Why Your Best Sales Month Might Be Draining Your Cash

If your brand manufactures overseas and a great sales month somehow leaves your bank account tighter instead of looser, you already know the problem this episode solves: cash flow trapped in inventory.

Whether you’re shipping apparel out of China or sourcing jewelry, cosmetics, or electronics from Vietnam, the traditional model of manufacturing 4 to 6 months of inventory at a time and floating it on a boat for weeks is a brutal way to run a business, especially now that de minimis is gone and tariffs are squeezing margins on every order.

That’s why Izzy Rosenzweig is back for his third appearance on eCommerce Fastlane. Izzy is the founder and CEO of Portless, a direct fulfillment platform that operates facilities near your factories in China and Vietnam and ships to customer doorsteps in 75 countries, usually within 5 days. Before Portless, Izzy spent over a decade building and running an ecommerce brand called Browze that grew to $100 million, so he’s lived the exact cash flow problem he now solves for brands doing $1 million to $100 million a year.

In this conversation, Izzy breaks down what’s actually changed since de minimis disappeared, why so many brands that tried moving production to Vietnam or India came running back to China, and the playbook for turning 6 months of tied up inventory into 6 weeks. Whether you’re wrestling with import tax timing or just trying to figure out if this model fits your business, this is the framework.

Let’s dive in. 👇

What You’ll Learn

Why de minimis going away didn’t slow Portless down: the business more than doubled after the exemption disappeared, proof that brands were never really chasing tax free imports, they were chasing cash flow.

The real math on import tax timing: how deferring duties until an item actually crosses the border can mean laying out $100,000 instead of $1 million on the same order, because the real question isn’t whether you pay tax, it’s when.

Why brands that fled to Vietnam and India came running back to China: what happens when you try buying a single roll of fabric outside a manufacturing ecosystem that took 50 years to build.

The 3 question test for whether this model fits your business: whether you manufacture near China or Vietnam, whether your average order is under 3.5 pounds, and whether cash flow, stockouts, or global expansion are actually holding you back.

How brands go from 100% US sales to 7 countries in 6 months: and why international expansion is really a customer acquisition cost strategy in disguise.

The hidden revenue cost of being out of stock: why brands see a 20 to 35% revenue lift in their core markets once they stop running out, and why that number never shows up on a P&L.

Episode Sponsor: MAI Fulfillment

MAI Fulfillment is a 3PL partner for brands that have outgrown basic fulfillment but do not want to get lost inside a massive, inflexible network. We specialize in ecommerce fulfillment, B2B distribution, retail-ready shipping, inventory management, returns, and value-added services that help brands operate with more control and confidence. Our value is in the combination of technology, execution, and real partnership.

We give you real-time visibility, reliable workflows, and operational support that helps prevent small fulfillment issues from becoming expensive customer problems. Whether you are managing online orders, wholesale growth, seasonal spikes, or multi-channel complexity, MAI provides the structure to scale without sacrificing accuracy or service quality. We are practical, responsive, and built around your growth. That is what makes us different from 3PLs that treat every brand the same.

Episode Summary

Every brand that manufactures overseas eventually runs into the same wall: a great sales month means writing an even bigger check to the factory, and that money sits on a boat for weeks doing nothing. Izzy Rosenzweig has built his entire company around solving that one problem. Portless keeps your goods near your factories in China and Vietnam instead of shipping full container loads across the ocean, then flies individual orders out with local tracking labels once a customer actually buys. The result is a domestic feeling delivery experience, usually within 5 days, while the brand only ever has to lay out 4 to 6 weeks of inventory instead of 4 to 6 months.

You’ll get the real story on what changed since Izzy’s last appearance on the show. When de minimis disappeared, plenty of people assumed the entire cross border model would lose its appeal. Instead, Izzy says Portless’s business more than doubled, because the exemption was never the point, cash flow always was. He also breaks down the wave of brands that tried relocating production to Vietnam and India during this year’s tariff turmoil, only to discover they couldn’t buy a single roll of fabric locally without a 10 day delay, and moved back to China.

Izzy also walks through the mechanics that most founders never think about until it’s too late: the difference between paying import tax on a $1 million shipment before you’ve sold a single unit versus deferring that tax until the item crosses the border and actually sells. He lays out a simple 3 question test for whether this model fits your business, built around manufacturing location, order weight under 3.5 pounds, and whether cash flow or chronic stockouts are actually the thing holding you back.

