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https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0346
Huh.
customer: Mm-hmm. agent: And you started to get, around that time, Procter & Gamble, Kimberly-Clark, and a few others agreed to start directly selling to you. customer: The only reason why they did, by the way, is because we changed the rules with the wholesale club. We, you know, we used to leave them some diapers, an...
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"Maybe they'll get mad, and they'll, like, call P&G."
agent: And you started to get, around that time, Procter & Gamble, Kimberly-Clark, and a few others agreed to start directly selling to you. customer: The only reason why they did, by the way, is because we changed the rules with the wholesale club. We, you know, we used to leave them some diapers, and then we said, "Y...
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[laughs]
customer: The only reason why they did, by the way, is because we changed the rules with the wholesale club. We, you know, we used to leave them some diapers, and then we said, "You know what? Wonder what happens if we take all the diapers." agent: Huh. customer: "Maybe they'll get mad, and they'll, like, call P&G."
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And so, so we tried it, and it, it actually worked. We went in there. We took all the diapers. They said, "You know, our deal was we load the truck up, and you leave us diapers." And we said, "Okay, well, then you don't have to load the truck, but we're taking all the diapers." And they're like, "Whoa, whoa, whoa, wait...
agent: Huh. customer: "Maybe they'll get mad, and they'll, like, call P&G." agent: [laughs]
2,464.236
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Yeah.
customer: "Maybe they'll get mad, and they'll, like, call P&G." agent: [laughs] customer: And so, so we tried it, and it, it actually worked. We went in there. We took all the diapers. They said, "You know, our deal was we load the truck up, and you leave us diapers." And we said, "Okay, well, then you don't have to lo...
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And very soon, they did that, and we got a call from Procter & Gamble, and Procter & Gamble said, "Hey, um, hey, we're doing a favor basically for a very important customer of ours who would like us to sell you. We don't believe in your business model. Nothing's changed on our side, but, but we're going to sell you."
agent: [laughs] customer: And so, so we tried it, and it, it actually worked. We went in there. We took all the diapers. They said, "You know, our deal was we load the truck up, and you leave us diapers." And we said, "Okay, well, then you don't have to load the truck, but we're taking all the diapers." And they're lik...
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All right, so by 2007, this is now about two years, two and a half years after this, this idea really launches. You become Diapers.com. You buy that domain name, and you become Diapers.com. What was the pitch to your investors? Did, did you say to them... Like, what was the vision you laid out for them? Was it, like, g...
customer: And so, so we tried it, and it, it actually worked. We went in there. We took all the diapers. They said, "You know, our deal was we load the truck up, and you leave us diapers." And we said, "Okay, well, then you don't have to load the truck, but we're taking all the diapers." And they're like, "Whoa, whoa, ...
2,515.516
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Yes.
agent: Yeah. customer: And very soon, they did that, and we got a call from Procter & Gamble, and Procter & Gamble said, "Hey, um, hey, we're doing a favor basically for a very important customer of ours who would like us to sell you. We don't believe in your business model. Nothing's changed on our side, but, but we'r...
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That was what you were saying.
customer: And very soon, they did that, and we got a call from Procter & Gamble, and Procter & Gamble said, "Hey, um, hey, we're doing a favor basically for a very important customer of ours who would like us to sell you. We don't believe in your business model. Nothing's changed on our side, but, but we're going to se...
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Baby clothes and everything, yep.
agent: All right, so by 2007, this is now about two years, two and a half years after this, this idea really launches. You become Diapers.com. You buy that domain name, and you become Diapers.com. What was the pitch to your investors? Did, did you say to them... Like, what was the vision you laid out for them? Was it, ...
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And I guess, um, while you were in finance, there was a guy that you had worked with named Lev, Lev Borodovsky. Is that right?
customer: Yes. agent: That was what you were saying. customer: Baby clothes and everything, yep.
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Yes, yeah.
agent: That was what you were saying. customer: Baby clothes and everything, yep. agent: And I guess, um, while you were in finance, there was a guy that you had worked with named Lev, Lev Borodovsky. Is that right?
