E-commerce in Africa and how to start your own e-commerce business with Bernard Loots
Its 2021 and everyone is trying to make money online, I definitely have been on that search myself (which may or may not have led to this podcast). But the hardest drawback is finding the right information on how to start an e-comm business in Africa given our wonderful continent's ehhh drawbacks to say the least. Now Bernard Loots of GrowthStart and GrowthStart Insights rightly answered my questions on how to navigate the everchanging African E-comm atmosphere, what to look out for and also just how much of a challenge is it to start an e-commerce business.
In his own words, the best thing you can do for yourself is to JUST START!! Once you start, you can then lead yourself through all the murky waters of online businesses with the trusty help of the people at GrowthStart and Google. Most of the fears in our heads don't often materialise since they are only in our heads!
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Transcript:
Tendai Midzi:
Hi, Bernard and welcome to the show.
Bernard Loots:
I am so good. Thank you so much for the invite. We really appreciate it and really glad to join you today.
Tendai Midzi:
Thank you, man. Thank you, man. Really appreciate you making time for this. I know you guys have busy schedules. You are e-commerce people. So ideally I would say just that you never sleep, but that's all good. Just to get like great straight into who you are, your business and your journey so far. Um, how did you get into the e-commerce business in Africa?
Bernard Loots:
So I think I started in about 2006, 2007, and I actually started, um, doing WordPress websites, um, just as a part-time, you know, uh, interest of mine. So like a hobby type thing. Um, and at that time, putting together just a simple website was actually so tricky. Um, and as it evolved and, you know, I, I, I found all these tools online and all these things. And then I started getting people that actually wanted me to do websites for them. And they had all these different businesses side that for , as an example, realtors, you know, how do you make that business? There's traditionally a person to person business. How do you turn that into something that can be done online, um, in terms of booking a consultation and all that kind of stuff. And then you also have a different aspect, which is obviously the retail aspect. Um, so I think it was just a, it was an evolution, you know, um, the more you learn about it, the more tools you discover and the more experience you get in it, the better you understand how it actually works and where you can actually apply it. So, yeah, my journey definitely started what's that about 15 years ago. Um, and up until today, I'm very passionate about e-commerce and I just think it's, you know, one of the best things that, uh, technology has brought to us. Oh,
Tendai Midzi:
Okay. So do you have like a background in computer science programming or was it just a passion you had?
Bernard Loots:
Yeah, so all just self-taught um, oh, okay. Yeah, just from scratch, you know, uh, researching online, uh, looking at YouTube videos I mean YouTube only started around that time as well. Um, so the content that you did have was very limited, um, and like I said, you had these tools that came out, um, or that we weren't familiar, you know, in a, an African and especially south African context. Um, we didn't know about these things. I mean, I, I didn't even know that there was a thing like online shopping, uh, back in the day, you know, it was like this journey of discovering firstly, the, the technology that drives it and then, you know, you discover all these different ways of actually applying what you've learned. Um, so yeah.
Tendai Midzi:
Okay. So fast forward to, I think now where you are now, what made you say I'm going to stay in e-comm is this is really my calling, or did you have like a main job and then this whole website building stuff was a side hustle or something?
Bernard Loots:
Yeah, so, I mean, I had a career in the payments industry. Um, so we did all kinds of electronic transactions. And with that, I also had the benefit of experiencing how, you know, you have these traditional payments methods of as an example, cash and how they're transformed into card payments and where it is today. We, it is almost like contactless, almost pure contactless form of transactions. And then you have the, um, you know, e-commerce component that fits into that as well. How do you accept payments online? You know, do you use your phone? Do you do an EFT? Cause nobody wants to do an EFT. Um, so you can just put your car details in there and the transaction is done, you know, so I think it was, uh, you know, like I said, uh, evolution and, and the more you learn and you experience and you kind of discover yourself and you kind of discover e-commerce as well and what it can actually do for you.
