing and increasing profit margins
• The significance of prioritizing efforts and focusing on specific channels for growth

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews veteran Amazon seller Kevin King about the future of e-commerce for established seven-figure sellers. They discuss the growing impact of AI, the decline of traditional private label models, and the rise of social commerce platforms like TikTok. Kevin emphasizes the importance of building real brands, leveraging automation, and focusing on human relationships with creators. The episode also highlights actionable strategies for scaling, the value of strong systems, and Kevin’s upcoming Market Masters event for networking and learning.

Here are the 3 action items that Josh identified from this episode:

1. Focus on What Matters Most

Don’t chase every new tool, channel, or strategy. Pick the highest-priority opportunity, focus your resources on it, and scale it before moving to the next.

2. Build and Document Systems

Growth requires clear systems and processes. Whether tasks are done by humans or AI, success depends on how well you document and structure the workflow.

3. Hire Smart People to Run the Systems

AI alone won’t build a $100M brand. You need talented leaders who can design, manage, and improve systems while using AI as a tool to enhance results.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com
• Billion Dollar Seller Summit
• ASM (Amazing Selling Machine)
• Helium 10 Freedom Ticket
• Shopify
• TikTok
• Ecom Mastery AI
• Open Claw
• Claude
• ChatGPT
• WooCommerce
• CopyCoder
• Upwork/Fiverr
• Andrew Erickson

Special Mention(s):

• Adam “Heist” Runquist on LinkedIn
• Kevin King on LinkedIn
• Michael E. Gerber on LinkedIn
• Alex Hormozi on LinkedIn
• Ryan Deiss
• Perry Belcher on LinkedIn
• Dan Kennedy

Related 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 Podcast

Episode Sponsor

This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures. 

I started my business 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 email me at josh@ecommbreakthrough.com and in your subject line say “strategy audit” for the chance to win a $10,000 comprehensive business strategy audit at no cost!

Transcript Area

Kevin King 00:00:00  And there is no it's not like ranking in Google in the old way of backlinks where you rank. And basically you can if you type in podcast microphones and you're in Dallas, you can see pretty much the same results as I see down here in Austin with AI, my past search history and your past search history changes that completely. So no, there is no ranking in AI. It's being the answer for what questions people asking to be in the authority.

MC 00:00:22  Welcome to the E-com 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 00:00:36  Do you want to know what's wor...

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 Focus
Josh emphasizes prioritization, focus, and the importance of saying "no" in business strategy.

00:01:03 Lessons from Mastermind Events
Insights from recent mastermind groups; entrepreneurs struggle with shiny object syndrome and diversifying too soon.

00:02:58 The Power of Doubling Down
Advice to focus on one business for greater success, rather than splitting attention across multiple ventures.

00:04:43 Saying No to Small Product Launches
Josh now rejects launching products with small markets, focusing only on those with large total addressable markets.

00:07:25 Prioritizing High-Impact SKUs
No longer trying to scale all 1600+ SKUs; products are categorized by impact and focus is on top performers.

00:08:26 Product Momentum Matrix Explained
Breakdown of four product buckets: sunset, maintenance, profit engines, and brand-defining SKUs.

00:15:09 Focusing on Brand-Defining Products
Team 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 Channels
Rejecting channels like Temu, Shein, Walmart, and some international expansions due to low scalability and complexity.

00:18:12 Sales Channel Momentum Matrix
Sales channels are categorized; focus is on scalable, high-leverage channels like Amazon, TikTok Shop, and Shopify.

00:22:11 Rejecting AI Distractions
Josh 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 Creators
No 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 Distraction
Reiterates the importance of focus and systems for scaling, and invites listeners to share the episode.

Transcript

Josh 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...

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...

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:

1. 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.
2. Build a Creator Growth Ladder: Design a clear pathway:
   • Start with onboarding + education
   • Add retainers to build consistency
   • Introduce contests + feedback
   • Increase commissions/retainers as GMV grows

     Make it obvious how creators can level up with you.

3. Fix Operations Before Scaling Affiliates: Before pushing growth:
   • Ensure inventory is stable
   • Optimize listings
   • Solidify shop operations

     Don’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 LinkedIn
• Kevin King on LinkedIn
• Michael E. Gerber on LinkedIn

Related 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 Podcast

Sponsor 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.

Transcript

Julia 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...