You’ll also hear real examples: a craft brand called Craft Club that Izzy says tripled its business within 3 months of unlocking cash for US, Canada, and UK expansion, and a brand called Memo Bottle that cut its cash conversion cycle from 3 to 4 months down to 4 to 6 weeks. Even MrBeast’s merchandise runs through the Portless network. This isn’t theory. It’s a blueprint for turning tied up inventory into working capital.

Strategic Takeaways

👉 Cash flow, not tax exemption, is the real reason this model works. Portless’s business more than doubled after de minimis disappeared, proving that founders were never chasing a loophole, they were chasing the ability to buy 6 weeks of inventory instead of 6 months. If you’re still measuring supply chain decisions by duty savings alone, you’re missing the bigger lever.

👉 Moving your factory doesn’t move your supply chain. Brands that shifted production to Vietnam or India to dodge tariffs often discovered they couldn’t buy a single roll of fabric locally and had to import raw materials from China anyway, adding 10 day delays. An ecosystem built over 50 years, zippers, embroidery, and material suppliers included, isn’t something you replace in 6 months.

👉 With import tax, the real question isn’t if, it’s when. Traditional importers can owe $400,000 in duties on $1 million of inventory before selling a single unit, while a model that keeps goods near the factory lets you defer that cost until the item actually crosses the border and sells. That timing difference is the entire cash flow advantage.

👉 Run the 3 question test before evaluating any cross border fulfillment model. Ask whether you manufacture in or near China and Vietnam, whether your average order weighs under 3.5 pounds, and whether cash flow, chronic stockouts, or global expansion are genuinely limiting you. Brands doing $1 million to $100 million a year sit in the sweet spot, and skipping this test is how brands waste months chasing a fit that was never there.

👉 Global expansion is a customer acquisition cost strategy, not just a shipping decision. Brands on this model often start at 100% US sales and reach 7 countries with 40% of revenue from outside the US within 6 months, because customers everywhere want the product, and cheaper acquisition costs are often waiting in markets you haven’t tapped yet.

👉 Treat returns as a different operational muscle from shipping, not an extension of it. Grading, inspecting, and forward fulfilling returned inventory across 8 global return centers is a specialized job, and brands that bolt it onto their existing shipping process are often the ones stuck with the slow, multi week return delays that frustrate customers most.

Guest Spotlight

Izzy Rosenzweig
Founder & CEO, Portless

Izzy Rosenzweig is the founder and CEO of Portless, a direct fulfillment platform that operates facilities near factories in China and Vietnam and ships to 75 countries, with most US orders arriving in about 5 days. Portless’s network spans apparel (roughly 40% of the brands it serves), jewelry, cosmetics, electronics, supplements, and even MrBeast merchandise like footballs and sweaters.

Before Portless, Izzy spent over a decade building and running Browze, a marketplace for unique, low cost imported goods that grew into a $100 million ecommerce brand. That firsthand experience with cash tied up in inventory sitting on a boat is what led him to build the direct fulfillment model Portless runs today. Izzy also hosts The Modern Supply Chain podcast, where he talks logistics and DTC strategy with other operators in the space.

This is Izzy’s third appearance on eCommerce Fastlane, and each time he’s come back with a sharper read on how the ground has shifted, from the end of de minimis to the reshuffling of manufacturing that followed this year’s tariff changes. Few guests bring both hands-on operating experience and platform level data to back it up.

Links & Resources

Featured in This Episode:

  • Portless: direct fulfillment platform for ecommerce brands shipping from facilities in China and Vietnam, at portless.com
  • The Modern Supply Chain: Izzy Rosenzweig’s podcast on supply chain and DTC logistics strategy

Tools & Services Mentioned:

  • Loop: returns management platform referenced as an RMA option Narvar: returns management platform referenced as an RMA option
  • AfterShip: returns management platform referenced as an RMA option

Previous Appearances with Izzy Rosenzweig:

  • Episode 300: Beyond Borders, how Portless streamlines global fulfillment for DTC brands
  • Episode 400: Navigating tariffs and supply chain chaos, a Shopify merchant’s survival guide

Thanks for Supporting the Pod!

Over 9 seasons, I’ve been incredibly fortunate to chat with some of the brightest founders building amazing Shopify brands, as well as the partners shaping the app and marketing ecosystem. Every conversation has taught me something new, and I’m grateful for the chance to learn alongside you.

What matters most is that this podcast helps you solve real challenges and discover new ways to grow. Your support, feedback, and stories have made this journey truly special. Thanks for tuning in, sharing your wins and losses, and being part of the eCommerce Fastlane community.

