Ecommerce Conversations

The Best Ecommerce Business Model

Aug 15, 2025
Dive into the essentials of starting a bootstrapped e-commerce business, perfect for new entrepreneurs. Learn about overcoming challenges like tariffs and pricing complexities. Discover effective strategies for managing product-based businesses, from marketing to supply chain management. Explore how to tap into niche markets targeting upscale consumers and the importance of innovative differentiation. Building strong customer relationships is key to sustaining profitability in a competitive landscape.
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ANECDOTE

Tariffs Destroyed A Wholesale Business

  • Eric recounts a wholesaler hit by tariffs that destroyed margins and locked-in retailer contracts.
  • The story illustrates how external factors like tariffs can quickly cripple margin-dependent businesses.
ADVICE

Avoid Product-Heavy D2C Traps

  • Avoid building product-heavy D2C businesses unless you want intense supply-chain and cash headaches.
  • Prefer models that minimize inventory, manufacturing complexity, and fixed contracts.
ADVICE

Keep Your Team Small And Outsource

  • Build a company with minimal internal components and outsource widely to retain flexibility.
  • Use a small core team and trusted third-party partners for marketing, packaging, and manufacturing.
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