I'd be really interested in seeing how much equity the founders have left in the business. It's definitely not capital light, so I can imagine that they had to raise quite a bit of money to get it off the ground and running.
I actually read an article on how Diapers.com got started. It was a couple folks in a garage. P&G and the other diaper manufacturers wouldn't talk to someone so small, so they got warehouse club memberships and just bought mass quantities to mail out. At times, they apparently bought out the BJs and Sams Clubs within a 100 mile radius. They were doing it all on credit cards in their own cars and rented U-Hauls. Here'…
Amazon to buy Diapers.com for $540 million
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Re: Amazon to buy Diapers.com for $540 million
#32Earlier quoted context omitted.
I'm surprised, diapers.com should be pretty well known to anyone interested in business or entrepreneurship.
Should it? Why? I have no kids and am in the UK. Is it a famous business case study? Even if it is, I'm a computer scientist not a business guy. The headline makes it sound like they bought the domain name for that figure, which is sensationalist and inaccurate.
I certainly don't think the title is sensationalist, but for the sake of clarity (given the up/down votes of complaints such as yours) perhaps it should have been made more clear that a company was purchased and not a domain name. On the other hand, would there be any confusion if it was Zappos.com?
Re: Amazon to buy Diapers.com for $540 million
#33Re: Amazon to buy Diapers.com for $540 million
#34People seem to love buying office coffee and diapers from amazon: http://www.amazon.com/gp/bestsellers/grocery
Re: Amazon to buy Diapers.com for $540 million
#35staple items like diapers are things people like to order without actually seeing. plus, those types of items are easy hooks to get people to buy complimentary items with bigger profit margins.
Re: Amazon to buy Diapers.com for $540 million
#36Sounds like they should have done OK, depending on what % they gave up for their $78MM VC.
Re: Amazon to buy Diapers.com for $540 million
#37Re: Amazon to buy Diapers.com for $540 million
#38Re: Amazon to buy Diapers.com for $540 million
#39Re: Amazon to buy Diapers.com for $540 million
#40People seem to love buying office coffee and diapers from amazon: http://www.amazon.com/gp/bestsellers/grocery