Maximizing Ecommerce

What would it look like to sell your ecommerce business down the road? If you think about it, there will come a day when you will exit your ecommerce business - either by selling it, closing it or at the end of your life. What does that day look like - what if you can turn a profit? Here to address some of those questions and a lot more is Joe Valley from Quiet Light Brokerage! 

Joe is a serial entrepreneur who has extensive experience in starting up and managing online businesses. Joe was first introduced to Quiet Light Brokerage when they advised him on the sale of an ecommerce business. Today, Joe works for Quiet Light Brokerage and has leveraged his business acumen to help sellers like you plan an exit from your business. You don’t want to miss a minute of Joe’s helpful and valuable insights! 

Outline of This Episode

• [1:00] Kevin introduces his guest, Joe Valley. 
• [4:20] Why you should connect with Scott 
• [6:20] How did Joe get started in his career? 
• [10:00] Joe explains how an ecommerce business gets sold. 
• [15:00] How do you determine the value of a business? 
• [22:30] What is the workload expectation for buyers? 
• [27:00] Why buyers need to be likeable. 
• [29:30] The emotional toll of selling a business. 
• [33:00] Joe shares some tips for leaders looking to sell their business. 
• [36:00] Why you need good accounting software. 
• [43:00] Joe goes over a few examples of selling a business. 
• [47:00] Closing thoughts. 

What it looks like to sell an ecommerce business

You probably aren’t looking to sell your business right now - most people are just trying to make a profit! Like all things in life, reality often comes zooming in faster than expected - that’s why you need to have a plan in place or at least an idea of what it takes to sell your business. 

In his conversation with Kevin, Joe Valley walked through a recent sale he facilitated for a woman in San Francisco. The first part of selling your business is going through a valuation - this is where a brokerage like Quiet Light pours over your financials and helps you determine a reasonable selling price. Next comes the difficult part - addressing problem areas - this is where you have to fix some potentially deal-breaking issues for prospective sellers. Finally, you have to take a look at the transferable nature of your business - can all the essential elements of your business be transferred seamlessly to a new owner? 

This is just a brief snapshot of what it looks like to sell an ecommerce business - for an even deeper dive, make sure to tune into this episode of Maximizing Ecommerce! 

Determining the value of a business

Drilling down even further - Kevin talked to Joe about the valuation process and how brokerages like Quiet Light get to a listing price that is fair for the seller. According to Joe - brokerages don’t set the sale price for businesses - buyers do that. In some ways, the listing price for a business is figured out the same way a house is listed - the market sets the price. 

Joe also explained that businesses need to figure out what their trailing twelve months seller’s discretionary earnings are - this is done by looking at the net income after a profit and loss analysis plus adbacks. Is your head spinning yet? While this might all sound confusing - Joe breaks it all down in an easy to understand way. Get Joe’s full explanation of how to determine the value of a business by listening to this episode! 

Why buyers need to be likeable

Most people are moderately familiar with the process of buying and selling a house - while there are some similarities with selling a business, there are some notable differences. When selling a house - it is common for the buyer and seller never to meet. It’s a different story when it comes to selling a business - in fact, the compatibility between the buyer and seller can be a significant factor! 

Some sellers will decide to go with a different buyer because they don’t like how a prospective buyer is approaching their business and what they’ve built. When selling a business - buyers need to be likeable, and sellers need to be reasonable. Joe Valley has several fascinating examples to flesh out the buyer and seller compatibility aspect - make sure to listen to this episode of Maximizing Ecommerce to hear more! 

Don’t skimp on good accounting software!

Did you know that using good accounting software can make a huge difference when you go to sell your business? It’s true! Think about it - if you don’t have a good handle on what your financial status is and the monetary projections are for your business - a prospective buyer would be in the dark. 

With the plethora of tools and services available on the market today - there is no good reason for savvy sellers like you to skimp on this crucial aspect of running a viable business. Bite the bullet and invest in fool-proof accounting software that you can trust. Listen to this episode as Joe Valley explains how failing to have orderly financial records cost one seller over $50,000 in profit - you don’t want to miss it!

Resources & People Mentioned

• Quiet Light Brokerage
• Brand Accelerator Live
• Scott Deetz
• Behind the Scenes of An Ecommerce Success Story with Mike Jackness, Ep # 8
• E247: Preparing for the ColorIt Sale with Joe Valley – Part 1 | EcomCrew
• The Amazing Seller Podcast Scott Voelker
• CapForge

Connect with Joe Valley

• Meet Joe Valley - Quiet Light Brokerage
• The Quiet Light Podcast
• Joe[at]quietlightbrokerage.com 

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Subscribe to Maximizing Ecommerce onApple Podcasts, Google Podcasts, Spotify, Stitcher, PlayerFM

What does it take to build an ecommerce business that can go the distance? After all, you don’t want to pour your heart and soul into something that will only last a year or two, right? If you are going to jump into the ecommerce pool - do it right! 

On this episode, you’ll hear from entrepreneur and business leader, Gabe Cossio. In his conversation with Kevin, Gabe discusses how he got started as an ecommerce seller, what it takes to build a business that lasts, lessons he has learned from 18 years in ecommerce, and much more! Gabe has a ton of helpful insights that will enable sellers like you to go the distance - don’t miss a minute!

