Invest Like the Best with Patrick O'Shaughnessy

Carlos Cashman – Lessons from the Amazon Ecosystems – [Founder’s Field Guide, EP.15]

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Jan 7, 2021

Carlos Cashman, co-founder and co-CEO of Thrasio, shares insights from the lucrative world of Amazon sellers. Thrasio, remarkably profitable since its inception, navigates the complexities of e-commerce while acquiring third-party brands. Cashman discusses branding evolution, the importance of consumer feedback, and strategic delegation in leadership. He emphasizes the value of action over planning in entrepreneurship and reflects on personal experiences that shaped his journey. Dive into the dynamic interplay of scaling businesses and understanding consumer behavior!

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ANECDOTE

Thrasio Origin

Carlos Cashman, co-founder of Thrasio, had a Facebook marketing agency and saw e-commerce businesses succeed using his services.
He and his partner, Josh, initially considered rolling up D2C players but found Amazon FBA to be a simpler starting point.

INSIGHT

Amazon's Entrepreneur Machine

Amazon's third-party seller program and the commoditization of manufacturing have enabled individuals to easily sell products.
These sellers often start as individuals or small groups and primarily sell on Amazon.

INSIGHT

Seller Challenges

Challenges for Amazon sellers increase as they grow, requiring expertise in advertising, supply chain management, and dealing with competition.
Thrasio acquires businesses when sellers face these increasing complexities and want to de-risk.

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My guest today is Carlos Cashman, co-founder and co-CEO of Thrasio an acquirer of third-party Amazon sellers. In a surprising departure for a high growth company, Thrasio has been profitable since its founding in 2018 and was most recently valued at $1 billion. In our conversation we discuss the full spectrum of the Amazon third party seller ecosystem, the effects of globally commoditized manufacturing, and the terms of Thrasio's acquisitions of Amazon businesses. I hope you enjoy this great conversation with Carlos Cashman.

For the full show notes, transcript, and links to mentioned content check out https://www.joincolossus.com/episodes/28372673/cashman-lessons-from-the-amazon-ecosystem

This episode of Founder's Field Guide is sponsored by Klaviyo. Klaviyo is the ultimate marketing platform for ecommerce.

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This episode is also sponsored by Vanta. Vanta has built software that makes it easier to both get and maintain your SOC 2 report, at a fraction of the normal cost. Founders Field Guide listeners can redeem a $1k off coupon at vanta.com/patrick.

Founder's Field Guide is a property of Colossus Inc. For more episodes of Founder's Field Guide go to https://www.joincolossus.com/episodes.

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Show Notes

[00:02:44] – [First question] – Origin of Thrasio

[00:07:27] – The types of business they work with

[00:11:19] – Challenges for smaller businesses selling on Amazon and when they need a Thrasio

[00:15:31] – How the Amazon ecosystem has changed since they started

[00:18:14] – The capital sourcing side of their business

[00:19:49] – Future of the ecommerce space that has them excited

[00:27:20] – What makes the major online powerful so powerful for DTC companies

[00:32:18] – How edge erodes on spend when people crowd into a platform

[00:34:46] – Building the recognition of the Thrasio brand

[00:44:06] – His history as an entrepreneur and what was the common thread in these businesses

[00:45:47] – Getting customers early on

[00:46:47] – Knowing when something will fail

[00:48:48] – Downside of MBA’s

[00:50:07] – The importance of people in building a company

[00:51:01] – Effectively hiring people

[00:52:37] – What has to remain with the founder

[00:52:50] – The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

[00:53:53] – Other places in ecommerce that fascinate him

[00:56:36] – What are the risk factors that he worries about

[00:59:12] – Kindest thing anyone has done for him