Introduction

The success of in becoming one of the fastest-growing e-commerce websites by December 2012 can be attributed to several strategic moves made by its founder, Jason Goldberg. This article delves into the key factors that propelled to its initial success, offering insights that can be applied to modern e-commerce ventures.

Understanding the Customer and Viral Marketing

Customer Persona: ’s user base consisted of design enthusiasts, and the company tailored its marketing strategies to resonate with this audience. A standout example was the Vitra Eames Elephant sweepstakes, designed to attract the target demographic.

Viral Marketing: leveraged viral marketing by encouraging user referrals. They incentivized referrals with additional entries, fostering a community and increasing brand awareness. This approach aligned with the primary motivations identified by Gabe Zichermann: status, access, power, and stuff.

Pre-Launch Stages

Viral Landing Page: Before the official launch, built a custom, viral landing page that included gamified elements to encourage early access through referrals. This was more sophisticated than using pre-made solutions like LaunchRock, as it allowed for tailored user interactions.

Product Discovery Board: launched a product discovery and sharing platform before any actual sales took place. This innovation helped in:

Engaging with users and building a community around great design. Identifying critical products and designers that mattered to their customers. Generating brand awareness and repeat visits. Creating a curated, Pinterest-like experience that anticipated the future scope of the site.

Public Relations and Media Buzz

Effective Storytelling: Jason Goldberg and his team were skilled at storytelling, which played a significant role in generating early media attention. Regular contributions to the BetaShop blog and interactions with users, influencers, and bloggers helped in garnering positive press coverage.

Disrupting the Market with a Unique Product

Market Disruption: transformed the fragmented design market by providing an easy-to-browse platform with a discount on modern design furniture. Previously, small boutiques and designers had high prices and poor customer service, making it difficult for customers to find and purchase modern design.

Post-Launch Growth Strategies

Email Marketing: successfully employed aggressive email marketing campaigns while maintaining high subscription rates through detailed control options.

Continual Referral Programs: They frequently offered limited-time bonuses to drive referrals, maintaining user engagement.

Product Innovation: continued to innovate, adding new product lines and categories, similar to the larger retail model seen in Amazon.

Data-Driven Decisions: By using tools like RJ Metrics and Custora, they gained valuable insights to drive their business further.

Shifting Value Proposition: They moved from daily deals to a broader range of products across multiple categories to accommodate diverse customer needs.

Customer Listening: regularly surveyed and gathered customer feedback to inform their strategies.

Effective Segmentation: Their email segmentation was top-notch, allowing them to communicate in relevant and meaningful ways with different customer segments.

Conclusion

The rapid success of can be attributed to a combination of customer-centric strategies, viral marketing, pre-launch innovation, effective public relations, market disruption, and post-launch growth strategies. These lessons can be valuable for any e-commerce startup aiming to capture a niche market and grow at a similar pace.