Zappos.com Case Study: Why shoes are great for e-commerce … yes, really
written by Nisan Gabbay, posted on September 17th, 2006
Why profiled on Startup-Review.com
Zappos.com is an e-commerce retailer that has successfully built a strong online brand and shown impressive revenue growth since its founding. The gross revenue numbers basically speak for themselves: 2000 $1.6M, 2001 $8.6M, 2002 $32M, 2003 $70M, 2004 $184M, and 2005 $370M.
I think that Zappos.com makes for an interesting case study because they found a winning formula for e-commerce in general: acquire customers cost effectively through search engine marketing (SEM) and make them happy enough with their experience to keep coming back. The Zappos.com details on this formula I think are worth reading.
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Newegg Case Study
written by Nisan Gabbay, posted on August 14th, 2006
Why profiled on Startup-Review.com
Newegg is a private company that has not yet exited, but has successfully built a strong online brand and shown impressive revenue growth since its founding. The revenue numbers basically speak for themselves: 2005 ~$1.3B, 2004 $980M, 2003 $526M. How does this compare to Amazon? Amazon’s trailing twelve months sales were $8.5B, so Newegg is roughly one-sixth the size! Even more impressive was that this growth was achieved without venture capital funding in the early days, only taking outside equity financing in late 2005 from Insight Venture Partners.
Interviews conducted: Howard Tong, Co-Founder and VP; Ryan Hinkle, VC investor at Insight Venture Partners
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