Ergode - Creating a common ground for customers and vendors

CREATING A COMMON GROUND FOR CUSTOMERS AND VENDORS

CREATING A COMMON GROUND FOR CUSTOMERS AND VENDORS

Founded in 2007, global e-commerce brand Ergode was built more by accident than by design when CEO and Founder Rupesh Sanghavi began selling books on Amazon.

hen he discovered that he could buy books directly from the supplier and sell them on for a significant profit, a business model was born. “I did that transaction and when everything worked just as expected, I think I became addicted to it,” Rupesh says.

However, the business quickly expanded into something much bigger. Today, Ergode is one of the fastest-growing e-commerce companies in the world, processing over five million orders a year using its 21 selfcurated websites and stocking its products in major retailers

“THE GLOBAL SUPPLY CHAIN HAS BEEN ONE OF THE BIGGEST CHALLENGES IN RECENT TIMES FOR MANY COMPANIES AROUND THE WORLD, BUT WHAT HAS BEEN A CHALLENGE IS ALSO AN OPPORTUNITY”

such as Walmart, Lowe’s, Target, Big 5 Corp and many other B2B hypermarkets in the United States.

Rupesh joins us today to discuss the history of Ergode, how the company has built a stronger supply chain during the COVID-19 pandemic and its plans for future development.

Over the seventeen years of the company’s history, there have been significant technological changes at Ergode – particularly in the online retail market, which has grown exponentially. In 2007, the concept of online selling was still in its infancy, so Ergode has had to work hard to stay future-focused. This ability to adapt to changing environments and market conditions is something Rupesh credits as being a result of his generational background.

“Anyone born in the 70s, 80s and 90s is a part of one of those unique

generations where we have seen a massive shift in the way we live our lives,” says Rupesh. “There have been life changing technological innovations from the worldwide web and cell phones to AI. These are all game changers.”

Being a part of this game changing generation has also played a significant role in the way Rupesh runs his company, with one strategy being the use of employee goal setting to foster growth and innovation.

“In our company, we set goals every month,” says Rupesh. “This happens across all levels of the company, and in the last few months we have mandated that everyone should have one AI-related goal.”

Ergode also uses what Rupesh refers to as an integrated approach in its business strategies.

“As much as selling is our end goal, I think it takes a lot from the selection of the item and selection of design,” says Rupesh. “At every touch point – the products we select, how we serve our customers, accurate data analysis – we make sure to innovate with the latest technologies, and everything is more effective and efficient because of it.”

This integrated approach also bleeds into supply chain optimisation,

something the company has had to consider carefully in the wake of COVID-19.

“The global supply chain has been one of the biggest challenges in recent times for many companies around the world, but what has been a challenge is also an opportunity,” says Rupesh. “When COVID-19 happened, things changed so quickly. One week I was in New York for a trade show, and the next we were in lockdown. Fortunately, as our market is in the US, everybody was remote to begin with. So we were lucky in that way, but we still had to develop a software strategy to counter what was coming and what was unknown.

“We began noticing a kite shaped trend was forming, where products

were selling either substantially more or substantially less than they used to. For instance, we were selling a lot more pet products as people were home, and pet ownership became more common. As we started seeing these macro and micro trends, we began investing accordingly. With this increased volume of products, we realised we needed a lot more automation and a lot more people. So we took advantage of the situation and started hiring more people when almost everybody else was letting people go.

“Post-pandemic, we saw the container import rates go up by 10 to 12 times in a short period of time, which made all commercial calculations very difficult. Almost everybody that I know went out

of inventory to sell in 2020 and 2021, but because of that, in 2022 everybody had an excess of inventory.

“This all played a role in the matter of our survival as a business, as we could not afford to under predict or over predict the inventory. Because of this, I think supply chain is the lifeblood of organisations. It's got to be well balanced, well oiled and well managed to be able to achieve what we have achieved in terms of profitability, growth and stability. Supply chain is an essential part of what we do.”

As a relatively small supply chain ecosystem, Ergode relies on thirdparty logistics providers (3PLs) to

maintain flexibility while achieving a global presence.