Bernard Loots:
And I mean, so like I said, I, I did, you know, started doing websites for other people. And then I had a couple of online businesses that, um, I started doing simple products, uh, selling online. Um, I sold the websites, the actual website design stuff. I sold that online as well. Um, and then, yeah, we, we launched a couple of products and things like that, that we still today, um, so over the country, uh, not internationally as such, but, uh, yeah, and I mean, it just keeps growing and you find new interests. And I think where I am today is I want to kind of, um, you know, try and help this industry, but how people also turn away and that, that's why, uh, the growth start platform we've kind of changed into a more, um, e-commerce educational platform. And I think that that's above everything else, even making money, you know, we all need money to survive. Um, but the real thing that I'm passionate about and that fulfills you as a person is actually, you know, giving benefit and value to others. So if I can teach somebody how to start their own online business and make a, you know, a couple of thousand extra per month or whatever it is, um, you know, it has such a big impact, I think on people, especially now in these tough times. Um, so I think that's where I am at right now. Yeah.
Tendai Midzi:
Okay. So I think just, just to maybe like assuming that maybe I'm a customer wants to come to you and start their own online, uh, online store, or business, do I necessarily have to have like the whole brick and mortar stuff, or do I have to register a company and then start selling products or is the internet one of those its free for all? You just do what you do and, uh, whatever happens happens.
Bernard Loots:
So, so the cool thing is about e-commerce is the barrier to entry is very low. So you don't need, you know, a million Rand or whatever currency you're using to actually go and, you know, rent a physical premises and then, you know, get lots of inventory and all that kind of thing. Um, you can literally start with a very, very small amount. Now, the important thing that you're going to need is you're going to need obviously a product and it can't just be any product. It has to be a product that people want, and that solves the problem. So if you get your product first and you find your customer first, the person that's willing to buy that product, um, taking that product and getting it online is very, very straightforward and simple. And also the cost involved to do that is actually quite low.
Bernard Loots:
If you take, you know, compared to anything else. Um, now, like I said, you do need your product first, but then you also are going to need a website. And then one of the biggest components is how do you actually now market that product? Now, when you get a product, people will say, okay, that's probably the expensive part. So now I need to, you know, maybe develop a product from scratch or you don't have to, so you don't have to do all those things. You can literally go to a shop nearby you and say, Hey, you know, you don't have a online store. Can I sell your products for you? And then you've got the benefit of knowing that those products will really sell because they really being sold in that store. Um, so there are ways, uh, you know, to go about it. Things like drop shipping and all that, that really keep those costs very low. Um, so definitely you don't have to register a business. The first thing that you need is just a product that people want.
Tendai Midzi:
Oh, okay. So, um, I like the part where you mentioned, well, maybe because drop shipping has kind of been a topic that's been running around, uh, for, for the past couple of years, uh, how in the African context, because most of the videos you watch on YouTube, they're like, you know, American or the European or Asian and stuff. How does that work in an African context? I mean, we, we barely have the type of delivery services, like DHL penetrating into like the deeper parts of our countries. How does that work in, in South Africa, for example?
Bernard Loots:
Yeah. So, so you're a hundred percent, right? I mean, there's, you know, a lot of, um, how can I say, um, limiting factors in, in Africa, especially, um, especially when it comes to delivery and performance, um, but then again, or I always say, you know, every problem that you see, um, you need to see that as opportunity. So how are you going to solve that delivery problem in Africa or when your specific country, or in your specific time that's part of the problem. And if you can solve that in, you know, the way that you also ran your business, um, then you're onto something really big. Um, now I think as time progresses, I mean, we've really seen, I mean, if you compare, um, today versus 10 years ago, in terms of infrastructure in of, you know, just the accessibility to the internet and all that kind of thing, um, it's going to keep growing.
Bernard Loots:
So you are going to be on such a bit of foot if you actually started today. Yeah. You're going to have a lot of, you know, barriers to overcome depending on where you are in the world. Um, but you can literally, I mean, I know people that have literally started a business, gotten a website, went to a local vendor, can I sell your product, sell it. And then they got on a bicycle and they go to the deliveries in the area themselves. So you can literally do that as well. So I mean, you, you can start very small. And the nice thing about e-commerce is it's scalable. So as the technology progresses and as infrastructure and fulfillment and delivery partners, you know, grow, um, so can your business, but you're going to be on the best foot, the quicker you start with it.
