This Presentation is Designed To Help Fab’s Employees (Current + Future), Partners, & Customers Get To Know Us Better. It features an update after 18 months of what we’ve done, how we do it, and where we’re going.
We just smashed all previous mobile shopping days this Christmas. A whopping 56% of all of Fab’s revenue in the U.S. was via our mobile apps on Christmas in the U.S. — a new single day record. And, 40% of our European revenue was on mobile that day, also a record.
I had predicted previously that someday before then end of 2012 Fab would have a full day where mobile was more than 50% of our overall revenue. We’re there.
Thanks Fab Investors! Fab Adds The Times of India Times' Internet Group to Its Investors.
I’m thrilled to announce today that Times Internet has made a 7-figure investment in Fab.
Times Internet is the digital arm of The Times of India Group, India’s largest media company. As part of this investment Fab will be working with Times Internet to explore and execute on our India market strategy in the coming years.
The investment was fostered by Satyan Gajwani, Times Internet Group CEO.
I have been working with Satyan for several months now and he been super impressive with his approach to innovating and growing technology businesses in India. I’m excited to work with him and his team as Fab explores the India market further.
Fab has raised over $150 million from investors since we launched in June, 2011. The support from our investors is a big reason why we have been able to rapidly establish Fab as the worldwide leader in everyday design. More than 10 million people in 26 countries turn to Fab to discover everyday design products at great prices, to connect with the world’s most exciting designers, and to share their favorite design inspirations.
I wanted to take a minute to thank all of our major investors by name (listed alphabetically). Thanks for a fantastic 2012! We are humbled by your support and belief in Fab.
Fab’s first pivot happened fast. And quite publicly.
On February 24, 2011 Bradford and I decided to shutter our fledging gay social networking website, fabulis, and relaunch it as a Fab, the place for everyday design.
7 days later, on March 1, 2011 we got approval from our board of directors.
8 days later, on March 9, 2011 we shut down the old business and got to work building the new technology, designer relationships, and membership base needed to re-launch.
3 months to-the-day, on June 9, 2011, we re-launched as Fab. We sold $65,000 on our first day.
We had successfully pivoted from gay social network to online design flash sales phenom in just 90 days.
We hit 1 million members 4 months later.
We sold $10M in November and December 2011.
We had started to build a brand.
We were off to a good start.
So, we did next what came naturally to us.
We pivoted again.
Only, this time we did it slower and less publicly.
We’re now ready to pull to covers off of the massive pivot Fab has successfully undergone in 2012, from design flash sales to the world’s leading everyday design retailer.
In December 2011 we had 1.5 million members.
Today we have 10 million members.
In December 2011 we had <2,000 products on Fab at any one time.
Today, we have more than 15,000 products on Fab.
In 2011 we had <5% of our products in inventory.
Today, more than 75% of the products we sell are in inventory.
In 2011 we relied entirely on 3rd party fulfillment services.
Today, we manage our own warehouse and supply chain, built entirely on our own technology.
In 2011 we averaged more than 16 days from time of order to shipment. It was painful.
Today items ship from our warehouse the same day they are ordered. Our average time to ship is just a couple of days across all types of orders.
On December 13, 2011 about 100 products on Fab were eligible for expedited overnight shipping.
On December 13, 2012 more than 8,000 products on Fab are now eligible for expedited overnight shipping.
In 2011 our highest sales day was around $300k.
In 2012 we’ve had several million dollar sales days.
In 2011 we sold 3 products per minute on average.
Yesterday we sold 23 products per minute.
In 2011 we ended the year with 85 fulltime employees.
Today we have 600 fulltime Fab team members across 3 major cities: New York, Berlin, and Pune.
In 2011 100% of our sales were from customers in the U.S.
Today 30% of our sales come from Europe.
In December 2011 15% of our sales were via our mobile apps.
Today, 1/3rd of our sales are via mobile and during some day-parts more than 50%.
In December 2011 5% of logins to Fab resulted in a purchase.
In December 2012 13% of logins to Fab result in a purchase.
Today, our average order size is 10% higher than it was last year.
Today our gross margins are 25% higher than they were last year.
And, we’re still just getting started.
We believe that the best companies are never complacent.
It takes a ton of re-imagining and reinventing to stay ahead.
Even while we’ve been massively pivoting our business this year while growing it many times over, we’ve also been hard at work planning for what comes next.
So, in 2013 we’ll be pivoting even further. We’ll be pivoting towards a new model that we are not yet ready to reveal publicly. That pivot will be gradual. I can promise you one thing: It will be 100% towards delivering the best customer experience in the world for discovering everyday design. We’ll offer even more unique products supported by an even better experience.
When Does The Holiday Season End For E-Commerce Companies?
Coming on the heels of our 3rd million dollar sales day (yesterday), and our second consecutive $6M week, you can imagine that we here at Fab want to do everything possible to extend the holiday season as long as possible.
Which begs the question: When doe the holiday season end for E-Commerce companies? That is, when do consumers give up on the hope of buying online and getting it in time for xmas?
Last year Fab’s sales peaked around Black Friday - Cyber Monday and then fell off a cliff around December 17th as we just couldn’t guarantee to ship products fast enough.
This year, thanks to a huge product assortment (14,000 products vs. 2000), 75% of which are in inventory and able to ship in 1 to 3 days anywhere in the country, we’re extending the holiday peaks into December and we plan to keep it going all the way up until December 21st.
Over the past few days we are literally shipping out orders within just a couple of hours of them being placed. That’s an amazing experience.
Fab customers this year will be able to order products all the way up until December 19th and still get it in time for xmas using our standard FREE Shipping, and all the way up until December 21st using our expedited shipping options.
Simply put: That’s Fab!
And, we’re not stopping then either. We’ve got big things in store for xmas day itself and for the week between xmas and New Years.