How to Create and Scale Personalized Shopping Experiences

0:00We moved out of the house that we were renting, the two of us. We moved into my sister's basement and we used that house that we were renting previously as our first HQ distribution center. Hey everyone, thanks for tuning in to Shopify Masters. I'm your host, Schweng Esther Shan, and this is your companion for starting and scaling a business. Today, I'm chatting with Tai Hiss, an entrepreneur who transformed her work as a wedding florist into Fresh Sends, a brand redefining gift giving in this digital age. Ty designs personalized, thoughtful bouquets that can be delivered right to your loved one's door.

0:39Her approach to team building hasn't just been about creating beautiful products, but a business where people feel seen, known, and yes, loved, just like the messages in their bouquets. Ty, thank you so much for being on the show. So pleased to be here. Thanks for having me. So happy to have you share your journey because I know that it all started with the fascination of bringing experiences to life through wedding florals, and you eventually found this gap within the industry. How did you turn this idea into a side hustle and then into a full-blown business? It's so funny to think back on that time.

1:18It always, when you think back on your journey, it feels like yesterday and also like another lifetime ago. The journey to starting Fresh Sends really has evolved over time. And it was just slowly iterating on concepts and ideas and testing things out. So bringing, I guess, the first business to life, which Fresh Sends evolved out of, was, yeah, doing weddings and events. And I think I had the naive belief, probably like many entrepreneurs do, that you're like, I could figure this out and make this happen. So just having that belief that other people have figured it out, I think I'm going to give it a go and give it a try, was really the first step in taking that entrepreneurial journey.

2:04And yeah, it started out as a side hustle of just thinking that it would be easy to maybe do weddings and events on the weekend and then I can do my day job, 9 to 5. the day job ended up it was a startup and they ended up losing some funding so it came to pass they were like you can continue working for free for us or it might be it might be time to part ways and I was like I think it might be time to part ways so that was how fresh sense came to be figuring out how I was going to supplement my Monday through Friday work yeah sometimes you know changes happen naturally and we adapt with the times and bring new ideas to life talk to us about that gap from being in the wedding industry where this is the occasion that calls for flowers and bringing floral delivery to kind of making everyday moments a bit more special.

2:57Yeah, yeah. So weddings and events, that's really how I dipped my toes in this, or I guess I fell into the world of the floral industry. And then the idea of Fresh Sense came about just as people would ask me, hey, it's my parents' anniversary or my best friend's birthday, and was able to see just this amazing connection moment between people and how it's some of people's best moments in life and some of their most challenging moments in life to celebrate and connect and let people know that they're there for them and they want to walk through whatever they're going through with them. And so after realizing, and you just don't know exactly what something's going to be like until you're actually in it.

3:39Doing weddings and events was so fun. I learned so much, but I realized how big of a grind it is to execute so much work every single weekend with a very limited team. It was usually me, my mom, and my co-founder husband. And yeah, they would help me out on the weekends and help me deliver all these flowers. So I realized that slowly that weddings, the floral design aspect of flowers was not what I actually was passionate about. It was this moment of connection between people and how we could create a product that is meaningful and has personality, but also has a level of convenience to it. So that was really the discovery that happened in those early, early stages when it was Fresh Sense 1.0, I guess.

4:27And of course, getting feedback or even requests from guests who wanted flowers for different occasions, it validates the idea. But did you do any additional market research to validate that fresh scents would be something that you can have a bigger market and have more demand as well? Sure. I mean, of course, looking at just the competitor landscape and seeing, okay, when you're needing to send flowers and that person is states away, what are the options? You can find a local florist or maybe you use one of the incumbents in the space of 1-800 or FTD or maybe someone else like the Buxco or Urban Stems.

5:07And so just seeing how they were positioning themselves and the offerings they had and maybe how we could differentiate ourselves, have this unique value proposition and what would make us look different. And yeah, that really led to my husband jumping out of his career. He was in commercial real estate and we were like, let's take this Fresh Sends concept and idea and let's take this nationwide. Let's jump all in. And so he left his job in commercial real estate. I stopped offering weddings and we launched Fresh Sends as it is now, which is nationwide delivery where you can ship flowers and gifts to the lower 48 states.