Tendai Midzi:
Oh, okay. Okay. So do you have like your own, uh, e-commerce stores that people can visit and buy stuff? Or are you just the behind the scenes sort of managing other people's stores? And,
Bernard Loots:
Yeah, so, like I said, my, my big focus at this point is actually, um, e-commerce education. Um, so that's under the G Start platform and then we do, um, web development. So if you want an e-commerce site built for you, or you just want a website or personal profile or whatever it is, um, our, uh, platform Wordpress.co.za . I do that. And then we've got a little projects here and they, we do vape liquid, um, a brand called Kush concepts. And then we also do some health products, especially African black soap, but all those actual physical products, we only sell locally. Um, but the digital products, which is amazing, um, is that you can sell that literally anywhere in the world. So e-commerce is also, it's not just that it has to be a physical product. It can also be a digital product. So as an example, you know, we, on this podcast, we could do a little e-book, you know, guiding somebody hard to start a podcast and saw that you can do a video course, you know, and sell that.
Bernard Loots:
Um, so again, you really need to find that problem that you solve in first, and even that can be a product and it doesn't have to be a physical thing that you're holding your hands. It could literally be, you know, a consultation, ebook, uh, course, uh, uh, audio book, you know, um, there's just so many, you know, different things that you can do and so many different opportunities. So you just really need to find a problem and find a way to solve that. And if you can do that and you've got people willing to pay to solve their problem, then yeah. You've got a business. Wow. Okay.
Tendai Midzi:
And I think what the next question would be understandably, some of these products, like what you were saying, uh, you sell them online, so you don't necessarily have to worry about the geographical location of a person, but in terms of Africa, right. I understand that we are developing to a point, but have you had any, would you say most of your businesses are from Southern Africa and the whole of Africa, or is it in other countries completely outside of Africa?
Bernard Loots:
So, um, with the, with the Growth Start platform, um, the idea is to actually do that internationally. Um, and I mean, like I said, you, you, you're very limited when you've got a physical product, because it is very expensive, um, to ship internationally. Um, so I think, you know, with what's going on and, and, and the African union, and, you know, having all these, you know, open, um, cross border, um, things that are happening, um, we might see it becoming a little bit more affordable in the future. Um, but you need to be prepared before that happens. So I think in right now where we are, um, and speaking to everybody and everybody that is even thinking of starting a business started now do it locally, learn the lessons that you need to learn, you know, learn how the actual business works, um, do it in your local area, and then scale from the, um, thinking, you know, internationally and globally.
Bernard Loots:
I mean, it's great to have that big picture, but it is very difficult to from day one, start doing that. Um, so you are going to in that case, so let's say you want to start an e-commerce business and you've got a great product, and now you want to sell it across the world. So it's doable, but you're going to need lots of capital investment. So with international shipping, so let's say if you want to, um, you know, have your product available in South Africa and Zimbabwe and Kenya or wherever, um, the, the best way that I think you can do that is by having a hub there to the dispatch from. So if you ship from country to country, the costs are going to be super high, but if you actually, maybe, you know, so if I, okay, I know Tendai and I say, Tendai , can I ship you, you know, a hundred of my products and you hold onto it and you ship it out for me as orders come in, then I don't have to ship each of those products individually.
Bernard Loots:
Um, that brings down that costs so much. So again, you know, every problem is solvable. You just need to, you know, find a new, innovative way of doing it until we are at a space and time. Where, all these things actually catch up and delivery costs become cheaper and all of those things. So it's just a matter of time. And I think the big, the big thing, the big topic is how do you start right now? And how do you prepare yourself for that scale when it does become easier and that you will really present there that you've already started. You've really, you know, now how this business works, you know, what the problems are and the things that you, um, need to work on in the future. So if you get that down, you on such a good foot. Um, but I mean, it's definitely always challenging, but I always believe that, um, every challenge there's way to overcome it, you just need to, you know, dig a little bit deep in yourself and think about it and you'll definitely, you know, find a way. Um, and yeah, that's what I believe.
Bernard Loots:
Wow. Okay. I mean,
Tendai Midzi:
Well, considering you could actually just start the shipping business also, but then that's
Bernard Loots:
Absolute, that's a total, I mean, uh, I think, yeah. Yep.
Bernard Loots:
Yeah. So I'm in, uh, a couple of years ago, um, I had a business partner. Um, he actually still has, uh, one of south Africa's largest, um, online healthcare stores. And, um, you know, he had that business and we had a joint business and I had another business and we were like, you know, uh, fulfillment and deliveries is, it's a big problem. And, um, we actually had this great idea of, you know, having these little distribution hubs all over the country just to minimize the cost because delivering locally, we can do it as cheap as, you know, as an example, 30 Rand in, in the Johannesburg area. But as soon as we send it to, uh, Cape town, as an example, the cost is four to five times as much. If you send it to a rural area, the cost is sometimes 10 times as much.
