Tal Masica, 30, and Zeke Araki, 31, could have entered large companies step by step after graduating from university, but they are really interested in starting a business.
The reason for choosing entrepreneurship is freedom
Therefore, in 2015, these two hairpins joined forces to create fast fashion jewelry company Pavoi. The company sells jewelry on Amazon with prices ranging from $10 to $100, most of which are sold for less than $15.
In order to officially start the business, Masica had to live at home with her parents for the first six months. In order to pay the bills, each partner had to run a side business. It was always difficult to get started. Masica said: "This requires self-discipline and a lot of determination until the business is on track." Nevertheless, they try to focus on the company's long-term vision and goals that may be achieved in three years.
Masica said: "The reason we chose to start a business is freedom. I don't have an office. I can stay in Europe with my friends for four months. I don't know how many people have complete freedom like us."
Their dedication to Pavoi paid off. Last year, they received more than $5 million in revenue through various channels and achieved profitability.
Masica and Araki used hyper-efficient operations to build ultra-lean businesses, and their valuable experience is worth learning from the majority of sellers.
1. Persist in a familiar field
Both Masica and Araki grew up in the jewelry industry. Araki's father ran a fine jewelry store in Washington, while Masica's father was a local high-end jeweller who sold engagement rings.
Although none of their fathers had an e-commerce background or participated in the operation of Pavoi, they learned a lot about the jewelry industry as they grew up. Masica said: "For us, this is not a completely unfamiliar field."
Another situation that is also conducive to their entrepreneurship is that Araki started another company similar to Pavoi in 2010, called Flytime, which is a watch seller on Amazon. Currently, Flytime's revenue has grown to 7 digits.
Because of Araki's sales record in the watch field, he was invited to sell fine jewelry on Amazon, which is Pavoi's sales category on Amazon. Fine jewelry is a closed category on the platform, which means that sellers of this category must be reviewed and approved before entering. Araki explained: "Amazon is to control the quality of the product."
2. Efficient operation, each exhibition's strength
Their team was only themselves, and Masica and Araki realized that if they did their best, they would build a thriving business. Masica said: "A large part of it has to do with extremely efficient operations."
Araki has extensive experience in writing listings, so he is responsible for this part of the business. At the beginning of their business, natural search results were more important than paid search results, so listing was very important. Masica said: "We rely heavily on optimizing our Amazon listings."
Masica's advantage lies in operations, so he handles this part of the business. He uses tools such as inventory management software and A/B testing sites to automate most of the operations as much as possible.
They outsource ordinary office work to contracted virtual assistants, which allows them to focus on higher-value activities such as business strategy and revenue growth.
3. Find a way to stand out
Although fine jewelry is a closed category on Amazon, the competition is fierce, and the founders of Pavoi knew they had to be different. Araki said: "We are very focused on price and quality, you are competing with millions of similar products."
Their first product was a pair of freshwater cultured pearl earrings, which contained a part of sterling silver. Depending on the size, each pair sold for US$13 to US$50. He said that in a specialty retail store, similar earrings usually sell for $100 to $500. In order to provide buyers with competitive prices, they fly overseas to find factories and suppliers, cooperate with them at the right price, and then buy earrings in bulk.
As Amazon continues to change its rules, the founder of Pavoi is also changing. Masica said: "Knowing how to do it is an ongoing battle, and we have invested a lot of money in continuous product development." At the same time, the company is developing a dedicated analysis and inventory management software to enhance its Advantage.
Masica’s advice for creating a high-yield personal business is: “It’s not as easy as it seems. It requires hard work and determination. To reach the peak, you must give up a comfortable life, but it’s all worth it.”
