Revolutionizing Ecommerce Logistics - with Izzy Rosenzweig, CEO of Portless

Izzy Rosenzweig, a veteran of the DTC industry for over 10 years, gained recognition by launching his first DTC company, Browze, in 2012. Browze, specializing in home and kitchen products, successfully delivered over 2.5 million packages worldwide. After opening his own China-based fulfillment center to improve customer experience, Izzy recognized an opportunity to assist other e-commerce brands with direct shipping to their customers, leading to the birth of Portless. With Portless, Izzy aims to revolutionize the e-commerce industry by massively improving cash flow and profit margins through direct fulfillment.

EPISODE SNAPSHOT

[2:19] – Portless Business Model Overview: Izzy explains how Portless improves ecommerce operations by reducing the shipping time from China to customers, enhancing cash flow, and minimizing inventory risk.

[4:57] – Benefits of Direct Supply Chain: Izzy and Scott discuss the significant reduction in time from manufacturing to delivery, comparing the traditional 60-day process to the 5.2-day process with Portless.

[9:16] – Transition from Consumer Brand to Logistics: Izzy shares his journey from running a consumer brand to providing logistics solutions for other ecommerce brands, detailing the challenges and learning experiences.

[11:49] – Cash Conversion Cycle and Inventory Management: The discussion delves into the advantages of shortening the cash conversion cycle and the impacts on inventory management, including reduced risk and increased agility.

[17:53] – Expanding Global Reach and Cost Efficiency: Izzy outlines how Portless opens up new markets for ecommerce brands, providing cost-effective and efficient logistics solutions to over 50 countries with localized experiences.

[29:06] – Getting Started with Portless: Izzy explains the process for ecommerce businesses to start using Portless, including integration with various platforms like Shopify and WooCommerce, and the ease of onboarding.

EPISODE DESCRIPTION

In this episode of the Ecommerce Optimizer Show, host Scott Reid interviews Izzy Rosenzweig, the founder and CEO of Portless. Portless is a groundbreaking company that streamlines the fulfillment of Ecommerce orders directly from China to customers’ front doors. By bypassing traditional shipping routes, Portless significantly improves cash flow, reduces inventory risk, and boosts profit margins for Ecommerce brands. Izzy delves into the intricacies of their model, emphasizing the transformative potential of their logistics approach, which can deliver products within days rather than months.

Izzy also shares his personal journey from being a rabbi to becoming an Ecommerce innovator, highlighting the challenges and successes he encountered along the way. The conversation explores the profound benefits of Portless’s logistics model, including enhanced cash conversion cycles, reduced risks, and increased margins. This episode offers valuable insights for Ecommerce businesses looking to optimize their operations and expand their global reach, making it a must-listen for anyone involved in Ecommerce logistics and supply chain management.

MENTIONED DURING THIS EPISODE

SPONSOR

This episode is sponsored by Ecommerce Optimizers.

At Ecommerce Optimizers, we take a unique approach to optimizing Ecommerce brands by fine-tuning the conversation between your website and your visitors. 

We think about it this way. When someone interacts with your website, they’re having a conversation with your business. 

They’re assessing trust, quality, and reliability. They’re asking questions. 

Through our Purchase Optimization System™, we precision-engineer every micro point of interaction to make that conversation smoother and more effective. As a result, more people make more purchases, boosting your business’s bottom line.

