How A 35-Year-Old Woman's Side Hustle on eBay Turned Into a $141 Million Venture

In 2014, a 35-year-old woman named Tori Gerbig took a leap of faith and left her $35,000-per-year job in insurance sales to pursue her e-commerce side hustle with her husband, Chris. They had been experimenting with selling clothes and accessories on online marketplaces like eBay and Facebook. Their online community quickly grew from a few hundred members to over 10,000, reports CNBC make it. Tori realized that she could combine her passion for affordable clothing and relationship-building to help women feel confident in their fashion choices. Today, they own Pink Lily, an online fashion retail business that made $141 million in sales last year and sells an average of 11,000 items per day.

Creating a business plan

When asked for advice by aspiring entrepreneurs, Tori emphasizes the importance of creating a business plan. She acknowledges that the plan doesn't have to be perfect and that changes are expected along the way. However, having a roadmap helps to ensure success. Tori outlines five essential elements of their business plan that contributed to their achievements.

Value proposition and key competitors

The need to identify and strengthen your value proposition. She advises aspiring entrepreneurs to immerse themselves in the market and study the competition. By analyzing other brands and identifying gaps in the market, entrepreneurs can find opportunities to offer something unique. In the case of Pink Lily, Tori noticed a lack of trendy and affordable options for women, which became the foundation of their value proposition.

Ideal customers

Understanding the target audience is crucial for any business. Tori advises entrepreneurs to step into the shoes of their ideal customers and gain a deep understanding of their preferences, challenges, and financial situation. By knowing their customers intimately, businesses can cater directly to their needs. Pink Lily's ideal customers seek trend-driven designs, quality options at accessible prices, and a sense of community and involvement in the brand.

Strongest differentiators

Differentiation is key in a competitive market. Tori encourages entrepreneurs to identify what makes their brand different and better serve their ideal customers. This unique selling proposition can become the central focus of the marketing strategy and online presence. For Pink Lily, offering many items under $50 and fostering a sense of community through social media engagement set them apart.

Preparing for rapid adoption and growth

To build a scalable business, entrepreneurs need to anticipate rapid adoption and plan accordingly. Tori advises considering how to repeatedly service customers, the financial requirements, and how to scale the business to accommodate a high volume of customers. Leveraging customer interest and loyalty to further expand the audience is also crucial for sustainable growth.

Social media marketing strategy

Social media played a significant role in Pink Lily's growth and success. The importance of utilizing platforms like Instagram and Facebook to connect directly with customers. Posting regularly, providing valuable content, and engaging with followers are key aspects of a social media marketing strategy. Tori actively involves her social media followers in decision-making processes, which fosters a sense of community and customer loyalty.

Transforming a side hustle into a multi-million dollar enterprise

Tori's journey from a side hustle on eBay to a $141 million company showcases the potential for success with dedication, strategic planning, and a strong understanding of the target market. By focusing on the value proposition, ideal customers, differentiation, scalability, and social media marketing, entrepreneurs can lay the groundwork for a thriving business.