Groupon says its focus is on the bottom line, rather than top-line growth.
The pure-play retailer is building on recent international expansion in a bid to hit $200 million in sales by 2010.
After launching a Canadian version of its e-commerce site last year, Headsets.com Inc. now is looking to establish sites for the United Kingdom, Australia, Mexico and select South American countries to meet its goal of reaching $200 million in annual sales by 2010.
Last year the company launched a site that shows pricing in Canadian dollars and reflects Canadian address and contact details. It also generalized pricing in a way that it can more easily adapt additional currencies and markets, laying the groundwork for more foreign content and products from a single data set, explains Shaun Masterman, a member of the company’s board and strategy team.
“Results outstripped our expectations three-fold,” Masterman says. “Canada has become a significant revenue stream for us. That spurred us to look further a field into the United Kingdom and Australia.”
However, those markets present challenges. While the products will be similar, they will require different interfaces to meet the countries’ slightly different telephone system standards. “We also have to set up distribution and support facilities in both countries,” Masterman adds, “as servicing the customer base from the U.S. would be prohibitive.”
Headsets.com, No. 362 in the Internet Retailer Top 400 Guide to Retail Web Sites, also is developing a Spanish language e-commerce site aimed first at Mexico. It plans further expansion with the Spanish language.
“As these international ventures prove themselves successful, they likely will serve as springboards into larger South American and European markets,” says Mike Faith, president and CEO. “We believe we are well on our way to reaching our goal of $200 million in sales by 2010.”
The company hit $9.4 million in e-commerce sales last year, a 65% leap over $5.7 million in 2004.
Headset.com’s Mike Faith will speak at the Internet Retailer 2006 Conference & Exhibition in an educational session titled Lost in Cyberspace: Do E-Retailers Just Ignore E-Mail?