Stats
- Significant increase in portfolio value due to strategic acquisitions.
- Operational efficiencies leading to higher margins and streamlined processes.
- Expansive growth in product offerings and market coverage.
“Amazon is not just a marketplace; it’s a vast ecosystem where understanding the nuances can make or break your success. Coming from a manufacturing background, I was always intrigued by how products moved and how they reached the end consumer. My journey with Amazon began out of curiosity and necessity, but it quickly grew into a passion. Partnering with WebStreet, I found a platform that not only understood this vision but also had the tools and expertise to scale it beyond what I thought was possible. Together, we’ve navigated the complexities of Amazon, transforming challenges into opportunities and leveraging our unique strengths for unparalleled growth.”
– Andrew Tjernlund, Owner and Operator, Tjernlund Services
Background
Andrew Tjernlund’s entrepreneurial journey is a testament to the power of niche expertise, strategic partnerships, and the willingness to dive deep into the complexities of Amazon’s marketplace.
With a rich background that spans manufacturing and sales and a deep understanding of e-commerce logistics, Tjernlund Services—under the leadership of Andrew—has positioned itself as a leader in Amazon consulting, sales fulfillment, and warehousing. This foundation, built on years of direct experience and a hands-on approach, has enabled Tjernlund Services to offer unparalleled value to brands looking to optimize their Amazon strategy.
“I wanted to partner with WebStreet because they’re well known in the industry, especially because of their background with Empire Flippers. I realized that, as an operator, what I’m good at is operating. Ultimately, what I want to be able to do is operate and grow an Amazon business. And so this was a great opportunity for me to focus on what I do best and allow WebStreet to do what they do best.”
WebStreet, an online investment platform, connects accredited investors with seasoned online business portfolio managers like Tjernlund. This innovative model offers a symbiotic relationship where Tjernlund could leverage WebStreet’s financial and administrative infrastructure to scale his operations. At the same time, WebStreet benefited from Tjernlund’s deep operational expertise and market insights.
The Challenge
Despite Tjernlund’s success and expertise in navigating Amazon’s intricate marketplace, scaling operations without diluting the focus on core competencies remained a significant hurdle. Tjernlund, with his strong foundation in Amazon consulting, sales, fulfillment, and warehousing, was at a crossroads. His business needed to expand its reach and operational capacity yet maintain its high standards of service and expertise.
“Although I’ve been with Amazon and have been selling through the Amazon marketplace for about ten years, the thing that makes my framework special is that we are one of the largest suppliers directly to Amazon.”
The challenge was two-fold:
- Firstly, leverage this unique market position to scale operations and expand the business’s portfolio without losing the expertise and quality that set Tjernlund Services apart.
- Secondly, there was the challenge of optimizing the operational backend—from warehousing to fulfillment—to support this growth while still focusing on the core business strategy.
The Solution
The introduction to WebStreet came at a pivotal moment, offering a solution that addressed both aspects of Tjernlund’s challenge. WebStreet’s model provided the financial and administrative infrastructure necessary for scaling, paired with a strategic partnership that allowed Tjernlund to stay focused on his area of expertise—optimizing and expanding Amazon operations.
This partnership promised to navigate the complexities of growth, ensuring that Tjernlund Services could leverage its unique position in the market, enhance its operational efficiencies, and expand its business footprint without compromising on the quality of service and expertise that had become its hallmark.
a. Initial Integration and Strategy Development
From the onset, it was clear that the partnership needed to be rooted in mutual understanding and respect for each entity’s core competencies. Therefore, the first step involved a detailed vetting process, where WebStreet meticulously evaluated Tjernlund’s operations, market position, and growth potential. This rigorous assessment ensured that WebStreet fully understood the operational intricacies and challenges that Tjernlund faced, laying a strong foundation for the partnership.
b. Strategic Acquisitions and Operational Optimization
With the partnership formally in place, the focus shifted to strategic acquisitions and operational optimization. WebStreet’s financial and administrative support enabled Tjernlund to identify and pursue strategic acquisition opportunities that were previously out of reach. These acquisitions were carefully selected to complement and expand Tjernlund’s existing capabilities and market coverage.