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And he was, like, a genius, or is maybe. He's, like, a PhD in nuclear physics. Is that right?
customer: Baby clothes and everything, yep. agent: And I guess, um, while you were in finance, there was a guy that you had worked with named Lev, Lev Borodovsky. Is that right? customer: Yes, yeah.
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[laughs] Yeah, and-
agent: And I guess, um, while you were in finance, there was a guy that you had worked with named Lev, Lev Borodovsky. Is that right? customer: Yes, yeah. agent: And he was, like, a genius, or is maybe. He's, like, a PhD in nuclear physics. Is that right?
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And I guess, um, you, uh- ... kind of recruited him to help you figure out a way to make your business more efficient, 'cause he was, like, such a smart guy. What did he figure out? What did... How was he gonna make the business more efficient?
customer: Yes, yeah. agent: And he was, like, a genius, or is maybe. He's, like, a PhD in nuclear physics. Is that right? customer: [laughs] Yeah, and-
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Well, there's a little technicality on, on how you figure the price of shipping. Mostly it's based on weight, but at some point, if the box is big and it's not that heavy, you'll get charged for the actual cube of the box instead of the weight.
agent: And he was, like, a genius, or is maybe. He's, like, a PhD in nuclear physics. Is that right? customer: [laughs] Yeah, and- agent: And I guess, um, you, uh- ... kind of recruited him to help you figure out a way to make your business more efficient, 'cause he was, like, such a smart guy. What did he figure out? ...
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The dimensions, not the weight.
customer: [laughs] Yeah, and- agent: And I guess, um, you, uh- ... kind of recruited him to help you figure out a way to make your business more efficient, 'cause he was, like, such a smart guy. What did he figure out? What did... How was he gonna make the business more efficient? customer: Well, there's a little techn...
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The dimensions, yeah, the dimensions instead of the, instead of the weight. So we noticed that there was still a lot of empty space in every box. We put diapers, we put formula, we put baby food, whatever, and then you look at what percentage of the box were those products actually taking up. It was, like, maybe, like,...
agent: And I guess, um, you, uh- ... kind of recruited him to help you figure out a way to make your business more efficient, 'cause he was, like, such a smart guy. What did he figure out? What did... How was he gonna make the business more efficient? customer: Well, there's a little technicality on, on how you figure ...
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So the idea was, if we can be super efficient with the way we package things and then how we ship them, we actually might be able to make money even off diapers?
customer: Well, there's a little technicality on, on how you figure the price of shipping. Mostly it's based on weight, but at some point, if the box is big and it's not that heavy, you'll get charged for the actual cube of the box instead of the weight. agent: The dimensions, not the weight. customer: The dimensions, ...
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Nope.
agent: The dimensions, not the weight. customer: The dimensions, yeah, the dimensions instead of the, instead of the weight. So we noticed that there was still a lot of empty space in every box. We put diapers, we put formula, we put baby food, whatever, and then you look at what percentage of the box were those produc...
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No.
customer: The dimensions, yeah, the dimensions instead of the, instead of the weight. So we noticed that there was still a lot of empty space in every box. We put diapers, we put formula, we put baby food, whatever, and then you look at what percentage of the box were those products actually taking up. It was, like, ma...
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Could not make money on diapers, but-
agent: So the idea was, if we can be super efficient with the way we package things and then how we ship them, we actually might be able to make money even off diapers? customer: Nope. agent: No.
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You knew that you couldn't.
customer: Nope. agent: No. customer: Could not make money on diapers, but-
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Yes.
agent: No. customer: Could not make money on diapers, but- agent: You knew that you couldn't.
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But?
customer: Could not make money on diapers, but- agent: You knew that you couldn't. customer: Yes.
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But you could make money because the way shipping works is if you're shipping a box of diapers to someone and you have empty space in that box, the marginal cost to ship the next thing you put in the box is very, very small.
agent: You knew that you couldn't. customer: Yes. agent: But?
