Selling on Amazon, Flipkart, Meesho and other platforms

About this episode

In this episode, Shan A Salam sits down with Davood Varangot, CEO and co-founder of TinyZo, to discuss his journey from running traditional offline distribution to scaling and exiting direct-to-consumer ecommerce brands. Davood recounts how massive credit cycles in offline retail prompted him to explore online selling on platforms like Amazon and Flipkart in 2017. He describes partnering with Organic Netra, repositioning an organic baby kajal to command premium pricing, and scaling sales to over thirty lakh rupees per month. This rapid growth led to an acquisition offer from an ecommerce roll-up firm, providing a successful exit and financial freedom. Davood and Shan break down the mechanics of ecommerce roll-up acquisitions, valuation multiples based on EBITDA, inventory management challenges, and the realities of quick commerce versus traditional marketplaces. Finally, Davood shares advice for budding entrepreneurs on launching products, pricing economics, and maintaining margins in the competitive online landscape.

Key takeaways

1. 1Traditional offline distribution often suffers from extended credit cycles, making marketplace ecommerce an attractive cash-flow alternative.
2. 2Premium positioning and attractive packaging can allow a brand to price significantly above established market competitors if a genuine niche gap exists.
3. 3Product manufacturing cost should ideally remain between 25% and 30% of the retail selling price for goods priced under 500 rupees to absorb marketplace commissions and advertising.
4. 4Entrepreneurs should focus on market-validated demand and data rather than launching products purely based on personal taste.
5. 5Marketplaces like Amazon can serve as effective nationwide paid sampling and brand awareness channels for regional offline businesses.
6. 6Working closely with business partners before formalising equity splits helps ensure operational and cultural alignment.
7. 7Utilising Fulfilment by Amazon across multiple state warehouses ensures faster delivery times and enhances organic product visibility across India.

Chapters

1. 0:00Introduction
2. 5:57Enter Into Online Marketplace
3. 17:07Turning Point
4. 26:51How acquired stake
5. 38:00Marketplace, D2C & Q-Commerce
6. 41:34After Exit
7. 49:31Start a brand and listing the product
8. 57:24Shan’s Strategy
9. 1:01:31Q & A
10. 1:08:35Conclusion