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The $100 MBA Show

MBA2571 Why I Quit My E-Commerce Business

The $100 MBA Show

Omar Zenhom

Entrepreneurship, Business, Careers, Marketing

4.82.2K Ratings

🗓️ 10 January 2025

⏱️ 12 minutes

🧾️ Download transcript

Summary

Running a business can sometimes feel like a dream come true—until it becomes a waking nightmare. Ever look at successful e-commerce businesses and wonder what’s really happening behind the scenes? Think high sales always mean high profits? In this raw and honest episode, Omar pulls back the curtain on why he walked away from Zenhom […]

The post MBA2571 Why I Quit My E-Commerce Business appeared first on The $100 MBA.

Transcript

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0:00.0

Did you know the average profit margin in e-commerce is only 10%?

0:05.0

And that's if everything goes smoothly.

0:07.0

In 2009, I started an e-commerce business called Zinnom Design, selling custom tailored clothing for men.

0:13.0

I had a ton of monthly sales, three warehouse locations, and one of the most visited websites in the industry.

0:20.0

But you know what I didn't have?

0:22.0

Profit.

0:22.9

Today, I'm going to share why I walked away from a seemingly successful business

0:26.5

and what I learned that changed the way I approach entrepreneurship forever.

0:34.0

Welcome back to the $100 MBA show.

0:35.9

I'm your host, Omar Zen Home, where I show you how to start, grow, and scale a business with our practical business lessons three days a week, Monday, Wednesday, Friday.

0:44.3

In today's lesson, I'm going to share with you why I quit my e-commerce business even when it looked successful from the outside.

0:51.6

E-commerce can look like a dream business, the sales, the products, the growth

0:56.8

potential. But my journey with Zinom Design taught me some hard truths about low margins, endless

1:04.1

headaches, and why e-commerce isn't as scalable as it seems. Let's dive into the lessons right now. The first thing I want

1:12.6

to do is share with you what was the reality of my e-commerce business. When I started Zinnom Design

1:18.1

back in 2009, I was excited. I was so happy that I have a product that people love, that people

1:24.3

are knocking down my virtual online store doors to buy. It was high quality.

1:30.7

It was the market leader. People were talking about it with their friends and family.

1:35.9

Just a bit of background. We sold custom tailored clothing for men. And the reason why I got into is

1:40.4

because I'm 6'5. It's very hard for me to find clothes that fit me perfectly,

1:45.3

and I was creating these products for myself, so I started to sell it for other people just like

1:51.5

me. The website traffic was incredible. The sales were flowing in effortlessly. And at one point,

...

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