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Get in Touch: Email | LinkedIn

Like Reading? Here’s the Full Episode Transcript 👇

Click to Expand Transcript

Steve Hutt:
Hey there, welcome back to eCommerce Fastlane. I’m your host, Steve Hutt. Today’s conversation is probably going to go down the cash flow path, because I think a lot of brands right now have most of their money tied up in inventory. Some of it is sitting on a boat, or in a warehouse overseas, and that’s a big challenge for a lot of businesses right now.

If you’re still manufacturing overseas and you’ve just had a fantastic sales month that somehow left your bank account tighter instead of looser, you know exactly what I’m talking about today.

My guest is Izzy Rosenzweig, and he’s the founder and CEO of a company called Portless, at portless.com. This is actually “third time’s a charm.”

This is his third time on the show, and every time I have Izzy on, he comes back with something a little bit different. I believe the ground has really shifted a bit since our last conversation. I think our last conversation was around duty‑free shipping options we talked about a few years ago, and I believe that’s now gone. The whole cash and tariff squeeze that’s happening right now with brands is getting harder than ever. I think Portless as a company, and their process, is really built for exactly this moment that brands are in right now.

Izzy, always great to have you back on the show. So welcome.

Izzy Rosenzweig:
Steve, thank you so much for having me. I know it’s the third time. I love the show and I’m very excited. Every time I come here, we always have great conversations. I’m very, very excited to be here.

Steve Hutt:
Thank you. So let’s talk about Portless, because some people may not have heard the other episodes. I’ll put them in the show notes to give some background on who Portless is and why you built this company.

Let’s start high level first, and then we’ll get into some of the changes.

Izzy Rosenzweig:
Amazing. For people that don’t know Portless, at a high level it’s a different way of running your supply chain.

If you think about traditional models, let’s say you’re in the t‑shirt business and you’re manufacturing 10,000 t‑shirts. That could be anything: cosmetics, jewelry, electronics. You typically manufacture four to six months of inventory at a time because you’ve got to put it on a boat, wait 45 to 60 days, then get your goods, and then you start selling them across the US.

That’s a very hard cash flow model. You have to lay out a ton of money and hope you’re making all the right inventory bets. If you miss the bet, now you have excess inventory. If you have a great seller but you’re out of stock, you’ve missed the season.

This traditional model has been around for a long time, but it’s very hard on cash flow.

Portless takes a different model for supply chains. Don’t put your goods on a boat. Keep them near your factories. We have two large facilities in China and one in Vietnam, and we get your goods usually within 24 to 48 hours. Once we get them, you’re ready to sell.

Your customer makes an order, and within 24 hours they get a local tracking label—think USPS or one of the regional carriers. We service 75 countries, and five days later on average to the US there’s a package delivered at their front door with a USPS label. It’s a local experience.

While the consumer has the same experience, brands unlock massive cash flow. Instead of putting four to six months of inventory into the market, because you’re near the factory, you can buy four to six weeks of inventory. So instead of six months, it’s six weeks. That can unlock hundreds of thousands of dollars for larger companies, even millions of dollars of inventory, and you can use that money to operate your business, do marketing, and expand to global countries.

All this can be done starting at about $5 door‑to‑door. It’s not meant for everyone—we’ll talk about that soon. It’s not meant for retailers. It’s meant for e‑commerce players, typically under 3.5 pounds per order. But if you live in that world, there is a better way to run e‑commerce.

Steve Hutt:
What’s interesting is, I remember on our last recording you said, “Hey, Steve, I have an idea. Why don’t you pretend to be a customer and I’ll send you a Portless journal.” I have it in my hand right now. I wish we had video. It’s so interesting how it arrived and how quickly it arrived, with a domestic US label attached to it.

I was just like, wow, that is incredible. This was shipped from China—but kind of, and not really. It’s so interesting how the whole process works. It’s in my hand right now. Can you talk about what happened and how I got this book so quickly?

Izzy Rosenzweig:
I totally forgot about that. I’m so happy I did it.

Steve Hutt:
Yeah.

Izzy Rosenzweig:
Exactly. To your point, it was a totally regional experience. From your perspective, you probably saw a USPS tracking number.

Steve Hutt:
Yep.

Izzy Rosenzweig:
From your perspective, it probably looked like—if you’re in Canada—Canada Post. It probably got flown into either British Columbia or Ontario. In your case, British Columbia.

What happens is the order comes in. We get tens of thousands of orders every day. We take the item off the shelf, put it in a polybag, and put a local label on it. In your scenario, think Canada Post.

Then we build different pallets and sort them depending on where they’re going. If it’s going to the West Coast of Canada, it goes on a pallet, and that pallet goes on a plane. Within 24 hours it’s on a plane to Canada.

