Erika Ottela is the co-founder and COO of eBrands – an ecommerce aggregator. We requested Erika about her journey with eBrands, the significance of Amazon and different ecommerce marketplaces, and her recommendation for entrepreneurs within the business.
Inform me about eBrands – what was the motivation behind beginning the corporate and the way does it function?
There’s a long-standing joke that Finns and different Nordic persons are good at innovation and really unhealthy at commercializing it – particularly in international markets. Due to this fact, the concept of a Nordic model home, that might buy shopper product manufacturers instantly from entrepreneurs and assist them to scale globally, was instantly interesting to our founding crew.
Based mostly on our mixed model and gross sales expertise, we felt we might make an actual distinction by enabling progressive merchandise to succeed in a worldwide viewers. As a model home, we firmly consider in selling the Nordic values of sustainability, sturdiness, and sensible design. Along with the innovators who’ve introduced these manufacturers to life, we’re on a journey (as said in our imaginative and prescient) to make the world really feel higher.
Amazon is the plain chief in international ecommerce marketplaces, so we initially invested in some Amazon-native manufacturers to start out constructing our processes and to broaden our know-how. With the operational expertise and scale that we’ve constructed within the final 12 months, we are actually shifting our focus to Nordic innovation-led manufacturers – and leveraging our experience to rapidly scale the brand new manufacturers on Amazon in addition to different channels.
How necessary is a market technique at this time, and what are your ideas for retail manufacturers to achieve success on this area?
The significance of Amazon in rising a shopper enterprise is troublesome to overestimate. Amazon’s market income exceeds the scale of all the international SAAS enterprise, and, regardless of its challenges, it’s nonetheless one of many quickest methods to realize entry to an infinite variety of shoppers. Nonetheless, for eBrands, we view Amazon as a vital gross sales channel relatively than the only focus of our enterprise. For a few of our extra progressive merchandise, Amazon’s share of 2022 gross sales will likely be small in comparison with e.g., the product’s personal web site or bodily retail gross sales.
Many articles have lately emphasised how rather more troublesome Amazon’s vendor enterprise is turning into. Regardless that that’s true, I don’t suppose the basics of success have modified. The important thing recommendation stays: Select the correct product! All of it begins from product choice – and you may solely discover the correct product by way of rigorous knowledge evaluation. This might not be a novel or glamorous reply, however it’s the fact. Over-investing within the product analysis a part of the method is crucial – with the proper product, the remainder falls into place with considerably higher ease.
Moreover, one rising pattern that you shouldn’t ignore throughout your product analysis is sustainability. Sustainable product searches have elevated by over 70% up to now few years, and curiosity across the matter will solely improve. This doesn’t imply it is advisable to focus solely on merchandise which are titled “sustainable” however be sure to analyse your product’s sturdiness, materials utilization, packaging, and cargo strategies as a part of your choice course of so as to maximize the sustainability of the product you do select.
Sustainability is a thread for us that goes by way of all the pieces we do – from model acquisition standards to operational choices. Even small initiatives can create important advantages. For instance, a packaging redesign for a single product eliminated 4 tennis-courts value of plastic from circulation. A few of our merchandise are extra sustainability-focused, e.g., reusable paper towels which are manufactured utilizing solely solar energy. Nonetheless, by making sensible materials decisions, you may enhance the environmental affect of just about all merchandise.
My co-founder, Robin Bade, says that “sustainability isn’t the other of profitability”. I firmly consider on this concept and that’s what in the end will get me enthusiastic about eBrands – having the prospect to develop a viable, growth-driven enterprise that does good on the earth.
eBrands focuses on classes akin to sustainability, wellness, sports activities, and way of life merchandise – how does this align along with your firm values?
Lively way of life, nature, and investing in your residing surroundings are strongly current within the Nordic values I spoke about earlier than. These values are additionally gaining rising significance in retail gross sales globally.
As an organization, we’ve narrowed our focus round these classes to construct actual experience on buyer wants, optimized distribution channels, and the correct companions to allow quick progress. This enables us to maximise the returns for each motion we take as a result of the relationships we construct and the abilities we purchase our scalable throughout our whole portfolio.
What are a few of the largest classes you’ve discovered from earlier roles, and the way has this formed your method to your present place?
A very powerful side of constructing an organization is to rent and maintain the perfect individuals. And the one means to try this (long-term!) is to construct an organization that these greatest individuals will be pleased with. “Firm tradition” is typically thought-about a fluffy idea, however anybody who has labored in an organization with a very good tradition and one with a foul one is aware of the distinction.
The problem is you could’t construct a very good tradition by telling individuals what it’s. Constant role-modelling and sensible day-to-day choices present individuals what the corporate actually values – whether or not that’s in keeping with the worth assertion or not. I’ve been fortunate in my life to work for 2 corporations with a really sturdy value-base: Amazon and McKinsey. You may agree and disagree with the values themselves, however as an worker, you at all times know what you might be anticipated to do. And also you at all times understand how you’ll be valued for it. With a robust value-base, you may take out numerous micro-management, as you may belief everybody to do what you’ll’ve performed. That in itself makes work extra fulfilling – and extra environment friendly.
One of many first issues we did after organising the corporate was that we had a protracted chat with the founding crew and outlined what values are an important to us. They focus on steady studying, a bias for execution over concepts, and being inventive find alternatives (Suppose like a Pirate!). It has been numerous enjoyable to construct an organization round them.
What recommendation would you give to younger entrepreneurs, notably in ecommerce?
Don’t over-analyse. Regardless of how lengthy you concentrate on any choice, you’ll not get a ‘100%’ reply. Do a easy train of writing out “what would I have to consider for this to be proper” after which exit and check it. A ‘50%’ concept that’s carried out is extra helpful than the ‘90%’ concept you have been too late with. You may be unsuitable often, however then you may iterate, be taught and do it once more. This is applicable to product improvement, channel decisions, technique decisions, and all the pieces else it is advisable to determine.
And as a by-product of that: Don’t choose failure – your personal or that of the others. Solely choose what individuals discovered from it.
Following a current $50m injection of funding, what’s subsequent for eBrands?
The funding will allow us to additional speed up on our present path. We now have barely scratched the floor of what’s attainable, so I count on the present funding to allow us to get nearer to our mission of “constructing manufacturers that may enhance the bodily, psychological and environmental well-being of a billion individuals.”
