Alex Hormozi

They literally buy the same raw materials, but why are you willing to pay so much more for a Nike shirt versus an unnamed shirt?

Because of the brand.

And so even if someone can copy every single thing down to the thread count of your business,

they still can't copy the brand.

And so some of the best brands are in e-commerce because you have to be in order to get big.

And so we think if we translate what brand does, and this applies to all of them, it's super important with e-commerce because it's so easy to commoditize, is that the value that brand delivers is that you have higher click-through rates, as in more people show interest because they have a history of good experiences with you or good word of mouth.

Number two is that you'll have higher repurchase rates.

People will buy once and they'll continue to buy again.

And number three, you'll be able to charge higher premiums for the same thing.

So that means lower cost of acquisition, higher LTV because they're buying more and higher gross profits because they're buying at premium prices.

those are very real benefits of building the big brand and so when you have these types of businesses and they are kicking off cash that means that that is somewhere you have to continually invest to expand and reinforce the associations that you want your products to stand for which also means what affiliates or influencers you're not going to associate with even if they can drive quick sales what discounts you're going to choose to make or not choose to do because of what kind of brand you want to

demonstrate for your target audience.

There's some brands that never do discounts and there's some that live and die on discounts.

And so it really depends on what kind of brand you're trying to build, but you got to be specific about it and you want to be as deliberate about it as you can day one.

And so if this is you, I think probably the most important question is how do you win, right?

I'll just do this by describing the perfect e-commerce company, and then you can reverse engineer what you were missing.

So the perfect e-commerce company would have its own manufacturing that it makes and

It would have a very trusted third party or be able to ship directly out of their manufacturing facility to all the markets that they have.

Now, if they're international, more likely they'll have to have international partners that do the logistics.

But even more likely, if that becomes bigger markets, they'll start creating decentralized manufacturing in each of those markets so they have lower shipping costs and faster turnaround times and faster cycles for returning inventory.