Alex Hormozi

So what sucks about having e-commerce?

One of the first things that sucks about this business is that in general, most people who own e-commerce stores, they can do significantly more revenue than some of the other business models really quickly.

It's one of the fastest ones you can grow revenue on.

And it's also because people are willing to spend more money for stuff than they are for the other three categories.

There's inherent value because everyone knows there's an inherent cost to creating it and sending it.

So people are just more willing to spend money on it because it's tangible.

And it's the reason if you look at like gross sales, what are some of the top companies in the world?

Walmart.

huge amount of sales.

Amazon, huge amount of sales.

It's stuff, right?

And people love stuff.

And as somebody who came to selling physical products much later in my career, I was amazed at how easy they were to sell compared to some of these other things, which then brings the next question, which is like, okay, well, sometimes they're easier to sell.

People are easy to take their wallet out.

But what makes it harder?

So this is very capital intensive.

Because people know shit costs money,

you also have to have the money to buy the shit.

And so it is capital intensive in that this thing might make profit on paper, but as soon as you make some profit, what are you gonna do with that money?

You gotta go buy more inventory.