You can learn more by visiting our website at ecommerceoptimizers.com

EPISODE TRANSCRIPT

Scott Reid 0:00
Welcome to the E commerce optimizer Show. I’m your host, Scott Reid. So in today’s episode, we have a very interesting guest, a guy by the name of Izzy Rosensweig. He is the founder and CEO of a company by the name of pointless. And if you have any manufacturing in China, you’re going to want to listen to this episode. What pointless basically does is they fulfill ecommerce orders directly from China to your customers front doors. The benefits are significant things like improved cash flow, reduced inventory risk higher margins, the list really does go on and on, it can really be a game changer for many ecommerce brands. We get into all the details, I know that you’re gonna find this episode interesting. And without any further ado, let’s hop into the episode. This episode is sponsored by ecommerce optimizers. At ecommerce optimizers, we take a unique approach to optimizing ecommerce brands, by fine tuning the conversation between your website and your visitors. And we think about it this way. When someone interacts with your website, they’re having a conversation with your business. They’re assessing things like trust, quality and reliability. They’re asking questions. Through our purchase optimization system, we precision engineer every micro point of interaction to make that conversation smoother and more effective. As a result, more people make more purchases boosting your business’s bottom line. You can learn more by visiting our website at ecommerce optimizers.com. All right, on today’s episode, we have Izzy Rosensweig, who is the founder and CEO of pointless and pointless is a very, very interesting company is he and I connected on on LinkedIn if I’m not mistaken, is that correct? As he and we had a pre call a couple of weeks ago, and so we’re picking it up after the after that conversation. It’s really it’s quite interesting what he does and the efficiencies and the benefits that he and his company delivers to e commerce brands around the world? Is he why don’t we just start out and just tell me what pointless does. So we can put some legs around this. And then what I’d really like to do is get into how did you get into this end of the business. So why don’t we just again, start out with what is pointless do and then we’ll take it from there. Because it’s a great story, for

Izzy Rosenzweig 2:19
sure. And first of all, Scott, thanks for having me very excited to be here. In let’s call it 30 seconds report was does is instead of brands that manufacture in China putting the product in a bow because if they would, they couldn’t, they wouldn’t get their product to sell it for on average two months, they could send it to us we have Performance Center and trends, then we’ll get your product, usually two days after your factories don’t want production. And then you can start shipping that product immediately to your customer once we get it. So two days post production, we get it, we need one day at inbound it, we connect all the tack shop fi wherever techstack you’re on will connect to you. And you can start selling your product to your customer and and what we’ll do is we’ll do a pick pack, we’ll pull off a shop put an envelope will print a USPS label on it. And that product will be delivered at your customer’s front door on average 5.2 days after the transaction. And most importantly, that entire experience for the customer is us experience. They’ll make a transaction they’ll get a USPS tracking number within 24 hours. And then five days later a driver dropped at the front door. So in poreless does is we do what we call direct supply chain direct logistics. You skip the boat, you send you send it to us send us orders, we’ll have it deliver five days post production. So instead of waiting months to sell your product, you’re selling and delivering your product in days after the factory stop production. That’s in that small nutshell what we do.

Scott Reid 3:40
And that’s a great overview. And if I’m not mistaken, the average time is about 60 days, right? I mean from if you’re manufacturing in China, it’s going to take 60 days, put it on up on a boat, ship it over, go through the whole rigmarole. So you’re reducing that timeframe by about 54.8 days, which is pretty, which is pretty slick.

Izzy Rosenzweig 4:04
That was even more the 54. Point is you’re assuming also delivered to the end consumer, oh 60 days is just to get to the port just to get newest facility. When you sell it. The average delivery time for USPS ground advantage is 40 days. Yeah. So

Scott Reid 4:20
if you’re a it’s like a whole two month pickup, it’s literally

Izzy Rosenzweig 4:24
it’s a two month difference. It’s crazy, but it’s a two month difference.

Scott Reid 4:28
So we’ll get into the benefited the additional benefits of this incredible model. But before we get into that, now that we have an overview, if you could tell us how you started the company because your journey is quite interesting. And I always love these stories because it’s not like I gotta believe when you were in high school you weren’t like I’m gonna start specializes in Europe and optimizing the supply chain from China to other parts of the world. Is that correct?

