#382 – From Estonian Streets to Global E-Commerce Success: Egle Raadik’s Amazon FBA Journey and Seven-Figure Exit
Do you still remember the rush of launching your very first online business? the exhilaration mixed with a healthy dose of fear. But imagine scaling that to an Amazon FBA enterprise and experiencing a significant business exit. That’s exactly what Egle Raadik did, and she joins us to recount her entrepreneurial odyssey from the quaint streets of Estonia to the global e-commerce arena. Egle’s candid revelations about her interior architecture roots and subsequent pivot to digital marketing provide an incisive look into the liberating world of e-commerce, while her foray into creating a unique fruit basket product on Amazon serves as a masterclass in seizing market opportunities.
Egle’s story is not just about the highlights; she opens up about the obstacles she’s faced along the way, sharing the sort of insights that textbooks and webinars gloss over. From navigating Amazon’s intricate marketplace to the real-world challenges of international product sourcing, Egle’s experiences are a good source of learning. She details her humbling losses and spectacular comebacks, eventually leading to a seven-figure exit that underscores the importance of product portfolio balance and a team you can count on.
But Egle’s entrepreneurial spirit doesn’t end with selling one successful business. She’s got her eyes set on the future with three new brands, all carefully crafted with exit strategies in mind. This episode is more than just a peek into the life of a successful Amazon seller; it’s a roadmap for aspiring e-commerce moguls. Egle doesn’t shy away from discussing the complexities of business and event planning across borders, highlighting Estonia’s digital culture and its thriving community of e-commerce sellers. So whether you’re looking for the inspiration to start your first venture or strategies to optimize for a lucrative exit, Egle’s journey through the world of e-commerce is a compelling tale you won’t want to miss.
In episode 382 of the AM/PM Podcast, Kevin and Egle discuss:
00:00 – Selling on Amazon and Entrepreneurship With Egle Raadik
08:48 – Getting Started In eCommerce and Amazon FBA
10:02 – Discovering Selling on Amazon in Asia
14:04 – Lessons Learned From Selling on Amazon
17:52 – Pivoting and Learning From Mistakes
24:11 – Entrepreneurship Challenges and Conscious Uncoupling
30:36 – Stress From Exits and Overcoming Them
33:43 – Repeating Mayhem and Moving Forward
36:35 – Building and Selling Amazon US Brands
36:51 – The Importance of PPC in Business
39:48 – Creating vs Modifying Products From Scratch
44:00 – Amazon Sales and Business Buyers
46:14 – Business and Event Planning in Estonia
Transcript
Kevin King:
Welcome to episode 382 of the AM/PM Podcast. My guest this week is Egle Raadik. She’s from Estonia and she’s a big seller in the US. She’s had a big exit. We talk about that and some of the pain points and some of what she went through Very stressful times actually during her exit, but she got through it and now she’s in the process of running three new brands that she also plans to sell. Great, inspirational story today from a really hardworking lady that’s just crushing it on Amazon. Enjoy this episode with Egle. Egla Raadik, welcome to the AM/PM Podcast. It’s so good to see you again.
Egle:
Good, good to see you again too. It was London last time when we had a chat, so I’m so happy to connect again.
Kevin King:
I think it was and I think we were at some, like Danny DJ’s, typically at his events on the night after the event, and I think we were there and we were talking for a long time is me, you and several people?
Egle:
I think there’s more. Estonian mafia just made a circle around you and we didn’t let you go.
Kevin King:
You didn’t, you didn’t. You’re like you just captured me there and you’re like you got to come to Estonia for the event and then I never heard a word after that. I don’t know what happened. Yeah, well we need to go to the trade. You had to come to the Billion Dollar Sellers so I would come speak at your event. I never heard anything after that.
Egle:
That was the trade and I wasn’t ready to travel at this particular time. You know I’m having, I’m running three Amazon companies, so I’m not like away from it all, so it’s been very busy.
Kevin King:
But you did take some time away. You took a little I saw like on social media back in maybe it was the summer of last year, a summer of 2023. You actually took a little bit of time, right, were able to get away, but you went to Mexico or somewhere.
Egle:
I was in Mexico and also I’ve done crazy thing like a personal solitude month in Spain, and that was after an exit. So me and my team, we founded four Amazon companies and we sold one two years ago. But this exit story, it’s just so crazy. So when we managed to pull it off, I just needed to unblock for like 30 days and just leave everything. I know and that was the Spain thing. But the Mexico experience is more like for female entrepreneurs. You know, when we’re executing every day and we’re being in charge, there is a place in like a female body that wants to have the feminine embodiment part back in you. So I was kind of getting in touch with that in Mexico.
Kevin King:
Well, that’s awesome, I mean. I think that’s important. A lot of people you only do is work, work, work. They don’t make time for themselves, and the fact that you did that, I think, is super important. More people need to do that. Were you totally able to disconnect, or were you still having to check in, or was your team able to handle everything? You could just disappear for 30 days.
Egle:
My team, my team of seven, eight people together with me, is eight people. Right now, we run three Amazon companies. They are so autonomous on what they do. We do have a COO also in place and I was able to be completely off-grid for 30 days in Spain. All I had I blocked all my apps. I didn’t check anything. I only had one book and my phone, which was only in calling and SMS mode. In the emergency case you could reach me, but I could not check on any emails or any social media.
Kevin King:
That’s awesome. That’s awesome. So what was it like when you came back? Was it because I know every time I go to a conference or something, I come back? It’s like I got to catch up on so many things. It’s like you feel you’re nice to be relaxed and you come back and you’re overwhelmed.
Egle:
I know Everything waiting for you. But for this time we already had COO on place, so that took a lot of stress off my shoulders.
Kevin King:
Hey, what’s up everybody? Kevin King here, you know one of the number one questions I get is how can you connect to me? How can I, Kevin, get some advice or speak with you or learn more from you? The best way is with Helium 10 Elite. If you go to h10.me/elite, you can get all the information and sign up for Helium 10 Elite. Every month I lead advanced training where I do seven ninja hacks. We also have live masterminds every single week. One of those weeks I jump on for a couple of hours and we talk shop, we talk business, do in-person events. Helium 10 Elite is where you want to be. It’s only $99 extra on your Helium 10 membership. It’s h10.me/elite. Go check it out and I hope to see you there. For those of you that don’t know, you’re in Estonia, right?