Outline of This Episode

• [1:40] Kevin shares some positive podcast reviews. 
• [3:30] Kevin introduces his guest, Gabe Cossio. 
• [6:40] How did Gabe get started as an ecommerce seller? 
• [10:00] Gabe explains how he learned to create private label products. 
• [11:30] Where is the ecommerce industry headed? 
• [14:00] Why a community of support can help you go further. 
• [18:20] Stick to the right plan of action - take some baby steps! 
• [23:40] What is going on with Amazon in the international marketplace? 
• [27:40] How brands are driving purchases. 
• [30:00] Private label changes and trends that Gabe is noticing. 
• [32:00] Working with a team. 
• [36:00] Tasks you can off-load to virtual assistants. 
• [39:00] How to find virtual assistants. 
• [41:15] Don’t neglect the health of your mindset!
• [43:30] Books that Gabe recommends. 
• [45:30] Closing thoughts from Gabe. 
• [48:20] How to connect with Gabe. 

You need the right people in your corner

If you have any hope for long-term success as an ecommerce seller, you’ve got to realize that you need to connect with like-minded leaders. Gabe was able to persevere through most of his career without support from the ecommerce community, but he doesn’t advise sellers like you to do the same! Over the last couple of years - Gabe has connected and networked with sellers like Kevin and a whole host of other leaders, and it’s positively impacted his perspective. To hear more about Gabe’s journey and why building relationships with ecommerce sellers can help you, make sure to listen to this episode!

Create a plan and stick to it

Too often ecommerce sellers get so fired up and excited to take on the world that they get ahead of themselves. Have you ever had that problem? Don’t let your enthusiasm cloud your judgement and get you into the habit of putting the cart before the horse! Gabe suggests taking the time to create a plan with clear and actionable goals. Once you’ve created a plan of action - stick to it! Do whatever you need to do to complete your objectives - put your plan by your computer or on your refrigerator - don’t let it out of your sight. Discover more helpful insights like this one from Gabe by listening to this episode!

Don’t go it alone - get some help!

One of the best ways to set your ecommerce business up for long-term success is to get some outside help. You are likely operating your ecommerce business on a shoe-string budget with tight margins - how do you hire affordable help? The truth is, you likely won’t be able to afford local or domestic help, but you can reach out to a “Virtual assistant.” By using virtual assistants - you can create systems and processes that take routine and mundane work off or your task list. There are several resources that Gabe mentions for virtual assistant services - you can find the link to both located in the resources section at the end of this post. 

Make sure you have a healthy mindset

Did you know that the number one cause of failure for most ecommerce sellers comes down to mindset? It’s true! When you look at failure and challenges you encounter as teachers - you can adjust your approach and learn along the way. You only fail as an ecommerce leader when you throw in the towel! It’s gut-check time - are you committed to going the distance with your ecommerce business? If your mindset needs a shot in the arm - you’ve come to the right place! Kevin has a ton of helpful episodes that will empower sellers like you stay in the game and achieve your goals. Feel free to reach out and let him know what you are struggling with - he’d be happy to help!

Resources & People Mentioned

• www.canadachecklist.com
• Sellers Summit
• Brand Accelerator Live
• Loom 
• Online Jobs
• FreeeUp
• Harvard Business Review Store

Connect with Gabe Cossio

• 18 YEAR ECOM VETERAN (@paidbyamazon)

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Subscribe to Maximizing Ecommerce onApple Podcasts, Google Podcasts, Spotify, Stitcher, PlayerFM

How do you get to the point where you can look back and reflect on your journey as an ecommerce success story? Is there a way to look at someone who has been there and reverse engineer what led to their success? On this episode - you’ll hear from entrepreneur and business leader - Mike Jackness. 

Mike has been involved in online marketing for over ten years; he ventured into ecommerce with Treadmill.com. He sold that company in 2014 and has since started multiple ecommerce brands with total revenues over $7 million annually. Mike recently sold one of his businesses for, and he’s seen his stress level drop significantly. 

In his conversation with Kevin, Mike opens up about his ecommerce journey, why he decided to sell one of his businesses, lessons he has learned along the way, the value of knowing your “Why,” and much more. Have pen and paper ready - you don’t want to miss a minute of this engaging episode featuring Mike’s story!

Outline of This Episode

• [0:50] Kevin introduces his guest, Mike Jackness. 
• [4:40] Mike talks about his background and how he got started in ecommerce. 
• [9:40] Selling a business and starting the next chapter. 
• [16:20] What was it like running a business with exponential year over year growth? 
• [22:45] Mike talks about his plans for the future. 
• [28:40] What is your “Why?” 
• [34:00] Sometimes you have to make yourself uncomfortable to succeed. 
• [37:45] Closing thoughts from Kevin. 

Selling a successful business

Why in the world would you walk away from a successful business? It’s strange to hear a story like Mike’s and not think about how much of a luxury it must be to sell your business and walk away with a nice profit. The truth is - running multiple businesses sounds like an ecommerce success story, but it can be extremely stressful. 

Sensing that the time was right to start looking at a new chapter, Mike decided to exit his ecommerce business. Mike had sold businesses before, so this wasn’t a new experience, but the thing that stood out with this sale was the immediate reduction in stress. Mike says that his stress level went from level 10 to level 1 almost overnight. If you could make that much stress go away in your life - wouldn’t you do it? 