If you think about China, it sounds far, but it’s really about 14 to 15 hours away. So within two days that item can be in your regional Canada Post facility. Then it’s out for local delivery. We’re not flying it to Ontario; we’re flying it to British Columbia.

In carrier terms, we call it zone skipping. Instead of injecting it far away from the customer, you inject it very close to the customer. That’s how you get that experience. From your end, it’s a Canada Post tracking number and a Canada Post label. Literally within two days it can be in Canada, sometimes three days within Canada, and then one to two days later it’s delivered at your front door. That’s how it’s done.

Steve Hutt:
Thank you.

Izzy Rosenzweig:
That’s Canada. In the US we have more injection points. If you’re in LA, we’re flying to LAX. We’re flying to six places across the US. Once it hits the local port, it’s delivered within 24 to 48 hours.

Steve Hutt:
Yeah, it’s amazing. I thought it was such an epic experience, and that’s why I wanted to have you on the show again. I want to talk about that because I don’t think a lot of people realize this service is even available. There are lots of people who do, but many who don’t, and that’s why you’re here today.

So what’s actually changed with manufacturing since the last time you were on? You said you have a couple of main locations in China, and you mentioned Vietnam. Has anything physically changed in the manufacturing process over the last year or so since we last spoke?

Izzy Rosenzweig:
Great question. I’d say there were two major things that changed since we spoke.

One was, there were discussions when we spoke that de minimis might go away—this import‑free tax method might go away. The question was, if it goes away, do people still use this model?

Fundamentally, yes. Our business has more than doubled since de minimis went away. While import‑free tax is great and no one will complain about it, the fundamental reason people use this is cash flow.

As I said when I described why we exist, brands are putting out hundreds of thousands of dollars at a time. Where is that inventory? It’s on the boat. It’s not doing anything.

In the example you gave, your best‑selling month should make you happy, but part of you is scared. Why? Now you have to double the PO to your factory. Your million‑dollar month of sales becomes an $800,000 PO to the factory. That’s all out the door. It’s a horrible way to run a business and a hard way to live life. In business, cash is oxygen.

If you’re running things the traditional way, you’re always out of oxygen. So de minimis went away, but there’s no difference in delivery times, no difference in service. Our business has more than doubled since then because cash flow is king. That is why brands use us.

Steve Hutt:
Yeah.

Izzy Rosenzweig:
I’ll add one more thing.

Steve Hutt:
Sure.

Izzy Rosenzweig:
The other thing that changed is the trade war. It was a fun year—definitely not boring.

A lot of brands said, “We’re going to move manufacturing to Vietnam and India,” which are the two common places.

Steve Hutt:
Mm‑hmm.

Izzy Rosenzweig:
We’d already been operating in Vietnam for about two years, and we said, great, we can service you out of Vietnam. But we noticed it was easier said than done. You can say you’ll move a factory, but you can’t move the whole supply chain just because you want to, in six months.

China has 50 years of manufacturing experience and ecosystem: zipper suppliers, embroidery providers, different types of material. A lot of brands moved to Vietnam and said, “Let’s buy one roll of fabric so I can do a new line.” In Vietnam, you can’t buy one roll of fabric. You have to buy 400.

So they say, “Okay, I’ll buy one roll of fabric from Guangzhou in China.” Now that’s a 10‑day delay. What we saw was, while a lot of brands tried to move out, almost all of them came right back to China.

Steve Hutt:
Right. It’s so interesting.

Izzy Rosenzweig:
You know this…

Steve Hutt:
I want to go back to this duty‑free situation, because I really feel that exemption was a pretty big deal for a lot of businesses. With that gone, what does that actually change now for a store owner day to day?

Izzy Rosenzweig:
Great question. Practically, you’re paying taxes now. People complained it was a loophole. I never took that position. I said it was literally the law. As long as it’s within the law, you should follow the law and run the best business possible.

You had facilities in Canada, facilities in Mexico, and facilities in China in our model. The people who used the Mexico model to ship in daily orders to avoid de minimis suddenly had no reason to use Mexico.

So the whole Mexico strategy—or Canada strategy—ended, and almost everyone left. If you don’t have de minimis and you’re not saving import tax, what are you doing in those countries?

In China, we kept growing because the main advantage of our model was being close to your factory. It was about cash flow.

What did change? You have to understand you’re going to pay import tax. There’s no getting around it. You’ll still pay it on FOB China, on your cost of goods. The merchant is the Importer of Record, therefore the merchant pays it based on transaction value.

So on a $100 sweatshirt that you’re selling at retail, if your cost of goods is $20, you’re going to pay import tax on $20.

