
Felix Hartmann, Managing Partner at Hartmann Capital, discusses his firm’s investment thesis. This segment triggered an excellent discussion on Human Augmentation.
>>>Sramana Mitra: When you look at the app stores of Shopify and BigCommerce, do you see opportunities for new apps or new services that new entrepreneurs could build?
Andrew Chan: Definitely. We’ve extended into after and before shipping. E-commerce merchants these days are using so many different solutions. Many SaaS solutions for e-commerce are not designed for e-commerce. I’ll give you an example. MailChimp is a great solution but is not really designed for e-commerce brands. Many solutions start to go back to email marketing solutions for brands. That’s an opportunity.
>>>Sramana Mitra: Which platform was the first one that you started getting traction on?
Andrew Chan: Shopify and eBay as well.
Sramana Mitra: Just to get a feel for this strategy, what you’re describing is a strategy that we have picked up on from various case studies that we have covered. We call it Bootstrapping by Piggybacking on Platforms. It’s a strategy of going to market that is working very well for a lot of small startups. As you pointed out, you’re going to market without a sales team. You are able to go to market by riding on somebody else’s marketing channel.
>>>
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.
>>>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 working on a partnership with UPS. Through that, we’ll be able to launch multiple warehouses across the nation.
>>>Sramana Mitra: You took a handful of manufacturers who were willing to give you the data and were willing to drop ship on your behalf and you started off with them.
Gil Bar-Lev: Yes, we created a new portal where we listed those products. We provided our manufacturers a backend login for them to manage their orders and inventory levels. We gave all this information to them so they have more visibility into what’s going on in the platform.
>>>
Gil discusses wholesale e-commerce and its complexities. This is an important interview to read for e-commerce retailers who’re looking to buy efficiently, as well as run their businesses in a zero-logistics mode.
Sramana Mitra: Let’s start by introducing our audience to yourself as well as Homeroots.
>>>Sramana Mitra: Did this come to a complete standstill or was there still a business?
Kish Vasnani: In 2020, we did just under a million. Of that, about 70% came from the first three months of the year. The rest of the year was really tough.
Sramana Mitra: Are you still in Bali?
Kish Vasnani: No, we moved to Miami in August 2020.
>>>