Post Purchase PRO Podcast - Episode Twenty-Five- The Origin Story Part 4 Of 5

Post Purchase PRO - Profitable Email Marketing For Amazon Sellers

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After collecting one point eight million in profits for two years, we sold that business for three point six million dollars.
Hey welcome everyone.
If you missed Episode's, 21, 22 and 23 go back and listen because those were the beginnings of our origin story that we're going to be continuing on today. We have a really special on where we get into selling a business and what that looks like for Amazon sellers and e-commerce businesses.
How you value them, where we were in the process, and how excited we were to get that first deal done in our Amazon business, Shawn. What do you think?
Yeah, definitely.
So, Seth, if you will remember way back to 20 14, when we began our journey on Amazon, we joined forces.
After we met in 20 13, we decided that we were going to create this business, specifically leveraging the Amazon platform to grow businesses, and then sell those brands, as micro businesses, if you will, once they reached a mature enough state.
So that was our plan from day one, and since then, we've sold dozens of Amazon businesses. But the very first one is always special, right?
No, I brought this pillow into our mix, because a friend of mine, Ryan had brought it to my attention to these pillows.
We're selling, in a big way, at these live events, like state fairs, trade shows, and things like that. So, when I brought in the pillow, you were a little bit annoyed, actually, because I had allocated a huge part of our inventory budget into buying these pillows and in huge container full of pillows.
When we were actually used to getting small packages of silicone products, pizza cutters, bachelors, and things like that.
So when I told you had to order 10 containers of pillows, I don't know if you remember or not, but you were like, I don't know about that, we don't really have the cash to take care of that number. Remember saying set the worry about it.
We're going to sell the existing inventory, and then use that cash to finance the ongoing containers.
And it made you a little nervous, because our cash, even though we had earmark about a million dollars for inventory for growth, that was going to take up a huge percentage of that as we were growing. Do you remember?
2:35
Yeah, definitely. So guys, what this looked like was, if you're familiar with, with financing containers, normally a factory would say, we want 30% down. 70% do when we're going to ship the product, right? So what Shawn was pushing us towards was placing an order for tin containers or product.
2:57
So we had to put down 30%, at least for the first few containers. And then as the as the bills come do as the products that we would pay off, the 70% balance. And then the inventory would ship.
3:08
And, you know, when you are a new company, that's pretty stressful.
3:12
Because you don't really know what is going to happen, you know, with all of this inventory.
3:18
And, luckily for us, we, we identified that this product, that we're getting ready to walk you through this, this exit story, wasn't opportunity. We knew exactly how to execute on Amazon, and, you know, in the last episode, I think Shawn is where we shared how we took that business from $30,000 a month, to $300,000 a month, just using one little strategy. So, that was, that was a, you know, a nerve wracking time for me shot because that was the first time where we were. We had the lead with way more inventory than I was comfortable with because we were outweighing all this cash, rig