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.
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Many entrepreneurs think that they need a cofounder or a team to start, but it is really simple.
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.
>>>Sramana Mitra: This email list where you got pre-orders from, was that just your email list from before or did that include Indiegogo crowdfunding email list?
Kish Vasnani: It was a combination of all. We were able to segment the list. We also had a segment of people who were very interested in the bag but had a bad experience. A huge segment wanted to buy directly from our website when we had a formal return policy in place.
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