December 16th, 2010 by databot
I know that I have discussed in past I have discussed nailing your niche in regards of the sale of Diapers.com to Amazon for a Half a Billion dollars. This post is more focused towards someone thinking of getting into the e-commerce game. The easiest way for the average person to make money online is with an ecommerce site that sells unique and hard to find products. If you have thousands of dollars to stock a wide variety of products, and a practically unlimited budget for advertising, then a niche ecommerce website is not for you. If you are looking to start an ecommerce site with low start-up costs that can compete with large established online retailers, a niche ecommerce site is your best chance for success.
Your first step is to find a niche that you are familiar with and can capitalize on. Think about your expertise is in the automotive vertical. For example, if you are a Honda fanatic or an expert on EFI Tuning or a turbo junkie base your RPMWare store of that expertise. This will allow you to take advantage of the SEO tools that RPMWare has to offer and really get your page ranks up. In terms of just starting out it’s a great way to gain success and then to build into other niche sites. I have included a clip of an interview that I found very compelling.
Montague: Total individual SKUs between all the sites are probably close to 10,000 at this point and every site is different. That’s the collective sum of all the sites, but we have sites with less than 50 SKUs and we have sites with several thousand SKUs. I always believed it’s not really a question of SKU count. I mean you see a lot of other e-tailers out there just throwing as much as they can at the wall and see what sticks.
I think there’s a real loss of quality there which is unfortunate. Although more SKUs I guess result in more lines in the water that could potentially lead to sales, there’s a real fine line there to cross between putting together a quality site and accurately representing these SKUs and just mass uploading whatever you can, however you can and hoping for the best. We don’t stress too much on our SKU count, but I believe at this point we’re probably right around 10,000.”
I also would check out the success of Hayneedle.com they have over 200 niche sites listed here. Take a look and it will give you an idea of how to really attack a certain niche inside our market. Here is a list of just a few.
If any of you have any ideas for niche RPMWare store hit me up and I would love to get you setup and running! email@example.com
November 18th, 2010 by databot
As word spreads this week that Amazon purchased Diapers.com for a whopping $545,000,000, I wanted to make sure and give you a little background on how this business grew in less that 5 years. The team at Diapers.com focused on one type of customer and for the most part one product and built in value added products in which they made good margins while selling diapers for little to no profit. The key to this strategy is that customers come back over and over and over again. They place multiple orders for diapers but add wipes or lotion etc. This company was so successful that Walmart and Amazon.com got into quite the bidding war for the 5 year old startup. I also admire the passion in which they started the business check out this quote below and the corresponding article from businessweek.com. Read the rest of this entry »