Bernard Loots:
And then if you ship it internationally, it's probably like a hundred times or, you know, 200 times more. So you need to find unique ways to solve these problems. But I think that the delivery problem, I mean, there's already some players in South Africa. Um, there's a company called parcel ninja and they've got a distribution warehouse in Johannesburg. And that means you can have your business in Cape town and you can have your stock here, or you can be in Zimbabwe and you can have your stock here. And when you get an order here, it just gets shipped straight there because your customers do tend to get quite upset if the order is going to take a month or they probably won't even order from you. You know, so again, you can solve it. You know, you can have a friend in a different country and say, Hey, you know, can, can I send you a couple of my products and just keep it on hand?
Bernard Loots:
And, uh, you just need to find unique ways to solve these problems. But definitely there is I think, a place for somebody actually to, to really go deep and solve that problem. I think we're gonna get there, but I think it's just a matter of time. And I think it's the same. I mean, we still have, even in South Africa, we've got, um, you know, the internet is not always available everywhere. Um, especially in your rural areas. Um, lots of people now have smartphones, but not everybody yet. And lots of people shop online, but not everybody, not everybody is EA to custom to it. And like I said, I had a career in the payments industry and we saw the same thing. You know, their transition from cash, which a couple of years ago people wanted to pay cash. They didn't want to pay what they call it's because the card fees were so high at that stage.
Bernard Loots:
But as time goes on and as the demand grows, the fees, lower people become more accustomed to it and more people start using it. And I think the same is going to happen with e-commerce as well. And especially now with COVID, um, according to some stats and reports that I've seen, um, we've been pushed ahead by about two years in terms of where e-commerce growth is supposed to be. So it's definitely right now the best time to get into it. And I definitely think it's, you know, it's for everyone. Um, you don't, you can still have, you know, a day job. Um, you, you, you don't have to do it full time. You can start, you know, with one selling one product a month, then, you know, sell 10 and then grow to a hundred and then you to a thousand, and then you go into different areas and then you, eventually you go into different countries and so on. So the best thing, like a CD, and I always will say, this is just start, like, start right now. Go think about a product that you can do, do some research on it and just start.
Tendai Midzi:
Yeah. True, true, true. Uh, we just have to start somewhere and see where he takes us. Okay. So that's it. I think w what, what about competition? Um, I, am I going to be competing against the likes of Amazon? I know in South Africa, these take a lot, if I'm correct, but am I going to be like competing at the same level as those companies going to those companies that have big, a dedicated budgets, maybe to the marketing or inventory size that can sort of minimize their overall costs as compared to my own? How do I deal with that part?
Bernard Loots:
Yeah. So, I mean, with any business, you are going to have competition. And when you have a specific product that you selling or you in a specific niche or industry having competition is a good thing, because if those people want to sell the product that you want to sell, it means that there's people willing to buy that product. So competition is definitely a good thing. Now, the problem is you need to find unique ways where you can add more value to their product or service or whatever you're selling, then your competitor. So perhaps, you know, um, uh, it's in terms of customer service, or maybe you do, you know, certain days you do free delivery or you upgrade people to free delivery, um, or you include a free DF or, you know, excuse me. Um, so I think it's definitely, you know, competition is good.
Bernard Loots:
Um, and yeah, in South Africa, we've got as an example, take a lot. Um, but as a entrepreneur, you can also sell your products on the platform. And I believe the same is true for Amazon. Um, so Amazon have actually, um, started some data centers in South Africa. I believe it's in Cape town. So I kind of suspect that they long-term vision is also to get into the African market. And when that happens, I mean, you, like I mentioned, you can, you can sell your product on Amazon. Um, so yes, go and grow your own store and do that as cost effectively and, you know, the best way possible, but you can still use these other platforms to also sell on. Um, so yeah, in terms of competition, I mean, I don't think that's really something to be concerned about. If anything, it should be, you know, seen as a good thing, because that means there is a demand for those things that you are selling.