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Right.
customer: Yes. agent: But? customer: But you could make money because the way shipping works is if you're shipping a box of diapers to someone and you have empty space in that box, the marginal cost to ship the next thing you put in the box is very, very small.
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Very low. Like, it might be you put something that weighs a pound into that same box, it might cost you 10 cents of incremental shipping.
agent: But? customer: But you could make money because the way shipping works is if you're shipping a box of diapers to someone and you have empty space in that box, the marginal cost to ship the next thing you put in the box is very, very small. agent: Right.
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Right.
customer: But you could make money because the way shipping works is if you're shipping a box of diapers to someone and you have empty space in that box, the marginal cost to ship the next thing you put in the box is very, very small. agent: Right. customer: Very low. Like, it might be you put something that weighs a p...
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So the margin on the margins was great.
agent: Right. customer: Very low. Like, it might be you put something that weighs a pound into that same box, it might cost you 10 cents of incremental shipping. agent: Right.
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That means you had to encourage consumers to buy more for every order. Is that, is that right?
customer: Very low. Like, it might be you put something that weighs a pound into that same box, it might cost you 10 cents of incremental shipping. agent: Right. customer: So the margin on the margins was great.
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0377
That's exactly right, yeah. Buy more stuff. Buy baby clothes.
agent: Right. customer: So the margin on the margins was great. agent: That means you had to encourage consumers to buy more for every order. Is that, is that right?
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0378
Yeah.
customer: So the margin on the margins was great. agent: That means you had to encourage consumers to buy more for every order. Is that, is that right? customer: That's exactly right, yeah. Buy more stuff. Buy baby clothes.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0379
Buy pacifiers.
agent: That means you had to encourage consumers to buy more for every order. Is that, is that right? customer: That's exactly right, yeah. Buy more stuff. Buy baby clothes. agent: Yeah.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0380
So how did you do that?
customer: That's exactly right, yeah. Buy more stuff. Buy baby clothes. agent: Yeah. customer: Buy pacifiers.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
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I think we just built a really good user experience online. Um, we had everything that Mom and Dad could possibly want for their baby. They were all first party, so that w- was... We didn't have third-party sellers. Like, everything was handpicked by us, and we had all the products that moms would want. And we organize...
agent: Yeah. customer: Buy pacifiers. agent: So how did you do that?
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0382
How were you getting the other stuff, the clothing and the, you know, the other products? Was it... Were, were retailers coming to you and saying, "Hey-"
customer: Buy pacifiers. agent: So how did you do that? customer: I think we just built a really good user experience online. Um, we had everything that Mom and Dad could possibly want for their baby. They were all first party, so that w- was... We didn't have third-party sellers. Like, everything was handpicked by us,...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0383
No.
agent: So how did you do that? customer: I think we just built a really good user experience online. Um, we had everything that Mom and Dad could possibly want for their baby. They were all first party, so that w- was... We didn't have third-party sellers. Like, everything was handpicked by us, and we had all the produ...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0384
No. [laughs] Okay.
customer: I think we just built a really good user experience online. Um, we had everything that Mom and Dad could possibly want for their baby. They were all first party, so that w- was... We didn't have third-party sellers. Like, everything was handpicked by us, and we had all the products that moms would want. And w...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0385
Like, once again, much harder than you possibly could imagine trying to convince retailers to sell you product. I didn't... I had no idea. I was never in retail. [laughs] And we had to fight really hard to get manufacturers to sell us products.
agent: How were you getting the other stuff, the clothing and the, you know, the other products? Was it... Were, were retailers coming to you and saying, "Hey-" customer: No. agent: No. [laughs] Okay.
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0386
One thing I'm wondering about, 'cause I'm trying to put myself in your shoes, right? And our listeners know, and anyone who knows me, is that I have, uh, probably more anxiety than you do, but, but maybe you do, too, and you just kinda hide it better. But I would be worried if I was, like, in my mid-30s and I was, like...
customer: No. agent: No. [laughs] Okay. customer: Like, once again, much harder than you possibly could imagine trying to convince retailers to sell you product. I didn't... I had no idea. I was never in retail. [laughs] And we had to fight really hard to get manufacturers to sell us products.