Izzy Rosenzweig 4:57
Absolutely not. Actually I It’s funny is I’m actually a rabbi. I didn’t know that I wanted to. I grew up Orthodox, Jewish and Orthodox, and I went through rabbinical school and I was gonna pursue the, in the early days of potentially going down there have been a call path. But I always ran businesses. And I was, and I always said, like, I never planned the next step. So in the early days, when I got started, all I wanted to do was start a daily deal site in Canada. Right, that’s how I originally got started. Because in 2012, you know, you had one sale a day and daily, like all these famous daily deal websites, and they were hot those days, like the group. And like, Canada wasn’t as as big as the markets. I mean, I’m going to start a daily deal site here. And then that, you know, did well during the daily deal site, you know, craze, but that eventually died down. But in the early days, I was just ecommerce, basically, ecommerce in North America, do deals for products. And I and I dealt with all the chaos, right? I would buy a product from China. But wait two months. Imagine a daily deal site managing two months in advance. Yeah, that’s brutal. And then and then I would sell out and like, oh, I want to sell more. But oh, that will take me another two months. And the more successful work, I’ll just have to buy more product. And there’s never cash right cash or go in and out the door because it was all was always on the water. Cash was always on the water. And it was it was hard to run that business. Then I got really lucky. And I met a former VP of Finance by Alibaba, which lives in Toronto came up early advisor and investor. He introduced me some key operators in China, they used to run Timo global or VPS, Timo global and Taobao and, and they really exposed me to this up and coming space, which is still new back in 2012, or 2013, that point of direct logistics, which is you could actually have your product never leave China, I’m never gonna bow and just ship it in the mail. And we started that business. And then things start spiking, like I never ran out of stock, because it’s always in a factory, my cash cycles were incredible. And we were just growing that business tremendously. And but the early days of that business, it worked, but it wasn’t great. It was like a two, three, delivery, there’ll be Mandrin on the packaging, the mantra and the tracking number customs, like I ordered from your site, why am I saying like, well, we ship and, and they had like a whole like at the old story. But this business kept evolving. And now, especially with large companies like sheen, or Teemu or quince, which is a high end brand, US company and cider, which is a fashion brand, they use this model. And because of the volume of how many companies are using it, logistics got really good. And last three years, deliveries went from weeks to days, and from time to experience to local us experiences. Now you would never know you would never know this product was shipped in China. It literally looks like a scanned and delayed delivery in San Diego. That’s experience and it scan within two days post post transaction. So it’s a totally local experience and you’re growing the business. Then what happened was Apple privacy update came around. And if anyone that’s in the marketing world, that wasn’t a fun time, May of 2021. You know, attribution meant the window, you do a lot of marketing on Facebook, you had no idea if you’re being successful or not. So unit economics, that business wasn’t as good as it was before. So we started to slow down that business. But we had all the infrastructure, we had the expertise, we understood every part of the crossbow logistics model, which is very complex, you’re dealing with planes and digital clearance and import duties. And it is the world we lived in for many years. So we had other brands come to us and say hey, can we leverage your model that you built for your own business? And let us use it because in the world, we’re now Apple’s and free anymore, because no longer is it 2020 21 We need to have better cash cycles, we need to make more margin, we need access to the markets where it’s cheaper to market. And, and it was just a great match for us to start helping these brands. And that’s what we started doing, you know, this point, you know, almost two years. And now that’s all we do, we would have wanted to consume business. And now we just do the logistics which portlets for other American brands, so bit of a journey, never planned to come here but one step at a time. That’s right.