Plans for the future

Even though his stress level reduced - you can imagine that the sale of that business was bittersweet for Mike. Ecommerce sellers like you know that a part of you gets poured into your business when you embark on that crazy endeavour. Mike his grateful for the journey, but he says that he is more than ready to turn the page and start the next chapter. 

For years Mike chased the thrill of life as an entrepreneur, and he found that chase ultimately unsatisfying. He travelled and enjoyed life as a “Retired” 30-year old but realized that he enjoyed the challenge and the work of building businesses from the ground up. These days, Mike is aiming for a more balanced life - it’s his goal to work more efficiently. Learn about how Mike is achieving his goals and starting the next chapter of his journey by listening to his full conversation with Kevin on this episode. 

Do you know your “Why?”

Do you know your “Why?” What is that one motivating drive that keeps you getting up each day and putting in the hours to build your business? Are you in it for the fame, the money, the feeling of accomplishment, or something else? The truth is if you don’t know your “Why” - you’ll never push through the difficult and challenging moments in your business. 

Take the time to identify and zero in on your “Why.” Try writing it down and posting it on your bathroom mirror or your refrigerator! When you keep that motivation front and center, it can help you stay focused and locked in. Too often, business leaders lose track of their “Why” and end up chasing whatever motivation pops into their head - don’t let that happen to you! Start writing your ecommerce success story and know your “Why” beyond a shadow of a doubt - you won’t regret it. 

Getting uncomfortable can lead to success

Did you know that stepping outside of your comfort zone is a key component to success? When was the last time you took a risk that paid off? Probably starting your business, right? Many business leaders think that starting the business is the biggest risk they’ll need to take, but that couldn’t be further from the truth! 

Life as an entrepreneur is all about risks! Keeping your business open when you have to constantly think of how to stay ahead of the competition is not an easy task. Looking back, Mike says that those uncomfortable moments from his journey were the ones that helped him grow both personally and professionally. He wants to encourage ecommerce sellers like you to embrace uncomfortable situations and face them head-on. What can you learn from Mike’s story? Hear more from Mike by listening to this episode!

Resources & People Mentioned

• The 4-Hour Workweek
• Brand Accelerator Live
• Sellers Summit

Connect with Mike Jackness

• Michael Jackness (@mjackness) | Twitter
• Ecomcrew

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Subscribe to Maximizing Ecommerce onApple Podcasts, Google Podcasts, Spotify, Stitcher, PlayerFM

If you were to list out the top five things you need to succeed as an ecommerce business owner, where would developing a healthy mindset land on your list? Would it be high on the list, or would it fail to even make the cut? While you might not realize it, cultivating a healthy mindset is a critical factor for long term success! Here to help unpack what a healthy mindset looks like and what sellers like you can do to develop it is Radu Oboroc.

Radu and Kevin have been on a similar trajectory with their ecommerce businesses, and they’ve encouraged each other along the way. In their conversation, you’ll hear Radu talk about his start in the ecommerce industry, why mindset is so important, how he cultivated healthy habits, and much more. You don’t want to miss a minute of this fascinating episode featuring Radu’s story!

Outline of This Episode

• [0:33] Kevin introduces his guest, Radu Oboroc.
• [4:30] How Radu got involved in the ecommerce industry.
• [9:10] Working through insecurity and other limiting beliefs.
• [14:00] Why your mindset matters.
• [19:15] Radu explains why a routine is so helpful.
• [21:30] Advice Radu wishes he had when he first started.
• [24:30] You need to connect with like-minded people.
• [28:00] How to get “Unstuck.”
• [30:00] Make sure to give yourself credit for the progress you’ve made!
• [31:40] Closing thoughts from Kevin.

Working through insecurity and limiting beliefs

Let’s face it - entrepreneurs are a crazy bunch - they leave the comfort and safety of a stable 9 to 5 and take a huge risk on their big idea. While the big ideas and the boldness is great - sooner or later fear, worry, and all their friends show up to the party unannounced. Do those fears and doubts ever go away? Is there some magic formula that eliminates limiting beliefs?

Unfortunately, the answer is, no. You can’t wave a magic wand and make it all go away, but there are steps you can take to acknowledge and work through those challenges. Radu Oboroc admits that he still deals with fear and doubt all the time - but they don’t control him anymore. Every leader needs to find their own way of recognizing and then pushing through negative thoughts and limiting beliefs. To hear more about Radu’ story and what’s worked for him, make sure to catch this episode!

Why mindset matters

Most people don’t give mindset concerns the time of day - they just assume that success all comes down to the right strategies you deploy. According to Radu Oboroc and other successful leaders Kevin has connected with over the years - that line of thinking simply isn’t true! You can have all the right strategies, but if your head isn’t in the game - you’ll find yourself struggling.

We’ve already covered the first step toward securing a healthy mindset - address your negative thoughts and limiting beliefs. Now we head into the choppy waters of establishing a healthy mindset - steps you can take to move the needle in the right direction. According to Radu, the key to getting into a healthy mindset are daily and consistent habits. For some people, these habits include journaling, meditating, yoga, or exercise - whatever it is that helps you set the tone for the day and get into a healthy and positive mindset - do that!

The value of connecting with like-minded people

It might sound simple or too easy, but did you know that connecting with like-minded people will propel you and your business in the right direction? It’s true! While sitting at home and going through workshops and reading blogs and books is helpful - nothing replaces the value of networking and bouncing ideas off of your peers. Kevin has experienced the value of connecting with like-minded people first hand - that’s how he met Radu and Scott Voelker (The Amazing Seller.) Don’t discount how helpful it is to get people in your corner rooting for your success!