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Llama-3.3-70B-Instruct_20260713T143033Z
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https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0387
Yeah
agent: No. [laughs] Okay. customer: Like, once again, much harder than you possibly could imagine trying to convince retailers to sell you product. I didn't... I had no idea. I was never in retail. [laughs] And we had to fight really hard to get manufacturers to sell us products. agent: One thing I'm wondering about, '...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0388
... I'd be nervous about me, I'd be nervous about the, the people who came to work for me and whether they were gonna have jobs, and, like, they depended on me and their families depend on me. And, like-
customer: Like, once again, much harder than you possibly could imagine trying to convince retailers to sell you product. I didn't... I had no idea. I was never in retail. [laughs] And we had to fight really hard to get manufacturers to sell us products. agent: One thing I'm wondering about, 'cause I'm trying to put my...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0389
Yeah. No, I had, I had a seven-year-old, I had a four-year-old, and I had all my family and friends invested in the business, losing money every day. And I just always thought-
agent: One thing I'm wondering about, 'cause I'm trying to put myself in your shoes, right? And our listeners know, and anyone who knows me, is that I have, uh, probably more anxiety than you do, but, but maybe you do, too, and you just kinda hide it better. But I would be worried if I was, like, in my mid-30s and I wa...
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all my family and friends invested in the business
medium
Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0390
Hmm
customer: Yeah agent: ... I'd be nervous about me, I'd be nervous about the, the people who came to work for me and whether they were gonna have jobs, and, like, they depended on me and their families depend on me. And, like- customer: Yeah. No, I had, I had a seven-year-old, I had a four-year-old, and I had all my fam...
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Llama-3.3-70B-Instruct_20260713T143033Z
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https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0391
... like, "What do we need to figure out? What do we need to do? What's the problem? What's the next hurdle?"
agent: ... I'd be nervous about me, I'd be nervous about the, the people who came to work for me and whether they were gonna have jobs, and, like, they depended on me and their families depend on me. And, like- customer: Yeah. No, I had, I had a seven-year-old, I had a four-year-old, and I had all my family and friends...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0392
Yeah.
customer: Yeah. No, I had, I had a seven-year-old, I had a four-year-old, and I had all my family and friends invested in the business, losing money every day. And I just always thought- agent: Hmm customer: ... like, "What do we need to figure out? What do we need to do? What's the problem? What's the next hurdle?"
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0393
Like, "What do we have to do?" And, and that was, like, motivating me.
agent: Hmm customer: ... like, "What do we need to figure out? What do we need to do? What's the problem? What's the next hurdle?" agent: Yeah.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0394
Yeah.
customer: ... like, "What do we need to figure out? What do we need to do? What's the problem? What's the next hurdle?" agent: Yeah. customer: Like, "What do we have to do?" And, and that was, like, motivating me.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0395
You know? It was, it was sort of like a challenge. It always came down to, like, are we gonna be able to make payroll? Like, so it, it was... It's never been easy.
agent: Yeah. customer: Like, "What do we have to do?" And, and that was, like, motivating me. agent: Yeah.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
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Yeah. But it sounds like it didn't... I don't... You didn't get that, like, horrible, sick feeling in your stomach about that possibility. Maybe the way you're wired, it just enabled you to kind of feel like it's gonna be okay.
customer: Like, "What do we have to do?" And, and that was, like, motivating me. agent: Yeah. customer: You know? It was, it was sort of like a challenge. It always came down to, like, are we gonna be able to make payroll? Like, so it, it was... It's never been easy.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0397
Yeah, I like to talk about the sixth gear, because that's the only thing I can, I can say is that I didn't know it at the time. I was working in banking, working really hard, working really long hours, but I never got out of fourth gear.
agent: Yeah. customer: You know? It was, it was sort of like a challenge. It always came down to, like, are we gonna be able to make payroll? Like, so it, it was... It's never been easy. agent: Yeah. But it sounds like it didn't... I don't... You didn't get that, like, horrible, sick feeling in your stomach about that ...
