David Hosei

I got scammed. It cost me $6,000. Here's what happened: I was still relatively new to the wholesale business model on Amazon. I hadn't yet figured out how to properly vet suppliers. So when a supplier made a claim, I tended to believe them. I was in contact with a video game distributor. They had 30+ SKUs that looked to be profitable to resell on Amazon. I'm talking 20%+ gross margins on products that sold 500+ units per month. They had plenty of available stock with minimal lead time. Not exactly realistic and this should have been a huge red flag. The rep assured me the goods were fine and that we'd make a great profit. So I placed an order for $6,000. Sent them to FBA and sales started rolling in. But then so did the returns. Every single unit we sold got returned. Come to find out: The games were only compatible with European consoles. Customers would go to play the games and they literally didn't work. The returns were useless and I was out $6,000. Lesson learned. When the deal looks too good to be true, it is. Follow me Corey Ganim for daily posts like this and repost ♻️ this to your network to help another seller avoid this trap.

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If I could only look at one metric forever to evaluate my new customer acquisition, it would be this one... First Order Value/nCAC 🚨 This is a ratio, not an absolute number, expressed as a percentage. I mentioned this number in my last post about the "eCommerce scorecard." This ratio includes two metrics: 1. First Order Value Profit - Take the average first order value and subtract the costs to deliver this order to your customers. This gives you the first-order gross profit. 2. nCAC - The average amount you are paying to acquire a net new customer. By dividing the former by the latter, you get a number expressed as a percentage. When this number is over 100%, it means that your first order is not costing you a penny. It covers all costs to acquire the new customer and deliver the first order. If it's below 100%, for every dollar spent on new customer acquisition, you are losing some money... For most bootstrapped eCom brands that are in scaling mode, this number should probably always be as close to 100% as possible. This ensures you are in the perfect balance of not burning money and not leaving potential growth on the table. Have you ever heard of this KPI before? 👀 #kpis #ecommerce #newcustomer

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Saving $39,000 on Klaviyo Bills while increasing Email Revenue by 415%. Sound Too good to be true right? This is exactly what we did for one of our clients. Most brands are overspending on Klaviyo. Now this number could range from a few hundred to tens of thousands of dollars a year. The same money could be saved and used in other channels to grow the business. If you're spending over $1500/m on Klaviyo, DM me and I'll ensure you're not overspending on software. I'll also give you a quick rundown of potential problems with your backend marketing system. However, I won't be able to do this for everyone who DMs me, so it's only going to be the first five brands that DM me. BTW, What Segment do you send your Emails to? #klaviyo #emailmarketing #Shopify #ecommerce #operations

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Curious to get peoples take on this in regards to ecommerce returns? This is something I've never seen before... Charging up front for "free returns." Much like charging for shipping protection which I think is totally different. Note, I would say most #dtc brands currently offer some type of add-on shipping protection or eco shipping. Not sure a customer would want to add yet another paid add-on at checkout. (just my opinion) Not a fan of this approach but open to having someone prove me wrong... :) #returns #ecommcerce #dtcbrands This was pitched to us from Loop Returns. A quick rundown: 1.   Your shopper has the option to opt into a small return coverage during checkout. Similar to shipping protection or carbon offsets 2.    If they need to make a return, it is completely free and Loop pays for the label. 3.    If they don't opt into the return coverage during checkout, and they need to make a return/exchange, they are on the hook for the label costs. 

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I once had a client—a well-known brand (name withheld), whose CEO proudly claimed they were “crushing it” in DTC sales. That was until I showed him the surprising reality… they were actually losing money on EVERY new customer order. Despite boasting a 2-3x ROAS, he was blindsided by a little-known accounting term: “Contribution margin.” Here’s what we uncovered… Their most popular sold bundle included: - 4.5lb protein powder - Pre-workout supplement - Amino acid powder This bundle, offered at a discounted price with free shipping, had an order value (OV) of $79.99. However, the true cost to serve this order (the variable costs) included: - Product COGS: $42 - Shipping fee: $14 (with no offset) - Fulfillment charges: $3.50 - Credit card processing fees: $3.20 - Refunds (~5%): $4.00 - Marketing costs (customer acquisition): $32.25 Total variable cost to serve: $98.95 Contribution Margin: -$18.96, or -23% ($79.99 - $98.95) And this is before accounting for operating costs. While you might argue this is just the first order and repeat customers could offset this loss, However, it would take at least two more orders before turning a profit. The cash needed to sustain this gap can quietly deplete a company’s funds, often going unnoticed until it’s too late. My advice to any CEO, CMO, or business founder evaluating their DTC business: Measure Contribution Margin. It's irresponsible to manage your DTC sales without it. —— Have you found a better way to measure DTC channel success? #Entrepreneurship #Innovation #leadership #scalingup #leanstartup #readyforscaling #ecommerce #cpg #acounting