How to get “Unstuck”

If you find yourself in a positive and healthy mindset but still spinning your wheels - what should you do? Do you scrap everything and start from square one? Do you junk all of your positive mindset habits and pour all of your attention and energy into your business? While those might sound like tempting solutions - the truth is - getting unstuck is a simple as taking a leap of faith. Most of the time, we are too scared to take a bold step because we aren’t comfortable with risk - but the only way to get comfortable with risk is to take one!

The last thing your business needs is for you to embrace a mindset of timidity and fear. You don’t have to make a bold move every time - just put one foot in front of the other and start down the path. What is one thing you can do today to move your ecommerce business toward your objectives? Start stringing a few of those positive steps together and you’ll find yourself “Unstuck” in no time. To hear Kevin’s full conversation with Radu - make sure to listen to this episode of Maximizing Ecommerce!

Resources & People Mentioned

• Scott Voelker - The Amazing Seller
• Sellers Summit
• Greg Mercer - Jungle Scout
• Brand Accelerator Live

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Subscribe to Maximizing Ecommerce onApple Podcasts, Google Podcasts, Spotify, Stitcher, PlayerFM

Do you get nervous when you consider expanding your ecommerce business into an international marketplace due to the headache of understanding how foreign currencies work? While foreign currencies can be confusing at times - there is no need to fear them!

Just like a lot of ecommerce concepts - you’ve got to learn foreign currencies work to remove those fears. Thankfully, Kevin had the opportunity to sit down with Payoneer’s Strategic Partnerships Manager, TJ Hyland to unpack the complexities of foreign currencies for sellers like you. You’ll want to have pen and paper handy as TJ provides his helpful perspective on this often confusing topic. Don’t miss it!

Outline of This Episode

• [0:20] Kevin introduces this episode of the podcast.
• [3:15] TJ Hyland joins Kevin to discuss maximizing foreign currency.
• [4:40] What causes the value of a currency to fluctuate?
• [7:30] Should ecommerce sellers be worried about the value of various currencies?
• [11:00] What is the interbank rate?
• [13:30] How Payoneer can help ecommerce sellers like you.
• [20:00] What you can do to maximize your currency exchange rates.
• [23:30] Closing thoughts from Kevin.

How does currency work?

How exactly does currency work? Who sets it, and why does it fluctuate? Currency and currency exchange rates are set by a mixture of government and market parameters. The stronger a country’s economy and standing in the world - the more weight that currency has in the international marketplace.

Currency exchange rates use to fluctuate when government economic data would take a positive or negative turn. Recently - over the last couple of years - currency exchange rates have taken a more unpredictable pattern. Not only does global economic news impact a currency exchange rate, but social changes can influence them as well.

Don’t stress about the currency exchange rates

While it may be tempting to speculate and stress about the currency exchange rates - TJ Hyland says that approach is unproductive. Exchange rates may fluctuate between 15% and 20% in the countries that you operate in - don’t stress about it - eventually, they will stabilize.

Bottom line - keep an eye on the economic and social news coming out of the country you are selling in but don’t let it keep you up at night. For an even deeper dive into foreign currencies and how sellers like you can stay in the loop - make sure to listen to this episode featuring TJ!

What is the interbank rate?

How do you know what the current exchange rate is for the currency you have earned in an international marketplace? Can you just Google what the exchange rate is and factor that into your profit margins? Unfortunately, the answer is no. When you google a foreign currency exchange rate, you’ll get the interbank rate. The interbank rate is the foreign exchange rates paid by banks when they trade currencies with other banks.

When you are looking at the exchange rate that you’ll need to factor in for accounting purposes - you’ll need to consider a 3.5% - 4.5% additional fee to cover the costs of converting your funds. Unfortunately, most marketplaces like Amazon don’t spell out their costs for converting your funds in a clear and concise way.

How Payoneer can help ecommerce sellers

Now that you have a stronger grasp on how foreign currency and their exchange rates work - the critical factor comes into play - how to maximize your effort. You work hard to make the most out of every aspect of your ecommerce business - don’t leave money on the table when it comes to foreign currency!

Thankfully - there are amazing currency solutions provided by folks like Payoneer. Payoneer enables millions of businesses and entrepreneurs from all over the world to connect with each other and grow globally through their cross-border payments platform. With Payoneer’s fast, flexible, secure and low-cost solutions, marketplaces, networks, and businesses throughout the world can pay and get paid globally, as easily as they do locally.

If you want to know even more about maximizing foreign currencies - listen to this full episode with Kevin and TJ!

Connect with TJ Hyland

• Payoneer
• TJ on LinkedIn
• Tjhy[at]payoneer.com

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Subscribe to Maximizing Ecommerce onApple Podcasts, Google Podcasts, Spotify, Stitcher, PlayerFM

When most US-based sellers consider expanding their ecommerce business - they look to our neighbours in the north to figure out how to sell in Canada. Have you thought about taking your product to the Canadian ecommerce marketplace? What is holding you back?

Great news! Kevin has a stellar guest who was kind enough to bring his knowledge and insights to bear on this critical topic!