Concurrently, Tjernlund leveraged WebStreet’s support to optimize operational processes, particularly warehousing and fulfillment. This involved streamlining operations, implementing best practices, and leveraging technology to enhance efficiency and reduce costs.
“What I do is I buy great values, and then I run them into my system because I run much more of a scientific system than an artistic system.”
c. Leveraging WebStreet’s Model for Growth
WebStreet’s model was uniquely positioned to support Tjernlund’s growth aspirations. By taking care of the financial, legal, and administrative aspects, WebStreet allowed him to dive deeper into operational efficiencies, strategic acquisitions, and expanding his business’s service offerings.
“I knew early on that we were in good hands. And, ever since I’ve started working with WebStreet, they’re there when I need them. But when I’m just operating, they leave me be and don’t meddle unnecessarily in day-to-day operations.”
d. Continuous Evaluation and Growth
The partnership also established mechanisms for continuous evaluation and adjustment of strategies to ensure alignment with changing market dynamics and business objectives. Tjernlund and WebStreet’s team regularly reviewed performance metrics, market trends, and operational processes to identify areas for improvement and growth opportunities.
This iterative approach allowed Tjernlund to adapt quickly to market changes, capitalize on emerging opportunities, and continuously refine its operations for maximum efficiency and growth.
“Ultimately, I think we can produce cash-on-cash returns in the low to medium range every quarter by making sure that we buy items at a very good value, that they are dominant in a certain category, and that we expand them as much as possible.”
Results
The strategic partnership between Tjernlund and WebStreet has yielded remarkable results, manifesting in substantial growth, enhanced operational efficiencies, and a significant expansion in market reach and product offerings. The collaboration has successfully turned challenges into opportunities, leveraging the strengths of both parties to achieve shared goals.
1. Significant Portfolio Growth
One of the most significant outcomes of this partnership has been the expansion of Tjernlund’s portfolio. Through strategic acquisitions facilitated by WebStreet’s support, Tjernlund has been able to diversify and strengthen his company’s presence on Amazon, solidifying its position as a leader in the marketplace.
“As an operator, the main way that I can value both myself and any kind of fund is being able to operate very well. In addition to WebStreet providing funding, and all the capital and the legal framework, the other thing that they allow for the operator to do is focus on what kind of business they want to do.”
2. Enhanced Operational Efficiencies
The partnership has also led to significant improvements in operational efficiencies, particularly in warehousing and fulfillment processes. As WebStreet takes care of legal matters and investor relations, Tjernlund has been able to focus on optimizing these other aspects of the business, resulting in reduced costs, improved service quality, and faster delivery times, contributing to higher customer satisfaction and increased sales for the acquired online businesses.
“I’m calling you from a conference room, in a 70,000 square foot warehouse. All we do all day in this specific warehouse is pick, pack and ship for Amazon all day long. I understand Amazon operations, so I can look at these businesses and I can figure out where we can lean out and save costs and therefore deliver money to the bottom line.”
3. Expansion of Market Reach and Product Offerings
With WebStreet’s backing, Tjernlund has been able to explore new markets and categories, introducing a wider variety of products to meet diverse consumer needs and preferences. Under his leadership, this expansion has resulted in increased sales.
“The first quarter after an aquisition, you’ve got a pretty good understanding of what the run rate is going to be of that product and then to be able to make informed decisions of how to grow that business from then on forward.”
Conclusion
The strategic partnership between Tjernlund and WebStreet has been a profound journey of growth, innovation, and learning. Through this collaboration, both entities have demonstrated the immense value of combining operational expertise with strategic support to scale operations in the competitive Amazon marketplace successfully. The results speak volumes: significant portfolio expansion, enhanced operational efficiencies, and an extended market reach with diversified product offerings.
By focusing on their respective strengths, Tjernlund and WebStreet crafted a synergistic partnership that propelled Tjernlund’s operations to new heights, setting a benchmark for strategic collaborations in the digital commerce space.
As Tjernlund continues to grow and evolve in his partnership with WebStreet, their journey serves as a testament to the power of collaboration, strategic alignment, and the relentless pursuit of excellence.