🖥️ Selling TV’s For $0.01.. Really?

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Ecommerce In Focus 📦

📰 News:

• TikTok’s Rivals Are Coming for Its E-Commerce Business

• Web3Bay launches, set to redefine e-commerce

• Online Home Décor Market Set to Reach $375.86 Billion by 2034

• 66% of Consumers Look for Free Shipping When Online Shopping

• New model helps ecommerce platforms proactively identify low-quality products

• China’s super app WeChat bolsters e-commerce credentials via gift-giving feature

• AI-Powered Dynamic Pricing Solution Price Perfect Revolutionizes Ecommerce

🔗 Resources:

• Beginner’s Guide to Print on Demand in 2025 (31+ Hours) 

• Top 10 Australian Dropshipping Suppliers for 2025

• Best Ecommerce Podcast To Scale Your Business HERE

• Ecommerce Email Marketing 2025 Free Course (8+ Hours) | Klaviyo & Shopify

• Top Product Bundling Apps For 2025

💡 Pro Tips:

• Level up, connect with 1000’s of Dropshippers: Skool.com

• 6 Tips on Being a Successful Entrepreneur | John Mullins 

• How to build a brand in 7 mins | Gary Vaynerchuk

• Pro-Tips on Using Google Trends for Ecommerce & Dropshipping

• Join a Community with 1000’s of Dropshippers: Skool.com

Taking Risks

Selling TV’s For $0.01.. Really?: Lessons From Kogan’s Billion Dollar Ecommerce Empire

What if I told you that starting an eCommerce business with nothing but credit cards, pre-sales, and a bold idea could transform into a billion-dollar retail empire? That’s exactly what Ruslan Kogan, founder of Kogan.com, achieved. His journey isn’t just about selling products online; it’s about challenging norms, taking risks, and leveraging every opportunity to build a thriving business. From growing up in Melbourne’s housing commissions to becoming a household name in eCommerce, Ruslan’s story is a masterclass in entrepreneurial grit and ingenuity.

Kogan didn’t just identify a gap in the market—he redefined how Australians shop online. Ruslan Kogan, is known for he’s ability to create buzz & captivate customers with unbeatable deals and innovative strategies. From offering high-demand TVs for just $0.01 to generating massive savings on popular tech products, Kogan has proven that thinking outside the box can yield extraordinary results. These audacious marketing moves cemented Kogan as a brand willing to challenge the norms of retail.

Let’s break it all down and uncover lessons you can apply to your entrepreneurial goals.

The Numbers Behind Kogan.com’s Success

📅 Started: 2006
💳 Initial Capital: $80,000 (funded by credit cards and pre-sales)
💻 First Product: TVs sold on eBay
📈 Revenue Today: Over $1 billion in gross annual sales
🛒 Product Range: 50 million+ items
📧 Crazy Deals: $0.01 TV’s Giveaway Spark Frenzy & Interest

Step 1: Identifying the Opportunity

Ruslan’s eCommerce journey began with TVs. At a time when skeptics believed large products wouldn’t sell online, he saw a unique opportunity. TVs offered high value in a compact, shippable format—ideal for online retail. This insight became the foundation of Kogan.com.

Key Lessons:

• Find Your Niche: Ruslan identified a gap in the market, targeting affordable TVs with efficient delivery.

• Understand Your Product’s Potential: He chose items that leveraged eCommerce’s strengths, like shipping efficiency and high demand.

Step 2: Creative Funding

Lacking traditional funding, Ruslan relied on credit cards and pre-sales to kickstart his business. He convinced friends to lend him credit card funds and listed TVs on eBay, offering delivery within 45 days. This approach provided cash flow to fund his first container order and validated customer demand.

Key Lessons:

• Think Outside the Box: Ruslan’s unconventional funding model reduced risk and eliminated the need for external investors.

• Leverage Pre-Sales: Selling before manufacturing is an effective way to validate demand while minimizing upfront costs.

Step 3: Building a Brand

From the beginning, Ruslan focused on creating a recognizable private-label brand. His emphasis on branding went beyond product quality—it was about creating trust and loyalty. Strategic use of media amplified his brand’s reach and established Kogan.com as a trusted retailer.

Key Lessons:

• Own Your Brand: Private labeling allows for greater control over quality and margins.

• Be Your Own Spokesperson: Ruslan leveraged media opportunities to position Kogan.com as a challenger brand, gaining widespread attention.

Step 4: Scaling Up

With TVs proving successful, Kogan.com rapidly expanded into new categories like soundbars, home appliances, and kitchenware. Using customer search data, the company pinpointed high-demand products to add to its lineup. This data-driven approach enabled efficient scaling.

Key Lessons:

• Follow Customer Data: Insights into customer behavior can guide product expansion and reduce risk.

• Start Small, Then Scale: Validate demand with a limited range before committing to larger-scale launches.

Step 5: Adapting to Challenges

Ruslan’s journey wasn’t without setbacks. During the COVID-19 boom, Kogan.com over-ordered inventory to meet demand, only to face excess stock as the market normalized. Despite these challenges, the company pivoted, focusing on leaner operations and diversifying revenue streams through subscriptions like Kogan Mobile.

Key Lessons:

• Learn from Mistakes: Ruslan turned inventory missteps into an opportunity to innovate and streamline operations.

• Diversify Revenue Streams: Subscriptions and services provided a steady income even during market fluctuations.

Key Takeaways

1. Start with What You Have: Lack of capital shouldn’t stop you. Use creative solutions like pre-sales or small loans to get started.

2. Embrace Mistakes: Every misstep is a chance to learn and improve. What matters most is how you adapt.

3. Invest in Branding: A strong brand builds trust, loyalty, and recognition—critical for standing out in a crowded market.