Michael Felming spent the better part of the last decade with a prominent firm that focuses exclusively on state taxes. While there, he became one of the country's leading authorities for state tax issues like nexus, drop shipping, eCommerce, and service providers. He assisted many other clients in many industries. He is a frequent speaker having been requested to speak at events all across the country and is often interviewed and quoted by major publications.

Michael is passionate about understanding state tax and proactively helping companies, CPAs, and other tax professionals understand the nuances involved, to successfully avoid or limit audit assessments.

Outline of This Episode

• [0:20] Kevin introduces his guest, Michael Fleming.
• [3:40] Michael explains how taxes work in Canada.
• [6:10] What you need to know about the Goods and Services Tax.
• [11:30] The difference between the US and Canada for tax filing.
• [15:00] What to expect with registering to sell in Canada.
• [26:30] How do the Province and local tax systems work?
• [35:00] What is the right thing to do?
• [36:30] Where do the tax treaties come into play between Canada and the US?
• [39:30] Kevin recaps the whole process and what you should expect.
• [44:00] How to connect with Michael.
• [46:20] Closing thoughts.

How taxes work in Canada

Have you wondered what the difference is between the United States and Canada when it comes to taxes? There are a few similarities and some important differences - thankfully we’ve got Michael here to help break it down for us.

In Canada, there are two types of taxes - the Federal level tax (aka the Goods and Services Tax) and the local level taxes (these are taxes at the Province level).

They also operate what is known as a Value added tax or a “VAT.” A VAT is a tax on the amount by which the value of an item has been increased at each stage of its production or distribution.

Remember - this is just the tip of the iceberg. Tune into this episode of Maximizing Ecommerce to hear Michael expand on how taxes work in Canada.

Do the right thing

There is a growing segment in the ecommerce industry of folks who are trying to game the system. From shady business practices to straight up dodging tax bills - the ways you can tank your business are numerous!

Here is Kevin’s advice - do the right thing. Yes, even when it is hard, and you have to take the long route rather than the shortcut - do the right thing. What will all of your success be worth if you don’t earn it honestly? The truth is, your ecommerce journey is going to be a challenging one, but it can also be rewarding if you bring the right mindset!

Lions and Tigers and tax treaties, oh my!

Did you know that one of the most important factors for sellers like you to sell in Canada are the tax treaties between the two countries? The topic of tax treaties generally comes up around the topic of income tax. Do you have to pay income tax in your home country and in a country you are selling in - like Canada?

The good news is - no - you don’t have to pay an income tax in two countries. Tax treaties were created in large part to ensure that sellers don’t have to deal with double taxation. Of course - understanding how tax policies work and how they apply to your situation direction is going to differ slightly from one seller to the next.

If you find yourself looking for a resource that will help you cut through all the complexity - Kevin and Michael have you covered! You can learn more about how to sell in Canada by visiting Kevin’s link to the “Canada Checklist” in the resources section and make sure to reach out to Michael for any questions you have.

Three things you need to consider when registering to sell in Canada

All of this tax talk can get your head spinning - unless you like geeking out on this type of thing! If you find yourself struggling to cut through all the jargon - good news - Michael provided three things you need to consider when registering to sell in Canada.

1. Know your risk tolerance threshold.
2. Don’t try to make it happen with a razor-thin profit margin - you’ll be miserable!
3. Make sure you have cash reserves to handle any issue with the federal government.

If you’d like a more detailed look at what it takes to sell in Canada - this is the episode for you. Have pen and paper ready - Michael has a lot to say!

Resources & People Mentioned

• Canada Checklist

Connect with Michael Fleming

• Sales Tax and More
• Michael on LinkedIn
• Michael J. Fleming (@MikeatSalesTax) | Twitter

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Subscribe to Maximizing Ecommerce onApple Podcasts, Google Podcasts, Spotify, Stitcher, PlayerFM

Growing an Ecommerce business is still one of the best ways to build something that can financially serve you and your family long-term, but it has never been more difficult. That’s why you should take advantage of the knowledge and experience of those who have done it in the past and are still doing it today, even with all the changes that have happened in the Ecommerce space.

This episode of Maximizing Ecommerce features Scott Voelker, Kevin’s long-time mentor and friend, a super successful Ecommerce seller, and host of “The Amazing Seller” podcast. Scott shares his story, how the Ecommerce industry has changed over the last few years, and how you can get involved in building your own brand, investing your time, energy, and resources wisely, and establishing a long-term revenue stream (or two, or three) that makes all the effort worth it. You can grow a successful Ecommerce business today! Listen to hear how Scott and Kevin advise you go about it.

Outline of This Episode

• [0:30] How the Ecommerce world is constantly changing - and what doesn’t
• [1:30] Introducing Kevin’s friend and mentor, Scott Voelker
• [3:09] The backstory behind Kevin and Scott’s friendship
• [8:09] Why the things that worked in the past don’t work as well in 2019
• [21:01] Content is a huge part of building a brand. Scott shares how to do it well
• [20:31] What to expect from your content marketing efforts
• [37:90] How product sales can pivot into digital products
• [42:44] Relationships with others who are building brands are valuable
• [47:12] Scott’s parting advice for those looking to grow and Ecommerce business

Private label sales: Not as simple as picking a product that is selling well

It wasn’t too long ago that private label sellers were able to research popular items selling on Amazon, create their own version of the product, and begin selling it (and making money). Back then, if you ran out of inventory due to rapid sales, you typically had time to reorder and get back in the game. But today that is not the case. By the time you reorder and resupply your initial stock at Amazon, 3 to 5 new sellers are likely to have copied what you’re doing and will be raking in the sales in your place. It's also likely that one of those suppliers will have taken over the product listing you worked so hard to build and you won’t have a chance of regaining your place at the top.