Egle:
Yes, it’s a Northern European cold and a little bit dark country, but we’re very eccentric, so everything is digital.
Kevin King:
Yeah, I’ve actually been to this. I’ve been to Tallinn, to Estonia, and I liked it. I mean the wall that goes around the city and when you walk in to the downtown part it’s like all that old medieval kind of stuff.
Egle:
It’s kind of UNESCO heritage thing. You really step back to the medieval scenario. It’s really fun yeah.
Kevin King:
I remember when I was there. It’s been a while since I was there, but y’all are just switching over to the Euro.
Egle:
Thanks, we must have been here a long time ago if you come 10 years ago, 10, 20 years yeah completely changed. I mean, we are as a former Soviet country, so we are catching up with you guys really fast. It’s been 30 years since we’ve been free, so we’re still running to get you.
Kevin King:
Yeah, you got. I mean, there’s a lot of entrepreneurship in a state that even back when I was there, the advance months, a lot of people think of like the old Soviet countries that they broke off, as you know, backwards or whatever, and it’s not.
Egle:
It’s very forward thinking, very high-tech because this is the only way how people could actually create, and that that’s the way how we can catch up with you, the Western world, America. You know we need to step into our power and we need to start creating ourselves, and that means that we need to create companies, and the salary work only, is not enough sometimes to catch up and create the Wealth that we have been missing so long time.
Kevin King:
Now your background, though, before you got into this whole Amazon game running three different companies Like we’ll talk about that in a minute but was didn’t you do something, a journalism or something when it?
Egle:
Yeah, I’m a master in journalism, but before I started that, I actually try to study gene technology. Don’t ask me why. I mean I cannot imagine myself running around with white outfits and being in you know With all these little class jars and chemicals and things like that. I was like after 30 days I was like, no, I’m not just get me out of here. So I just escaped to being an au pair in Minnesota, in states, and that’s yes. I thought that let’s get like a general Education which is journalism and media. So I do have a master’s but I do not like to consume media. I don’t like to participate in a written media. I’m very comfortable on being like on a you know podcast and doing filming, but I don’t know why I studied it.
Kevin King:
I guess you just wanted to understand the world really so did you ever actually Work in that field or you just kind of you did for a while?
Egle:
I was rather like managing different departments in a big media outlet.
Kevin King:
So In Europe or in the us?
Egle:
In no in Estonia, here in Europe.
Kevin King:
So you came to the us and we’re in Minnesota. Did you did some studies as well as your up here, stuff here.
Egle:
Yeah, I was just babysitter, you know, I just had to get away from this gene technology thingy. So that was kind of like a year from the high school to becoming a real grown-up person.
Kevin King:
Okay, and so then, what did you actually end up doing? What were you doing before you got into the amazon game?
Egle:
I am hopeless case really. Um, I seen, after all these Middle management positions I held in big companies, I was always holding a sidekick, and just not one, but maybe five different companies I was running in different times when having children, when doing the salary work and they didn’t really Common, logically, one company was doing interior architecture, another one was doing touristy you know Stuff to buy and sell in a tourist shops. Another company was doing, um, digital advertising, and then I was also coaching a little bit. Um, I did something else as well. I just can’t remember anymore and they just all came one after another. I was just kind of. What I’m trying to say is I was searching and I wasn’t putting myself in a box. That you know. I have a media background, so Maybe I start to produce content or maybe I start to be a blogger or something. I was just all over the place and I just want to encourage people to take the borders away from yourself and just, you know Whatever calls you, go and try to do it, because in my case, from going from interior architecture to I don’t know, digital marketing, it’s Completely different era, but nowadays every, all the information is available and if you have passion, you can just Get yourself up to speed in in some time.
Kevin King:
Awesome. So you did. These were for other companies, you’re working for other people, but then you didn’t you uh, at some point start doing. You had started like a digital marketing agency.
Egle:
Yeah, from the side as a side gig. Yes, what?
Kevin King:
what? By digital marketing? What does that mean? You’re running Facebook ads, you’re doing SEO, or what were you? What were you doing?
Egle:
Yeah, all of that I was. I was a company like they called man and the dog, you know, just me and myself. But I was doing this big the tv tower, the maritime museum, you know the big like objects here in Estonia who were launching their presence. So I had some big clients, um, but it was just me doing all of it.
Kevin King:
So did you find out about selling e-commerce or amazon and specifically during that time when you’re doing the digital marketing or that?
Egle:
Come a little bit later that came when me and my then husband right now ex-husband and business partner we decided that we want to take like a cap here, completely away from Estonia, and we went to live in Asia. So we were living in all possible countries in Asia in Vietnam, in kombucha In, we were in Kuala Lumpur and then we ended up in Bali and then I just I was just swimming across this woman in the pool um, she was a police Assistant and she started to share about that. That she shared she, she’s selling for three thousand bucks a month. She’s selling a popcorn, chocolate, pizza in Amazon. I was like what is that product and what is that platform? Like I need to dig deeper because I’ve never heard of something like that and I kind of fear. Like you know, from all what she said, it sounded complicated and it sounded like, you know, I started seven years ago, so there wasn’t too much information around in 2016, 2017. So I kind of had to put all the puzzle pieces together, by myself mainly, and I kind of liked it because I kind of liked to venture in Places that other people haven’t been, you know, occupying so heavily yet. So that was kind of thing that got me started with amazon.
Kevin King:
Did you just did you take a course from somebody, or did you just learn by watching what was available back? Let’s 2016.
Egle:
Yeah, I just learned YouTube videos and a few Facebook groups and stuff like that.
Kevin King:
Yeah, you just became big when I started.
Egle:
Um, you were in this group and then you popped up as a celebrity. You know, I remember watching that from the side. Yeah, yeah, I admired this dude.
Kevin King:
I did. I had no intention on actually going down this route. I actually started uh, some people heard the story, but I started with this podcast, the AM/PM Podcast. Yes, I’m now hosting and I yet Manny Coats was running Helium 10 and asked me to come on it and I was like no, I’m just a seller, I’m just trying to launch some brands and I know, come on and it’s like, so I did, and now look what I’m doing now. Now, I’m hosting the damn thing.
Egle:
Oh yeah, Manny’s podcast was my favorite. I listen to every single minute he put out, so that’s how I got started. Actually, that was my support.