Scott Reid 9:16
Well, well, that’s an interesting, it’s an interesting way that you got to where you’re at today and you’re in Toronto, if I’m not mistaken, correctly referenced that earlier. Great City. I love Toronto haven’t been up there in a while, but it’s on my list to go back. So in terms of were there any big challenges that you faced when you’re shifting from your business to providing logistics solutions for other brands? Yeah,

Izzy Rosenzweig 9:40
I think the probably the biggest challenge is making the decision, right? Like, I ran a consumer brand for 10 years. It’s your brand like you’re just living like making sure every product experiences where every detail the packaging the wrapping paper, like every part then it’s like, they’re like okay, you know, we see a clear opportunity To help other brands, because routine experts of last 10 years, but it was hard, it was hard to walk away from your business. And it didn’t happen overnight, and I kept it running for a bit. Yeah. So I would say like leaving that was a big one. But the transition from like, the difficulties of operations didn’t really change, we really just replaced, you know, our internal brands with external brands. So there was learning curves, we needed now account managers, because, you know, the way we run our business is, you know, it is a white glove experience. So like the brands work with our larger brands, you know, you know, what’s the brands doing north of 5 million a year, which is like, kind of what fits our ICP? So we’d have like, we have local account managers, and we’re on Slack. And we’re, you know, so it’s a different type of customer experience. And that was a bit of a learning curve. But fundamentally, operations never changed.

Scott Reid 10:50
Okay. Excellent. And in terms of why don’t we get into the benefits, because that was one of the things that we spoke about quite a bit. And it’s so intriguing to me is, clearly when you are reducing, or where you’re taking 60 days out of the equation, the direct benefit is your cash conversion cycle is shortened by those 60 days. So let’s talk about that. Because that’s such a huge, huge, huge, incredibly important thing for any business, especially ecommerce brands that have so much cash tied up throughout different parts of their business. And if you’re able to really shrink that time down exponentially. What does that do to a business, just talk about, and maybe we could talk about some case studies too, and some specific examples, because it’s kind of like a holy grail, something that wouldn’t necessarily be available until relatively recently.

Izzy Rosenzweig 11:49
100%. And there’s so many directions to go here. But first, let’s talk about to your points, the cash conversion cycle, which means how long after you invest money into your product to get money out of it? It’s, it’s game changing. It’s not like an optimize of your business by percent. It is game changing difference in the way you run business. So but there’s so many byproducts effects, too. So not only do you get money out of your investment within days, but then how much money did you need to invest to begin with? Because when brands try to predict inventory, they need to add a two to three month buffer? That is so difficult. So not only do you need inventory for four weeks, into the four weeks of like daily operations, plus maybe the buffer, okay, that means if you’re about to add four weeks of EMS, or would it cost you 200 grand or 100? Grand? Now you’re out to probably about 800 grand, because you need real buffer here. Yeah, when you do your math, you’re like one second, I can’t take any risk of being underproduction. Because if I lose sales, I’m losing my Christmas season, I can lose makers, right, right. So what happens you over produce, and when you over produce? Fashion is famous for 30% of our production that goes to landfills, or just doesn’t get sold? That hits your bottom line? Right? Your cost of goods? You didn’t sell it? Yep, warehousing you don’t deal with it, that inventory. Yeah, that’s when you over produce, but then think of another brand, one second, I’m not gonna be that stupid, I’m going to under produce a new produces just as evil. It’s just as bad for your business. Because if you’re under produce, and you’re sold out during Christmas season, on November 20, November 15, you’re losing millions of dollars that it’s not on your books, but it’s invisible losses. And it’s

Scott Reid 13:32
also it’s also a loss of goodwill as well. People look at it, they see it, it’s just it’s a negative brand experience. And when we talk about the thing that’s just just hitting me directly between the eyes, is for businesses that have a seasonality component to them, this is just massively game changing for them. It’s important for any business clearly to be able to reduce your cash conversion cycle by two months. But even more so from a business that has products that are seasonal in nature. One