You have to understand you’re going to pay that import tax, but you can defer it in our model.

First, you might need to raise your price if you didn’t assume you’d have to eat that $2 to $5. You might raise your price from, say, $95 to $99, which isn’t a massive difference.

The other interesting move now that you are paying taxes is the question of when. If you’re a brand in the traditional model and you’re bringing in $1 million of t‑shirts, once it hits the border you’re paying $400,000 to CBP. You haven’t sold a single t‑shirt.

Steve Hutt:
I know.

Izzy Rosenzweig:
That $1 million is now actually $1.4 million out the door, and you haven’t collected a dollar.

In our model, the goods stay outside of the US until you sell them. So instead of laying out $1 million, you lay out $100,000. When you sell your item, you haven’t paid taxes on that yet. Only when that package crosses the border do you pay the import tax.

Fundamentally, what changes is that you have to accept you will pay import tax. The big question is when, and how you can be more strategic in other ways to have better cash flow.

Steve Hutt:
Yeah, so interesting. What about the folks that try to bypass this whole system by manufacturing the end product domestically? Their legal “out” is saying, “Well, these three or four items, these two or three items, or this bottle, this chemical, whatever—we manufacture it, so now it’s made in the US or made in Canada.”

What’s your thought on manufacturing the components individually, then the final product? Does that work with your model, or is that something completely different?

Izzy Rosenzweig:
It’s a fascinating subject. It doesn’t work in our model, but it’s still fascinating.

There are two buckets I’d unpack. Bucket number one is something called HS code engineering or country‑of‑origin engineering. Bucket number two is, can you actually onshore manufacturing?

I’ll first answer bucket number two because it’s simpler. The answer is no. I don’t know of anyone that truly onshored at scale. It’s just too expensive.

Raw materials aren’t here. You don’t have expertise. Making something “Made in USA” is very tough. It is done, and some brands do it very well. Good for them—they pay a premium, but their market is people who want “Made in USA,” so they charge a premium.

Steve Hutt:
Right.

Izzy Rosenzweig:
That’s a great business model. You have a great segment of the audience, but the majority of people want great product at great prices, and that’s basically impossible to do for most consumer goods.

I would say manufacturing locally practically does not happen at scale.

Now, what does happen—and this is your point—some very large, sophisticated brands, think Nike‑sized, will ask, “What is the definition of country of origin?”

At a high level, it’s where the majority of value is being created. Wherever that value is created, that’s the country of origin.

For example, if you send a roll of fabric to Vietnam and the fabric is from China but the t‑shirt is cut and sewn in Vietnam, that t‑shirt is made in Vietnam.

But what if I cut the fabric in China and then sew it in Vietnam? Now it gets interesting.

Steve Hutt:
Mm‑hmm.

Izzy Rosenzweig:
That’s where brands work with trade lawyers and ask, “What can I do? What is the minimum I need to do for assembly or final manufacturing to be considered made in America, made in Mexico, or made in Vietnam?”

It’s a very complex topic, and trade lawyers need to be involved. If you manufacture a little too much in China or overseas, then that’s the country of origin. If you do just the right amount there and then do final assembly elsewhere, you can capture the country of origin in another country.

It is doable and legal; you just have to do it with a trade lawyer and know what you’re doing.

Steve Hutt:
Right. So who do you think is the sweet spot of businesses that work with Portless? I’m asking because I have a diverse range of listeners. There are thousands of people listening to this episode right now, and they’re trying to figure out where they fit.

Where are they today, and what could be the benefit of moving their production to a Portless warehouse for fulfillment from there? I want to make sure we don’t leave people out—those in their early stages trying to get product‑market fit, and then those in mid‑market and enterprise.

Izzy Rosenzweig:
Great question. First off, I’d say there are three questions to ask yourself to see if this is relevant to you.

One, do you manufacture in China, Vietnam, or anywhere near there—Cambodia, etc.? If you manufacture in that area, that’s bucket number one: this could work for you.

Bucket number two: are your orders under 3.5 pounds on average? If they are, you’re highly likely a candidate for this model.

From a pain‑point perspective, ask yourself: does cash flow matter to you? Some people might have tons of cash, but most don’t. It’s very hard at startup, and even at $50 million or $100 million, cash is the oxygen of the business.

Steve Hutt:
Mm‑hmm.

Izzy Rosenzweig:
Are you often out of stock? If you’re out of stock a lot, then the ability to restock quicker is fundamental. That’s an easy sign that you should be looking at this.

The last thing I’d ask is: are you global? Are you selling outside of your core country—US, UK, etc.?