Links and Mentions:

Tools and Strategies
"Cash Flow Forecasting Spreadsheet": "00:04:53"
"Credit Card Hack": "00:15:46"
"Amex Plum Card": "00:20:12"

Quotes
"Charlie Munger Quote": "00:13:53"

Websites
"Amazon Advertising Support": "00:16:38"

Credit Cards and Financial Tools
"Chase Sapphire Reserve for Business": "00:22:46"
"Amex Gold": "00:22:46"
"Chase Business Preferred": "00:22:46"
"Chase Business Premier": "00:22:46"
"Capital One Spark Cash Plus": "00:22:46"

Payment Services
"Melio": "00:24:56"

Timestamps:

00:00:00 Introduction & Episode Overview
Josh introduces the podcast, his background, and previews the main topic: the essential cash flow playbook for e-commerce.

00:00:57 The Hidden Strategy Behind Top E-commerce Brands
Explains why cash flow management is the secret to scaling without outside capital, especially for bootstrapped entrepreneurs.

00:01:54 The E-commerce Cash Flow Challenge
Discusses common struggles with cash flow, inventory, and taxes that e-commerce brands face.

00:03:50 Personal Cash Flow Crisis Story
Josh shares a personal story about nearly missing payroll and the dangers of taking on debt.

00:04:53 The Importance of Cash Flow Forecasting
Introduces the cash flow forecasting spreadsheet as a critical business tool.

00:05:56 How the Cash Flow Spreadsheet Works
Describes how to use the spreadsheet to track inflows, outflows, and anticipate cash shortages.

00:07:09 Forecasting Purchase Orders and Launch Timing
Explains how to use forecasting to time purchase orders and product launches for optimal cash flow.

00:08:08 Spreadsheet Walkthrough: Weekly Cash Tracking
Step-by-step example of tracking weekly cash balances, payments, and Amazon disbursements.

00:11:04 Identifying Cash Shortfalls and Solutions
Shows how the spreadsheet highlights cash shortfalls and introduces strategies to avoid predatory loans.

00:12:57 When (and When Not) to Use Debt
Discusses rare scenarios where loans make sense and why most e-commerce brands should avoid debt.

00:13:53 The Dangers of Leverage Without Financial Sophistication
Warns about the risks of leverage for those without advanced financial modeling skills.

00:14:54 Credit Card Hack: Delaying Payments
Introduces the credit card hack to delay payments to vendors and ad platforms, extending cash flow.

00:16:38 Increasing Amazon Billing Thresholds
Explains how to request higher billing thresholds from Amazon to increase payment float.

00:17:34 Paying Ad Charges with Multiple Credit Cards
Advises on using multiple credit cards with staggered statement dates to maximize payment delays.

00:18:19 Credit Card Application Hack
Shares a tip for applying for multiple credit cards simultaneously to minimize credit score impact.

00:19:08 Optimizing Statement Dates for Maximum Float
Details how to schedule charges for the start of statement periods to get up to 55 days of float.

00:20:12 Amex Plum Card for Extended Float
Describes using the Amex Plum card for up to 90 days of payment float, with trade-offs.

00:21:06 Seasonal Cash Flow Management Example
Shows how to use these strategies during high-spend periods like Q4 to avoid cash crunches.

00:21:57 Rotating Credit Cards & Tracking Rewards
Explains how to rotate credit cards and track perks, rewards, and statement dates for ongoing float.

00:22:46 Recommended Business Credit Cards
Lists the best credit cards for ad spend, rewards, and payment terms.

00:23:54 Paying Suppliers with Credit Cards via Third Parties
Explains using services like Melio or Plastiq to pay suppliers by credit card, even if they prefer wire/ACH.

00:24:56 Offsetting Credit Card Fees with Rewards & Tax Savings
Breaks down how credit card fees are offset by rewards and tax deductions, making the strategy cost-neutral.

00:28:06 Turning Cash Conversion Cycle Negative
Describes how combining supplier terms and credit card float can result in a negative cash conversion cycle.

00:29:06 Cash Conversion Cycle Levers: Positive & Negative
Outlines actions that improve or worsen cash flow, such as inventory turnover and payment terms.

00:31:53 Impact of Credit Card Hack on Cash Flow
Demonstrates how implementing the credit card hack increases cash balances and enables faster scaling.

00:32:55 Action Steps & Forecasting Best Practices
Encourages listeners to implement forecasting, open multiple credit cards, and track statement dates.

00:34:37 Conclusion & Free Resources Offer
Wraps up with a call to action, offering slides and the cash flow spreadsheet via QR code.