Izzy Rosenzweig 14:03
quick example before we go on to the other benefits. One of our brands kind of a case study here is a summer apparel brand. They just us June, I think it was June 20. Their best selling item was delayed in production. They put it they were put on a boat, they would start selling at the end of August, they missed the whole season threw back. And they had literally just no option because it was it was it was late production. They found out about us, like 220 If they finished production three days later came to our facility. We start shipping their products to 25th. They captured every single day of summer and not only that they were able to produce more. So not only do they not miss their season, they dormitory immediately went to work and they’re producing more right through the season because this as you’re sewing in this goes back to not only cash cycles, but it’s agility and Inventory, right how fast moving inventory to be sold ramping up. So in their scenario was summer, but in someone’s Christmas scenario, it could be November 10, you’re sold out your best black shirt, whatever your Twitter sign will go back in production, you know, a couple days before whatever it is 10 days before, even if you are out of stock in November 10. If you’re back in stock number 20, if we caught by Friday, got to two weeks of Christmas. So that seasonality be Christmas, summer winter. Besides the fact cash cycles are great, besides the fact you have less than the mean inventory, but your most important seasons don’t go to waste, right? That is like literally that the foundation of why this model changes everything, or DTC. And I’ll go a little deeper. So if you’re in the DVC world, the early thesis of DDC is direct to consumer, right? Really factor to consumer. But if you look at it, what really happened? It wasn’t. It was manufactured within in China. Two months on the water tests, like wild orders, two months in the water. Yep. Local inventory, just like Walmart is local and Tory, what was the difference? You sold it online? Well, online is not DDC online is a distribution channel. So it’s a distribution channel. You know, in a tent on the street as a distribution channel, cheap. So the thesis was, Oh, we’re going to change the economics of the business. No, not really, you just found a good cheap way to market. Right now that marketing is so expensive, arguably people going back into retail. So as DDC really ever, the original thesis was never lived up to what I would call DDC. This model, I would argue, is the true definition DC is now you can run your business actually mandatory. You almost like a marketplace in the DC model, you have very little inventory, you’re constantly stock from the factory, your cash cycles are amazing, your margin is better. And you can do business everywhere. So my argument is DDC had a had a rough patch. Root thesis of DVC is only coming out now. And I believe in the next you know, 10 to 15 years. We’re now the DDC publicly traded companies aren’t looking so pretty, you’re gonna see very healthy publicly traded companies in the future, because you’re running better businesses demand is they’re not going anywhere. dollars the demand the states internationally more. Yeah, so that’s me on a tandem? No,

Scott Reid 17:16
that’s, that’s, I think we’re gonna have to have another podcast episode around that, to be honest with you, because that’s so intriguing. And you can go down so many different rabbit holes when you start looking at it through that lens. A couple guess ways to look at this too, is that you’re providing you’re creating an opportunity for companies to have a much higher level of control over their their future, their destiny, their business, just on a very high level. And you’re also allowing these these businesses to significantly reduce the risk.

Izzy Rosenzweig 17:53
Yes. Used to go get debt that might pay interest rates, why take investment went up even now, we’re still in the first value, which is

Scott Reid 18:03
cash cycle, right? Yeah, we’re still in there’s we have, we have three more to go to at least. Yeah,

