Andrew has built AfterShip by heavily leveraging the e-commerce Platform-as-a-Service (PaaS) Marketplaces. Read on for more. Sramana Mitra: Let’s start by introducing our audience to yourself as well as AfterShip.
I started one of the Internet’s first fashion e-commerce companies in 1999. It was very expensive to do so at the time. Today, an online fashion business can be launched in an extraordinarily capital-efficient manner.
Sramana Mitra: Did you launch with your own money? Mike Rosenbaum: We made a lot of mistakes as well. We did okay. I put in some of my money. I had a new co-founder, Roland. He came from private equity background and had a very complementary skillset. He was more of a finance and strategy
Sramana Mitra: What about customer acquisition? When you’re selling on eBay, eBay provides the foot traffic. Mike Rosenbaum: It was the early days of e-commerce. There was a much smaller number of people shopping online. We had built this large database off eBay which we used to sell direct. We would send emails to them.
Sramana Mitra: What was your business model? They gave you inventory on consignment and you sold it on eBay. What percentage did you take? Mike Rosenbaum: I think it was about 15%. We’re talking about high-value goods. Our average item was a couple of thousand dollars. Sramana Mitra: It was a substantial transaction size. You
Are you new to e-commerce or already scaling your business? Do you want to accelerate? This is a collection of courses that can help you save time and resources by teaching you how to avoid common mistakes through case studies.
Have you started or are you stuck in your startup journey? Many entrepreneurs think that they need a cofounder or a team to start, but it is really simple. Find a niche. Start solo and run lean.
Sramana Mitra: You operated in a zero-logistics mode with domestic manufacturers. Since 2018, how long did you operate in that mode before introducing the logistics operation? Gil Bar-Lev: We started the logistics operation in the last quarter of 2020. We started with just one warehouse in California. Then we expanded and now have two. We’re