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https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0398
Hmm.
customer: You know? It was, it was sort of like a challenge. It always came down to, like, are we gonna be able to make payroll? Like, so it, it was... It's never been easy. agent: Yeah. But it sounds like it didn't... I don't... You didn't get that, like, horrible, sick feeling in your stomach about that possibility. ...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
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https://rss.art19.com/ep…e86fb433970_0399
It's only when you have your life on the line and you can't afford to lose can you find the sixth gear. And when you're in that sixth gear, at least for me, it's like a out-of-body experience. It is like you don't have time to worry, think, be anxious. Just have time to do.
agent: Yeah. But it sounds like it didn't... I don't... You didn't get that, like, horrible, sick feeling in your stomach about that possibility. Maybe the way you're wired, it just enabled you to kind of feel like it's gonna be okay. customer: Yeah, I like to talk about the sixth gear, because that's the only thing I ...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0400
I think what's so fascinating to me about everything I've been reading about Diapers.com is it was, like, multi-pronged. Your, your strategy was multi-pronged. It was like, "Okay, we're gonna... Diapers will be the entry point. We'll sell a bunch of stuff, and then we'll be super efficient. We'll be really efficient, a...
customer: Yeah, I like to talk about the sixth gear, because that's the only thing I can, I can say is that I didn't know it at the time. I was working in banking, working really hard, working really long hours, but I never got out of fourth gear. agent: Hmm. customer: It's only when you have your life on the line and ...
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0401
Yeah, we had to, we had to have every cost advantage we could find. But the, the vision was even bigger than just selling everything for, that moms and dads would want for baby. It was, "We're gonna sell parents everything." So we, we launched another website that was Wag.com for pets-
agent: Hmm. customer: It's only when you have your life on the line and you can't afford to lose can you find the sixth gear. And when you're in that sixth gear, at least for me, it's like a out-of-body experience. It is like you don't have time to worry, think, be anxious. Just have time to do. agent: I think what's s...
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0402
Right
customer: It's only when you have your life on the line and you can't afford to lose can you find the sixth gear. And when you're in that sixth gear, at least for me, it's like a out-of-body experience. It is like you don't have time to worry, think, be anxious. Just have time to do. agent: I think what's so fascinatin...
2,877.616
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agent
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0403
... and Soap.com for household supplies. Yeah, drugstore stuff.
agent: I think what's so fascinating to me about everything I've been reading about Diapers.com is it was, like, multi-pronged. Your, your strategy was multi-pronged. It was like, "Okay, we're gonna... Diapers will be the entry point. We'll sell a bunch of stuff, and then we'll be super efficient. We'll be really effic...
2,877.706
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0404
Beautybar.com, which was makeup and cosmetics, right?
customer: Yeah, we had to, we had to have every cost advantage we could find. But the, the vision was even bigger than just selling everything for, that moms and dads would want for baby. It was, "We're gonna sell parents everything." So we, we launched another website that was Wag.com for pets- agent: Right customer: ...
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0405
Yep. Yoyo.com was toys. Casa.com was home. We had, like, 10 websites.
agent: Right customer: ... and Soap.com for household supplies. Yeah, drugstore stuff. agent: Beautybar.com, which was makeup and cosmetics, right?
2,885.576
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customer
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0406
And this is where you kind of started to operate under the parent name Quidsi.
customer: ... and Soap.com for household supplies. Yeah, drugstore stuff. agent: Beautybar.com, which was makeup and cosmetics, right? customer: Yep. Yoyo.com was toys. Casa.com was home. We had, like, 10 websites.
