How To Defend Against Aggressive Competition on Amazon with Aaron Cordovez

Sep 10, 2024

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Aaron Cordovez; Co-Founder of Zulay Kitchen and Technical Architect of Samurai Seller. He is in the Top 100 Sellers on all of Amazon, selling $75 million a year. While working a 9-5 as a coder in 2015, he started Amazon as a side hustle to try and earn his family an extra $500-$1000 a month.

In two years' time, he was making over 6-figures a month from Amazon and today has sold over $200 million worth of products on the internet.

He has spoken in front of tens of thousands of people across the world and is on a mission to empower people to a life of entrepreneurship and success.

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> Here’s a glimpse of what you would learn….

Challenges and strategies for e-commerce businesses, particularly on Amazon
Margin compression and the need for brands to differentiate themselves through innovative products and design
Diversifying to other marketplaces such as TikTok and Walmart
Strategies for leveraging TikTok's platform, including partnering with creators and offering commissions
Product ideation process at Zulay Kitchen and the role of category managers
Organizational structure of Zulay Kitchen and the roles and responsibilities of various teams
Financial aspect of product launches and the strategy of pricing products competitively
Defensive strategies for brands facing aggressive competition on Amazon
Samurai Seller's managed services and automation tools
Importance of continually creating and innovating to stay ahead in the competitive market

In this episode of the Ecomm Breakthrough podcast, host Josh Hadley welcomes Aaron Cordovez, co-founder of Zulay Kitchen and technical architect of Samurai Seller. They dive into the competitive world of Amazon, discussing the necessity for brands to innovate and differentiate themselves to combat margin compression. Aaron shares Zulay Kitchen's strategic approach to product development, emphasizing the role of category managers and a rigorous evaluation process. He also touches on the global team dynamics and the financial realities of product launches. The conversation then explores defensive pricing strategies and the potential of low-profit margins on Amazon, debunking myths about low pricing and underscoring the importance of upselling. Aaron warns against variation abuse and concludes by highlighting the services of Samurai Seller and Nexus Capital, stressing the need for continuous creation and innovation for Amazon sellers. Listeners are encouraged to connect with Aaron for further insights into scaling their e-commerce ventures.

Here are the 3 action items that Josh identified from this episode:

Action Item#1 Launching new products is essential for growth.

Action Item#2 Operational efficiency is crucial for scaling your business.

Action Item#3 Implementing a loss leader strategy can attract customers and lead to upselling opportunities.

Resources mentioned in this episode:

Josh Hadley on LinkedIn
eComm Breakthrough Consulting
eComm Breakthrough Podcast
Email Josh Hadley: Josh@eCommBreakthrough.com
Zulay Kitchen
Samurai Seller
Mr. Pen
Nature's Bounty FTC Lawsuit on Amazon
Zulay’s Kitchen Milk Frother
Aaron Cordovez's website
Nexus Capital's website
Jabran Niaz on LinkedIn
Scientology A New Slant on Life by L. Ron Hubbard

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Episode Sponsor

This episode is brought to you by eComm Breakthrough Consulting where I help seven-figure e-commerce owners grow to eight figures.

I started my business in 2015 and grew it to an eight-figure brand in seven years.

I made mistakes along the way that made the path to eight figures longer. At times I doubted whether our business could even survive and become a real brand. I wish I would have had a guide to help me grow faster and avoid the stumbling blocks.

If you’ve hit a plateau and want to know the next steps to take your business to the next level, then email me at josh@ecommbreakthrough.com and in your subject line say “strategy audit” for the chance to win a $10,000 comprehensive business strategy audit at no cost!

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**Josh Hadley** (00:00:00) - Welcome to the Ecomm Breakthrough podcast. I'm your host, Josh Hadley, where I interview the top business leaders in e-commerce. Past guests include Kevin King, Michael Gerber, author of the E-myth, and Matt Clark from ASM. Today, I'm speaking with Aaron Cordovez. He's the co-founder of Zulay Kitchen and technical architect of Samurai Seller. And today we're going to be talking a lot about some next level strategies that are going to help your brand survive on Amazon and other e-...