Transcript:

Josh Hadley 00:00:00  How would you like to be able to delay payments to your suppliers and even like the big advertising platforms like meta, like Google, like Amazon, even TikTok shop by over 55 days without missing a due date or without having your ads turned off. Welcome to the Econ Breakthrough Podcast. I'm Josh Hadley. I've scaled my own e-commerce 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. Would you like to know the number one strategy that sits behind some of the best performing e-commerce brands in the entire world? And this is the strategy that actually sits behind the scenes. It's not outwardly visible, but it allows them to scale infinitely and you never know what's sitting behind the scenes. Today, I'm going to be revealing what that number one strategy is and how you can implement it into your own business.

Josh Hadley 00:00:57  My name is Josh Hadley. First and foremost, I am a man of faith. I'm a father of four and husband to a beautiful wife. I've been in e-commerce business owner for over ten years now, and also an eight figure business owner doing multi millions of revenue on Amazon, Shopify, TikTok shop and also the host of the number one business strategy podcast for ecommerce entrepreneurs, the E-com Breakthrough Podcast. So today, what is this number one strategy that sits behind the scenes? It's I'm going to show you it's the essential cash flow playbook. And first you're going to be like oh Josh, that's not that's not hot. That's not sexy. Like, this is this isn't like magic. This isn't the number one strategy. Today I'm going to show you why. It truly is ...

Chapters:

Introduction to Bradley Sutton and Amazon Listing Strategies (00:00:00)
Bradley shares his background, passion for Amazon, and discusses incorporating top keywords into product listings naturally.

Where to Add Keywords in Listings (00:01:15)
Explains ideal keyword placement: bullets, description, backend search terms, subject matter, and special features fields.

Special Features Field and Indexing Speed (00:02:47)
Describes the special features field, its rapid indexing, and cautions against keyword stuffing since it appears on the listing.

Advanced Helium 10 Tools for Launches (00:04:15)
Introduces Helium 10 Elite tools like Historical Cerebro for seasonal keyword research and their advantages over traditional methods.

Sponsored Ad Placements and New Page One Strategies (00:06:46)
Discusses the proliferation of sponsored ad placements on Amazon’s first page and the need for updated launch strategies.

Three Actionable Takeaways for Product Launches (00:08:37)
Host summarizes three key takeaways: title keyword density, running CPR via Amazon ads, and budgeting for initial losses.

Financial Acumen and Scaling Successfully (00:10:57)
Emphasizes the importance of understanding financials, budgeting, and cash flow to scale an Amazon business.

Bradley’s Most Influential Business Book (00:12:07)
Bradley recommends "The Four Disciplines of Execution" and explains its impact on goal setting and business growth.

Underutilized Helium 10 Tools for Sellers (00:13:59)
Highlights inventory management and alerts as underused tools, sharing a cautionary tale about ignoring alerts.

Where to Follow Bradley Sutton (00:16:45)
Bradley shares where listeners can follow him: Serious Sellers Podcast, Helium 10 Facebook group, and Instagram.

Links and Mentions:

Tools and Websites
"Helium 10 Listing Analyzer": "00:01:51"
"Helium 10 Cerebro": "00:05:09"
"Helium 10 Black Box": "00:05:53"
"Helium 10 Alerts": "00:14:13"
"Helium 10": "00:15:07"

Additional Resources
"Brand Analytics": "00:05:09"

Books
"The Four Disciplines of Execution": "00:12:07"

Podcasts
"Serious Sellers Podcast": "00:16:45"

Social Media Links
"Helium 10 Members Facebook Group": "00:16:45"
"Bradley Sutton on Instagram": "00:16:45"

Key Takeaways
"Alerts for SKUs": "00:15:07"

Transcript:

Josh 00:00:00  Today I'm super excited to introduce you to Bradley Sutton. Bradley is passionate about everything Amazon and e-commerce. He can talk about anything really. Launch strategy. Keyword research, the Amazon algorithm and everything in between. He has launched hundreds of products on Amazon for himself and clients, and he is privileged to host the most listened to podcast in the world for Amazon sellers. The Serious Sellers Podcast. Meeting helium ten customers around the world is his favorite thing to do with that. Welcome to the show, Bradley.

Bradley 00:00:33  Thank you for having me here. It's great to be here.

Josh 00:00:35  My question to you, Bradley, is you talked about add some of the top keywords into your listing. Where do you add them into your listing? because I could foresee an issue of, for example, maybe you're selling a calendar, right? And a pen. There's one particular type of pen, or it's a set of markers or something, right. That keeps showing up in the the frequently bought together. But those are very kind of two very different products.

