Built To Sell Radio Episode # 290
Eytan Wiener started Quantum Networks as a simple Amazon Reseller of technology gadgets. The business model was basic. Resell a semi-known brand’s product on Amazon, or source a device people wanted in China and resell it on Amazon at a slim margin.
But Wiener wanted more than just a cash flow business. He decided to create a sellable company by promoting his brand (Blucoil), bundling products bought together frequently, and striking exclusive reseller arrangements with some brands. The three tactics jacked sales, took gross margin from around 5% to approximately 20%, and top-line revenue to $30 million, which caught the attention of Advantage Solutions (NASDAQ: ADV).
In this episode, you’ll discover:
Why owning your brand is essential to building a valuable company.
How to differentiate yourself in a sea of competitors online.
The surprising reason Wiener decided to sell.
How inventory is valued.
How to know when an acquirer is motivated to close.
The psychological impact of selling your baby.
About Eytan Wiener
Eytan Wiener, was the Chief Operating Officer and Co-founder of Quantum Networks, an online retail agency for global brands, and played an integral role in the company since its inception. Wiener oversaw the company’s expansion from a startup in 2008 to a multimillion-dollar company in 2014. His oversight gained the company a 4,566% increase in revenue, a rise deemed unprecedented in the industry, making the INC 500 list three years in a row.
Without any prior professional experience in the tech or online industries, Wiener has skillfully deciphered and mastered the e-commerce space to help create and maintain a revolutionary company dedicated to bringing next generation of technology to the masses.
Wiener also co-founded the Prosper Show, the largest and most renowned Amazon Seller Show, in 2016 with key industry leaders James Thomson, a former Amazon executive, Joseph Hansen, founder of leading Amazon agency Buy Box Experts, and Chad Rubin, founder of Skubana.
Both of Mr. Wiener’s ventures were successfully sold to publicly traded companies: Quantum to Advantage Solutions (ADV NASDAQ) in 2020, and Prosper Show to Emerald Expositions (NYSE: EEX ) in 2018.
For more than a decade, Mr. Wiener has created an industry-wide awareness of the discrepancies that occur during the lifecycle of inventory sent by sellers to Amazon’s fulfillment centers. Dissatisfied with both his solutions, as well as those of other providers, Wiener utilized GETIDA and discovered that they made the deepest impact in maximizing financial recovery for his company. GETIDA’s solution significantly affected his company’s bottom-line profit, thereby increasing the total value of the sale price, contributing to Wiener’s successful exit. Wiener led a private investment round in GETIDA in early 2021 and is now the CEO of the company.
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