5:43And we never looked back, I guess. Yeah. It's so exciting. And I love featuring life and business partners as founders, I do hear, you know, the common theme of like, now you're doubling your risk because both people are committed to this business full-time. What were some things you discussed and thought about before committing to be both full-time entrepreneurs? So, oh my gosh, that was such a wild time. My husband's parents were entrepreneurs. They started a payroll business and they had two kids when they started. So we were like, okay, well, at least we don't have any kids at this point. I think they can figure it out.

6:23They had two kids and all of this. We really, I mean, the discussion, I was thinking back on it yesterday, the discussion was quite minimal. And probably that was helpful for us because once we realized how intense and how many eggs we were putting in one basket, we probably would have been like, this is pretty risky. On the other hand, we did our very best to minimize our risk. we moved out of the house that we were renting the two of us we moved into my sister's basement and we used that house that we were renting previously as our first hq distribution center so we were like let's try to make our expenses as minimal as possible that way we just we aren't committed to that many things personally and we'll just dive into this business and we're gonna make this work we were chatting yesterday was there wasn't a certain time commitment that we gave it We weren't like, okay, let's give this a year.

7:15Let's give this two years. We're like, we're going to figure this out and make this work. And we dove all in. We didn't have a plan B. And I know so many people that just isn't the reality for them. We were 24 and 25 when we launched this thing. And we were so young. You just, that can definitely feel like one of the times when you can dive all in to an idea and concept. So I know that that's not very many people's realities. But yeah, we were like, not having a fallback plan was helpful for us just with the level of commitment and drive with every day waking up and saying, okay, what else can we do to keep making progress and keep moving the needle?

7:56And that was the motivation that we needed for sure. And also, I think having a co-founder just also allows you to look at things differently and evaluate things differently. when your husband joined as a co-founder, were there some things he changed that really helped to scale Fresh Sends? Massively. I mean, just massively. Our other co-founder is my college roommate, and she's our chief creative. And the two of our brains think quite similarly. We love thinking about every single detail and aesthetic, and his brain is super detail-oriented also. but the way that he marries his left and right brain together is unlike anyone else.

8:40It's certainly not like the two of us, certainly not like me. So he was able to point out maybe some flaws or pain points or scalability things that we needed to focus on that I would have never focused on. For example, back in the early days, we hand wrote every single one of our cards that went out the door with our flowers. And he was like, Ty, we're not going to be able to do this forever. You're spending half the day. We would bring cards home and we'd be handwriting cards as you're watching TV at night. And so figuring out those systems and how we can become more efficient is one of the ways that he has massively impacted the business.

9:21I think that's such a great point, right? You want to maintain personal bull, but how do you also scale the business? And sometimes that tension is something you need to resolve as well. Totally. With any floral business, there is this intricate movement of inventory. It's also fresh flowers, so it's perishable. So there's a cash flow puzzle that you're playing with as well. Can you talk to us about just funding the business and managing the cash flow in the early days? Absolutely. Gosh, one of the trickiest things about business. I think I read a quote that was like, how to be successful in business.

10:02And it was so simple. It made me laugh. It was like, don't run out of money. Accurate. So accurate. So true. So true. And managing cashflow. Yes. So in many ways, our business has some amazing things about it where we are able to purchase inventory, our floral inventory on a weekly basis, and we can sell through that inventory. And then you're purchasing again, weekly inventory. So you don't have to have these huge cash moments, except for these boxes that we ship our flowers in. So being able to make those purchases, we certainly had to figure out in order for unit economics to make sense, we needed to be able to have bigger purchasing power.

10:45So we ended up using Shopify Capital to help us out. We've had kind of a unique approach. We haven't taken traditional VC funding. We have raised some money over time, but it's been through angels or very strategic investors who are more patient capital and they understand, I guess, the nature of this business not being a traditional venture play, that we have a product While we're very focused on growth, we're as equally focused on profitability and making sure that the business fundamentals are there. But of course, that takes time. So we had to use Shopify Capital to help us with some of those cash flow issues where you need a large sum of money and then you can slowly, you can keep up orders and demand and then you can remit that payment back.

