Challenges of Running an Online Store

Open Brands: A Chat with 7 Figure Seller Adam Jagot

In this episode of Seller Sessions, we have Adam Jagot, an experienced Amazon seller in the clothing category, sharing his journey and insights. 

Here are the key points discussed:

Starting out on eBay: Inspired by the success of big clothing brands like Boohoo, Adam began his selling journey on eBay, primarily focusing on women's clothing due to the availability from manufacturers.

* Learning the ropes: With limited knowledge about clothing styles, Adam had to learn from others in the industry and adapt to the demands of the market.

* Expanding to Amazon: Adam eventually expanded his clothing business to Amazon, alongside his existing shoe business. Sales quickly skyrocketed, leading to the need for recruiting more staff for efficient picking and packing.

* Dealing with challenges: Adam faced the issue of hijacked listings and price undercutting by other sellers. This prompted him to explore Fulfilment by Amazon (FBA), which resulted in significant revenue growth.

* European expansion: Seeing the potential for growth, Adam expanded his business to different European countries, translating listings for each market and experiencing unprecedented sales numbers.

* Discovering new opportunities: Attending the Retail Without Borders trade event in early 2020, Adam stumbled upon new opportunities and learned about selling on multiple platforms. He successfully transitioned between inventory management systems.

* Positive impact of COVID-19: The pandemic had a positive impact on Adam's sales as online shopping surged. He adapted to the changing landscape and benefited from increased customer demand.

* Brand diversification: Adam ventured into the kids' clothing market, introducing additional brands to his portfolio.

* Focus on staple garments: Adam's strategy revolves around offering staple and neutral garments that appeal to a wide range of customers, ensuring consistent sales.

* Seasonal inventory management: Adam orders inventory in advance based on seasons and data, anticipating demand and preparing accordingly.

* Managing returns: To mitigate returns, Adam implements careful inspection processes and donates unsellable items.

* Manufacturing considerations: Adam shifted manufacturing primarily to Turkey for faster delivery times compared to China, given the importance of timely supply in the fashion industry. * Key sellers: Leggings and cardigans are standout sellers for Adam's brand, capturing customer interest and driving revenue.

* Seasonal spikes: Adam's brand experiences spikes in sales during specific seasons, notably in February, summer, and October (Halloween), while Christmas and January sales are not significant for their brand.

* Challenges of website sales: Despite having their own online store, Adam notes that revenue from websites is only about 10% compared to Amazon. Building and maintaining websites requires significant effort and driving traffic can be costly.

* Influencer marketing impact: Influencer marketing can generate sudden sales spikes, but the window of opportunity is short. Collaborating with major influencers can attract attention from other influencers and retailers.

* Brand partnership challenges: Adam shares an experience with a potential brand partnership with Debenhams, where a large stock investment was required. Ultimately, the partnership did not materialise.

* Current challenges: The present year has proven to be the toughest for Adam's business, with various market challenges and obstacles to overcome.

* Future plans: Adam is planning to pivot and explore other product categories while entering the US marketplace for further growth opportunities.

Tune in to the full episode to gain more valuable insights from Adam Jagot’s journey as an Amazon seller in the clothing category.