Josh 00:01:02  Right? So how would you go about incorporating the marker top keywords into calendar type, you know, a calendar type product and where do you put them right. Does it matter? Is it bullets? Description. Back end.

Bradley 00:01:15  There's a couple of different ways. So like the most ideal way is just to get it as organic and natural as possible. You know in there. So like the you know perfect situation would be like for example, let's use that gothic, candle holder. You know, I could like, say in one of the bullet points or description, like, you know, hey, you can put a gothic candle holder on top of the coffin shelf and then you have a real spooky, you know, effect or whatever like that. You know, like something that actually makes sense. That's not that's not keyword stuffing. Yeah. You know, sometimes that doesn't you know, you're not able to do that most of the time though, if you really think about it. I mean, if two products are complementary, there's a way to tie it together.

Bradley 00:01:51  I mean, otherwise it wouldn't be complementary with each other. Like like there's got to be a way. But in the extreme circumstances where there's not, of course you've got your search terms, your back end search terms. most Categories still have hidden the subject matter like you can't do it in your edit listing, but like once you create your listing, if you use like helium ten Listing Analyzer or you or your advanced user of flat files like in helium ten Listing Analyzer, we still have the subject matter and even though you don't see it there, it still works like we can tie it in the API in the back end. And then so there's usually 4 or 5 more lines of 50 characters. So you can put some of these keywords and then another one where it's very limited. But like if you just can't put it anywhere, is is this this back end feature that, that categories like home and Kitchen have that's called special features. And that doesn't help for ranking. But special features is like the most it's the craziest field I have seen in Amazon in years where I could put something there.

Bradley 00:02:47  And I'll get index for it, like in less than 60s, you know, really, you know, if you change your title or your description, sometimes it takes like up to a day for you to get index or for you even to show up. You change something in the search terms. Like it was amazing that hey, like within 15 minutes you could be indexed, you know, like in the old days, this one is like less than 60s. And I could I prove that two ways. You know, using that special URL, that Ajax URL that that shows what's in the back end, or by actually just running index checker to show that, hey, this wasn't indexing then 60s later it is. So, it's it you have to be careful that you can't keyword stuff like you can in search terms and subject matter because the special features it's actually this is kind of a positive and a negative. the positive of course, is that, you know, you can index almost anything at all, even if like sometimes st...

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:

1. 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.
2. 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.
3. 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 Section

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com
• TikTok Shop
• Amazon
• Shopify
• ChatGPT
• Euka AI
• Kalodata
• Streak
• WooCommerce

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 Hires
Josh warns against hiring based on charisma and first impressions, emphasizing the high cost of bad hires.

00:00:30 Introduction & Podcast Context
Josh introduces himself, his ecommerce background, and the purpose of the episode: hiring top 1% senior leadership.

00:01:59 Early Hiring Mistakes
Josh shares his initial lack of process, reliance on generic questions, and gut feelings when hiring.

00:04:10 The High Cost of a Bad Hire
Breakdown of the financial, operational, and legal costs associated with hiring the wrong person.

00:06:05 Legal and Tax Implications of Remote Hires
Explains state-specific legal and tax burdens when hiring remote W-2 employees.

00:08:07 The Power of Great Hires
Discusses 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 Framework
Introduction to the three-lens framework: track record, culture alignment, and role competence.

00:10:03 Track Record of Performance Interview
Details the first interview: assessing lifelong patterns of achievement, leadership, and initiative.

00:11:06 Conducting the Track Record Interview
Step-by-step walkthrough of questions and techniques to uncover a candidate’s career trajectory and motivations.

00:13:30 Truth Serum Questions & Reference Checks
How to use reference-based questions to get honest answers and verify candidate claims.

00:17:07 Identifying Top 1% Patterns
What to look for in high school, college, and career history to spot elite performers.

00:23:50 Red Flags and Non-Redemption Policy
Why you shouldn’t hire candidates with inconsistent success or those seeking a “redemption” opportunity.

00:24:49 Culture Alignment Interview
Importance of culture fit, how to structure the interview, and why it’s non-negotiable for senior hires.

00:27:40 Core Values Deep Dive
Examples of core values (Extreme Ownership, Relentless Innovation, Integrity) and how to probe for real-life demonstrations.

00:29:42 Role Competence/Technical Interview
Evaluating if candidates can perform at a high level, think clearly, and bring deep expertise.

00:30:40 Metrics and Business Impact Questions
Key questions to assess if candidates understand how their role drives business results.

00:35:25 Case Studies and Test Projects
How 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 Projects
The importance of objective scoring, rubrics, and not advancing candidates who underperform in practical tests.