11:35We also used some PayPal capital too. And yeah, just trying to find those strategic investors who understood the long-term vision of the company and were on board with us on how we wanted to grow and scale over time. It's so great to hear that you have used different cash levers like Shopify Capital that really suits the business and also picking investors to your point that are patient and understand the values that you want to bring, which I think also requires a lot of discipline, right? when you're a founder, you're in a position where you are strapped for cash, it is tempting to consider different options.

12:10So yeah, what would you say is a good approach to be more thoughtful and evaluate the options that are available? Sure. Oh my gosh. It can be so stressful because when you see a cash runway becoming shorter and shorter, the stress of course is just building. I think being able to focus on what are the points that are working really well or where are you seeing a lot of success and being able to pinpoint those things and saying, okay, let's focus on those couple things and maybe pull levers elsewhere. we completely had to change strategy if we were like, we are not going to invest in growth as much.

12:52We're going to invest in our overall profitability more. We really had to switch that mentality of being like, okay, we've experienced some of the pain points of keeping our head just above water with demand. And that was so great because we were able to expand our new customer base. But then there was a moment of time in the business where we were like, we just need to make sure that this business fundamentally can fund its own growth. And that really helped us in being like, you can slow down any bleeding or potentially stop bleeding. And then you're able to even see things a little bit more clearly on like, where's a pain point or a unique value that our customers are seeing.

13:34And then slowly over time, if you're able to stop a bleed, you're able to communicate with potential investors about what is the path forward and how it really feels like you have your business under control, where you don't feel desperate for cash. You always hear, you're like, the easiest time to raise money is when you don't need it. And we certainly have been in positions where you're like, well, it's definitely, we feel like we need it, but do you absolutely need it? I think those can be some of those questions. Can you figure out some other capital options that might help ease some of that stress and give you a little bit more time to fine tune some of the mechanics behind the business for sure?

14:17Well, it sounds like the business model is very profitable on its own, and you were only playing around with Shopify Capital, which I love hearing about when you needed to invest in things like packaging. But when you're talking with investors, how are you pitching the vision for FreshSense to justify some of the investments that they were making? When talking to investors about where we want this business to go and what we believe the future of FreshSense can look like, we really believe that FreshSense can be the next generation's go-to gifting brand. So if 1-800-Flowers was yesterday's generation's go-to gifting brand, we believe wholeheartedly that the next generation needs to have an offering that they can trust, that it represents them, they feel proud to send.

15:06And so we really do, we have the hopes and dreams of becoming the biggest player in the space. The speed at which we want to do that is possibly slower than what traditional venture might think that they want to achieve it at. So we want to have this incremental, sustainable growth and be able to ebb and flow with seasonality and demand as needed and be nimble enough to do that, but then also have some flexibility to take entrepreneurial risks and try new things. So that was really the pitch of saying, here are the business fundamentals that we have. Here's the success we've experienced. and here's where we think we know that we can go.

15:52We want the business to become all we believe that it can be. And here's the gap of we haven't experimented here and we haven't experimented here. And these are the experiments and tests that we want to run these test bubbles. And we would love to have the capital to have those test bubbles. And also some of the things about being cash constricted is you have less of the freedom to test. because you need every test to be successful, especially in the earliest of days. So when you have a little bit more cash freedom, you have the flexibility to say, okay, this test was successful, this test was moderately successful, and this test was an absolute fail.

16:35So that was really what we wanted to say to investors and having people who were able to see like, oh yeah, I love this portion. I love the success. I see that they can build on that. And also them getting getting them on board behind the brand and the mission and the product, of course, is fundamental. Yeah. Testing and experimenting is so important. Working with flowers is probably more complex and more restrictive just because, yeah, there is that aspect of this is something that will not be as fresh within a few days or things like that. So how have you been able to kind of maintain the well factor, the quality, working with a perishable when you're scaling up the level of production as well?

