shoes online?
Filed in archive Entrepreneurship on February 4, 2005
Siliconbeat about the tale of Al Bundy online:
"Tony Hsieh, CEO of Zappos.com, the company that sells shoes over the Internet (we last wrote about it here), just sent us his usual update on his sales progress, and the numbers speak for themselves. 1999: Almost nothing 2000: $ 1.6 mm 2001: $ 8.6 mm 2002: $ 32 mm 2003: $ 70 mm 2004: $184 mm 2005: $300 mm (goal) In other words, he's more than doubled sales every year since 1999."
Online retailing is a pretty big (revenue) market no doubt. However with the margin contraints I still would have hesitation investing into it (niches anyway - as the mainstream market is too far developed anyway).
Permalink: shoes online?
Tags: online retailing shoes entrepreneurship 2003 venture+capital please+enter youtube+germany
Vote for shoes online?:
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Rating: 6.00 out of 1 vote(s) cast.
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Response from:
Russell Buckley
(02/04/05 3:25pm)
Response from:
Manolo
(02/05/05 7:53am)
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Hello to the TJ!
Manolo says, yes the selling of the shoes on the line, it is indeed most profitable.
As for the returns, they run about 20 of the percent, which is the acceptable level given the volumen potential.
Best of the Wishes,
Manolo
Manolo says, yes the selling of the shoes on the line, it is indeed most profitable.
As for the returns, they run about 20 of the percent, which is the acceptable level given the volumen potential.
Best of the Wishes,
Manolo
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One of the big issues with online shoes is the very high rate of returns (you need to try shoes on for size), which affects margins drastically.
Shoes, I believe, is second only to women's bra's where returns can be as high as 2 sales for every 3 returns.
Some things are simply better suited to real world shopping, unless of course, there's no shoe or bra shop within a 100 miles or so.
Russell