Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
Offering hard-to-find products to consumers encourages super-niche retailers to go online.
Online niche players know their products are hard to find, which provides the impetus for them to develop an online presence. Vacuumbags.com, which went online in 2000, clearly has a strong niche, featuring vacuum cleaner bags for more than 50 manufacturers. “Our main thrust has been to get fast service for people,” says Greg McClellan, owner of the Oregon-based store that also operates a successful web site. Store employees handle fulfillment.
He says he was motivated by other online retailers: “What got me started on being service oriented is that I ordered products from Egghead.com and they got it to me within a day or two. I said, ‘This is what I have to do.’”