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E361: The 80-20 Rule to Streamlining Your E-Commerce Business

The EcomCrew Ecommerce Podcast · February 1, 2021 · 60 min

Summary

About eighty percent of the most popular classical music comes from only twenty percent of all the composers. When working out, twenty percent of the exercises account for eighty percent of the muscle you gain. This is known as the Pareto principle or the 80-20 rule. In e-commerce, 80 percent of your sales often come from only 20 percent of your entire product line.  In this follow-up Under the Hood session with Nic Dillon, we break down the 80-20 rule and discuss why focusing on a few best sellers is much easier—not to mention more profitable—than handling a lot of SKUs.  Nic runs Old Delhi Music, a company that sells traditional Indian musical instruments like sitars and harmoniums.  In this episode, we also talk about how he got past the mom-and-pop manufacturing industry of India in order to scale his business, how his company fared during a year of COVID, and how to manage an offshore team. Timestamps What Old Delhi Music is all about - 02:37 Why Nic started his own factory in India - 4:08 How to streamline a business with a lot of SKUs - 15:04 <li style="font-weight: 400;" aria-level="

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