What’s the solution? In this episode, Scott and Kevin talk about the options you have for growing an Ecommerce business in 2019. You could…

• Sell varied products as cash-flow opportunities (and constantly be shifting what you sell)
• Build a brand of your own around the same niche area of interest

Which is better? Does one have greater benefits for you as a seller than the other? Listen to this great conversation between two experienced Amazon sellers to get the answers.

Two options for growing an Ecommerce business you should consider

Consider this scenario: You find products that are selling well and begin supplying products of your own in that market. They sell well at first, but it isn’t long before the market fills up with look-alike products and suppliers. You have to pivot and wind up selecting a different product to add to what you sell. You experience the same sort of success at first - but the niche is quickly saturated again.

OR, you could do this: Once you’ve found a product that both sells well and that you enjoy, you decide to double-down on that market. You work to differentiate your product by adding new features. You brand your product with your particular logo and mark, you customize the packaging, you add additional products that complement the ones you already sell. All of that leads to buyers having a good feeling about your brand - and customer experience turns into customer loyalty.

Which would YOU prefer? Scott Voelker, Kevin’s guest on this episode has seen and experienced both scenarios and he’s convinced the later of the two is the best long-term gain, for many reasons. Listen to this episode to hear how he advises to do it in 2019.

Step one for building an Ecommerce brand in 2019

There are people out there who are selling products on Amazon who don’t want to build a brand. The brainwork and nuance required to make things cohesive is not attractive to them - and perhaps they enjoy the “hunt” of finding new products and making them rise to the top of the Amazon search. If that is you, what does Scott recommend you do?

First - Scott recommends you figure out a specific market and find and develop a variety of products in the same niche. It’s easier to research and provide products that are related, and each of them can point buyers to the other products you sell. If you do go about things in that way, Scott recommends you start investing your profits in other things that are completely unrelated to your product and your Amazon efforts. That’s because you want your income diversified so that if Amazon changes its algorithms or policies, you don’t lose everything.

Isn’t that smart?

A huge part of growing an Ecommerce business depends on Content Marketing

Do you understand the term “Content Marketing?” It’s the process of producing valuable, free content for those who are interested in what you are selling so that you can build a following ("Bass Fishing" is one of Scott’s favorite illustrations). You’ve likely benefited from this kind of marketing yourself and didn’t even realize it was marketing. This podcast is one example of content marketing. When you do this, follow these two principles…

• Provide value - don’t make content just to make content. Truly help people
• Be consistent - content marketing is a long game, but a very effective one

As you do this, you are able to connect with people who are truly interested in what you have to offer by building an email list. You can then sell your products to them through emails, place advertisements on your website that takes advantage of the traffic you're getting, create digital products that relate to your physical products, make sales through affiliate links you provide, and more.

This episode is full of great information about how to build a brand, how to use it to its fullest potential through content marketing, and how to diversify your income streams so that you can be protected from the ups and downs of Amazon sales.

As a BONUS, Scotts shares how to build relationships with others in the Ecommerce space for the possibility of joint ventures and new opportunities - like the Brand Accelerator Live event Scott and Kevin are putting on this year. Listen to get all the details!

Resources & People Mentioned

• Scott and Kevin’s event: Brand Accelerator Live
• Mike Jackness: Sold his business for 7 figures
• Clickbank

Connect with Scott Voelker

• Scott’s podcast: The Amazing Seller
• Scott’s website: www.TheAmazingSeller.com
• The TAS Facebook group

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Subscribe to Maximizing Ecommerce onApple Podcasts, Google Podcasts, Spotify, Stitcher, PlayerFM

 

Tweets

Learn the steps to successfully growing an #ecommerce business in 2019, with @ScottVoelker, on this episode of #MaximizingEcommerce. #PrivateLabel #Amazon #ProductSales

#PrivateLabel sales: Its not as simple as picking a product that is selling well. Learn how the game has changed from @ScottVoelker, on this episode of #MaximizingEcommerce. #Amazon #ProductSales

Here are 2 options for growing an #Ecommerce business you should consider. Learn from an experienced seller, @ScottVoelker, on this episode of #MaximizingEcommerce. #PrivateLabel #Amazon #ProductSales

Step one for building an #Ecommerce brand in 2019 - a valuable tip from @ScottVoelker, on this episode of #MaximizingEcommerce. #PrivateLabel #Amazon #ProductSales

A huge part of growing an #Ecommerce business depends on #ContentMarketing. Get tips for doing it right from @ScottVoelker, on this episode of #MaximizingEcommerce. #PrivateLabel #Amazon #ProductSales

Does international shipping intimidate you? Are you ready to start the process but feel clueless? If so - you’ve come to the right place! On this episode of Maximizing Ecommerce, you’ll hear from subject matter expert, Pearl Ausch. Pearl is the Chief Operating Officer at First Choice Shipping, and she is an expert in Amazon Global Expansion Logistics.

In her conversation with Kevin, Pearl explains the services that First Choice offers, what it takes to get started with international shipping, common mistakes to avoid, and much more. This is an episode that you’ll want to bookmark as a helpful resource!

