Alex Hormozi

And also sometimes you'll have to switch three PLs as you scale too.

So even if you have the inventory, somebody might not be able to ship out 10,000 orders a day.

Like when we did the book launch for me,

I had to find three PLs who could ship out millions in 72 hours.

That's absolutely absurd, which is why we had to have multiple across different states in order to make sure that every single person got their book within days, not weeks or even months.

I talked a little bit about the cons, but let's talk about the pros of this.

So e-commerce,

it can scale relatively fast compared to some of the other business models.

And the reason for that is once you have the stuff, I mean, it's really just like how fast can you hand it to somebody in exchange for money?

And if you have a Shopify store or a WooCommerce store, any kind of online store, they can just click and buy, and then you have somebody else who's shipping it straight to them.

As long as they can ship it and they can buy it,

You can sell a lot of them.

The issues is when you run out of stuff, the guys can't produce it, you can't get raw materials, they can't ship enough of them.

These become the constraints.

But fundamentally, if you're operating within all of those, as in they can ship more than you have, you've got enough inventory, as long as people keep buying, the number just goes straight up.

And so what's interesting about this particular business is that it also typically isn't going to be nearly as kind of key man risk from the founder.

Of course, there can always be key man risk for key skills.

But if you have a product that people love and people keep going to your store and buying it, it's a very sellable business.

Okay, and so that's maybe the upside.

Let's talk about the dirty.