17:21Yeah. Oh, we always say we're in the business of bulk, but we're also in the business of quality. So we have to marry the highest of quality with speed and efficiency. So that's what we have to focus on as we grow operationally. and we've had many pain points of, I mean, a lot of e-commerce brands will experience their busiest season, of course, around the holidays. Our busiest season is Valentine's Day and Mother's Day. And so we have these massive spikes of demand, which is amazing because we're able to get some new awareness. But on the backside, we have to figure out ways to operationally scale our business 10X if demand requires.

18:02And then the flowers, it's not like you can order a whole bunch of inventory, keep it stocked away, and then all you have to do is fulfill and manage it. We have a marathon amount of work at a sprint pace because you have this limited time that you can keep these flowers and have to build this product. So we have had to be strategic about how much demand we're willing to take on and how exactly we want to position that to the customer. I think we are continually working to have that pulse on our customer and what that experience is like from the actual purchaser's perspective to the recipient's perspective because our product is 90, 95 of it is gifted to someone else.

18:44We have the person who's spending the money and then we have the person who is receiving the product. So making sure that both of them are really happy with the end result. And I think that really comes down to having these touch points with them to ask about their candid experience. If something didn't go right, which we hand off our product to our shipping partners and everything is delivered with overnight shipping and they're incredible. Their operations are amazing, but 98 % of the time they're accurate and then the 2%, but of course it is the worst when your order falls in that 2 % of the product arrives late or got damaged or just something happened in transit that you just, it really affected the end result, it falls on our shoulders to make sure that we're making that right for the customer.

19:33So figuring out where that pain point happened, was it on our end if product wasn't adequately hydrated or designed in a particular way where the product is going to arrive looking its best? So we're constantly iterating and having those touch points with our customers so that we can continually have a superior product. It sounds like a very like complicated puzzle that you're trying to piece together for so many different occasions. But I think that's also what makes it special because it is occasion based. And I love watching how people are sharing their experience with Fresh Sons on social media.

20:12Talk to us about just having those beautiful moments shared on social media and building on that momentum too. Totally. Those are our favorite things. We love sharing with our team, either content that people are creating about receiving a fresh send or the messages that are associated with each bouquet. We'll share those with our team because it can be kind of easy to get lost in not the monotony, but when you're building the same product over and over again, you can sometimes forget that this is going to someone who just landed their dream job or to someone who just lost someone who has been struggling with cancer.

20:53So we try to bring those real customer experiences into the folds onto our design floor as often as possible. But that's really what drives us. That is the entire reason why Fresh Sends exists is to have a product that encourages and strengthens connections between people. So we talk about it so regularly that I'm sure the team is like, it doesn't get lost on them how many different occasions people are using Fresh Sense for. And so we, yeah, we just feel so honored every time someone chooses to use us, whether it's on our box, on our packaging, whether it's from the extraordinary to the mundane.

21:35We care about every single order that goes out. So yeah, we always say this is the dream job. We really do feel like it is one of the biggest honors to remind people that they're seen, known, and loved in life. And we think those are some of the core questions that people ask. You've highlighted that the goal is to be the go-to place for gifting. And I love the fact that you've partnered with other amazing brands that our show have also feature like Tower 28 and Graza. So yeah, how does different products and different brands intertwine with Fresh Sends? Yes. Oh, we love our brand friends and brand partners, brands that do some corporate gifting with us and brands that we can come alongside some of their hero products and add that on to our product.

22:22It makes things exciting and fun and how we might be able to differentiate different seasonality. Last year, we worked with Tower 28 for Mother's Day. They launched a Lip Softie and then one of their hero products, their SOS spray. And so being able to, a little like skincare moment for mom makes so much sense. And having an additional component to our flowers, we strategically keep our offering really limited from a user experience perspective. We really care about that. And then also from an operational perspective, we really care about that. So how to make our product feel interesting and new and different if you're a repeat customer is something that we're constantly thinking about.