Bernard Loots:
Um, and then, you know, it's so great that you are able to learn from your competitors. You can see what they are doing, what products are they pushing? You know, what are they marketing strategies for those specific products? And then go, don't copy this stuff obviously, but, um, you know, look at what they're doing and do it better. There's always, you know, everybody's going to always, you know, there's always someone better than you. There's always somebody doing something a little bit different or in a, in a better way that provides more value and the customer wants more whatever. And I think it's the thing, you know, constant thing of innovation. So keep innovating. And I think that's also important thing for people to remember you, like, don't just get a product and then you build a website and then you market and you run that same, you know, whether it's a Facebook ad or whatever for the rest of your business's life, you need to constantly improve.
Bernard Loots:
You need to look at your data. You need to look at what your customers are saying about your products, what your customers are saying about your service, um, what they're saying about your website, how can you make your website faster? How can you improve the delivery process? You know, all these things, um, in a connected way, improve them over time. So again, start small, but just start do it in your local area, you know, get your website on, even if it's just a one page website with your priority. And there's a, you know, a PayPal buy button or whatever as time goes. And as your business grows and you learn all these little lessons and you get experience, you just constantly improve it. And one day you're going to wake up and you're going to have the super successful business. And it's going to be like, Hey, you know, I wrote this down on a piece of paper, 10 years as my goal, and, you know, today, Hey, I achieved it. Um, so it's definitely possible whether you've got competitors or not. Yeah. Wow.
Tendai Midzi:
Okay. So does, I'm guessing your company actually offers most of these services, like from the building to serve the mentorship through the first phases of, of uh e-commerce so to speak?
Bernard Loots:
Yeah, absolutely. So, like I said, on the GrowthStart platform, we've got tons of free content and content that we're planning to do. Um, but literally taking a person from start to finish, you know, how do you come up with a good product idea? How do you then validate that idea to make sure that you, you know, don't spend money on something that's not going to work then step by step. How do I actually go about building a website? How do I register the domain? How do I set up an email account? Um, and I think all doing all those little things, you know, and providing that. So we do do that all for free. And then if you'd like to do that a little bit quicker, we actually have an online course that we sell. Um, but the online courses, you know, are personal and my personal method, um, that I've used in all my businesses.
Bernard Loots:
So step by step again, your platform, getting your website up and running, um, do how to do marketing. And, you know, marketing is such a big and broad thing, you know? Um, but I mean over 15 years you kind of learn what works and what doesn't. And again, you know, it's that cycle of constant improvement. And then you get all these things together that work, and that all is jam packed into this course, again, from getting your product, getting your website online, um, you know, what, what sales copy to use in your email, what tools actually to use to send your email and all those things. So it's all included jam packed into this course, but I mean, all our, all our content on, on YouTube and on our blog, it's all free. Um, and there's so much value they already, um, you can go and do your own website. And as we putting out more content, we put out different lessons and about different topics and all that kind of thing. Um, so I think it's, you know, again, it's, you know, you find value in helping people. Um, it's very important if we can all lift each other up a little bit, um, we'll be just such a, you know, it will be a great world to live in and a great society to be in. Um, yeah, well,
Tendai Midzi:
True. That's those are, those are three ways where it's, uh, it's, I think it's everyone sort of the millennial and gen Z gold sort of be like financially independent. And besides like your nine to nine to five, have a side hustle that kind of brings in this income. And it's important in a growing global world where the internet is becoming king, you know, to have your foot in the door so that, you know, you don't necessarily get lost with the rest of the rest of the crowd.
Bernard Loots:
Yeah. I mean, like I said, you don't have to, you know, a lot of people are working right now, but there's also a lot of people that might've lost their jobs. And I mean, families need to be fed school fees need to be paid. Um, and relying on one income is something that, you know, if you look at any of these, uh, gurus or whatever they tell you about millionaires and things like that, the one thing that really is true is that all the people that are really truly wealthy and successful, they don't just rely on one income. Because if you just have a job, you can get fired tomorrow. We can get retrenched tomorrow, the business can close down and then you, you know, you don't have anything, but you can have your day job. And then you can have a little small unmanned business that you don't have to put lots of effort into, you know, once you get it up and running, um, it will be able to supplement your income.