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0407
Yeah, Quidsi. We changed the, the corporate name to Quidsi. But we wanted to keep the specialty stores-
agent: Beautybar.com, which was makeup and cosmetics, right? customer: Yep. Yoyo.com was toys. Casa.com was home. We had, like, 10 websites. agent: And this is where you kind of started to operate under the parent name Quidsi.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0408
Mm-hmm
customer: Yep. Yoyo.com was toys. Casa.com was home. We had, like, 10 websites. agent: And this is where you kind of started to operate under the parent name Quidsi. customer: Yeah, Quidsi. We changed the, the corporate name to Quidsi. But we wanted to keep the specialty stores-
2,900.196
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agent
eng
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0409
... because we felt that was sort of the magic, as opposed to just a mass merchant where you sold everything.
agent: And this is where you kind of started to operate under the parent name Quidsi. customer: Yeah, Quidsi. We changed the, the corporate name to Quidsi. But we wanted to keep the specialty stores- agent: Mm-hmm
2,900.576
2,905.545
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0410
Right.
customer: Yeah, Quidsi. We changed the, the corporate name to Quidsi. But we wanted to keep the specialty stores- agent: Mm-hmm customer: ... because we felt that was sort of the magic, as opposed to just a mass merchant where you sold everything.
2,905.545
2,905.555
agent
eng
en
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
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But we had one shared shopping cart. So you can shop on Diapers.com, add stuff to your cart, you can click on the Wag tab, it turns to Wag.com. Now it feels like a pet specialty shopping experience-
agent: Mm-hmm customer: ... because we felt that was sort of the magic, as opposed to just a mass merchant where you sold everything. agent: Right.
2,905.556
2,915.576
customer
eng
en
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0412
Mm-hmm
customer: ... because we felt that was sort of the magic, as opposed to just a mass merchant where you sold everything. agent: Right. customer: But we had one shared shopping cart. So you can shop on Diapers.com, add stuff to your cart, you can click on the Wag tab, it turns to Wag.com. Now it feels like a pet specialt...
2,915.576
2,915.586
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0413
... but you add it into the same cart and you check out.
agent: Right. customer: But we had one shared shopping cart. So you can shop on Diapers.com, add stuff to your cart, you can click on the Wag tab, it turns to Wag.com. Now it feels like a pet specialty shopping experience- agent: Mm-hmm
2,915.586
2,917.436
customer
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0414
Mm-hmm.
customer: But we had one shared shopping cart. So you can shop on Diapers.com, add stuff to your cart, you can click on the Wag tab, it turns to Wag.com. Now it feels like a pet specialty shopping experience- agent: Mm-hmm customer: ... but you add it into the same cart and you check out.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0415
Yeah.
agent: Mm-hmm customer: ... but you add it into the same cart and you check out. agent: Mm-hmm.
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customer
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0416
All right. Now we're going to get into the chapter of your life where you begin to encounter Amazon. You know, you guys were, I think by the end of 2010, you were on track to do 300 million in revenue. You were still not yet profitable, if, if I'm right, but, but it-
customer: ... but you add it into the same cart and you check out. agent: Mm-hmm. customer: Yeah.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0417
Mm-hmm
agent: Mm-hmm. customer: Yeah. agent: All right. Now we're going to get into the chapter of your life where you begin to encounter Amazon. You know, you guys were, I think by the end of 2010, you were on track to do 300 million in revenue. You were still not yet profitable, if, if I'm right, but, but it-
2,936.014
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customer
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0418
... but there was a path to profitability. It started to look-
customer: Yeah. agent: All right. Now we're going to get into the chapter of your life where you begin to encounter Amazon. You know, you guys were, I think by the end of 2010, you were on track to do 300 million in revenue. You were still not yet profitable, if, if I'm right, but, but it- customer: Mm-hmm
2,936.014
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0419
Yeah, we were, we were-
agent: All right. Now we're going to get into the chapter of your life where you begin to encounter Amazon. You know, you guys were, I think by the end of 2010, you were on track to do 300 million in revenue. You were still not yet profitable, if, if I'm right, but, but it- customer: Mm-hmm agent: ... but there was a p...