On average, when brands join Portless, they usually start with 100% of their business in the USA. Six months later, they’re in seven countries and 40% of their business is outside the US.

That’s called diversification. That’s called getting more affordable customer acquisition costs in other countries. Your customers live around the world. You have to think outside your country—there are great buyers out there who want your product.

Portless enables that because now you can ship to all these countries, and Portless handles returns. If you have a return, no problem. Portless has eight return centers around the world to help with that process.

Steve Hutt:
Mm‑hmm.

Izzy Rosenzweig:
From a size perspective, as long as your GMV is over about $1 million a year, then it can get interesting. Under that, I’d say it’s a little early—first, nail your product and nail your marketing.

Steve Hutt:
Right.

Izzy Rosenzweig:
But once you’re at $1 million a year plus—call it $1 million to $100 million—that’s usually the sweet spot where we engage with brands.

Steve Hutt:
That’s amazing. Are there any products that you find are more popular on your network?

Izzy Rosenzweig:
Great question. We have quite diverse types of brands. I’d say apparel is usually about 40%. After that, we have many different brands—from jewelry to cosmetics to electronics to accessories.

What I’ve learned—and I get shocked every week when I connect with my team—is that it’s such a big world out there, and people sell really interesting things. I have no idea about some of these brands: toys, plushies. It’s endless. It really is an incredible, dynamic world with people building incredible businesses with great stories and great brands.

Our view is: you own your brand, you own your great product. All you need is to unleash the scale side of it, and we can help you do that—with cash flow, lead time, and going global.

Anything under 3.5 pounds, at a minimum, you owe it to yourself to get educated. We’re nice people—reach out. We’ll meet with you, learn about your business, and tell you if it’s a good fit or not.

In general, we look at ourselves as partners with people, not just a service provider.

Steve Hutt:
Interesting. Are there any products that might be forbidden? The reason I ask is that there are obviously regulations around things like alcohol, CBD, cannabis. Then there are products like supplements that require strict first‑in, first‑out expiration tracking.

What’s your thought on regulated or banned products?

Izzy Rosenzweig:
Great question. We don’t do food today. We have people who want to send candy and similar items, but we don’t handle those.

However, supplements are a huge space and we do support that. First in, first out is just expiration tracking. You need your FDA registration with the factory and your documentation in place.

If you have your documents in place, we can help you with our model. I keep getting surprised—so much of the raw materials, like creatine, come from China. Around 95% of creatine is from China. That’s just where the raw material is.

Steve Hutt:
Interesting.

Izzy Rosenzweig:
There are a lot of supplements produced in China, and we help those brands. We have a line of business around supplements.

I’d say we don’t do food or anything dangerous. We can’t do weapons or knives. Those are examples of products we can’t support.

Steve Hutt:
Now, what about marketplaces? How do you deal with Amazon and Etsy and things like that, where products are clearly manufactured overseas? I have a friend two doors down with a massive Etsy shop. They import wholesale all the components they need, then manufacture in Canada and fulfill worldwide through DHL. That’s their current model.

How does Portless, or can Portless, help with something like Amazon fulfillment?

Izzy Rosenzweig:
Great question. With Amazon—the biggest marketplace—there are two buckets: Amazon FBA and Amazon FBM.

FBA, we help if brands need help. We actually have facilities in Chicago, Vegas, and Atlanta because brands need wholesale and sometimes express orders. If we help a brand, we help them with their whole business. So if you need injection into FBA, no problem: our US facilities can do that. But you can’t use the cross‑border model for FBA.

FBM—let’s say you’re sold out on FBA or you have a big FBM business, or you want to sell FBM in the UK because your product is on fire—we do FBM a lot. It’s not usually our core model; we typically assist on the Amazon side.

If you think about Etsy, Walmart Marketplace, or other marketplaces, in those cases we help them all the time. As long as it’s not FBA, we can assist with injection out of our US facilities. For FBM or Etsy, where you ship on your own and Amazon doesn’t control pick‑and‑pack, we can absolutely help.

Steve Hutt:
I see. You bring up a good point about wholesale. It’s been a big narrative for me over the last few months, and even Shopify has added a B2B component to their core offering.

How does Portless fit into B2B? You know how different B2B is—pallet sizes, how you buy, and so on. What’s your thought process on that?

Izzy Rosenzweig:
We find brands usually start thinking wholesale at roughly $50 million in revenue. That’s what we’ve seen. I know the trend is to go earlier, but that’s when brands often look at it seriously.

What we do is use a separate facility. In China, we can help with packing lists and getting things organized, but then we send it to a US facility. That US facility does wholesale all day, every day. It’s a different muscle from DTC.