Outline of This Episode

• [0:44] Kevin introduces his guest, Pearl Ausch.
• [2:10] Pearl talks about First Choice and the services they offer.
• [5:00] What happens when your product shipment crosses a border?
• [8:45] Pearl explains what you have to do when shipping to a country like Canada.
• [11:15] Why it’s better to be as specific and detailed as possible with your shipments.
• [14:50] What is a customs broker?
• [16:50] Kevin recaps what to expect when shipping over the border to Canada.
• [20:30] Common mistakes sellers make when sending shipments across the border.
• [22:45] Why FBA is better than Merchant Fulfilled.
• [25:25] A final thought from Pearl.
• [27:00] How to connect with Pearl.

What happens at the border

To understand how international shipping works, it is helpful to look at a specific scenario. In her conversation with Kevin, Pearl focuses on what it looks like to get your product into Canada. In addition to your shipping label, when you ship internationally, you also need to include a commercial invoice.

A commercial invoice is a document that clearly states what you are shipping, what the value of your goods are, where it’s shipping from, where it’s shipping to, and the payment terms. To get a full picture of how the commercial invoice works why you need to provide the most accurate information possible - listen to this episode featuring Pearl’s practical insights!

Make sure to be specific!

Have you ever heard of a “Harmonize code” or a “Tariff code?” These are codes that identify which category your product belongs. You might think that you can place products like children’s clothing under the umbrella category of “Clothing” but - according to Pearl - this is a situation where accuracy and specificity will only help.

If you fail to be specific in this situation - the customs agents will place your product in the most expensive category, and you could incur more costs than necessary. The truth is, you could be leaving money on the table by mislabeling and miscategorizing your products! Don’t let that happen to your business - learn more about international shipping by tuning into this episode of Maximizing Ecommerce!

A common mistake to avoid

When you consider international shipping for your ecommerce business it is vital to take as many steps necessary to avoid common mistakes. Thankfully, Pearl Ausch was kind enough to share her expert perspective on this crucial topic.

According to Pearl, a common mistake that many new international sellers make is placing the list price of an item they plan to sell via Fulfilled by Amazon (FBA). You only need to place the listed price when you are selling via Fulfilled by Merchant (MBF). Don’t worry if you find this aspect confusing. Grab pen and paper as Pearl and Kevin carefully walk through this complex topic - you’ll be glad you did!

How First Choice can help

If you really want to take a lot of the hassle and frustration out of international shipping - your best bet would be to connect with Pearl Ausch and the folks at First Choice Shipping. First Choice specializes in providing every possible service needed to help Amazon sellers expand to Amazon’s international markets.

Their custom portal simplifies the process of creating shipments going to Amazon’s international FBA centers and their dedicated team takes the most stressful part of the selling process and makes it easy. To make your expansion into international shipping even easier - Pearl and her team are offering the underwriter registration for FREE to listeners of Maximizing Ecommerce. What are you waiting for? Take Pearl up on her offer and get started today!

Connect with Pearl Ausch

• Pearl on LinkedIn
• PA[at]firstchoiceship.com
• First Choice Shipping

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

With all the recent changes with sales tax rules, how are you supposed to keep up? Do you have to know all the ins and outs of sales tax rules in other states or just the one where your ecommerce business is based? If your head is spinning - you aren’t alone! Thankfully, Martina Chavez has taken the time to join Kevin on this episode of Maximizing Ecommerce.

In her conversation with Kevin, Martina explains the recent changes to sales tax rules, how that change impacts sellers like you, why you should check out Avalara’s solutions, and much more. If you are ready to put in the work necessary to make sure your business is sales tax compliant, this is the episode for you!

Outline of This Episode

• [0:22] Kevin introduces his guest, Martina Chavez.
• [2:45] What is Avalara? What do they do?
• [4:30] Martina gives an update on recent sales tax changes.
• [12:50] Understanding how a recent Supreme Court ruling impacted sales tax collection.
• [18:15] How do the new sales tax rules apply to new sellers?
• [22:30] What is a “Marketplace Facilitator?”
• [30:20] Why you should check out Avalara’s services.
• [34:30] How Avalara can help sellers like you.
• [39:30] Can Avalara handle tax compliance solutions internationally?
• [42:00] Closing thoughts.

What is going on with new sales tax rules?

If you’ve been following ecommerce news, you’ve likely heard of the Supreme Court case involving the ecommerce business, Wayfair. What exactly happened with that court case? How has the decision changed sales tax rules?

Basically, the Supreme Court decided that states may charge sales tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state.

Some of you will be worried about what this all means for your business - and you should be! Thankfully, Martina and the team at Avalara put together a helpful resource explaining what a sales nexus is and how the new sales rules will impact your ecommerce business. Check out the resources section at the end of this post learn more.

How the new rules will impact new ecommerce sellers

Established ecommerce sellers will have a bit of homework when it comes to ensuring that their business is compliant with the new sales tax rules - it’s a different story with new sellers.

New sellers will have their share of homework too, but it won’t be as much as a headache as they’ll expand their compliance as they expand their business. In a way, new sellers will find the sales tax rules as just another item to check on their list.

If you are confused about where you land and what you need to do to protect your ecommerce business - make sure to listen to this episode with Kevin and Martina!

What is a “Marketplace Facilitator?”

