I’ve been getting up to speed on the latest in e-commerce as I help a friend with his new company. The game has changed a lot since I was actively in the space. Two big things have jumped out at me so far.

First, AI is drastically changing e-commerce. Each person can do more, and AI can handle some tasks, so fewer people are needed to run an e-commerce company. I’ve heard that some large, branded e-commerce companies are running with only 8% of their revenue going toward SG&A expenses. That’s extremely low. AI is also changing marketing. Companies can produce ad creative faster, creating and testing more ads in less time without having to substantially increase overhead.

Next, a ton of branded e-commerce companies are doing over $100 million in annual revenue. Companies’ ability to drive awareness and sales has drastically changed with platforms like TikTok Shops. And it’s easier for companies to scale functions such as importing, warehousing, and fulfillment on a dime through platforms like Flexport, FBA, and FBT. The result of all this is rapid scale for some companies. When I was first starting in e‑commerce, it would take well over a decade to reach $100 million in revenue. That’s if it ever happened; it was rare, with only a handful of brands achieving it after a decade or two of grinding. Now companies can hit those numbers in two or three years!

Overall, I’m learning that the world of e-commerce is transformed. The new class of e‑commerce companies is doing more with less and going further faster.