00:40:03 Summary of the Three-Stage Framework
Recap of the three interview stages and their combined power to identify and hire elite senior leaders.

00:42:07 Closing Thoughts and Call to Action
Josh 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...

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.

He’s also the host of the CPG insiders podcast, the number 2 podcast in all consumer packaged goods niche.

Mark is also the author of a new book 27 Unbreakable Rules of Retail, how to build a $100M+ brand in brick and mortar

Mark is not your average marketer — his background blends neuroscience, persuasion, and behavioral psychology with decades of hands-on experience in CPG and direct-response advertising. Through his agency, Jekyll & Hyde, he’s helped hundreds of emerging brands launch, grow, and dominate retail shelves and online marketplaces.

Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Importance of brick-and-mortar retail in the consumer products industry.
• Challenges faced by e-commerce brands in a competitive market.
• Strategies for successfully entering physical retail spaces.
• The significance of product differentiation and authenticity in retail.
• The impact of traditional media, especially television, on brand awareness and consumer demand.
• The concept of SKU rationalization and its role in retail product selection.
• The necessity of creating consumer demand before approaching retail buyers.
• Understanding the economics of media buying and the Media Efficiency Ratio (MER).
• The principle of "Who Not How" in building a successful business team.
• The role of AI as a collaborative tool in enhancing business strategies.

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews Dr. Mark Young, CEO of Jekyll and Hyde Advertising. Mark shares his expertise on building $100 million consumer brands in brick-and-mortar retail, emphasizing that 80% of product sales still occur offline. He discusses the challenges of retail entry, the importance of unique, premium products, and the power of TV advertising to drive demand. Mark also highlights the value of expert partnerships and leveraging both human intuition and AI, offering actionable advice for e-commerce brands aiming to succeed in physical retail.

Here are the 3 action items that Josh identified from this episode:

1. Prove Demand Before Approaching Retailers
   Build real consumer pull through DTC + paid media (TV, social, influencers). Retail buyers want evidence of demand, not Amazon screenshots. Come in with a buyer-ready pitch showing how you'll drive traffic to their stores.
2. Position Your Product as a Clear Upgrade or Category Expander
   Ensure your SKU hits at least one winning lever:
   • Premium trade-up (higher-margin, innovative)
   • Demographic expander (brings new shoppers)
   • Category expander (increases consumption)
     If your product is a “me-too” item, it won’t make it onto shelves.
3. Build a Retail-Ready P&L With Strong Margins & Media Plan
   You need minimum 5:1 markup and a funded media strategy (TV recommended) to support retail sell-through. Retailers expect marketing that drives velocity—without it, your product risks getting cut during SKU rationalization.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com
• Amazon
• ChatGPT
• Shopify
• Helium 10
• IRI (Information Resources, Inc.)
• Meta Ads
• WRTV
• Jekyll+Hyde Labs
• CPG Insiders
• Thinking, Fast and Slow
• "Who Not How" by Dan Sullivan and Ben Hardy
• "The Science of Scaling" by Dr. Ben Hardy
• Primal Intelligence
• Walmart
• Shark Tank
• The Home Depot
• Dan Sullivan

Special Mention(s):

• Adam “Heist” Runquist on LinkedIn
• Kevin King on LinkedIn
• Michael E. Gerber on LinkedIn

Related 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

Join Josh Hadley on the Ecomm Breakthrough Podcast as he shares his journey scaling an ecommerce business from zero to eight figures. Discover essential business tips for effective business management, including strategies for tracking leading indicators, optimizing cash flow, and understanding key KPIs. This podcast is your guide to significant business growth and success. 🚀

Tools and Dashboards

"Weekly High Five Tracker": "00:08:36"
"Custom GPT for Role Profiles": "00:17:03"
"Weekly Scorecard": "00:18:51"
"Cash Flow Forecast Sheet": "00:26:10"

Books
"The One Thing by Gary Keller": "00:14:06"

Websites and Services
"ChatGPT": "00:16:06"
"Melio": "00:39:37"
"Plastiq": "00:39:37"

Key Metrics and Indicators
"Total Advertising Cost of Spend (TACOS)": "00:19:47"
"Conversion Rate": "00:20:12"
"Average Order Value (AOV)": "00:21:12"

Credit Cards Mentioned
"Chase Sapphire Reserve": "00:44:19"
"Amex Gold Card": "00:44:19"
"Amex Plum Card": "00:44:19"
"Chase Business Preferred Card": "00:44:19"
"Chase Business Premier": "00:44:19"
"Capital One Spark Cash Plus": "00:44:19"
"Citi Executive World Elite": "00:44:19"

Concepts and Strategies
"Credit Card Hack": "00:36:40"

Chapters:
00:00:00 Introduction to the CEO Dashboard
Josh introduces the concept of the CEO Dashboard and the importance of tracking business health with three key reports.