23:05New concepts, new products, new design that we can be like, oh, you haven't tried our pasta night set. So that comes with Graza olive oil, a bag of pasta, and a little wooden spoon. So if you've already shipped someone maybe roses before, you can try the pasta night set and it could be a great hostess or housewarming gift. So thinking about these foundational elements that flowers pair so well with other items is certainly something that we're continuing to lean into in 2025. And we really think there's a long runway of other go-to gifts that pair super well with our product. It's also just like so fun to think about, right?

23:45What other gifts can go along with a fresh send. And it's also a testament to your ability to build those relationships as well. For advice for like founders who are thinking about, you know, who should I partner with? How should I approach them with my ideas? Any advice there to pick the right partners and also pitch them in the right way? Sure. Oh my gosh. That is such a good question. You always talk about, you're like, as you get older, like it's easy to make friends in high school. you're like in class with them, but it's always so funny. You're like at work and you might see a brand for us.

24:23We admire so many brands that are building such cool products and how they're building their community. We just admire that greatly. So I think a lot of times it comes from admiration to start that we respect the brand they're building. We either love their product or we've heard incredible things about their product. And so oftentimes it starts with a compliment, just being like, we are such big fans of yours. We'd love to get connected to find a way to work together. And I think, honestly, we talk about this a lot at Fresh Sins, a compliment or encouragement, it can sometimes feel weird to give.

25:02Sometimes you're like, is that going to be weird if I reach out and tell them that I'm a fan? We think that sometimes people can be stingy with their compliments. And so when someone is complimented, they're like, wow, that means so much. And it really will open up a door to get connected. So I think a compliment can go really far. I guess when people say flattery, we'll get you everywhere. Sometimes that is true. So yeah, building those relationships and finding, even if it's just like, hey, let's connect and we'd love to hear what's going on in the world of Tower 28 or Graza. And if nothing comes of it at that time.

25:40We've had many different situations where maybe nothing happens with them for a year, but then a new concept comes out and even fresh sense pops up in their mind. So I think maybe a word of encouragement would be don't feel discouraged if a partnership doesn't bloom immediately, but it's kind of that longer term game, that relationship building, building that rapport and that trust between a brand. And you never know what might come down the line later on. Relationships are so important as well for building the team and culture for Fresh Sends. How has that process been like? Yeah, building a team and getting people on board with the vision of what you're trying to do has been one of the most rewarding things that has come with starting a business.

26:28truly, truly having a team and having people with different strengths has been the thing that has made Fresh Sense the most successful. And getting people who are aligned with the vision and getting them in the right seat and testing out different parts of their strengths has been so cool to see, seeing people's individual growth, seeing the company grow as an organization, or seeing all of us grow together as a team has just been so fun. And that's been one of the most personal growth parts for me is like, how can you keep a team inspired and keep them engaged on this product and concept that you're working on?

27:12And it's amazing the power of a collective group all pushing in the same direction rather than just a few people. And definitely doesn't mean that you need a bunch of people to do it. But if you can get even just a couple people who are really believing in the mission and the product of what you're putting out, it is amazing to see the impact of many over a few or just one. And how big is the team now and also like the different departments that you've created within that team? Yeah, we have a team of about 20, just over 20. and of course we have a fair amount of people who are day in day out building our product and really the backbone of the business of making sure that our quality efficiency and our standards are being met on a daily basis we also have an amazing operations team from a back-end ops perspective we have some complexities that come with back-end operations like each order comes with a custom card that a customer selects.

28:12And then that custom card has a custom message written on the back. And then of course, that has to go out on the correct day for that exact occasion. So figuring all of that out has been amazing. And our team has been incredible at that. And then of course, creative marketing, social perspective, that entire department, it's been amazing to see the innovation and ideas that have bloomed from there. And it's so fun to come to work when you don't feel like it's work because you're like, oh my gosh, let's dream up this amazing product that I would be so happy to give and receive. So we have a couple, we have a couple really exciting new concepts and gifts that are going to be coming out as we roll into Mother's Day and into the summer that we're really excited for our customers to see.