4. Focus on Value: Whether it’s better pricing, convenience, or choice, excel in at least one area to win customers.

5. Leverage Data: Use customer behavior to guide decisions, from product selection to marketing strategies.

The Final Word

Ruslan Kogan’s transformation from selling TVs on eBay to building one of Australia’s largest online retailers shows that innovation, adaptability, and grit can lead to extraordinary success. Whether you’re starting from scratch or scaling an established business, his story provides a blueprint for achieving your goals in eCommerce. Take Ruslan’s advice and take your first steps.. Start small, think big, and let your journey begin! 

Want to learn more about Ruslan’s journey? Check out the full interview on the Foundr Youtube channel here

Recommended Resources

🌐 Free Dropship Community: Join Now

🎙️ Ecommerce Podcast - Dropshipp - Listen Here

💻 Build Your Ecom Store - Shopify: Start Free

🚚 Dropship Suppliers - Spocket: Discover More

🤖 Ai Advertising Tools - Ad Creative - Begin Now

✉️ Ecom Email Provider - GetResponse: Learn More

💰 Sales Funnels - ClickFunnels: Explore Here

Y Combinator

Insights from Y Combinator’s Top 100: Building Multi-Million Dollar Companies

In the competitive world of entrepreneurship, creating a multi million or even billion-dollar companies may seem like a Herculean task. Yet, as Aaron Epstein, a group partner at Y Combinator, explains in a recent talk, most of the world's biggest companies rely on a small set of business models. By focusing on these proven paths and leveraging strategic insights, entrepreneurs can position themselves for success.

This article dives into Epstein’s insights on business models, lessons from Y Combinator’s top 100 companies, and pricing strategies that can drive growth, all with actionable takeaways for aspiring entrepreneurs and dropshippers.

The Nine Business Models Behind Billion-Dollar Companies

Every successful business starts with a solid way to make money—its business model. Surprisingly, most billion-dollar companies fit into just nine categories:

1. SaaS: Subscription-based software generating consistent revenue.

2. Transactional: Companies like Stripe or Brex that earn by processing transactions.

3. Marketplaces: Platforms like Airbnb and Instacart that connect buyers and sellers.

4. E-commerce: Online retail businesses offering a broad array of products.

5. Advertising: Models relying on user engagement, such as Google or Reddit.

6. Hard Tech: Advanced technology businesses requiring heavy R&D.

7. BioTech: Companies innovating in medicine or biology.

8. Usage-Based: Pricing based on how much the customer uses the product.

9. Enterprise: Targeted at large organizations with customized solutions.

Takeaway: You don’t need to reinvent the wheel. Instead, pick a proven model and adapt it to your niche. For example, dropshipping thrives under e-commerce, but incorporating subscription elements (like membership discounts or premium shipping) can add a SaaS-like component, boosting recurring revenue.

Lessons from Y Combinator’s Top 100 Companies

Epstein analyzed the top 100 companies Y Combinator has funded, revealing powerful trends: 67% of Companies Use 4 Models: SaaS, transactional, subscription & marketplace models dominate because of their scalability and ability to generate predictable revenue.

• Marketplaces Build Industry Giants: While challenging to launch due to their "chicken and egg" problem (balancing supply and demand), successful marketplaces like Airbnb create massive network effects, locking out competitors.

• Transactional Businesses Are Closest to the Money: Stripe and Coinbase thrive by embedding themselves directly in the flow of funds, making it easy to “take a cut.”

• Recurring Revenue Is King: SaaS models make up 31% of the list, highlighting the power of consistent income and high retention.

• Subscription-based e-commerce businesses: Companies like Dollar Shave Club and Blue Apron, have gained prominence by offering recurring, personalized solutions while building brand loyalty.

Takeaway: For dropshippers, consider integrating marketplace elements by featuring exclusive suppliers or niche product categories, creating a unique platform for buyers and sellers.

Why Pricing Matters More Than You Think

Pricing isn’t just about making money—it’s a tool for learning about your customers and refining your product. Epstein shares five key pricing insights:

1. Always Charge for Your Product: Charging helps identify who values your product and how much they’re willing to pay.

2. Focus on Value, Not Cost: Customers care more about the value they receive than how much it costs you to produce it.

3. Most Startups Undercharge: A higher price can convey quality and value, making your product more desirable.

4. Pricing Isn’t Permanent: You can start low and increase prices as you build trust and add features.

5. Keep It Simple: Avoid overwhelming potential customers with complicated pricing structures.

Takeaway: If you're a dropshipper, experiment with pricing strategies. Start with competitive pricing to gain traction, then introduce higher-margin options like premium bundles or expedited shipping.

Key Takeaways for Entrepreneurs

1. Choose a Proven Business Model: Use one of the nine frameworks to simplify decision-making and appeal to investors.

2. Leverage Marketplaces for Growth: Build platforms that generate network effects for exponential scaling.

3. Get Close to the Money: Embed your business directly into the flow of transactions to maximize value.

4. Adopt Recurring Revenue: Find ways to create consistent income streams, like memberships or subscription-based services.

5. Test and Refine Pricing: Experiment with prices to find the sweet spot between value and customer willingness to pay.

The Road Ahead: Building Your Million-Dollar Idea

The path to success doesn’t require groundbreaking new ideas—it requires strategic use of proven business models, pricing strategies, and a relentless focus on customer value. Whether you're running a dropshipping store or launching the next SaaS giant, these principles can guide you toward long-term success.

Remember, the key is to start. Experiment, learn from mistakes, and iterate. The next billion-dollar idea could be yours. Want to dive deeper? Check out Y Combinators YouTube channel here

That's it for this week, hope you got some value out of it.

Cheers,