Episode Number:

90

October 12, 2026

In this episode of The eCom Growth Show, Danan Coleman interviews Andrew Erickson, founder of InventoryHero.ai, to explore his journey from corporate engineer to successful ecommerce entrepreneur. After building and selling three seven-figure Amazon private-label brands, Andrew shares the lessons he learned about inventory management, business exits, financial independence, and the growing role of AI in ecommerce.

From launching a handmade product on Etsy to developing AI-powered inventory forecasting software, Andrew explains how identifying opportunities, managing risk, and embracing new technology can help Amazon sellers build more sustainable businesses.

Meet Andrew: The Engineer Who Built and Sold Amazon Brands

Andrew Erickson is an engineer turned ecommerce entrepreneur with degrees in electrical engineering and applied mathematics. He began selling online in 2015 and went on to build and sell three seven-figure private-label brands.

Today, Andrew is the founder of InventoryHero.ai, an AI-powered inventory forecasting and supply chain management platform. He is also the first-place winner of the 2026 Billion Dollar Seller Summit AI competition.

With over a decade of hands-on ecommerce experience, Andrew combines technical expertise with real-world lessons from building, scaling, and exiting Amazon businesses.

From Corporate Engineering to a Seven-Figure Ecommerce Business

Andrew’s entrepreneurial journey started with a simple product idea: a wooden beer-cap map.

  • While shopping for a gift, he discovered a product selling for around $60 with a six-week backorder.
  • Using his woodworking skills, he created his own version and listed it on Etsy in 2015.
  • His first sale came on the same day he listed the product.
  • Within his first holiday season, the business generated approximately $50,000 in sales.
  • After two to three years of growth, the company reached roughly $1 million in annual sales.

Andrew eventually left his corporate engineering job to focus on growing the business full-time.

Big Idea: You don't need a revolutionary invention to build a successful ecommerce business. Sometimes, recognizing an existing demand and finding a better way to serve it is enough to get started.

The $418,000 Inventory Mistake That Changed Everything

Despite reaching $1 million in sales, he realized stockouts were holding the business back.

  • His calculations estimated approximately $418,000 in lost sales due to stockouts.
  • Frequent inventory shortages prevented the company from meeting existing customer demand.
  • Instead of prioritizing new products or advertising, he recognized inventory management as the biggest growth opportunity.
  • Better forecasting and replenishment planning could help capture sales that were already within reach.

That experience helped shape Andrew’s understanding of the importance of supply chain management and eventually influenced the creation of InventoryHero.ai.

Takeaway: Before spending more money acquiring customers, make sure you have enough inventory to fulfill the demand you're already generating.

Selling Amazon Brands: Why the Exit Multiple Isn’t Everything

Andrew also shares what he learned from selling private-label businesses during very different ecommerce market conditions.

  • His 2021 business exit achieved approximately a 4.3x multiple, with an all-cash deal structure.
  • His September 2025 exit achieved approximately a 3.3x multiple, also with an all-cash structure.
  • During the Amazon aggregator boom, some buyers advertised significantly higher multiples tied to future performance milestones.
  • Those earnout arrangements could leave sellers dependent on results they no longer fully controlled.

Andrew emphasizes the difference between a guaranteed cash payment and a larger headline valuation that depends on future growth.

He also believes the Amazon acquisition market has returned to more reasonable valuations compared with the unusually aggressive deals seen during the aggregator boom.

Smart Play: When evaluating an Amazon business exit, look beyond the advertised multiple. Understand the cash payment, earnout conditions, inventory arrangements, and risks before signing.

Why Entrepreneurs Need to Think About Risk

For Andrew, selling a successful business wasn’t simply about maximizing the sale price. It was also about creating long-term financial security.

  • His first major exit allowed him to move wealth out of his business and into other investments.
  • Diversifying into assets such as stocks and real estate reduced his dependence on a single company.
  • Building financial independence gave him greater confidence to pursue future entrepreneurial opportunities.
  • Having a financial cushion also helped him manage the everyday pressures of business ownership.

Danan and Andrew agree that entrepreneurial success looks different for everyone. A small business covering essential monthly expenses can represent an important milestone, just as a seven-figure exit can.

Key Lesson: Build your business around your personal financial goals, not someone else's definition of success. The ability to manage risk and protect your future is just as important as revenue growth.

How Amazon Sellers Can Start Using AI Today

Andrew believes AI is becoming an essential tool for ecommerce entrepreneurs, but many sellers feel overwhelmed by the number of available platforms.