Bernard Loots:
If you don't have a job, I mean, you can grow and scale that and put way more time in it and you can grow quicker to a place. Um, we can actually really financially help you. So I would definitely, I mean, anybody and everybody should have multiple streams of income and they should have an online business. I mean, there's no reason not to. Um, and, and you don't, don't just have to have one, so you can have a niche, like what ours is, we do online education, but you can also, you can also go ahead and sell chocolates, you know, um, you can sell toys and all of those things will work independently because they, they based on different markets. Um, and, and that's what you want. Do you want to diversify your income so that you're not reliant? So, I mean, people talk about side hustles, but it's really just financial stability and having income coming in in more than one way.
Bernard Loots:
And I, and I think it's definitely something that is, uh, like you said, a hot topic and it's, you know, it seems to be like a gen Z millennial thing and, you know, everybody's talking about it. Um, but the truth is not a lot of people actually do it, the actual people that go ahead and they're like, you know, I'm gonna, I'm gonna start this business. They are so few and far between, and it's literally, it's a difficult process because a lot of people go into it and they're like, you know, side hustle and I'm just going to get it to work. And, you know, I'm going to, within a month, I'm going to make, you know, a million Rand or whatever the case am. And that's simply just not true. You're going to start small. You're going to, you know, most likely you're going to fail a couple of times the first product that you choose, nobody's probably gonna want it, but the 1% of people, they push through those things and they keep going.
Bernard Loots:
And like I said, they go on the cycle of constant improvement, you know, and the goal you're going to get to, I mean, uh, it might happen for you if you dedicated in a, in a year or five years or 10 years, but I mean, that reward of having that financial freedom and having these, you know, this many that comes in and at the same time, you, you helping people, you providing them a service, are you providing them a product or are you educating them? You know, you get that personal value as well. Um, besides just the money aspect. Um, so yeah, I mean, like I said, I, I recommend everybody
Tendai Midzi:
To, to do it. Yeah. That's, that's great. That's great. Actually the, well, this could be a whole other topic for the podcast, but the idea of actually doing it is still an issue. I think even sometimes, uh, I suffer from it. We, you know, you're like, okay, I have this great idea, but the amount of work that's needed, they might not let me just, you know, let me leave it for someone else to do it. All right. That's great, man. Thank you so much, Burnett. Uh, I don't know. Do you have any products you want to promote? This is your time to,
Bernard Loots:
Uh, yeah. I mean, if I, if I, if I had to, if I had to promote anything to, I would say, you know, if anybody is welcome to come and check out our YouTube channel, um, so it's just called gross start. And literally we take you on a journey of, you know, step by step building this business with you, getting your website online, identifying what product to gate, and it's all free. Like you don't even have to pay for it. Um, so yeah, go ahead, go check it out. Um, and, and just take the step. And that would be my advice to everyone. Just like go and do it, go solve their problem, get it online and start marketing it. And you're going to learn lessons. You're going to fail. Um, but just keep going. And if you keep going, I can guarantee you, you're gonna wake up one day and you like, wow. I achieved my goal. Okay. What's the next goal. And that's how you grow and you scale it and you're going to build this thing tremendously big and you're going to at the same time, just help other people. So yeah, definitely go for it. Go check us out. And yeah, any questions? I mean, we always answer any questions that we get. Um, yeah. All
Tendai Midzi:
Right. That's, that's great. So big short, uh, you guys that are listening, make sure you go like, uh, subscribe and learn, I think, or two, if you have any more questions, I'm sure if you like post a comment on the YouTube channel, Bernard will be there and happy to help you out if, uh, if you have any questions for me. Yeah. You're not, you know where to find me. Uh, there's there's also a website, my website for the podcast coming up. So be sure to check that one out. I think I'll put a link to this episode. If it's done, hopefully it's 10 per tech release this episode, but it's so good. Thank you so much, Brandon, for your time. Um, any last words, any closing words, uh, to give to the audience out there? That's listening
Bernard Loots:
Guys do it. Just, just start, like that's my advice. Just start, find the problem and just go and do it. And don't ever stop. Just keep at it. You're going to get there. Your life is going to be dramatically improved in five, 10 years time. Just do it.
Tendai Midzi:
All right. So they have it guys. I cannot add anything more, except just go do it right. Thank you. And see you guys. Will you listen to me on the next episode?
Bernard Loot:
Tendai. Thank you so much for having me. We'll hopefully chat soon.