00:00:58 Personal Story: Running Out of Cash
Josh shares a pivotal January 2024 experience when his business couldn’t fund payroll, leading to key lessons learned.

00:01:52 Lessons Learned from the Cash Crisis
Josh discusses the root causes of the cash shortfall: inventory issues, team misalignment, and lack of cash forecasting.

00:04:46 The CEO’s Three Key Priorities
Josh outlines the CEO’s main responsibilities: casting vision, having the right people, and ensuring the business never runs out of cash.

00:05:38 Desert Island Exercise & Dashboard Mindset
Josh introduces the “desert island” exercise and the mindset shift from lagging to leading indicators in business management.

00:06:32 Leading vs. Lagging Indicators Explained
Explanation of leading and lagging metrics, and why CEOs should focus on leading indicators for future business impact.

00:08:36 Tool #1: Weekly High Five Tracker
Introduction to the Weekly High Five Tracker, a tool for tracking the five most important weekly actions for each team member.

00:09:37 How the Weekly High Five Tracker Works
Step-by-step process for using the tracker: team member input, manager review, and accountability conversations.

00:13:13 FAQs and Best Practices for the Tracker
Josh answers common questions about the tracker, role profiles, and the importance of defining “the one thing” for each role.

00:16:06 Customizing Leading Actions for Your Team
Advice on using ChatGPT to identify high-leverage actions for each role and building custom role profiles.

00:17:54 Tool #2: Weekly Scorecard
Introduction to the Weekly Scorecard, which tracks leading indicators and metrics at the department level.

00:19:47 Examples of Departmental Leading Indicators
Detailed examples of leading indicators for sales, marketing, product development, project management, and account health.

00:21:12 Year-over-Year Metrics and Warning Signals
Importance of tracking year-over-year metrics to spot early warning signs and avoid surprises in business performance.

00:25:09 Supply Chain and Inventory Management Metrics
Key inventory and supply chain metrics to monitor for maintaining efficiency and preventing stockouts.

00:26:10 Tool #3: Cash Flow Forecast Sheet
Introduction to the Cash Flow Forecast Sheet for projecting cash balances and preventing cash shortfalls.

00:27:18 How to Build and Use a Cash Flow Forecast
Step-by-step guide to forecasting cash inflows and outflows, including vendor payments, payroll, and credit card expenses.

00:36:40 Credit Card Strategy for Cash Flow Management
Josh’s credit card “hack” for extending payment cycles and maximizing working capital using multiple cards.

00:39:37 Paying Vendors with Credit Cards & Fee Arbitrage
How to pay vendors via credit card (using services like Melio or Plastiq), offsetting fees with rewards and tax deductions.

00:41:36 Optimizing the Cash Conversion Cycle
Strategies for negotiating payment terms, stacking credit card float, and improving the cash conversion cycle for growth.

00:44:19 Favorite Credit Cards for E-commerce
Josh shares his top business credit cards for maximizing rewards and extending payment terms.

00:46:17 Recap: The Three Dashboard Tools
Summary of the three dashboard tools and how they help CEOs maintain focus, accountability, and cash flow.

00:48:13 Call to Action & Closing
Josh invites listeners to leave a review, share the episode, and access the templates, closing with a reminder about focus and systems.

Transcript:

Josh Hadley 00:00:00  So imagine you're on a desert island. You're stranded, you don't have your computer, you don't have your phone. You're just going to get three paper reports delivered to you. How are you going to know whether your business is going to be crushing it while you're away, or it's about to fall into the pits of despair? So today I'm going to introduce you to that answer. And this has been the CEO dashboard. Welcome to the Econ Breakthrough Podcast. I'm Josh Hadley. I've scaled my own e-commerce 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 wondered the best way to actually manage your business as a CEO, and do you wish you could actually see one specific dashboard that would tell you the exact health of your business, whether you are winning or losing? Today, I'm going to be introducing to you three different tools and dashboards that will allow you to effectively manage the business as the CEO.

