Six Online Retail Business Success Stories
Of the fastest growing Australian online retail business stories, many are bricks and mortars businesses selling physical goods rather than services or experiences. Here, we look at some of the top online retailers in the past five years, not counting auction sites.
DealsDirect
DealsDirect is one of the best known and largest online department stores in Australia. With comprehensive shelving systems in a warehouse space of over 40,000 square metres, DealsDirect has delivered over 4 million parcels to happy customers since its founding in October 2004. Based in Western Sydney, the company started out as an eBay-based retailer and now employs over 120 staff members. Specialising in retail goods at a heavily discounted rate, Deals Direct has won many awards for its reputedly outstanding customer service and brand recall among consumers.
Catch of the Day
Catch of the Day is probably Australia’s most recognised one deal of the day online retailer. With over 500,000 subscribers to its daily special product emails, the store sells anything from electronics to books, to Manchester and grocery items. Founded by brothers Gabby and Hezi Leibovich, the business operates from a vast Melbourne warehouse complete with space-efficient pallet racking systems for its considerable quantities of inventory. While its business premise is focused on selling one featured product a day, other featured items are also available for buyers. Recently, the company received a sizeable investment from Consolidated Press Holdings, James Packer’s company, and began expansion plans into New Zealand. Catch of the Day has a sister site, Scoopon, a daily coupon deals site.
Dick Smith
Dick Smith consistently ranks highly in online retail categories. With a widely recognised brand, the online store is very easy to navigate. Dick Smith sells the same products online as in its stores, with some 30,000 electronics, computing, gaming, dvd and audio, and other products in its catalogue. However, online prices are discounted and online-only sales items regularly featured.
Big W
Big W, a division of Woolworths, launched its online store in mid-2010. With thousands of products available online and some products exclusive to its online store, Big W has recorded at least 75 per cent growth for its online store. Other majors such as Myer and Target have also launched online shops.
brandsExclusive
A private shopping store, brandsExclusive is one of the fastest growing online retailers in its category, with over 1 million members and around 80,000 new members signing up every month. The site sells fashion clothing, footwear, and accessories, and boasts up to 80 per cent off retail prices. The sales last only a few days and are always members online. Founders Daniel Jarosch and Rolf Weber also invested in Spreets, another daily deals site. Recently, the company received investment funds from Trayas, an investing company led by Klaus Hommels and Oliver Jung, who also invested in Skype and Facebook early on.
Crazy Sales
A fast growing online retailer, Crazy Sales is similar to DealsDirect in its scope of products and wholesale prices. Anything from household items to electronics and office equipment can be found in its inventory.