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Taylor Stitch has generated $$$ with direct mail at a 10x ROI. Here's a couple of their major wins: 1️⃣ Hit unengaged subscribers with postcards over the holidays 2️⃣ Automatically plugging the funnel More on that: Awakening the unengaged: ➝ Send to customers who didn't receive emails ➝ 20% discount ➝ Drive re-engagement Plug the funnel: ➝ Automate winback campaigns ➝ 2 segments: no purchase in 90 + 180 days ➝ Non-discounting messaging driving higher incremental lift than WITH discounts As Luke McAlpine told us, "We’re often seeing high ROAS with incremental lifts between 30-50% among the campaigns that win out [in tests]." Let me know if you want to get results like this, too. Check out the complete case study here → https://lnkd.in/e2kJgsSV BTW. . . This postcard 👇👇 alone generated a solid six figures:

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In the last quarter I worked with a guy from the wholesale industry.. Low-key. No social presence. $ 250 K/mo distribution  business. That’s just under $2M ARR. His platform was struggling to expand.. So he needed a break. In case it’s not clear… he has a good distribution network , making way more money than I make, running a business that’s much bigger and much more serious than my business, coming to me for guidance and advice. Why would someone making significantly more than me want to hire me? I couldn’t help but ask. Your boy is low stress and effective. Above that, you’re laid back and have a wicked philosophy that’s focused on profit, not revenue.” I concluded that people buy into you before buying into what you do. Because the strategy and tactics are important. But the philosophy & model is more important. Now, my crew model is applicable to all phases of the market. The only thing that differs is the execution + proximity. I’ve applied the same model in 30-day engagements with folks last month too. 3 examples: Harry, a restaurant owner  who brought in $  Ali, a business coach, who signed $2,000 of business in 7 days of working together Christopher, a SEO agency owner who signed 2x monthly retainers at $2,500 It’s been super fun rolling my sleeves up and doing the work for them and with them, vs just coaching them. Fast action. Fast results. Fast impact. . And I’m opening up 3 spots to work together 1:1 in June, to do just that. If you’re a coach, consultant, business or solopreneur looking to dial in your campaigns so we can roll our sleeves up and make things happen… ​ #marketing #branding #businessgrowth #strategy #thedigitalcrew

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Packaging inserts gave my brand a 200% increase in UGC with $10 spent—a high-leverage, low-cost tactic you’re likely overlooking. For startup brands, especially in the CPG space, packaging inserts can be a game-changer. They’re simple, personal, and underutilized—yet they have the power to make your customers feel genuinely valued. Here’s why they matter: Builds Loyalty: A handwritten thank-you note, a small gift, or even a product sample can go a long way in making a customer feel special. It’s that personal touch that most big brands overlook—and it’s one of the easiest ways to create a lasting impression. Cross-Selling Opportunities: Including product samples or discount offers inside your package isn’t just about customer appreciation; it’s about showing them what else you offer. You’ve already earned their trust, now is the perfect time to introduce them to your other products. Cost-Effective: Inserts are incredibly low-cost but can yield high returns. The best part? You’re already shipping the package, so why not take advantage of that opportunity to deliver a targeted message directly into your customer’s hands? Whether it’s a thank-you note, a discount card, or a small sample, these little details exceed customer expectations and strengthen the relationship between your brand and the people who support it. If you’re not already doing this, you’re missing out on one of the easiest ways to turn one-time buyers into loyal customers.

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There are 3 common/recurring issues that our paid media team finds when they’re auditing accounts… ❌ A single tROAS or tCPA - to win, these should be as diversified as your SKUs and customer segments 👎 A lack of creative diversification - without volume, velocity and variation you’re on a (rather spenny) hiding to nothing on paid social ⛔️ Focusing on ROAS and revenue - neither of these metrics are conducive to growing the business profitably (which is the goal for us all, right?) Grow more predictably and profitably with Target Agency.