Izzy Rosenzweig 18:07
there’s a lot of side, but I’ll cover another two big ones. The big one is in this model. Now, this doesn’t apply to every customer because it only applies to our customers make sense for a model. So caveat here, this model works really well for lighter products. furniture doesn’t do on this business, right? Everything goes on on air cover space. So we have to like if you’re in the apparel business, we’re taking 1000s of orders with shirts and skirts and we’re putting on a single pallet, but the cost per is quite low. Right and we’re always handing over to USPS right near the customer. We do we hand over to USPS. We call it injections in LA Chicago, New York, zona, Texas, Miami, Atlanta, us seven places, depending where your customer is, we’re going to sort it and make sure we give it right near our customer. We’re always zone one, zone two, we have very cost efficient shipping rates. So as long as you’re your local apparel, cosmetics, small atronics, jewelry, all that type of stuff. Under five pounds, let’s call it not only you’re going to have better cash flow, but we’re probably going to crease your gross margin. How are we going to do that? Warehousing overseas is cheaper in the States. pick and pack rates is cheaper overseas than it is in the States. There are no container costs container spotlit from three back to 20,000 and COVID days that goes away. It doesn’t exist. There is no import duties as long as the value of your order is under $100. It is Emperor duty free with section three do you want that for apparel brands that’s as high as 43% on cost. And shipping rates start at $5. Again, the shipping rate starts $5. That’s for a quarter or under $5 For a quarter pounds. As it gets bulkier and heavier, it gets more expensive and at some point that makes sense. But if you’re in the smaller Item World, not only do we just change your cash cycles, you potentially can improve your gross margin and your for as low as five as high as 40% depending on my to your HSA, it’s game changing. So all of a sudden, you know, your cash cycles are amazing. If you’re within the red ICP, you’re also increasing how much money you’re making. So we say not only do you not have dead money on water, your money’s freed up, but you’re making more money. You know, hire people, get partnerships, spend more money in marketing, you know, do whatever you got to do to grow your business. And that’s, that’s value number two. So cash cycles, now we increase your margin. Okay, I value number three is people are now competing, we talked about how digital marketing expensive, yes, that’s in the US. The world is a very big place. Marketing in Europe is cheap in America, in the States, marketing in parts of Asia is even cheaper than that we’re talking to CPMs at a fraction of the cost. And in our model, not only do you need less inventory, but you don’t, you’re not limited to the states, you go, should you go to your shop by store, you open up all the different markets, we help with partners that do tax collection filing for us, yes, we have a taxes to ship over 50 countries around the world. And only that let’s and it’s all local experiences. So your Kia, your Kia, UK customer gets Royal Mail, your Australian customer gets us really opposed. So now everyone’s in local experiences. And to Europe, we ship in under five we’d live in under five days faster in the States. So all of a sudden, you’re not only getting more efficient, but you’re opening new net revenue opportunities that didn’t exist yesterday. Because otherwise, what you’d have to do is send inventory to UK, which is in countries around the world was chaos, or using companies like DHL globally that you’re paying 40 bucks package, our rates to Europe is under $5. So you’re getting cost effective rates, you’re getting local experience to those markets, and you actually have an opportunity to net increase your revenue bringing American brands globally,

Scott Reid 21:50
at opening up markets with significantly lower barriers, then there would be without. So 50 countries, and those companies are typically located to be just give me a broad idea. Of a Europe are the customers

Izzy Rosenzweig 22:06
that we service you’re talking about? Yeah, most of our customers us we have a bulk in Europe, in bulk Australia, yellow in Canada or New Zealand, like we serve as global customers. But most of our customers are usually in US, Europe, UK, Australia,

Scott Reid 22:21
and the countries that you’re shipping to where the

Izzy Rosenzweig 22:25
US being the largest country, UK being the second largest than other countries around Europe. And Australia does not offer

Scott Reid 22:34
anything in South America or no

Izzy Rosenzweig 22:36
South America interesting. Math is a difficult market. We do ship there, we don’t like to do it we South America Logistics is not as good as most other countries. So their customs rules is extremely difficult. So like, we’re most countries, you could do digital clearance for low average order value goods. There’s like everything get like not everything beer often gets stuck at costumes and you got to like certain country tax IDs, like you’re going to go into South Korea and get a tax ID, which is not hard. At least the logistics is good, right? So just a check. I gotta collect the tax ID. But South America specifically has been a very, we haven’t. We haven’t scaled there we are constant looking at they’re constantly testing. You’re seeing it get better. And Chile has gotten really good. But it’s a more difficult cause that part’s not the hard part like getting the it’s not to say it’s easy, but like as long as Shopify collects the tax ideally, it’s not a big deal. It’s all digital tax ID digital clearance good. It’s the countries that don’t actually FX IVs. But they don’t have digital or like easy clearance options. Things get starting to get annoying. And then customers get annoyed. So it’s it’s not an ideal area to do shipping to Asia, all over Asia, Singapore, Philippines, or in Australia, all parts of Europe. You know, tons of volume there. South America is like the one area that has been great about Africa, because that’s how you Yeah, so we do Africa, but for whatever reason our customers don’t scale there is another one that countries you need to you need a tax ID. So it’s like I feel like some brands like oh, how do I do shop it’s like almost like stupid, it’s don’t how to do it. I know from friends that within South Africa, or I noticed that from another person Africa, they have a very strong ecommerce model like it’s actually growing really quickly. But the brands that we service have not like aggressively pursued those markets. What do