Are you familiar with the phrase, “Marketplace Facilitator” that has recently been discussed in ecommerce circles? Do you need to get up to speed on this topic? If so, you’ve come to the right place!

If you sell on a platform like Amazon, Etsy, or Walmart, you need to know a new set of sales tax regulations that focus on marketplace sales — marketplace facilitator laws.

These laws impose a rule on the marketplace facilitator to collect and send sales tax on behalf of marketplace sellers. This is important because they shift the obligation to collect and send sales tax from the seller to the platform that facilitates the sale (the marketplace facilitator).

Get more details on this critical topic by listening to Kevin’s full conversation with Martina on this episode of Maximizing Ecommerce!

Don’t worry - Avalara can help!

Don’t you hate it when someone tells you all the problems or challenges you’ll face without providing solutions or help? Those people are the worst! Good news - Martina didn’t just drop by to deliver bad news, she’s got some helpful tools that were created for ecommerce sellers like you!

Avalara helps businesses get tax compliance right. They know the challenge ecommerce sellers face with demanding tax obligations imposed by state, local, and other taxing authorities around the world. That’s why they’ve worked to provide efficient and accurate solutions to manage those requirements.

If you don’t want to take Kevin and Martina’s word for it, feel free to check out all the helpful resources and tools that Avalara has created - what do you have to lose?

Resources & People Mentioned

• www.brandacceleratorlive.com
• www.maximizingecommerce.com/avalara
• How marketplace facilitator sales tax laws in different states affect marketplace sellers
• Sales & Use Tax Nexus

Connect with Martina Chavez

• Martina on LinkedIn
• Martina on Twitter
• Martina.chavez[at]avalara.com
• Avalara’s Small Business Solutions

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom

Welcome! Thank you for joining Kevin as he invites you along for the ride - exploring opportunities in the ecommerce marketplace. On this episode, you’ll hear from Kevin as he explains how he got started in the ecommerce marketplace, what led him to finally pull the trigger, helpful influences he had along the way, and much more.

If you find yourself wondering if starting an ecommerce business is right for you, you’ve come to the right place! Grab a cup of your favorite beverage and come along for the ride.

Outline of This Episode

• [0:20] Kevin’s introduction to this episode.
• [2:10] What is Kevin’s background in the ecommerce marketplace?
• [5:20] Kevin explains what led him to make a pivot in his career.
• [8:30] A taste of ecommerce success.
• [12:00] Experimenting with a private label brand.
• [14:40] How Scott Voelker helped Kevin take action and quit his day job.
• [17:00] There is a hole in the marketplace - an ecommerce business can help fill it!
• [19:40] Kevin’s promise to podcast listeners.
• [21:30] Closing thoughts.

How Kevin got started in ecommerce

What does it take to get started in the ecommerce marketplace? Kevin was wondering the same thing back in 2004 when he decided to dip his toe in the ecommerce waters.

Kevin bought some Nike golf clubs and thought he’d try his hand at reselling them on eBay. He was SO excited to make a quick profit and ride the wave. Unfortunately, Kevin quickly discovered that he was out of his element and had made a substantial miscalculation. It turns out that the Nike golf clubs weren’t selling for much more than he had purchased them for on eBay.

This rude awakening was Kevin’s first experience with the ecommerce marketplace, and it would be his last experiment for several years - can you blame him?

A taste of ecommerce success

Fast-forward a few years in Kevin’s story - he just got his middle management position in the hospitality industry eliminated, and now he’s working at a friend’s insurance agency. He was making ends meet, but he kept noticing that itch to branch out and start something of his own.

Deciding to scratch that itch, Kevin, reluctantly began to dip his toe back into the ecommerce waters. He went to his local Walgreens store and purchased a ton of their clearance items and sent them into Amazon to list them for sale (this is known as retail arbitrage). Kevin waited and constantly checked his Amazon account - no movement. Then one day - a bite! He had his first ecommerce sale, and he was HOOKED!

Ripping off the band-aid

Next, would come the hard part - ripping off the band-aid. As Kevin started to string together a few retail arbitrage sales, his confidence and excitement only grew. Shortly after that initial success, Kevin started experimenting with a private label brand.

After some months walking the tight-rope between his ecommerce business and his day job at the insurance agency, Kevin decided to make a bold move and step out on his own - no safety net. As you can imagine, Kevin was terrified! Thankfully, his gambit paid off, and he was able to get his business off of the ground and performing at a comfortable level of success.

Kevin’s promise

Where does the story leave Kevin today? Right here! You are part of the next chapter in Kevin’s journey. As he continues to expand his ecommerce business, Kevin invites sellers from all walks of life and varying degrees of success to explore the ecommerce marketplace with him.

While Amazon is a great place to start - Kevin knows the value of creating assets off of Amazon will lead to long term success and sustainability. His promise to sellers like you is that he’ll show up week after week and deliver the goods. It’s Kevin’s goal to put out weekly, helpful, and useful content. He’ll lean into his skill set and experience (Amazon selling and international marketplaces) where he can, and he’ll bring along subject matter experts to help.

Are you in for the journey? What content do you think will help sellers like you along the way?

Resources & People Mentioned

• Smart Passive Income
• The Amazing Seller
• Jungle Scout
• Brand Accelerator Live

Connect With Kevin Sanderson

• www.YouTube.com/maximizingecommerce
• www.Facebook.com/maximizingecommerce
• www.Twitter.com/maxecom