Diapers.com became an overnight success in 5 years. In 2008 it did $90MM in revenue despite having started their business long after Amazon, Drugstore.com, CVS.com, Walgreens.com, BabyCenter.com (owned by J&J) and others had already reached scale in the category Diapers.com chose to found their business on.
Who would do that with a line of products that every retailers carries, usually as a loss leader and how would you do that?
1. Fast and FREE shipping
2. Low, low prices
3. Low, low costs (to allow for low, low prices)
4. 24/7 bend-over backwards customer service. Reps have no scripts and are totally empowered to serve and reward customers, especially the frequent shoppers and those that refer the service. In fact, they now spend $1MM annually on awards to customers bestowed by the reps.
5. Stay in-stock
6. No waste in the packaging of shipments (don't ship air)
7. Marketing dollars devoted to over the top customer service and free shipping which generates word of mouth
8. Measure, analyze, adjust (sell smart, cut costs, keep customer ecstatic)
Not rocket science, just a clear vision and animalistic execution accompanied by analytics followed by action that helped them get smarter and better every day.
O.D.O.o.O.D.B.
(TY: INC 500 Fastest Growing Private Companies)