Matt De Luca

Co-Founder • SEA Founders • 🇮🇹🇺🇸🇹🇭🇲🇲

[Matt De Luca @MattDeLucaGo]

Can someone once and for all define gross margin clearly.. as I've seen different ways to calculate it. Do you mean CM2 e.g. net revenue ( net of VAT and ideally X% returns allowance) minus payment gateway, cost of good, freight, duties, 3PL storage, pick and pack, delivery to customer and packaging? Like literally everything before CAC? 70/80% like this sounds hard

[Matt De Luca @MattDeLucaGo]

@RomanEcom @robj3d3 Bangkok also a solid option if you ask me. 3 hour flight and youre in Guangzhou. And much much cheaper than HK

[Matt De Luca @MattDeLucaGo]

@Seanfrank The best part about Mike is that besides having had top professional success, he seems like such a nice guy.

[Matt De Luca @MattDeLucaGo]

@drewfallon12 AI creatives

[Matt De Luca @MattDeLucaGo]

@BrandonMChu Fart?

[Matt De Luca @MattDeLucaGo]

@RomanEcom Assuming product market fit is there

[Matt De Luca @MattDeLucaGo]

@RomanEcom @marcbarros Cm2 70% seems excellent, how is that bad margins...? We're talking on net revenue after VAT i assume

[Matt De Luca @MattDeLucaGo]

@RomanEcom @mbertulli Roman, I've noticed you're posting a lot more on X since a month or so? Lot's of practical stuff. Thank you for doing that

[Matt De Luca @MattDeLucaGo]

@stepfanie Where do I learn to write like you. That was surgical.

[Matt De Luca @MattDeLucaGo]

Elon derangement syndrome is real. It's a mind virus. I feel there is an inverse relationship between how much someone likes Elon and their level of knowledge about him. My anecdotal evidence is that every time i meet someone who says they despise Elon, they are people who've never read any of his books or watched full in depth interviews

[Matt De Luca @MattDeLucaGo]

Dead? Of course not. Changing? Always! From a first principles perspective.. is there any sign consumers have stopped buying physical products? Not at all. Is there any sign that consumers now only buy products in physical stores? No.. quite the opposite actually ( growing share of online vs offline spent).... so ecom is simply part of consumer spending and is just another channel through which you have a chance to offer your product to a market. Of course the way you access the market may change over time ( new channels e.g. applovin, tik tok, etc) and new ways of interacting with potential consumers and presenting your product ( ugc, influencers, new UI features on stores etc) evolve.. ultimately these are simply all new ways to earn trust and earn that conversion?

[Matt De Luca @MattDeLucaGo]

@seanfrank True.. but AOV is pretty juicy

[Matt De Luca @MattDeLucaGo]

@PrestonRuther10 Thank you for sharing. Would really love to learn from you how Chubbies has been dealing with seasonality. I assume most of your sales come in the March to August period? Do people buy swimwear as xmas gifts? Would be great if you can share top learnings about seasonality

[Matt De Luca @MattDeLucaGo]

@macastel3 Hmm.. hard to believe.. if 15M NP means over 20 Ebitda assuming around 28 % tax rate.. 57% ebidta? Seems unlikely? Unless owner is francesco totti and 0 ad spend lol.

[Matt De Luca @MattDeLucaGo]

@macastel3 @pauljauregui This sums it up

[Matt De Luca @MattDeLucaGo]

@drewfallon12 Bufffffff 9 MER in our dreams

[Matt De Luca @MattDeLucaGo]

@DTCMidas How long till you decide an angle doesn't work/ an ad set does not perform? 1 week? 2 weeks? Or based on # of conversions? If an ad set doesn't do well for the first 5 days is there a chance it will actually start doing super well in week 2?

[Matt De Luca @MattDeLucaGo]

@seanfrank Actually it's not about revenue per gram but revenue per cubic centimeter.. you want lots of value packed into a small item, not just a light item.

[Matt De Luca @MattDeLucaGo]

@seanfrank @ahmadibrahim Jewelry for example. Value/weight is unmatched

[Matt De Luca @MattDeLucaGo]

@garyblack00 Gary props to you for keeping on posting your thoughtful analysis here despite lots of " i know better" geniuses commenting and bashing you all the time. In any case, you may not be right, the market will decide.. but you provide good discussion points