Kevin King:
That, that was me too, back in 2015. I mean, I watched, I think it was amazing. Calm was like I think it was amz4 back then. And they did a series of videos like four different videos and to pitch you on the uh, on buying their $5,000 course, and I was like I don’t need to do this, I’ve been doing this, I already know all this, so I just launched it myself. And then, but to consume content, like you said I was, I was actually listening to the AM/ PM Podcast. There’s only like three or four of them. It wasn’t like in the software tools, there was very few out there to do your keyword research. It was kind of uh Figured out on your own kind of thing.
Egle:
Yeah, so these were the times where we were able to listen to every single podcast out there for amazon, I remember.
Kevin King:
You’re like this all there is, there’s three. Is there another one? Now there’s like a hunt. I counted the other day because we’re working on a tool right now to uh, to to actually summarize them all for a, for my newsletter, for a special tool like a weekend edition, and there’s 117 Podcasts in the AMS that I know of. I’m sure there’s some that I, uh, I don’t even know of, but 117 in English. It’s totally different, uh, totally different environment now. So you saw. So you met this girl in ballet, you were Swimming. She says she’s making three grand a month, and so you started diving into it. What, what was your first product that you launched?
Egle:
I was kind of like a fruit basket thingy. Uh, I did. I mean, fruit basket was the kind of the first product that I actually succeeded on and my there, my like definition of succeed was like I was selling three units a day. So I was like wow, because my background was that I was trying to launch baby pentana drooling peeps and I failed miserably because I entered already. Back then there were such a thing as saturated market, so that was in 2017. It was definitely Saturated market. So I was just thinking, yeah, but my designs are cuter and my listing is better. No, when you don’t earn and or you don’t know how to get to the first page, I mean all of us, we are going to learn this sooner or later with a hard way, right, and then you just keep away from heavily saturated markets. I was doing this drooling peeps and I was doing something else, um, and then, you know, we kind of started with my ex-husband, we started to like to produce also in Indonesia, uh, and that was a crazy, crazy adventure because we had all this wooden arrows and clothing and you know, Ticor and clothing, basically.
Kevin King:
So we loaded up like a whole container, um, while doing fruit basket while you were, while you were in Indonesia, you loaded up, like when you source it yourself, not on some website or something, but like going into the local craft shops and little craft we rented this, we rented this scooter and we were just driving around.
Egle:
They have like industrial street over there when they have the small presentation, all shops, so it was dusty, it was really hot, and you’re just driving from one place to another and then you see this Mercedes and then these peak guys are coming out and just going in and you know the doors are closing, nobody else gets in and you understand, these are the peak guys. You know the big buyers and then we go sweaty and looking like average and don’t even know how to negotiate, and you know Going and waiting when the doors open so we can enter. But we loaded the container. I did all the research. They were not saturated markets. Two mistakes here the containers, papers from Indonesia were done wrongly so we couldn’t really Enter all the products to America, so we had to abandon most of them.
Kevin King:
So you don’t, you were doing clothing from Indonesia, from easier.
Egle:
Yeah, we did like the core and clothing, so we just had like valley is known for more to core the core right.
Kevin King:
There’s a clothing there too.
Egle:
They have clothing too. Yeah, okay, I didn’t say Bali is the best place. I would go for Java To source clothing, the rest of Indonesia, Bali which is accessible for me. So that’s why I did it. But the reason why we did the Indonesian project at all was that we were getting cocky. You know, you don’t need too much to get cocky. I had these three sales Of a fruit basket today and then we had another like office product that we discovered at the time that right now is sold as a full portfolio, um, for multimillion dollars, and we were like, yeah, the sales are coming in. Let’s just, you know, let us go there and just let’s blow up low, big and let’s just invest as much as we can, let’s ride on the edge. And we were losing like 25 grand when we started out because, you know, we just weren’t able to handle that such a speed and also the paperwork.
Kevin King:
How did you finance it in the beginning? Was it just your own money or did you have? Yeah?
Egle:
that hurt, that really hurt, because At this time we had three kids and we’re building a house and being away from home and having all these costs of playing tickets and three kids and you know five people traveling and stuff. You know it wasn’t easy to put aside like 30 grand to start a business and. But in Estonia, luckily, we do have the maternity leave for like 18 months where you get your full compensation For the salary. So most of it actually went to the amazon black hole that I received from the state.
Kevin King:
Well, 18 months of full salary.
Egle:
So I mean that’s a really good place to get started with any entrepreneur.
Kevin King:
No, wow, that’s amazing. That’s incredible that they do that’s I never even heard 18 months of a full salary from maternity leave. That’s cool. So you were starting this in in Indonesia and in Bali and then so this one Kind of didn’t work. What, what did you pivot into something else, or did you just keep, keep at it and keep persistent and kind of figure it out?
Egle:
Yeah, I kind of lowered my ego. I lowered that, lowered expectations that I know it all, because that’s how I felt really. So I went back to the drawing board. I started to look. You know where we made. The. All the mistakes Definitely went back to sourcing from China, so the papers wouldn’t blow up on you, and then not to launch many products in the same time when it’s just you and maybe 25 percent of your partner helping you. You know you can’t do 20 products in the same time. It’s just way too much. So I just went back to the drawing board and I discovered the portfolio that we sold and it was in office category. So we really started to develop that.
Kevin King:
That was like 2017, 2018 when you started that.
Egle:
Yeah, yeah.
Kevin King:
And that’s the one that you just you sold in 2022 or 2023?.
Egle:
Actually 2020 at the end of 2020.
Kevin King:
Did you sell it to an aggregator or strategic buyer or aggregator?
Egle:
European aggregator.
Kevin King:
European aggregator. Yeah, you said that was a seven figure exit.
Egle:
Yes.
Kevin King:
How many SKUs were in that?
Egle:
We kind of having always the same formula. We’re having about 25 SKUs, each of them need to do about 17 to 25,000 a month, you know, with a net profitability for 20% and since we figured that formula out, that’s like a medium with the, with the seven figure exit over there and once we figure, out five million dollars about that. Yes, I mean, you do your math, even though we can’t talk about the numbers. But when we figured out this formula, you know, we before that we failed with having a hero product because Amazon shut it down on this office category brand that we sold and that was doing really majority of the revenue. And then, for our kind of like a winning formula, we figured out that we do not want to have hero products and the reason why Amazon shut it down was really silly. It was like a category issue. You know, they’re having this huge databases, they’re moving data. Something gets stuck and you can’t unstuck it yourself. You’re just against AI. The human on the phone says that, yeah, manually, I’m changing it, and then, when the big data starts to run the cleanups or something, they, you know, shut you down again. So we were at the middle of actually in an exit process when this happened. So that’s like a 12 month delay to our exit because there was nothing to sell. But thanks to that, we figured out that we no longer want to build portfolios that are heavily reliant on hero products. So that’s why we’re doing 25 SKUs and about 20,000 apiece, and that’s what we’re doing with the next three companies. Now we almost feeling like a kindergarten. You know, just bringing up these little companies to a bigger company and handing over to somebody who wants to take them from there.