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customer
eng
af
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0420
... clear-
customer: Mm-hmm agent: ... but there was a path to profitability. It started to look- customer: Yeah, we were, we were-
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2,939.924
agent
eng
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Llama-3.3-70B-Instruct_20260713T143033Z
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https://rss.art19.com/ep…00762e86fb433970
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Exactly
agent: ... but there was a path to profitability. It started to look- customer: Yeah, we were, we were- agent: ... clear-
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customer
eng
en
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0422
... that that was gonna happen. And as you grew, you obviously became, well, got on the radar of Amazon. And the reason why I know about this is because there's a book about Jeff Bezos and Amazon written by a reporter named Brad Stone, and, and he devotes quite a bit of it to the story of Quidsi and Diapers.com. So I w...
customer: Yeah, we were, we were- agent: ... clear- customer: Exactly
2,940.344
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agent
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
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No. We had a discussion with them, but they didn't say we wanna buy you, no.
agent: ... clear- customer: Exactly agent: ... that that was gonna happen. And as you grew, you obviously became, well, got on the radar of Amazon. And the reason why I know about this is because there's a book about Jeff Bezos and Amazon written by a reporter named Brad Stone, and, and he devotes quite a bit of it to ...
2,976.724
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customer
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0424
They would say, "Would you consider selling the company?" Something like that just to feel you out?
customer: Exactly agent: ... that that was gonna happen. And as you grew, you obviously became, well, got on the radar of Amazon. And the reason why I know about this is because there's a book about Jeff Bezos and Amazon written by a reporter named Brad Stone, and, and he devotes quite a bit of it to the story of Quids...
2,980.004
2,983.804
agent
eng
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0425
Yeah, like, or they said, "If you're ever open to selling it, like, let us know."
agent: ... that that was gonna happen. And as you grew, you obviously became, well, got on the radar of Amazon. And the reason why I know about this is because there's a book about Jeff Bezos and Amazon written by a reporter named Brad Stone, and, and he devotes quite a bit of it to the story of Quidsi and Diapers.com....
2,983.804
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customer
eng
en
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0426
So from what I understand, not long after that, Amazon slashed its diaper prices by, like, 30%. Let's just say it was coincidental, but is, is the timeline-
customer: No. We had a discussion with them, but they didn't say we wanna buy you, no. agent: They would say, "Would you consider selling the company?" Something like that just to feel you out? customer: Yeah, like, or they said, "If you're ever open to selling it, like, let us know."
2,987.684
2,998.384
agent
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0427
No, it wa- Yeah, it wasn't coincidental.
agent: They would say, "Would you consider selling the company?" Something like that just to feel you out? customer: Yeah, like, or they said, "If you're ever open to selling it, like, let us know." agent: So from what I understand, not long after that, Amazon slashed its diaper prices by, like, 30%. Let's just say it ...
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customer
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It wasn't. Okay. [laughs]
customer: Yeah, like, or they said, "If you're ever open to selling it, like, let us know." agent: So from what I understand, not long after that, Amazon slashed its diaper prices by, like, 30%. Let's just say it was coincidental, but is, is the timeline- customer: No, it wa- Yeah, it wasn't coincidental.
2,999.984
3,001.144
agent
eng
en
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
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No. It was unheard of at the time. You know, the idea that a commodity product that already lost money, it's already a loss leader-
agent: So from what I understand, not long after that, Amazon slashed its diaper prices by, like, 30%. Let's just say it was coincidental, but is, is the timeline- customer: No, it wa- Yeah, it wasn't coincidental. agent: It wasn't. Okay. [laughs]
3,001.144
3,008.744
customer
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https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0430
Mm
customer: No, it wa- Yeah, it wasn't coincidental. agent: It wasn't. Okay. [laughs] customer: No. It was unheard of at the time. You know, the idea that a commodity product that already lost money, it's already a loss leader-
3,008.744
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agent
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unknown
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0431
... that you would lose another 30%. That's unheard of, unprecedented in the history of retail.
agent: It wasn't. Okay. [laughs] customer: No. It was unheard of at the time. You know, the idea that a commodity product that already lost money, it's already a loss leader- agent: Mm
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Llama-3.3-70B-Instruct_20260713T143033Z
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https://rss.art19.com/ep…00762e86fb433970
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Did that have any quick impact on Diapers.com, on, on your business?
customer: No. It was unheard of at the time. You know, the idea that a commodity product that already lost money, it's already a loss leader- agent: Mm customer: ... that you would lose another 30%. That's unheard of, unprecedented in the history of retail.
