User acquisition costs can take up a large portion of your margin. For example, Amazon referral fees range from 8-17% of retail price, with most products getting charged 15%. Unsurprisingly, it is extremely important to drive these UA costs down as far as possible in order to increase your profit margin. We are going to look at some free user acquisition channels, some of which you might...
The following is part of our Financial Basics series. If you landed on this post, you may find the following one useful as well: Gross vs Net profit – understanding the differences You’ve probably heard people discuss “financial statements.” These are documents that companies use to report the financial health of their business. They consist of 1) balance sheet, 2) income statement, 3)...
You’ve probably heard of, or use the terms, “gross” profit and “net” profit in the course of business, but the actual definition can sometimes be confusing or unclear. In this post we will explain: The difference between gross and net profit When to use them Why they are important You can read the previous posts in our Financing Basics series below: What is inventory financing and how to...
Back in the early days of the internet there was a trust issue. Consumers were extremely hesitant to purchase something through this new technology since they didn’t know who they were actually purchasing from. Over the past few decades, internet technology, website design and the amount of brands selling online have grown, enabling ~12% of all retail sales ($146 Billion in Q1 2020), to occur...
This is a continuation of our Covid-19 series where we discuss the impacts of the pandemic on different areas of the supply chain and consumer behaviour. In this sixth post of the series we look into the impact on demand via e-commerce sales channels. Other posts in the series: TNBT – How Flair, a $100k / month e-Commerce company is adapting to Covid-19 Covid-19: we’re here to help Covid...
This is a continuation of our Covid-19 series where we discuss the impacts of the pandemic on different areas of the supply chain. In this fifth post of the series, we investigate the impact on domestic logistics. In particular, we’ll look at ground freight, 3PL warehousing and last mile deliveries. Other posts in the series: TNBT – How Flair, a $100k / month e-Commerce company is...
This is a continuation of our Covid-19 series where we discuss the impacts of the pandemic on different areas of the supply chain. In this fourth post of the series, we will explore the impact on international shipments–in particular the changes to capacity and costs for getting goods from China to the US via ocean and air shipments. Other posts in the series: TNBT – How Flair, a...
As the title suggests, in this post we’re focusing on how manufacturing capacity has rebounded since the start of the pandemic, with a focus on China. This is the third in a series of posts outlining how we are seeing the supply chain rebound. Included in the series are: TNBT – How Flair, a $100k / month e-Commerce company is adapting to Covid-19 Covid-19: we’re here to help Covid-19:...
During these uncertain times of the Covid-19 pandemic, SMBs can be hit the hardest. Anytime there is a shock to the system that creates uncertainty, financial markets can dry up. As a result, smaller businesses that have limited assets are impacted the most. This is because many financial institutions prioritize larger customers. We don’t think this is fair. In fact, we think smaller e-Commerce...
The Next Big Thing discusses topics that other hardware entrepreneurs will find useful, such as prototyping and manufacturing, tools the companies use to keep moving forward, sales channels that have been effective (as well as others that have been complete failures), and managing cash flow. In Episode 8 we discuss how Flair is adapting their business during the Covid-19 pandemic. We speak with...