Kevin King:
I think that’s a really smart approach and that’s one of the approaches I advise a lot of people to do is don’t try to hit too many. People have 80% of their sales come from one or two products.
Egle:
And it’s so dangerous.
Kevin King:
It’s so dangerous and some people have been successful with it. I know people that had one or two products and they exited with one or two products for a large amount and it’s worked for them. But for most people it’s too dangerous. And also always tell people don’t shoot to be number one. You know, usually a hero product oftentimes is going to be one of the top one or two or three best sellers in the category. And I always say that depending on the category, if it’s a really subniche, that’s maybe okay, but for most you don’t want to be there because you’re just a target for hackers, for people, price wars, for all kinds of crazy stuff. So you’re approaching 20 to 25 and you should be middle of the road, steady, you don’t have nearly the amount of issues, and that’s the way to do it, and you basically prove that out with what you did.
Egle:
I mean, we figured out that this is so much less stress including way how to do business. Amazon is high stress level entrepreneurship. This is not for people who love to be chilled, so this is a way how you can actually survive in this battlefield when you’re going under the radar, not running on the, you know, against the bullets and stuff with your flag out. Okay, here I am with this. All this amazing revenue, you know coming out in a black box and stuff like that. No, you just want to be secret, quiet, unsexy, doing all the products that are not really, you know, glamorous stuff like that. So that’s why, basically, we’ve been sticking with the P2P categories, doing the things that business buyers need. But that’s so funny. Like in Estonia, all the guys like we have a really strong community over here All the guys are doing like feminine things, like you know, facials and shampoos and stuff like that, and the women that I know they’re. We’re doing like metal and plastic and you know industrial and like what is going on. That’s funny.
Kevin King:
Yep, whatever works. I mean, there’s some really big sellers in Estonia. So, that’s obviously working, for it’s a very good. That community is very tight and very and there’s Latvia too also has, which is next door over there. It has quite a big community as well, right? So what’s the third country that’s over there? It’s Latvia.
Egle:
Estonia, Lithuania.
Kevin King:
Lithuania, that’s right. All three of those actually are pretty strong in entrepreneurship and it’s pretty strong in Amazon.
Egle:
That’s true, but we don’t really communicate amongst like Baltic States, or amongst the companies or the countries. It’s more like internal, and then when we go to conferences it’s more like international communities.
Kevin King:
So was this the brand? You said that it was an adventure to sell it. Is this the one that you were talking about? That you went to Spain afterwards?
Egle:
Yes, I was broken after selling this company.
Kevin King:
It’s because it’s your baby or because of?
Egle:
Baby. But listen, we had, we had Northbound Group helping us and they did an amazing job and they said, yeah, guys, let’s exit. And then our hero brother could shut down by a really stupid category issue that we were fixing, basically three, four, five months yeah, four or five months for sure. So we left it. You’re under.
Kevin King:
LOI and you’re a hero product. So you were. You were already kind of celebrating and doing the work, so like, all right, I’m going to have a bunch of money hit my bank account soon and then all of a sudden, boom. I know.
Egle:
I know I wish this experience to nobody. Honestly, I don’t. I can shed some light on what happened. So, anyway, we were in the middle. Like we had like many, many prospects that we could sell to. We were already sent out all the presentations and we were ready to go, and then we lost like 75% of the revenue, which is like, oh my God, what are we doing? We are paying the consultants yeah, you know, we are already thinking that we don’t want to let the team go. We are starting two new companies. They’re taking only expenses, they’re not bringing anything back and at the same time, we’re losing all the revenue. Like, how do you navigate this? Like there is no profitability. And then the COVID hits as well, which is another thing. It’s almost like a perfect storm. I might be making a mistake. When did I exit? Was it anyway?
Egle:
It also collided with. We lost the main product and then the COVID hit as well. So when we got it back, for like seven days we were selling amazing because we were dominating this niche. We got it back and then the COVID hit and this main seller you know it lost kind of the appeal for the customer because there was the office category thing and all the business buyers. They were sent home and at home people did not really need the office set up in that way that we were catering to. So we were battling really heavily with trying to convince Amazon that we are in the right category and also then figuring out that we are completely flatlining our business. Even when we get the hero back, the COVID has flatlined our business. The buyers don’t want to buy a company which is flatlined and lost the profitability. So then something like we got a piece of advice. I think that’s really what broke me, but that’s also what saved us was that the consultant said that Egle, we know this is COVID. We know you’re going to get your product back. Just keep battling, but sit down and close yourself to your home. Don’t come out. Create an additional portfolio of that which is making a profit of 500,000 a year. Show me this profit. So we are going to package this with your broken company which you’re fixing right now, so we can have a forecast for the buyer which is proven by the data and the searches and the volumes and actual benchmark products over there.
Egle:
But you only have three weeks’ time. You don’t have that much time. I had three geese at the moment. I was already separated but I was parenting them. It was almost impossible to do. I just told my ex that listen, just forget about me for three weeks. Let me close myself to my room and to my apartment. I did, and I figured out how to make 500,000 profits with actual Amazon products. We packaged it by this time. We got the product back to the market. We didn’t break down anymore, but that was almost, I would say, 18-month progress that process that we were so broken, so hopeless. We were missing about 300K every month to pay our Chinese suppliers. It was so hard to pay the salaries for our two new companies people working over there already, not even talking about keeping the old company running. So that was really something that I would not advise anybody to go through. But that comes with entrepreneurship. Sometimes you don’t know if you’re going to survive or you’re going to lose your home or no. My home at this time was worth 150,000 euros, but we were owning 300,000 to Chinese suppliers, so we could lose my home. It’s not going to really help anything. I’m still in trouble.
Kevin King:
You were able to work yourself out of that. That’s awesome. Was your ex a partner in that company? He still is. He’s in the two new ones as well. Yes, so you’re on friendly terms.