Our US facilities are built for that muscle—express orders when needed, next‑day delivery, wholesale orders—but it’s a different workflow. We don’t do bulk wholesale shipments directly out of China. Instead, we’ll send product to the US facility, and that facility will handle FBA injection or wholesale distribution.

Steve Hutt:
I see. Okay, that’s cool. Now let’s talk about the Shopify connection, because that’s something people would love to understand—the actual flow.

If someone says, “Hey, this is interesting to me. Yes, I’m manufacturing in China right now,” and they talk to you or someone on your team about their business model and decide it’s a fit, what happens when you connect the Shopify store and an order comes in?

Can you walk through what’s going on in the back office and what the operations team sees in their Portless dashboard?

Izzy Rosenzweig:
Absolutely. The setup is straightforward. If you’re a Shopify merchant, Shopify just makes life a lot easier.

Steve Hutt:
Yeah.

Izzy Rosenzweig:
To get set up, you download a Shopify app. We set you up with order‑routing logic because Portless is a location in your backend. It’s similar to having two facilities in the US and we’re a third facility, or having one facility and now adding a second.

When you have multiple facilities, you need order‑routing logic. We’ll ask, “Do you want all orders to come to us? Do you want certain orders? Certain SKUs?” We work through that in an onboarding call with the merchant.

Once it’s integrated, onboarding is really a 30‑ to 45‑minute call. We have a full onboarding team and a hypercare team. For your first 90 days, you have a hypercare specialist who works super closely with you. We’re very white‑glove.

We run the integration end‑to‑end. When you’re on Shopify, versus a European or custom tech stack, everything is simpler.

Steve Hutt:
Wicked. You mentioned returns earlier in our recording. Returns are an incredibly important part of the customer experience. There are lots of great tools—Loop, Narvar, and others.

What’s your thought about this existing technology brands use to make exchanges or refunds easy, and how does Portless fit into that mix?

Izzy Rosenzweig:
Great question. There are two parts to returns. There’s the RMA, which is the software where you manage returns, print labels, and present the website interface. We don’t get involved there.

If you like Loop, great. You like Narvar, great. You like AfterShip, great. Whatever you want on the software side is fine by us.

What we find is that the harder problem is the physical aspect: “Okay, I’ve got a label. Where is the package going? Who’s inspecting it? Are we taking pictures? Are we forward‑shipping the good‑quality items after they’re graded?”

That’s where Portless helps. We love brands to have their own return solutions. If you don’t, we can recommend one—but we don’t run the software. We run the physical partnerships with facilities around the world.

Let’s say you sold an item to Australia. The person returns it. It comes in and there’s grading: pictures, grading levels, etc. Once it’s graded, you can put it back on the shelf and forward‑fulfill from there.

If you want to build a global business, you need the full infrastructure, and that includes returns.

Steve Hutt:
Yeah. I always thought returns are a significant cost. I worked with a fashion brand out of LA when I was their merchant success manager, and they had a whole dedicated section in their warehouse just for returns. Literally a 40‑foot container would show up every week.

In fashion and apparel, it’s one of those things where you have to figure it out: what are you going to do? Is it stained or used? Some brands take a really long time. My wife had a return with a well‑known brand and she couldn’t understand why it took three weeks to process. They must have a lot of returns or a poor returns process.

Izzy Rosenzweig:
Totally. I think brands often say, “I have an operation; I’ll just do returns myself.” The “ship‑out” muscle and the “return” muscle are very different, which is why we partner with specialized providers in each country.

It’s a whole different muscle. You have to bring items in, handle them manually, take pictures, and inspect. Doing that right is part of the customer experience.

Steve Hutt:
Yeah, it’s amazing. Do you have any case studies—anecdotally or public—that show brands using you? I always like to hear the warm and fuzzy: here’s what life was like without Portless, and here’s the upside now.

What’s a story you’ve heard from a founder based on their decision to work with you?

Izzy Rosenzweig:
Absolutely. We’re huge on case studies. We’re very fortunate—our customers don’t like us, they love us. We strive for that. We’re big on customer experience.

If you go to portless.com, we’ve got dozens of case studies. One example is Craft Club. They’re a craft company. Before working with us, there was only so much they could grow because there’s only so much cash you can outlay.

When they came to us, they 3x’d their business within three months. They could start investing money more freely. They were selling not just in Australia but now also in the US, Canada, and the UK. The ability to go global unleashed them. They’re incredible founders with an incredible business.

Another example is Memo Bottle. They cut their conversion cycles. It used to take three to four months to get your dollar back from an investment; now it’s four to six weeks. These are just two examples of dozens of real‑life case studies with real brands.