Josh Hadley 00:00:58  So today we're going to dive into the CEO dashboard. First off who am I. My name is Josh Hadley. First and foremost I am a man of faith. I am a husband to a beautiful wife and four children, and I have been selling in the e-commerce space for over ten years now, and a multi-million dollar seller on all sorts of platforms TikTok, shop, Shopify, Amazon and more. And also the host to the number one business strategy podcast for ecommerce that is the E-com Breakthrough Podcast. Today, I want to start by sharing with you a story. I want to bring you back to a point in time. In my business, this was January of 2024, and I remember like it was just yesterday going upstairs to my office and it was a cold day. So I love...

Chapters:

Introduction to Scott Deetz and His Expertise (00:00:00)
Scott is introduced as an expert in helping Amazon and e-commerce entrepreneurs grow and exit at top valuations.

Defining a Valuable Platform: Four Key Pillars (00:00:18)
Scott explains what makes a business a valuable "platform" for buyers: risk diversification, profitability, growth rate, and size of earnings.

Deep Dive into the Four Pillars (00:01:07)
Discussion of each pillar: risk diversification, profitability percentage, growth rate, and the importance of earnings size.

Capital Strategy and Growth (00:03:25)
Importance of capital strategy as a process, not an event, and how it fuels business growth.

Recap of the Four Pillars (00:04:29)
Josh summarizes the four pillars: profit margin, growth rate, size of profit, and risk diversity.

Input Metrics: Profitability, Scalability, Repeatability, Defensibility (00:05:46)
Scott introduces the underlying drivers: profitability, scalability, repeatability, and defensibility, leading to sellability.

Case Study: Operations vs. Product Innovation (00:07:16)
Discussion of a case where an entrepreneur excelled in operations and delegated product innovation.

Actionable Takeaway 1: Build Your Data Room Early (00:08:15)
Advice to start organizing a data room early, structured as buyers would want to see it.

Actionable Takeaway 2: Implement Strategic Finance Monthly (00:10:03)
Recommendation to review financials, forecasts, and company valuation monthly, not just accounting numbers.

Actionable Takeaway 3: Structure Accounting for Add-Backs and Valuation (00:11:17)
Organize accounting and company structure to maximize add-backs and improve valuation before exit.

Clarifying Add-Backs and Corporate Structure (00:13:06)
Further explanation on separating owner-related expenses and structuring entities for optimal valuation.

Horizontal and Vertical Corporate Structuring (00:14:09)
Scott details horizontal (multiple entities) and vertical (account codes for add-backs) structuring for better exit outcomes.

Conclusion and Final Thoughts (00:17:12)
Josh thanks Scott and hints at a future episode.

Links and Mentions:

Tools and Concepts
"Data Room": "00:08:15"
"Strategic Finance": "00:10:03"

Actionable Takeaways
"Build Your Data Room": "00:08:15"
"Implement Strategic Finance": "00:10:03"
"Organize Accounting with Add Backs in Mind": "00:11:17"

Key Concepts
"Profitability, Scalability, Repeatability, and Defensibility": "00:06:14"

Summary of Four Pillars for a Platform Company
"Profit Margin": "00:05:19"

Transcripts:

Josh 00:00:00  Today I'm super excited to introduce you to Scott Deetz. Scott helps Amazon and e-commerce entrepreneurs unlock growth and profitability bottlenecks in their businesses, and then exit for a top valuation. Scott, welcome to the show.

Scott 00:00:15  Hey Josh Scott. Great to be here and I'm really looking forward to it.

Josh 00:00:18  Scott, maybe we can dive a little bit deeper into that case study. At the beginning, you talked about, you know, that they were you identified that they were a good platform, right? So that they could continue to grow. What does that platform mean?

Scott 00:00:31  Yeah. So the pillars of a great platform, the way that I think about it, my mentor, and has done over $20 billion of transactions. So, you know, you know, old school 30, 40 years in the investment banking world. And he his number one thing that he said to me was, Scott, it's not what the seller is selling, it's what the buyer is buying. So I would encourage everybody to not think about what you think is valuable in a business, but think about what buyers value in a business? The first thing that buyers value is not growth, but it's risk diversification.

Scott 00:01:07  So the first thing that you need to think about is that you need to be compliance as a part of risk diversification, but also true diversification of your products so that no one product has, you know, more than, you know, 20% of your revenue. Otherwise, Amazon shuts it down or new competition comes in. A buyer can't get comfortable with that risk profile. So, so the first thing I would say is you analyze your risk. The second pillar of valuation is your profitability percentage. And so a lot of people think that if they have more profitability, that they're more valuable than if they have smaller profits. And while that is one of the pillars, a company that has 25 or 30% profit margins is just much more flexible and therefore valuable than a company that's 10 or 15%. So the second thing that we saw in this company was that they had a. Ability to have profitable products. And then we went to growth percentage, which is the third pillar. And I would if you wanted to benchmark a minimum growth percentages 20% per year.