Egle:
Absolutely. We agreed that we’re going to do conscious uncompelling. This is something that people teach already too. This is a beautiful process. If anybody needs to, you can just Google. That’s a good way how to be a strong partner from what you had before.
Kevin King:
You’re actually not divorced, then we are.
Egle:
We are divorced.
Kevin King:
So I thought that was actually where you would separate, and you don’t live together necessarily, but you come together occasionally.
Egle:
I think it’s a term in the United States for that.
Kevin King:
It’s living apart together. That’s it. That’s it, you’re right, that’s it. I’m getting it.
Egle:
So how can you preserve everything that’s wonderful in your relationship? But let’s go with love and ease what doesn’t serve you and your partner anymore and just keep nurturing the children and the friendship and our guys, the business and the partnership in that, but giving him free for another love that anybody wants to be loved. Yeah, that was a beautiful way to figure it out.
Kevin King:
That’s really cool. What’s that like actually working with your partner? I mean, you went through a lot there together. It’s almost like you almost lost it. It’s like almost losing a child or something, with the business and the stress and where you are traveling around and then you have the stress of that and then you’re able to get through all that. That’s pretty strong of you. That’s pretty good.
Egle:
That’s pretty crazy. I remember one episode we just lost the hero and we were so stressed out like he was. He was willing to do all the phone calls to support center, and in Estonia you have to start doing them for PM, because you guys wake up in states and it was, you know, dark and it was about the same time. Right now it’s just getting dark, like for PM anyway. So we were thinking, oh my God, we’re just so miserable, let’s go to a place that’s a little bit warmer. So even when we are so miserable trying to save this company, at least we have sunshine in on us and the kids can be on the pool. You know, we can be sitting on the phones and troubleshoot all this thing, and it’s just going to be so much merrier. But and then we decided to go to Turkey and we had this wonderful all inclusive resort.
Kevin King:
You’re taking it your whole family right.
Egle:
Yeah, the whole family, the three kids and you know, we went together and that was the early days of Conscious and coupling. So we thought that, yeah, we can still do it together, you know, get through it together. And we went there and it came out there is no internet. There’s no way to do a Skype call without the internet. I mean it’s going to be so expensive to use your European roaming to call to States. That’s not possible, because we all know, you know, calls with a support center and IRS they’re like 60 minutes for sure. I mean you have to be sitting there and that would be ending up like many hundred Dollars per call and you have to do like 50 of them to troubleshoot sometimes. So we were like, yeah, we have all the sunshine, but we are even in a bigger trouble right now. So my partner, like he figured out, like next to this grand piano there is like a tiny bit of internet. That’s enough for Skype. So he was sitting the whole day, was just sitting there tiling the number and then, like he put it on loudspeaker so I could hear, you know, and it was just saying, yeah, you’re gonna be served the extent. Let us go, you know, let us get you, get you through the agent. And the craziest moment was that he he’s been trying to reach this agent for like four days and he heard the message we are connecting you to the real human agent right now and the phone call dropped.
Kevin King:
Oh no.
Egle:
The company which is breaking down any minute because the hero was down and you know we were needing discussion. Amazon was writing you know, guys, you have about 70,000 units in a storage. It’s been sitting there for three months. How about we just go ahead and destroy it? You guys close that you can’t destroy it. I mean, if you destroy it, basically you’re gonna destroy me, because that’s all we have. We were just sitting on this inventory so we were just thinking it’s no point to call. We just went to the pool, went to the Sun, you know, hanged out around the tree days, came back and then just dived into this crazy phone call sessions again and then eventually managed to bring the company and bring the hero back to life.
Kevin King:
Now, why in the world, with all of this, would you do it again? Some of your friends might say you need to go to therapy, for after going through all of this, 70,000 products stuck and they want to destroy them and your life is. You’re going through all this and now you’re doing again with three other companies. Do you need to send a doctor over to you or something?
Egle:
I was in heavy therapy. Why do you think I had to be pain to turn off all the early communications? I mean, I had a reason to do a solid but, given in a right mind, what are the chances that such a mayhem can happen to one person again? I think my insurance policy is pretty good because the chances for me to go through the same mayhem are very small, because I’ve gone through it already.
Kevin King:
Well, and even if it does, you know how to deal with it, and so you know, you know exactly how did I mean? That’s what people always say, though. The start on Amazon and it’s like, oh, this doesn’t work, you know that’s. That’s so like five years ago, this is, this doesn’t work. I’m like, no, it works. I lost 1.3, 3 mil. Well, me and some partners, I personally lost 300 grand, but 1.3 million dollars during COVID selling on Amazon and people are like why the heck would you keep doing this? because it’s the best business opportunity that’s ever existed in humankind, if you do it right and you like you said earlier, entrepreneurship you’re full of ups and downs. And you’re not. That’s not for everybody. Yes, you know I want to take risk and just to live on a couch and you know, do whatever you gotta do to get there, then you’re probably not gonna get there.
Egle:
I heard your story losing more than 1 million dollars. That was when I heard that. I was actually kind of in the middle of my mayhem and I was like, listen, Kevin is going through that, I’m gonna get, I’m gonna get. Okay, I’m gonna be just okay. Mine is like four times smaller trouble than he’s in, so that was a support.
Kevin King:
Mine I mean, I didn’t almost lose anything, but between us we lost that much and but I had a loan, was like sellers funding I know they’re called sellers by they changed their name, but really great company. But I had a loan, I personally guaranteed it and so and then I have my reputation also, you know, because I’m public out there, so there’s no way I could let that, that go so out of my pocket. I was paying $15,000 every two, two weeks Out of my own personal account to pay that off and they end up work with me. I they knocked it down, called them, said hey, this is, we’re close, closing this company. I gotta switch the payments to my personal account. Can we knock it? Can we? I’ll pay a little bit more interest. Can you knock it down a little bit just to ride out? And they did. They worked with me really well but paid the whole thing off. But I’m doing it, still doing. I still selling, and I think that’s a lesson for a lot of people is don’t give up if, even though it can be stressful times, the opportunity are huge. So are you building these new three companies to sell them as well? Are you this? That’s your intent. Yes, now you know how to do it from day one. So you’ve been through the process of what documents Do you need? What they’re they gonna look for, so you? It should be much smoother selling for you.