I may have mentioned before that I built this solution myself. I ran a $100 million brand over ten years. Once you move to this model, consumers get the same experience, and sometimes better.

If you have one West Coast facility, we’ll often deliver faster because we zone‑skip. For lightweight items, shipping rates start at about $5. As a brand, your life changes—where you can ship, how much cash comes in the door, when you have to lay out tariffs. It’s just a healthier way to run a business.

I say whenever there’s demand, there will be supply. But how you operate your supply is the difference between going bankrupt and scaling aggressively. That’s what we’re here to power—those brands.

Steve Hutt:
It’s amazing.

Izzy Rosenzweig:
Talk about demand.

Steve Hutt:
I think you power the MrBeast store, right?

Izzy Rosenzweig:
Yes. MrBeast is one of the brands we work with. We’ve done their footballs, not their chocolates.

Steve Hutt:
You don’t do food.

Izzy Rosenzweig:
Correct. We’ve done their footballs, sweaters, and their basketballs back in the day, and hundreds more brands around the world.

Steve Hutt:
That’s so cool. I think the narrative I’m getting is that one of the core benefits of Portless is cash flow.

Izzy Rosenzweig:
Yeah.

Steve Hutt:
You talk about containers and ships sitting out there, and then there’s large demand and suddenly you’re forking over all this money for something you can’t yet sell. You’re saying, “No, you can still have all the demand you want. You’re close to the factory.”

I think that’s the other thing we never really talked about: what happens if there is great forecasting and there is demand, or you didn’t forecast correctly—but since you’re so close to the factory, the MOQs can change on the fly. You can supply that demand because you’re so close to the factory.

Izzy Rosenzweig:
Absolutely. Being out of stock is literally lost revenue. It just doesn’t show up on your P&L because you’re out of stock.

Steve Hutt:
Right.

Izzy Rosenzweig:
People are losing revenue they could be capturing. We’ve done studies on our customers to see how much their revenue increases in core markets because they’re not out of stock. It’s anywhere between 20% to 35%.

Steve Hutt:
Wow.

Izzy Rosenzweig:
How do you measure money you didn’t earn because you were out of stock? We can measure it because we see how their core markets perform before and after joining us. Out of stock is lost revenue—it’s just not on your books.

Steve Hutt:
Yeah, it’s so sad. I see that so many times. I do appreciate that some brands at least have technology on their PDP pages saying, “Email me when back in stock.” That gives some kind of trigger of demand for that particular swatch or color.

But on the flip side, lots of brands just say “out of stock” and don’t give any opportunity. You’ve sent this traffic to the website, the size is out, and you’re not giving them a chance to be notified when it’s back in stock.

Your advantage is that you’re so close to the factory. Things can flip literally on a dime. You have those relationships, and your fulfillment is right there.

Izzy Rosenzweig:
Absolutely.

Steve Hutt:
This is great. What do you think the next steps are? We know the sweet spot of the merchant. If someone’s interested and says, “Hey, I want better net cash flow,” and clearly if you’re under 3.5 pounds this system works—apparel being your largest category, but you do a lot of everything—what do you want people to do next to learn more?

Izzy Rosenzweig:
Go to portless.com. We have case studies, videos, write‑ups, and blogs. We have links to articles on Forbes and Bloomberg. We encourage you to learn more.

If it’s intriguing, we’re very nice people. I’m Canadian as well, Steve—I’m in Toronto. We have people around the world: the US, UK, Australia. We have teams all over.

You can just book a call—submit an inbound inquiry on the Contact Us page. Tell us about your business, and someone will reach out immediately to book a call. At a minimum, you can educate yourself: “This is interesting. What does it mean? What could it mean for me?”

If it’s not for you, no worries. We’re a nice bunch. Feel free to reach out anyway.

Steve Hutt:
I also want to give you a shout‑out for the Modern Supply Chain podcast you have. You’ve had a lot of notable peers on your show, and I think it’s cool that you’re really open to learning what others are doing in the space—other big operators.

Izzy Rosenzweig:
Absolutely. We’re passionate that there’s a better way of doing business. I think Portless is a piece of that, but there are many amazing companies that help this model work.

Steve Hutt:
Yeah, this is amazing. All right—portless.com. Izzy, thank you so much again for recording number three. I guess we’ll have to get something on the books for number four next year.

Izzy Rosenzweig:
I look forward to it.

Steve Hutt:
All right, have yourself a great afternoon.

Izzy Rosenzweig:
You too.

Steve Hutt:
Thank you so much. Take care.

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