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0433
It definitely slowed our growth rate.
agent: Mm customer: ... that you would lose another 30%. That's unheard of, unprecedented in the history of retail. agent: Did that have any quick impact on Diapers.com, on, on your business?
3,018.604
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customer
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0434
Hm.
customer: ... that you would lose another 30%. That's unheard of, unprecedented in the history of retail. agent: Did that have any quick impact on Diapers.com, on, on your business? customer: It definitely slowed our growth rate.
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agent
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https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0435
You would've thought it would had a much bigger impact.
agent: Did that have any quick impact on Diapers.com, on, on your business? customer: It definitely slowed our growth rate. agent: Hm.
3,020.764
3,022.734
customer
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https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0436
Right.
customer: It definitely slowed our growth rate. agent: Hm. customer: You would've thought it would had a much bigger impact.
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agent
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meta-llama/Llama-3.3-70B-Instruct
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Like, we would actually shrink in size, but all it did was slow our growth rate. The customer base we had was very loyal, and we didn't lose many customers, which I think was surprising to Amazon.
agent: Hm. customer: You would've thought it would had a much bigger impact. agent: Right.
3,022.764
3,034.963
customer
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0438
So that didn't make you nervous when that happened. You thought, "We're gonna be fine."
customer: You would've thought it would had a much bigger impact. agent: Right. customer: Like, we would actually shrink in size, but all it did was slow our growth rate. The customer base we had was very loyal, and we didn't lose many customers, which I think was surprising to Amazon.
3,034.964
3,038.404
agent
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meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0439
No, it do- I mean, when you say nervous, it w- it was definitely something that we had to seriously, like, focus on figuring out how we were gonna combat that.
agent: Right. customer: Like, we would actually shrink in size, but all it did was slow our growth rate. The customer base we had was very loyal, and we didn't lose many customers, which I think was surprising to Amazon. agent: So that didn't make you nervous when that happened. You thought, "We're gonna be fine."
3,038.404
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customer
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0440
Hm.
customer: Like, we would actually shrink in size, but all it did was slow our growth rate. The customer base we had was very loyal, and we didn't lose many customers, which I think was surprising to Amazon. agent: So that didn't make you nervous when that happened. You thought, "We're gonna be fine." customer: No, it d...
3,047.144
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0441
Anytime you have a company that size that's targeting you-
agent: So that didn't make you nervous when that happened. You thought, "We're gonna be fine." customer: No, it do- I mean, when you say nervous, it w- it was definitely something that we had to seriously, like, focus on figuring out how we were gonna combat that. agent: Hm.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0442
Yeah
customer: No, it do- I mean, when you say nervous, it w- it was definitely something that we had to seriously, like, focus on figuring out how we were gonna combat that. agent: Hm. customer: Anytime you have a company that size that's targeting you-
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0443
... um, yeah.
agent: Hm. customer: Anytime you have a company that size that's targeting you- agent: Yeah
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0444
So it, it seems like... This is 2010. It seems like your only option at that point, I'm thinking, is to go out and raise more money.
customer: Anytime you have a company that size that's targeting you- agent: Yeah customer: ... um, yeah.
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Llama-3.3-70B-Instruct_20260713T143033Z
meta-llama/Llama-3.3-70B-Instruct
https://rss.art19.com/ep…00762e86fb433970
https://rss.art19.com/ep…e86fb433970_0445
Mm-hmm.
agent: Yeah customer: ... um, yeah. agent: So it, it seems like... This is 2010. It seems like your only option at that point, I'm thinking, is to go out and raise more money.
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Llama-3.3-70B-Instruct_20260713T143033Z
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