Egle:
Should be, but we still made punch of mistakes. Maybe something I want to share with the listeners and watchers right now is we had this another like a second, like a first company started like pretty well. The problem with the first company is like we hit seven figures pretty easily. It maybe took 12 months, I don’t know 14 months. We were like up and going seven figure and then I was looking at the profit and loss and was like when is all the profits? You know what’s going on and I was like two years ago. So that was a lesson number one that I don’t think. Nowadays, business in Amazon is any more possible when you don’t do category optimization, you don’t do size optimization and you also don’t consider you know the velocity sweet points and the reason why you have to be a product that’s not necessarily more expensive than your benchmark product or the Chinese is that the PPC is the most profitable Unit in Amazon. You know Ecosystem. Right now it’s more profitable than Amazon web services 40 plus billion dollars in profit.
Egle:
I think that’s crazy and that’s, you know, all the people who are jumping in and learning from the old system that launched with PPC and PPC needs to be like integral part of your business. But I would say that that that that needs to be overlooked. We cannot go to a market situation where the first page is heavily populated with Very similar products and you going there with two dollars more expensive product that has a better value proposition but organically wouldn’t sell as many as you know the top velocity products are selling. That means that you’re missing out from the organic Visibility which anyway, is really hard to get. It’s like what did they say? 67% of the purchases are done on the first page and first page is basically 80% of PPC slots.
Egle:
So our only chance actually to get organic purchases is to occupy positions one to four or one to five, depending on your screen, with and if you don’t consider that and you’re only relying on PPC launches, I don’t think this game is really profitable and that’s what happened to us. So we had to kill bunch of products that were wrongly and in a wrong, in a, I would say, in an old business model way Launched and we had to start seeking for markets that are not so saturated. So right now we would never ever launch a product when the market is saturated. We don’t do products that there are more than like half a page of Direct competitors, because we need the organic disability, organic visibility, which is it’s a PPC. She’s not carrying us too far, it just eats everything you make.
Kevin King:
Are you doing products, are you developing your own products from scratch? Or are you still finding stuff and modifying a little bit and putting your brand on it? Or are you actually creating original, totally differentiated things?
Egle:
We’ve done both, but it’s easier and faster To still modify the products. We’ve done both. We done original and patented development and stuff like that. But I would say, as speed, you know, marketplaces and different search terms Populate with competitors pretty fast and you have to be quick. So developing products from scratch could be a little bit too slow. It could take you up for a year if you’re, you know, bouncing the samples and trying to figure out the configuration and stuff. Doing the modified the product still takes you six months, which is slow when you see the keyword being populated with competitors and you want to, you want to put your foot on the first page so you could be able to stay there. So, yeah, we would say it’s it. The modified products are still an option in Amazon because they’re also sometimes, you know, offering you a cheaper price point. Sometimes the pattern, the products unless you’re doing something really amazing, they tend to be the development cost is really high and if you’re really taking the money back from Amazon, I mean the price point is going to be away from the sweet high velocity first upper and first page spot.
Kevin King:
So what about when you’re, when you’re just modifying a product? Maybe you, like you said you do, you want to find where there’s not a lot of competition, but you find something that’s four or five and it takes you six months to actually get this product to market. And then ten other people are doing the same thing at the same time as you because they’re using the same tools.
Egle:
And when you want.
Kevin King:
When you launch all of a sudden where all these other guys come from, they saw the same thing. How do you deal with that?
Egle:
Since our products are a little bit Below visibility, we don’t do this crazy. You know seven like six figure velocity. You know products we do 70 to 20 K per product. We don’t aim for necessarily higher Revenue volume. These products are not so heavily populated.
Kevin King:
It’s only 20K per month.
Egle:
17 to 20k per month.
Kevin King:
Yes, okay, okay.
Egle:
That’s revenue. So as profitability we don’t want to do anything that that net profitability makes less than 4,000 a month. So I would just give a little hint for somebody who’s you know. There’s so many people keeping products out there that are doing maybe I don’t know 1000 bucks a month as a profit. But you’re doing all these logistics and you know communication with your factory development and don’t do it. Just go for where the money is friendly to you.
Kevin King:
Yeah, I have that rule. I have a rule Mine’s 3000. If it doesn’t do at least $3,000 in bottom line profit, net profit after six months, and then I kill the product.
Egle:
Yeah, a lot of people are like why?
Kevin King:
why you do that? It’s like because one I don’t want to manage 100 different products.
Egle:
It ties up cash flow I can take that money and reinvest it somewhere else and try to get something that’s going to hit my targets and cash flow, but so that’s interesting that you’re doing the same thing, yeah we’re a little bit tougher and that’s also the reason actually why we do not and maybe that’s really unpopular statement I’m about to do right now but we do. We no longer do European marketplaces, we are only in us. Because Europe, like with the previous company we sold, we had to hire extra people to run all the logistics and stuff to service all these different marketplaces and do all the VAT and things and at the end of the bottom line you’re looking, you know you do maybe 5% or 10%, but why just put all the effort to us and find the lucrative markets and US marketplace and the taxation situation is just so much better in US and you can keep your own team that you’re having right now. You don’t have all this monkey business. You know sending 200 units to us to UK and 200 units to Germany and you know repeating that with 20 skews. So we’re not. We are away from Europe right now, even though I’m living in Europe and I should be promoting that.
Kevin King:
Do you do only Amazon in the US, or do you do any? Do you? Are you doing anything Amazon? I mean sorry, Walmart or Shopify or TikTok or any of the other.
Egle:
We are extremely Pareto. That means we only focus where the money is mostly like all the things you know you mentioned, like TikTok yes, if you have emotional products we’re doing B2B products they’re mostly not TikTokable, so our Pareto is only in US in Amazon.
Kevin King:
So if it’s B2B, do you have a lot of you have a lot of business? Do you have the whole business discount set up so that people ordering multiples for our Lotties are not ordering single. There’s more than 50 or something.
Egle:
Yeah, that is true. But the better hack like we don’t see people buying, you know stack of 50. But the better hack is when you’re starting to see people like the business buyers coming and they’re starting to leave reviews and maybe pictures of like in warehouses and stuff and you can really understand that this is away from like a garage or stuff. Then we start to package these sets into a set of two or set of four and we actually see that business buyers like to buy these kind of sets more than they like to buy for different products, of course, because of the savings we can pass on to the customers. So that’s a better idea how to make money.