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2 ways to create demand without giving a discount 1) Limited Quantity "We only have 10 generators left in stock" "With the storm coming up, we only have 3 more cleanings available" 2) Manufacturer Price Increase "Last chance to lock in 2024 pricing" "Demand is higher than usual, we only have 3 left at 2023 pricing" Any other ideas to create demand without discounts? Comment below

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After years of no paid spend on social media, We’re back. Butt driving ZERO clicks to our website 😱 Instead we’ve chosen to pump traffic to key retailers Because we believe this is where our DUDES want to buy While the attribution isn’t an exact science like DTC You’d have a hard time convincing me the ROI isn’t better ✅Everyone prefers to buy at retailers - so conversion rate is higher 💰 ✅Customers can also stock their cart with other products - driving net new revenue to our retailers, they like that 😃 ✅ We’re pumping the flywheel at the largest marketplaces in the world. Where organic rank is worth much more than a customer’s “1st party data” 🚀 ✅ This strategy requires infinitely less costs than DTC - where you’re constantly draining cash flow into creative iteration, customer service, Ad specialists, web design, etc While this might not be for everyone, make you’re not blindly chasing a Shopify model Often times there is goldmine right under your nose. ✌️

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For a long time, I believed advertising was all about driving customers to take action. But I was so wrong. I will go miles out of my way to get to a Maverik, Inc. Maverik's advertising doesn't make me buy fuel, I need fuel because my truck is out of gas. Maverik's brand advertising makes me choose Maverik when I need fuel because I know the bathrooms will be clean! I am deeply emotionally attached to clean bathrooms. My need is environmental; the decision to choose Maverik is emotional. The purpose of advertising is to create and occasionally refresh mental models of value in the customer’s mind so that at the time of need, my brand is the most accessible to the customer. If your marketing mix is focused only on short-term sales activation and efficiency metrics, you are only speaking to the customers on an empty tank. If you rely heavily on promotions, you get them to fill up at 1/4 tank, but that is only earlier revenue, not increased market share. If you want them to plan their trip around stopping at Maverik, you must move beyond focusing solely on conversion metrics like CPA and ROAS to an incremental model of lasting value creation through precision mass marketing. #Marketing #Advertising #BrandStrategy #MentalAvailability #CustomerMindset

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Test Your Pop-Up 🚨 I can’t tell you how many brands we audit that have absolutely no pop-up testing going on. Always have some sort of test running. A 2-3% improvement to your opt-in rate can result in hundreds of thousands of dollars long-term. Do this 2-3 times a year and you’re making an extra million a year.

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READ THIS CAREFULLY: If you’re just tracking sales, you’re leaving money on the table—literally. When I speak with eCommerce brands, the most common pain point they share is a lack of clarity on profitability. They’re drowning in data but starving for insights. They’re focused on what’s visible—sales—while the hidden costs beneath the surface, like shipping fees, transaction costs, CAC, and fulfilment expenses, quietly erode their profits. It always makes me pause because it’s the clearest signal that brands are only seeing a fraction of the whole picture. When I see high sales numbers, my first thought isn’t, “Great job!” It’s, “Are they actually making money?” Here’s the brutal truth: Just because your sales are up doesn’t mean your profits are too. Without a clear view of how your marketing spend, operational costs, and customer acquisition impact your bottom line, you’re sailing straight into dangerous waters. But there’s a better way. Imagine having a dashboard that not only tracks your sales but also reveals the bottom of the iceberg—giving you a complete profitability overview. Imagine knowing exactly how each dollar spent is affecting the profitability of your store. With StoreHero this is finally possible. Link to book a demo in the comments 👇

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Another banger from Chewonthis DTC, this time about post-purchase flows. 5 takeaways and comments: 1. The strongest post-purchase offer is an upsell of the same product to leverage the buyer’s recent decision-making momentum and familiarity with the product. I personally only use this offer for one-time-purchasers, to mitigate subscribers from cancelling because of 'too much product'. 2. Optimal funnel structure: cross-sell at checkout, then upsell the same product post-purchase (1a, 1b if the first one is declined), follow with cross-selling related items and end with downselling accessories. 3. Use free shipping thresholds in the cart: display a progress bar for free shipping eligibility in the cart to visually drives higher cart values as customers strive to meet the threshold. Btw: you can find your sweet spot by analyzing your past orders to determine the median order value and average shipping cost. Then, calculate your gross profit margin and test different thresholds to see their impact on profitability and customer purchase behavior. 4. Use post-purchase surveys to gather data on why customers bought and tailor future communications and offers based on this. It's a gold mine of content you can use on ads or the product page. Definitely go beyond asking where they came from. 5. Network offers. Display premium third-party offers (e.g., Nike, Hulu) on the thank you page to add incremental revenue. Can add about 45 cents per transaction, covering some fulfillment costs. Credit to Ashvin Melwani Ronak Shah Dhruv Patel Nick Shackelford