Scott 00:02:19  Now with Covid and Covid bumps, you might not all be there. but remember, you're not selling what you've done. You're selling what the business can do with the buyers capital infusion. And their definition is that minimum 20%, ideally 30% year over year growth is required. Well, if you think about what that capability really is, what we saw in this platform was a capability to successfully innovate and launch new products into the marketplace, because once a product gets up to a certain level, it kind of is what it is. So for people that are looking at action items that they can have today, it's that ability to have a successful launch model to drive the growth rate to that particular output. And then the fourth one becomes the size of the earnings. If you can prove that you can do it over a longer period of time, then you become more valuable because 30% growth on a company with a million of revenues is a lot different than somebody with 10 million of revenue. and so I think it's just important to think along building in and that's where that capital need comes in.

Scott 00:03:25  Yeah. Because, you know, in this situation, back to this case study we saw in them even what they didn't see. We saw the platform, but they were think of it as borrowing money from uncle Bob. And if you go by, borrow 50 grand from your uncle, that's no problem. But when your business is at 10 million and you go ask them for 1.2 million, you know, uncle Bob says, you know I love you, Josh, but you know, I'm not the right investor for that level. So you have to think of your capital strategy not as an event, but as a process where you're always looking at what capital at the lowest risk, in the lowest cost to fuel that growth. And a lot of people get to a certain level, they don't have the capital planning. So then the growth rate, you know, levels off. So we saw the platform and we brought the capital strategy to place, and we did it through a combination of debt and equity.

Scott 00:04:17  And that's what continued to fuel the growth because the person already had in place the ownership group alr...

Highlight Bullets

> Here’s a glimpse of what you would learn…. 

• Challenges of US sales tax compliance for e-commerce businesses post-2018 Wayfair ruling.
• The complexities of sales tax nexus and varying state regulations.
• Personal experiences of e-commerce entrepreneurs with sales tax issues.
• The financial consequences of non-compliance, including audits and penalties.
• Strategies for managing sales tax compliance, including the use of automation tools.
• The importance of understanding product taxability and state-specific exemptions.
• Options for businesses with unpaid sales tax liabilities, including retroactive registration and voluntary disclosure agreements.
• Emerging growth opportunities in e-commerce, such as TikTok Shops and AI-driven search optimization.
• The significance of customer-centric product development based on search behavior and preferences.
• Recommendations for e-commerce entrepreneurs on compliance, handling state notices, and investing in new technologies.

In this episode of the Ecomm Breakthrough Podcast, host Josh Hadley interviews Sam Ross, co-founder and CEO of Numeral. They discuss the complexities of US sales tax compliance for e-commerce businesses, especially after the 2018 Wayfair Supreme Court decision. Sam shares his entrepreneurial journey, explains how Numeral automates tax compliance, and offers practical advice on managing tax risks. The conversation also explores emerging e-commerce growth strategies, including leveraging AI, personalized marketing, and niche product development, providing actionable insights for founders navigating today’s challenging tax and digital landscape.

Here are the 3 action items that Josh identified from this episode:

1. Automate Sales Tax Before It Becomes a Costly Problem
   Run a nexus scan across all your channels (Shopify, Amazon, 3PLs), identify where you owe tax, and automate filings—before audits, penalties, or exit due diligence destroy value.
2. Never Respond to State Notices Alone
   If you receive a tax letter, pause and consult a CPA or tax attorney immediately. One wrong reply can trigger audits or liabilities—set up systems to track and manage every notice.
3. Use AI + Niche Search Data to Find Your Next Winners
   Mine long-tail search queries (e.g., highly specific gift or use-case terms) and build modular products around them. Optimize content for AI-driven search and answer engines to capture emerging buyer intent.

Resources mentioned in this episode:

• Josh Hadley on LinkedIn
• eComm Breakthrough Consulting
• eComm Breakthrough Podcast
• Email Josh Hadley: Josh@eCommBreakthrough.com
• Numeral
• Shopify
• Amazon
• Etsy
• TaxJar
• Avalara
• Jungle Scout
• ChatGPT
• Whoop Band
• TikTok Shop
• Influence: The Psychology of Persuasion by Robert Cialdini
• Chad Janis (Grüns)
• Sam Ross on Twitter
• Sam Ross on LinkedIn