Kevin King:
What do you think are some of the challenges for people that are not based in the US selling in the US? What were some of the challenges you had to overcome not being a US resident based here?
Egle:
We’re doing. Some of the products we are doing are they’re not $1,000 right now, but we are considering products that are like $500 to $600. And we have an issue that you know if I would be living there, I could have that return sent to me and we could kind of refurbish and see what’s wrong. But right now we have to use a service provider. For sure, this is pretty expensive. You’re pretty much you’re gonna make a zero profit sale but it just, you know, brings you the sourcing cost back basically. But that’s an issue. You cannot see what customers are sending back to you.
Kevin King:
So is that the only issue is just dealing with returns or is there some other challenges that you see in your community and stuff that people have?
Egle:
No, I would say doing business like. I have three US companies. It’s the bookkeeping is super easy. Their tax issue we have Estonia. Us have a tax treaty. I don’t mess with any taxes when dealing with us. I am absolutely good.
Kevin King:
So these three companies, are they all in the B2B space, in the office space? Are they in different spaces?
Egle:
Two of them are in B2B and one is in personal health category.
Kevin King:
So when you, when you exited, you didn’t have a non compete, or you on totally different categories, and what your last?
Egle:
We have a complete, but we’re absolutely different, different categories.
Kevin King:
And when you exited you didn’t have to stay on for a little while and actually like advising for three months or six months or something like that.
Egle:
We did six months. We actually demanded, really strongly demanded, that one of our team members will be employed by the aggregator. They refused, and honestly, to clear up all the mess of them being out of stock, not knowing what to do, where to get the packaging. They’re having, you know, people working in Asia and then people working in Europe and not being able to communicate in timely manner. It was resulting in such a mess and they’re not having, like your own guy in the team directly sitting with the team. I think anybody who exited one two, three years ago they experienced the same thing. It just flushes down the toilet Even when you’re sitting by them at their side digitally six months and, you know, trying to advise them as much as possible. This big machine that an aggregator is, it’s just not going to be able to be as flexible and fast and it’s not even able to listen to you when you, when you say something to it, because it has many people who need to look it over, not not just one person that used to be in your team and can be really agile and quick about reacting to something. So we had a traditional losing 50% of the business case.
Kevin King:
That’s gonna be hard, though, going from calling your own shots and knowing what you’re doing to actually trying to answer to somebody else. That’s clueless.
Egle:
I know, but listen, after going through all this mayhem I was actually so happy to get the responsibility off my shoulders and somebody else was dealing with all the marketing and restocking and developing new products and stuff. Honestly, it just I just got so sick and tired of this category when being so deep down and on my knees with it. So I was happy to hand it over, so I didn’t have like romantic cry. You know, I want you back. Where are you? I want to go all the shots. No, I’m neutral. You do what you have to do.
Kevin King:
Did you have an earn out on that, or did you we had?
Egle:
an earn out, but it’s pretty hard to earn when you’re losing 50% of the business.
Kevin King:
I was gonna say that does earn outs, use a lot of times, don’t work out. That’s why I would say that whatever money you get on the closing day maybe it’s probably gonna expect that to be all the money you ever see.
Egle:
Yes, that is that’s. That’s a tweetable yes.
Kevin King:
Also, don’t forget, the billion dollar seller summit is coming up on February 20 to 22. That’s right. We got 18 incredible speakers, Next level stuff you’re not going to hear on podcast or at any other convention. Not recycled content. Everything is live. Nothing is pre recorded. You get to interact with them live Q&As, a hat contest, a tools contest for cash prizes. It’s going to be amazing. Hopefully you’ll join us. billiondollarsellerssummit.com. Now you also that, besides running these companies, you also are in, like, like you said, you organize a group of sellers there and you actually do an event as well, right?
Egle:
Yeah, I mean we have a strong community and people want to learn. So in every the beginning of June we have international in English conference called ambition In Estonia. We have lots of international sellers participating. It’s about 300 sellers coming all together and each year we kind of focus on like last year we did like how to get the margins back. So it’s not like people coming randomly and teaching you whatever they want to teach or sharing their stories, but everybody is giving their best nuggets on how to get your margin back or you know how to pivot if you need to pivot. So we’ve been doing that for five years just to support the community. You know, putting out any event is it’s not really for profit, it’s more for like sharing them coming together and sharing the energy and the vibration.
Kevin King:
So this is an event.
Egle:
This is your event, or you’re in partnership with some other people, or I invited another Amazon seller called Michael, that you also met in London, to be my partner in it. So we’re doing it to of us, but I would say doing this is a lot of work.
Kevin King:
So adventure, a lot of work, yes, so we have one coming up on June 4th.
Egle:
I think it is right, something like that Next year is June 8th in 2024. Yes, so we’re always doing so. Now. We’re always doing fun like co-gardings and cocktail masterclasses and stuff like that, so there’s always stuff going on.
Kevin King:
Now, this is the event that’s in English, but you also do other meetups that are in and the native language right.
Egle:
I do for my own very close community. I have a very high level, uh, like a community that I take care of. It’s like um, it’s like a lifelong membership. I’m not disappearing anywhere, so I’m doing that, but I, since it’s in Estonian, I want to support a local community and part of the reason why I’m doing this is that I feel like people here need to catch up with you know, you guys and the Western Europe and stuff, and I want to give my like a contribution to that and I’m teaching them in Estonia and it’s. I cannot market this course outside Estonia and, honestly, I don’t really need to market. Just people find me and I just take them and we bring them to the markets.
Kevin King:
So I mean, Estonia is a small country. Um, how many, how many sellers, what’s it like? 5 million, 7 million people, something like that 1.3 million. Well, I said okay, I saw what I was way overshot 1.3 million. But the percentage of sellers to that is really high. It’s really high over a thousand Uh the selling rights.
Egle:
Yeah yeah, our like a larger community ending is 4,000. Uh, everybody who’s been active is definitely thousand and, like seven, eight figure sellers, is less than a hundred. But for per capita this is still very high.
Kevin King:
And most of them are selling in the US market.
Egle:
All of us are selling in US.
Kevin King:
All of you.