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I'll make it ridiculously simple — here's everything we do to grow 8+ figure ecommerce brands at Kynship, in order, in a way anybody can understand: ➝ Account audit: measure current performance and creative strategy ➝ Financial clarity: understand your unit economics per product SKU/offer ➝ Financial forecasting: use your data to set realistic account targets ➝ Creative planning: UGC, CGC, seeding, branded assets to hit those targets ➝ Paid media planning: using established targets + cost controls ➝ Running campaigns: based on contribution margin and SKU/offer ➝ Creative reporting: analyze the performance of different creative assets ➝ Performance reporting: compare actual results vs. forecast, highlight iterations ➝ Optimization: refresh creative, adjust cost controls, and iterate based on performance ➝ Grow and scale: increase spend on top performers, adapt creative This isn't the end-all, be-all, or "right" way to run an agency — but if you're not getting most of this, your performance marketing isn't all it could be.

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$23,994 per month from an illegal product? How this seller is getting rich from breaking the rules: Last month Amazon updated their terms of service to address bundle listings. Pre-update: Many grocery sellers would create bundles of products from different manufacturers (like this one). The brand name on the listing would be 𝘵𝘩𝘦𝘪𝘳 𝘰𝘸𝘯 𝘵𝘳𝘢𝘥𝘦𝘮𝘢𝘳𝘬𝘦𝘥 𝘣𝘳𝘢𝘯𝘥 𝘯𝘢𝘮𝘦, not the names of the actual manufacturers. This allowed them to access premium features such as Brand Registry, A+ content, and more. Post-update: Grocery bundles CANNOT: • mix products from different manufacturers • be listed under a generic or personal brand name • be sold by anyone other than the manufacturer (or a directly authorized representative of the manufacturer) Take the listing in this post for example. A bundle of 50 different products listed under the brand name "Custom Varietea". They get away with it because the bundle comes in a box with their trademarked branding on it. BUT last month's TOS update makes this strategy 100% against Amazon TOS. Will this listing get taken down? Probably, eventually. But let this be a warning for those of you selling non-TOS compliant bundles: Stop it! And follow me Corey Ganim for daily eCom updates.

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I once found a half-million dollar budget overrun while onboarding a new DTC client. Half a million dollars, just in one month. In my first weeks with a new client, I dive deep on their marketing data. That’s when I noticed a big chunk of ad spend had slipped through the cracks a couple of months prior. YIKES. No wonder CAC looked great for that month. Here’s how I made sure it didn’t happen again: → Ensured the full marketing team had visibility into budget allocations. If channel allocations were shifting based on performance, we discussed it as a team and adjusted the budget spreadsheet accordingly. → Incorporated spend tracking into weekly marketing reports instead of waiting for finance to report back on spend at the end of each month. → Created an accurate view of pacing rather than assuming spend would pace evenly throughout the month. It is so, so important that your marketing team has a solid understanding of finance and is able to closely track and manage media spend. Need help getting this set up? DM me to learn more.

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The biggest missed opportunity in the 50 Meta accounts we audited this year. No structure for creative testing 💸 Brands & agencies think they are testing but what they're really doing is just throwing spaghetti at the wall. Running multiple ads at the same time doesn't mean they are being "tested". Here's our approach... 1. Naming Conventions Your ad naming conventions need to match what you are trying to learn from each test. Some labels we use. - Hook (Visual & Text) - Messaging Pillar - Product - Target Persona - Creative Type (studio, campaign, UGC) - Landing Page 2. Isolate variables  Effective testing means being clear on what worked vs what didn't. Too many variables means unclear learnings. Unclearly learnings = a waste of time. 3. Dedicated testing campaign Set your tests up in a dedicated campaign within the your ad account. If you are running multiple tests these can be in different ad sets. Testing can create volatility, Important this is isolated to select campaigns. Transfer winners into your evergreen account structure. 4. Learnings Booklet Create a document where all your learnings are recorded and shared throughout the business. You can now look back with confidence that you truly know what works for your brand and why. How are you testing creative on paid media?

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