Dmall takes grocery orders online and employs workers who buy the items in supermarkets and delivery them quickly to consumers.
When competition cut into one of its most popular categories, OneWayFurniture.com spun off MyBarStools.com. The result was a 25% higher conversion rate for bar stools on the niche site over the main site.
When competition cut into one of the most popular categories on its site, OneWayFurniture.com spun off a niche site-MyBarStools.com. The result was a 25% higher conversion rate for bar stools on the niche site over the main site, says Mitchell Lieberman, president and CEO, OneWayFurniture.com
One Way Furniture, No. 312 in the Internet Retailer Top 500 Guide, spun off the niche site after analytics logs from the past year and a half showed a decrease in bar stool sales, one of the site’s major categories. “We saw intense competition coming in from all different angles,” Lieberman says. “We decided the only way to really go up against that competition and re-establish ourselves as the bar stool leader was to create our own separate bar stool site.”
One Way Furniture also invested in pay-per-click advertising to give the niche site a jumpstart, Lieberman says. “Sales have jumped very rapidly,” he says. “So far the site is producing about 3% of the revenue of One Way Furniture.”
For customers looking only for bar stools, it’s an easier shopping experience at a site that carries only that item, Lieberman says. “Traffic is really increasing through the site and it’s taking less traffic to produce a higher percentage of revenues,” he says.
Based on revenues generated in October and November, Lieberman predicts the site is on pace to generate $800,000 to $1 million annually. Based on that success, One Way Furniture likely will spin off niche sites for other categories.
“All things point to customers really liking these niche sites, and that’s a direction we’re looking forward to continuing,” he says.