Egle:
Like we don’t really bother with Europe all that much. I mean some of us do, but we, I mean you know US is Pareto principle. I mean 80% of money is US and we are used to being agile fast and you know not to sit around like I. Recently. Just I was presenting, uh, my story and my nuggets to Swedish community and I really like and they’re just getting started. You know they haven’t been active at all. They’re like late bloomers and you know I’m pretty sure you know a few brands in from Sweden. They’re doing amazing like branding, but they’re more like off Amazon. They know really how to keep community together, how to do social media marketing, how do you design, how to do value proposition and at the same time they don’t know how to do Amazon because they’ve just had kind of like a life. It has been so good so you don’t have to be agile, but why? The community here in Estonia is so big that we kind of need to get off our butts and really need to serve our own needs. Like nobody else is going to do it. Like when we got free, the state didn’t have money. I mean you just buy yourself. Of course. Right now, I mean we have this 18 months of maternity leave, a full coverage and stuff which we’ve caught up, but in a personal level I would say we still have some running to do. So I’m just giving back and, you know, doing my best to help the local Northern European dark weather, mostly winter surviving people at least make some money while it’s cold outside. I want to do something with our time right.
Kevin King:
Right. Is most your team Estonian then, or do you?
Egle:
Like we have one Filipino, but we never went down to this route that you hire only overseas people. We want to see each other’s faces, we want to have heated arguments together, we having so many like meetings in our room together every day weekly, so we don’t want to give up that this has. It has such a big value to be able to discuss, to take the sample to you know, having three people around the table and just take the sample in pieces and see how you can make it smaller, how you can make it more durable or more sturdy. Sturdy is something people in Amazon are, so I think this is the most used word in a review. I want it to be sturdy. It’s not sturdy enough because we’re all trying to make cheaper things and then stuff starts to break down, so you just trying to figure out things by looking and being in your own. You know each other’s energies.
Kevin King:
That’s cool. So what’s it like? I mean, being in this space is male dominated and you’re a woman that’s very successful, driven woman in the space. What’s that? Is that challenging at times when you’re dealing with all these, these male egos and this male testosterone and everything. What? What are some of the challenges around that?
Egle:
For me, the main challenge is when I go to international conference. I just cannot party as hard as you guys are partying I am. I’m such a hopeless morning person 11 o’clock. I am so sleepy you guys are able to consume all this alcohol and you know, being on the top of your energy like 2am and I’m like I cannot speak another word. It’s crazy.
Kevin King:
I know some of these events, especially like prosper show. There’s parties to career for every night, multiple parties. I don’t know. I always say Amazon sellers, they work hard and they play hard, absolutely.
Egle:
And I figured that, gee, I can’t keep up with that. But otherwise, being a woman in a masculine sphere, I would say it’s you feel really held and really supported and I would say it’s one of the best experiences in entrepreneurship I’ve ever had. I have not met an Amazon seller who kind of looks down on me or something just because I’m a woman. So it’s more like they want you to succeed too. They’re asking you know my experience because my perspective is different, my way of approaching business is different. So we’re kind of complimenting each other and we having this monthly master minds with the top sellers here in Estonia, me being the only woman over there, I see that I can bring a different perspective to the masculine way of problem solving, just to see this differently.
Kevin King:
So what is your superpower? What is it that makes Egle? What is Egle’s superpower? What’s your X factor?
Egle:
I would like to think that I’m always searching what’s available next or what’s possible next, something I was talking in Sweden, for example. You’re developing products and let’s take a cat bed and you’re going for the cat bed niche and you really, really, really want to do a cat bed. Fine, do it. I don’t say stop, even though it feels really saturated, but a disclaimer it’s not in if you know what you do. So when you start reading reviews, the reviews tell you that people want to remove the inner lining, to wash it. People want they’re mostly like a fabric, some like a tome looking a bed. So the cat feels like hidden and when people wash it kind of collapses. It doesn’t go back together, it’s kind of like not good, it’s just so cheap. And then when you take all this feedback from the reviews, you are going to end up developing maybe a plastic or like a strong case and then removable linen and stuff like that and you know all the review issues have been addressed.
Egle:
And at the same time and now that’s what I’ve been discovering lately and that’s been really serving us good is that you cannot rely on reviews as a first thing on product development. Nobody, and you can check it out. Nobody in Amazon, in Helium 10 is showing this is searching for a durable cat bed or remove you know linen, removable cat bed. Nobody is searching for that and but the reviews are telling that this is what people are missing. Instead, what people are searching for are cat beds which look like strawberry or a frog or a pineapple or like a Japanese dish, but the reviews don’t say that. So like that’s kind of the cutting edge, that we are really pushing our companies to now think and grow in the product development from the first place. We don’t care about reviews, we care about the search terms and we do product development according to the search terms and only then look what the reviews say. And this is a completely different thing than most of us are ever thought. Well, this has been awesome.
Kevin King:
I really appreciate you taking some time today to share with us, share your story and share some of your thoughts. This has been really cool. If people want to follow you or learn more or come to your event next in June, what’s the best way to reach out or get or see what’s going on? You guys can just find me an Instagram.
Egle:
I guess I don’t really have a like, a website or anything, I’m just a seller. I mean, I’m not out there, so find me an Instagram @egleraadik so I’ll say hi, I’m always happy to share and talk to fellow sellers, so let’s connect. Sure, awesome.
Kevin King:
Well, thanks again for coming, yeah.
Egle:
Thanks for inviting. I was nervous Because this podcast means so much for me and I’ve been growing up with you guys, so thank you for having me.
Kevin King:
Great chat with Egle there. I hope you enjoyed our talk today If you want to find out more about her event that’s coming up in Tallinn, Estonia, in June. The way to spell that I’m probably pronouncing this wrong with mbzion, but it’s spelled a mb I z like zebra I o n. So if you Google that, you can probably find out all the information about her upcoming event in June. And don’t forget, make sure you’ve signed up for my newsletter, billionseller.com. We’ll be back again next week with another awesome episode. Before we go today, I’ve got some words of wisdom for you, and today they’re actually not my words. They’re the words of Bruce Lee, the famous Bruce Lee. He was talking about pushing himself, and that’s kind of what Egle has done here, and so I think this kind of fits in line with her mentality and her approach to things. Don’t fear failure. It’s not failure, but low aim. That’s really the crime In great attempts. It is glorious even to fail. Again, Bruce Lee said don’t fear failure. It’s not failure, but low aim. That’s actually the crime In great attempts. It’s glorious even to fail. We’ll see you again next week.
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The post #382 – From Estonian Streets to Global E-Commerce Success: Egle Raadik’s Amazon FBA Journey and Seven-Figure Exit appeared first on AM/PM Podcast.