Scott Reid 24:31
you have on the ground in China? I believe if I’m not mistaken that you have a whole distribution facility could you talk about that? So

Izzy Rosenzweig 24:38
we have two facilities there we have a bonded facility and non bonded facility just depending on what the customer profile what they need. And it’s our team like it’s it’s our team our operations we have corporations that are we’ve been in for a very long time doing business in our in our look as far as similar business and what the way it works from from a US brand perspective. Everything’s localized. Sure. camp manager is in North America, or wherever your timezone is, well that you speak to boots on the ground in China all speak English. So everything about from the service you get to your customer, the way it’s being delivered. It’s all that Western experience I used to. So like gas, we might do the cross border aspect, we might be in China, we’re also in Vietnam. But you’re going to, it feels like from your perspective, we’re in New Jersey. And that’s like the important thing. So when brands, because we’re a very important part of our brands, business, and we take that seriously. So we want to make sure our brands are fully comfortable. There, their products, fully localized experience no matter what country we’re shipping to. And we and that’s service we bring to our customers.

Scott Reid 25:44
So how does that work? Like, let’s just say that I’m a $10 million business based in the US, I want to get started with you, my average weight is a pound and a half, two pounds. So I’m within that range. Most of my customers are pretty much all my customers are in North America. So let’s just say, Canada and the US. How do I get started with you? And what does that relationship look like? Can you just walk me through that? Because I think that’s, that’s the next logical question for me is, this sounds so great. I’m going to reduce my risk, take control, increase my margins, great all these different economies of scale, just by your the relationship with you, how do I get started? Yeah,

Izzy Rosenzweig 26:27
you reach out to us either on our website, or like, reached out to me on LinkedIn, and we book a call with one of our sales madness. Make sure that it’s a good fit based on your product based on our prices based on whatever makes sense. You join a Slack group we onboard you, you have an account manager does your onboarding, you basically download a Shopify app, it’s a 20 minute ordeal, we become a basically a digital location inside Shopify stores. Now, you could apply our location to whatever skews, you want to do business with us. If you want to test us with a handful skews based on your factories don’t production, you just tell your factory, here’s the address you’re gonna send it to versus putting on a bow, they send it to us, we inbound it, we scan out all of a sudden your inventory is showing up as 1000 or 100. Whatever it is, you start doing sales will start to pick Pack Ship, right, every order within 24 hours out the door. And you just think, Wow, this is working. And I go, Okay, I want more skews at you. And we say well, like we’re fine crawl, walk, run, it’s your supply chain is an important part of your business. One of the most poor marketing businesses, test us out. And everyone that starts with us basically scales with us. So as long as you’re a fit for the model, meaning your products are heavy, it really is a no brainer. Like ships, shipping containers, let’s just think back of where it started started in the 1980s. Prior to that, manufacturing was all local based. My family’s in many factories in the 50s. But in Toronto, but what shipping team has really revolutionized global commerce, right, all of a sudden, you start manufacturing the most cost efficient place, great quality for the customer. And that was that that was a game changing for consumers because you can buy beautiful jackets, beautiful coats with everything for a much cheaper everyone wants. But the the the other side of that equation was while brands one on margin and price, cash was already brutal. This small, like we talked about is game changing. But it’s for E commerce. So if you’re in physical retail, you got to play by the shipping container game, it doesn’t make sense. can’t fly it in just to store it to sell it. Right? If flying in is already halfway through the journey to customers for delivery. That’s where this makes sense. So all we say is like if you’re an E commerce and you fit within this range, it makes no sense not to use it right. And, and what allows you to do is you’re not when you’re selling against Amazon against Walmart, you’re not playing the same game as them because you can’t play the same game. If you want to compete, you can now play a totally different game much healthier in economics much healthier cash flow. It really is. Like we said it’s a fundamental change the way DDC ecommerce can be done.