His advice is simple: start using it rather than waiting for the perfect system.

Some practical applications include:

  • Strategic planning: Use AI to challenge business decisions, identify weaknesses, and explore growth opportunities.
  • Product listing images: Generate and test visuals that could improve click-through rates and conversions.
  • Video advertising: Experiment with AI-generated product videos and compare their performance against traditional creatives.
  • Workflow management: Organize business information, automate repetitive tasks, and streamline operations.
  • Business documentation: Use AI to help draft agreements, organize projects, and prepare operational materials.

Andrew also encourages entrepreneurs to ask AI to challenge their assumptions instead of simply agreeing with their ideas.

For important legal or financial documents, he recommends additional review and involving qualified professionals when necessary.

Actionable Insight: Choose one repetitive task or unresolved business challenge and experiment with using AI to solve it. Consistent experimentation builds familiarity and creates opportunities for meaningful improvements.

AI-Generated Product Images and Videos Are Getting Better

Andrew highlights how quickly AI-generated ecommerce content is evolving.

  • AI image tools can produce convincing product visuals, particularly for simpler product shapes.
  • Complex products with intricate details may still require additional editing and careful verification.
  • AI-generated advertising videos are becoming more competitive with traditionally produced content.
  • Testing different creative approaches remains important for determining what actually converts.

Andrew also introduces OptimizeHero.ai, a tool he developed to help sellers generate Amazon main images and test them with human feedback.

He explains that while AI can accelerate creative production, understanding the purpose of the content is still essential.

Pro Tip: Don't assume AI-generated content will outperform traditional creative. Test images and videos against your existing assets and let actual performance guide your decisions.

InventoryHero.ai: Solving Inventory Problems with AI

After experiencing the financial impact of stockouts firsthand, Andrew developed InventoryHero.ai to help ecommerce businesses improve forecasting and supply chain management.

The platform focuses on several operational challenges:

  • Demand forecasting: Predict future sales and inventory requirements.
  • Inventory visibility: Track stock levels and product movement across the supply chain.
  • Purchase order planning: Determine when and how much inventory to reorder.
  • Multichannel management: Support inventory planning across Amazon, Walmart, TikTok Shop, and Shopify.
  • AI integration: Connect structured inventory information with AI tools through Model Context Protocol (MCP) integrations.

InventoryHero.ai also offers a managed service for brands that want additional support with inventory planning and supply chain coordination.

Andrew clarifies that the service doesn’t source new factories, but it can help coordinate existing supplier relationships and manage inventory movement.

Takeaway: AI becomes much more valuable when it has access to accurate business data. Better forecasting and inventory visibility can help sellers avoid stockouts, reduce operational headaches, and make more informed purchasing decisions.

Start Small, Solve Problems, and Keep Building

One of the most important lessons from Andrew’s entrepreneurial journey is that meaningful success often starts with small accomplishments.

Danan reinforces this point by sharing how his early Amazon sales helped him cover essential expenses during a difficult financial period.

  • Focus on solving one problem before moving to the next.
  • Measure progress against your own business goals.
  • Identify the operational challenges limiting your growth.
  • Use technology to improve processes rather than adding unnecessary complexity.
  • Recognize when your business has reached a point where your time is better spent working on it full-time.
Big Idea: Sustainable ecommerce growth isn't about chasing someone else's revenue numbers. It's about making better decisions, solving real problems, and building a business that supports the life you want.

Connect With Andrew Erickson

Final Thoughts

Andrew Erickson’s journey from engineer to ecommerce entrepreneur demonstrates that building a successful Amazon business requires more than finding a profitable product.

It takes an understanding of inventory, disciplined decision-making, financial planning, and a willingness to adapt as technology evolves.

From discovering hundreds of thousands of dollars in missed sales opportunities to completing multiple seven-figure brand exits, Andrew’s experience highlights the importance of understanding both the operational and financial sides of ecommerce.

His transition into AI-powered inventory management also shows how the problems entrepreneurs encounter while building their businesses can become opportunities to create valuable solutions for others.

For Amazon sellers looking to scale, the message is clear: Focus on solving real problems, manage your risks, and use technology to build a stronger business.

Stay tuned for more episodes of The eCom Growth Show, where successful entrepreneurs share the lessons behind building, scaling, and selling ecommerce businesses while exploring the technologies shaping the future of Amazon selling.