“We use freight shipments from Asia to the US, Europe and all other parts of the world,” says Rupesh. “Then we use surface transport to bring the items to the warehouses. Until COVID-19, we never had our own warehouse and that was by design, as it makes sense for us to work with companies that are able to do small package delivery such as FedEx, USPS and UPS.

“Anything outside of the United States is a foreign market to us, and we’ve been lucky to sign up with a few freight forwarders who can actually take our packages one at a time and sell them around the

“SANGEAN

world, which has given us a lot of opportunities.”

One such opportunity has been working with leading radio manufacturer SANGEAN as the company’s digital partner, distributing their products globally.

“SANGEAN is one of our most valued partners,” says Rupesh. “That is the definition of an ideal partnership, as they are incredible at producing a quality product. As a family business that’s fifty years old, they’ve mastered the manufacturing and the design. We’re their partner in terms of online selling and online retailing. We’ve been selling their products in the US, and we have quite substantially grown their business as a result.”

From Waves to Wonders: Celebrating SANGEAN’s 50-Year Milestone

As 2024 unfolds, the anticipation mounts for the 50th anniversary of SANGEAN, the pioneering Taiwanese radio company founded in 1974. Five decades ago, SANGEAN embarked on a journey that would revolutionise the audio industry, setting benchmarks for quality and innovation.

SANGEAN has been synonymous with cutting-edge technology and exceptional craftsmanship in the realm of radios. In celebration of this remarkable milestone, SANGEAN has proudly announced the launch of its 50th-anniversary special edition models: WR-101, WR-201D, and WR-7X SE.

www.sangean.com

This, Rupesh believes, is because Ergode offers consumers a convenience that they can’t find elsewhere.

“As the customer moves more towards the online market, we’re bringing products to them wherever they are,” says Rupesh. “That may be an online marketplace like Amazon or Walmart, or it may be on social media such as TikTok.”

Looking to the future, Rupesh shares how the company is excited about the opportunities to grow its ecosystem as a retailer.

“I think what is different about us is the unique balance we have created between reselling thirdparty products and our own brands. As a retailer, we work with over 1,000 partners who give us inventory to sell online and we grow their business, we grow their brand and make their presence felt online. That is something that we are super proud of and have worked on for many years.

“However, in the past three years we have started the acquisition of companies, primarily former vendor partners. Take Vizari, for example. They are a sports shoes and accessories company, who we shared a great relationship

with. But as a first-generation business, the owners wanted to leave the company as they reached retirement age.

“Being a retailer of that product we knew the market for it, and fortunately a deal was worked out where we acquired 100% equity in Vizari. That’s an incredible transition, to go from being vendors to the torch bearer of the brand to then take it forward as new owners. This has been one of the amazing opportunities I’m super excited about, because it means we can assure vendors that we are not only here for the long-term growth of your brand, but should your brand ever need a second line of leadership beyond what you have then you can count on us.”

So, what is the secret to Ergode’s success? For Rupesh, it’s the people.

“This is a symbiotic relationship,” says Rupesh. “We could not have done it without the people who are or were a part of the company at one point in time. It’s important to see how this team of top leadership have formed the company over the years, and those who have joined the company have amply benefited from their leap of faith.”

For further information about Ergode, visit ergode.com.

ADDED VALUE

TRAVEL

Beyond the day-to-day responsibilities, one of Rupesh’s biggest motivators in his role has been having the opportunity to travel. Over the years, he and his family have been able to visit over one hundred countries through his work.

EXPLORATIVE MINDSET

“If you never try, you’ll never know,” is a saying Rupesh lives by. Originally educated as a chemical engineer, creating Ergode was a step outside of his comfort zone, but it’s a step that has massively paid off. His advice to other aspiring entrepreneurs is to adopt the mindset that anything is worth trying at least once.

LEADERSHIP STYLE

Coming from a more formal, corporate environment, Rupesh wanted to take a more open approach to leadership: “Democracy and diversity are much better than hierarchy. I'm known as a leader who will lend a hand to almost anything. I've benefited more from that open, no walls mindset than anything else.”

Connect with Rupesh