Scott Reid 29:06
Excellent. One question I did have is that you touched on Shopify, but as I’m looking at the website, now you also have WooCommerce integration. So you’re really integrating with more than just Shopify as well. Yeah.

Izzy Rosenzweig 29:19
Obviously, the largest portion of like DTC brands, both on Shopify, we do custom integrations, we have some really large clients that we deal with, and it’s all open API’s. That’s no problem, like, is testing integration. And, you know, we’ll have to add you to, to the dev teams work. But all the typical platforms that people sell on will integrate, and if we don’t, there’s open API’s. It’s not a big deal. Yeah,

Scott Reid 29:41
I’m looking just to talk about those two because I think it’s relevant. You know, if you’re listening in the car WooCommerce Amazon Squarespace Bigcommerce Tik Tok Magento. So, and there are more as well. So that’s, that’s definitely a huge benefit that you are integrating with, with all the different plans. forms. Where do you see the future? In regard to this going?

Izzy Rosenzweig 30:05
Yeah. So to me this like for us, we’re going to be in all the major manufacturing hubs will be in Vietnam ready in Vietnam will be in India, via Mexico being, you know, Bangladesh, wherever that means, we’ll be there. And, to me, the future is, this is the most cost effective, while giving the same experience your customer the most cost effective and strategic way to run. An E commerce business isn’t already tied, everything’s gonna change much. But now what happens is, you’re gonna see DTC brands, e commerce brands be way more profitable, have way better cash cycles, we were cashflow, I do think these companies will grow and grow and grow, go public, they may start seeing more of these, instead of you’re gonna see DD, DC brands are dropping some value, you’ll see a new segment, these brands are much more capital efficient, and have really good companies as they scale. And, and go global, right, like so I think there’s a huge play. You got to think outside of your country if you want to expand competitively, right? Because it’s only going to be in the states CPMs are just going higher. Right? UK, Europe, Europe, and you’re doing it before everyone else is doing it will probably take a very long time before these other markets get expensive. And I just see that E commerce cloud could be truly DDC, right, like the consumer more than direct right through definition of direct to consumer, but also on a global scale. And I think that’s the future of E commerce.

Scott Reid 31:29
That’s excellent. Well, it’s a really it’s an incredibly exciting business model. And I really was psyched when we met just about a month ago. And if anybody has any questions again, they can reach out to you on on LinkedIn is probably not a ton of Izzy Rosensweig is on LinkedIn. Right there. Yeah. And as well, in which What’s your email that people can email you?

Izzy Rosenzweig 31:53
Yeah, I think the best for that it would actually be to go the website just because it was the right people go to like, excellent. Okay. So portlets.com But you send me a DM on LinkedIn or or X, Twitter. I’ll loop in the right person and we’re going to call set up sick Alomar.

Scott Reid 32:09
Good well, we’ll put everything in the show notes. Is there anything else that you wanted to know?

Izzy Rosenzweig 32:14
Just thank you so much for having me. I think it’s a it’s a it’s a really fun topic, talk about stuff. You’ve been in ecommerce for a long time you kind of see the different absent flows. Right. But I think like I think it’s early days, I think it’s early days of this model just getting healthier and better. Well,

Scott Reid 32:30
it’s a great success story. It’s a great journey that brought you to where you’re at today. And I really appreciate it. Thank you very much again for being on the show. And we will talk to you soon.

Izzy Rosenzweig 32:39
Awesome. Thanks so much for having me. Thanks.