Ecommerce Conversations, By Practical Ecommerce

Most entrepreneurs in 2020 are uber connected: phone, text, email, Slack — you name it. But to Arri Bagah, the founder of Conversmart, an ecommerce agency, always-on connections means non-stop interruptions. "It's a matter of taking control of my time — trying to be less reactive and more active," he told me. "Receiving all of those notifications prompts you to react."

Kat McKinnon's agency, CopySmiths, produces hundreds of blog posts per month for, mainly, ecommerce clients. She's developed a formula of sorts for getting those posts ranked in Google's search results. "You need between 1,000 and 1,500 words for a blog article," she told me. "Definitely not 600. Avoid 800, unless you're literally just answering a short question. You need a heading that includes a keyword. You need three to four subheadings, H2s. And then within those H2s, you need three to four H3s. H3s are very important."

Dennis Hegstad believes the best way to recover abandoned carts is via text messages. But his messages are not automated or bot-driven. Hegstad's company, LiveRecover, sends one-to-one texts from a real person to folks who have left an ecommerce checkout process without completing a purchase."It's peer-to-peer texting," he told me. "We'll send messages from a real person. It's not a drip campaign. About 55 percent get replies. Our total recovery rate on average is about 21 percent, which is really good."

Jordan West launched Little & Lively, a direct-to-consumer children's apparel company, with his wife, Carmen, six years ago in Canada. The business has grown to mid-seven-figures in revenue selling through its website, mostly. He's a master at creating demand for his products before they are available for purchase.

Despite reaching a whopping $100 million in revenue in just two years, Moiz Ali, the founder of Native deodorant, says the initial version was less than stellar. "We had a pretty mediocre product," Ali told me. "We understood that people were looking for [aluminum-free deodorant] and were willing to pay a higher price point for it. But our first attempt wasn't that good."

Jon Shanahan wants men to wear makeup. He's a co-founder of Stryx, a direct-to-consumer manufacturer of concealer and tinted moisturizer for males. The company launched in 2017. Shanahan joined shortly afterward, having created his male grooming channel on YouTube.

In 2007 Steve Chou's wife, Jennifer, wanted to spend more time with their growing family. So she quit her job. Fast forward to 2020, and Bumblebee Linens, the Chou's ecommerce company, is prospering. Steve is now an ecommerce celebrity, having launched the "My Wife Quit Her Job" blog, podcast, and YouTube channel.

The YouTube-to-ecommerce business model may be the best way to build an audience of customers. It worked for Lisa and Paul Jauregui. Lisa’s passion for cosmetics led to her YouTube channel, which educated consumers on the use and selection of those products. And that audience generated customers for BK Beauty, a direct-to-consumer cosmetics brand that the Jauregui’s launched in August 2019.

American businesspeople tend to view Europe as a single market with like-minded consumers and cultures. But Rasmus Cort knows better. His company, Sorry Mom, sells tattoo ointments and lotions throughout the continent. I asked him how a U.S.-based company can succeed there.

By 2017, nine years after launching his t-shirt company, Ugmonk, Jeff Sheldon had expanded into posters and workspace products. Gather, Ugmonk's modular desk organizer, had just completed a successful Kickstarter campaign with two shipping containers of custom manufactured organizers en route, to send to customers. "There's no way my parents were going to let two shipping containers show up at their front door. So I used a 3PL. It was a very bad experience. We ran into every problem imaginable.

Patrick Coddou launched Supply.co with his wife, Jennifer, back in 2015. The company, which sells razors and shaving supplies, is bootstrapped — no outside investors. He has little patience with the concept of lifetime customer value or paying more to acquire a customer than he can recoup on the first purchase. That approach has produced, in five years, a profitable, mid-seven-figure-revenue business that, until recently, had just two employees: Jennifer and himself.

The progression for most direct-to-consumer entrepreneurs is to conceive a product idea and then locate a manufacturer to produce it. But Jaime Schmidt took the opposite approach when she launched Schmidt's natural deodorant in 2010. "I started in our kitchen with batch sizes of maybe 20 deodorants on the stove. The product turned into a business idea. So I kept the manufacturing in-house. I liked the control, which was born out of my love for making."

Ecommerce entrepreneurs understand the need for multiple revenue channels.  Relying exclusively on, say, Facebook or Amazon or Google can lead to disruptions. And that's what happened to Allen Walton's company, SpyGuy, which relies on Google Ads for most of its traffic and revenue.

Having founded and sold multiple ecommerce companies, and having worked for numerous ecommerce startups, Web Smith believes broad economic trends determine entrepreneurial success as much as tactical execution. Successful entrepreneurs, Smith asserts, must be polymaths — possessing extensive knowledge across multiple subjects — to understand opportunities. And that's the purpose of 2PM, his latest company.

I asked Sam Parr, the founder of The Hustle, an email newsletter with curated business and technology news, how he has grown his list to over 1 million subscribers. “It’s fricking hard,” he said.

Entrepreneurs tend to become emotionally entwined with their businesses. "It's my baby," an entrepreneur might say when describing his company. But not Rohan Gilkes. "There's no emotion," he told me. "I have no babies. I build businesses for the cash flow."

Aaron Marino says he hates to read. He's bad at grammar and writing, he claims. But he's really good at making videos. "I had a fitness center that didn't work out," he told me. "I started making YouTube videos in 2008 with no idea that I could ever make a buck on that platform." Fast forward to 2020. Alpha M, Marino's YouTube portal, which focuses on male grooming and fitness, has 6 million subscribers. It has spawned multiple ecommerce businesses, including Pete & Pedro (haircare), Teige Hanley (skincare), and Enemy (sunglasses).

What's the most competitive product on Amazon? Smartphone cases. What does Matt Atschul's company, Smartish, sell? Smartphone cases. And it thrives.

Kurt Elster's "The Unofficial Shopify Podcast" has been downloaded more than 1 million times. His agency, Ethercycle, helps Shopify merchants drive revenue and profit. And his newsletter at KurtElster.com contains tips and strategies to scale a Shopify store. "I eat, sleep, and breathe Shopify. I even have a Shopify license plate," Elster stated.

Taylor Holiday runs three successful ecommerce businesses and a thriving, ecommerce-focused ad agency. He's developed definitive views on acquiring customers and advertising performance, among other insights. We recently spoke with Holiday about his ventures, the state of ecommerce, and advertising dos and don'ts.