Aaron Rubin, Founder and CEO of ShipHero, shares his entrepreneurial journey from nearly bankrupting his Jiu-Jitsu apparel brand to launching a $12B warehouse management system. He discusses the challenges of e-commerce, the misconceptions surrounding warehouse robotics, and critiques the 4PL model. Rubin highlights TikTok Shop's rapid growth, how companies like Temu and Shein navigate customs, and the critical importance of strategic hiring in business success. His insights blend personal anecdotes with industry expertise, revealing the grit behind innovation.
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question_answer ANECDOTE
USPS Shipping Label Scam
Aaron Rubin discovered a USPS shipping label scam involving fake labels and discounted rates.
The scam involves exploiting the USPS's label generation and manifesting system.
question_answer ANECDOTE
Near Bankruptcy and Jiu-Jitsu Apparel
Aaron Rubin started a Jiu-Jitsu apparel brand and nearly went bankrupt during the 2008 financial crisis.
He had to take on debt and pivot his business model to survive.
insights INSIGHT
E-commerce Challenges
E-commerce businesses face challenges like managing inventory and cash flow.
Profits often get tied up in inventory, leading to tax burdens despite limited cash availability.
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Aaron Rubin is the Founder and CEO of ShipHero, a warehouse management system for brands and 3PL providers.
We talk through Aaron’s journey building ShipHero, starting with what is now the largest Jiu Jitsu apparel brand in the US, which he almost went bankrupt running during the financial crisis. He shares how that business led to ShipHero, takes us inside the early days, explains why warehouse robotics and 4PL’s are overhyped, and discuss the rapid rise of TikTok Shop, Temu, and Shein.
Timestamps
(00:00) Intro
(02:01) The USPS shipping label scam
(07:10) Starting the largest Jiu-Jitsu apparel brand
(09:46) Narrowly avoiding bankruptcy in 2008
(17:08) Why ecommerce is so hard
(21:16) Starting ShipHero to manage their own warehouse
(28:00) Powering Shopify’s early fulfillment network
(30:59) How 3PL’s are still solving basic problems
(34:02) Why warehouse robotics is overhyped
(41:48) Where drones fit into logistics
(44:55) Aaron argues why the 4PL model doesn’t work
(55:40) TikTok Shop is the fastest growing US ecommerce channel ever
(58:42) How Temu and Shein leverage the 321 program to avoid tariffs
(1:02:49) Why Temu and Shein are slowing US ecom growth
(1:04:17) Topgrading: The most boring, most valuable hiring strategy
(1:11:29) Business lessons from playing poker
Referenced
ShipHero: https://shiphero.com/
Topgrading: https://www.amazon.com/Topgrading-Hire-Coach-Keep-Players/dp/094400234X
Where to find Aaron
Twitter: https://x.com/AaronandML
LinkedIn: https://www.linkedin.com/in/aaronandml
Where to find Turner
Twitter: https://twitter.com/TurnerNovak
LinkedIn: https://www.linkedin.com/in/turnernovak
Newsletter: https://www.thespl.it
The Peel with Turner Novak