DOT-COM STARTUP OF THE MONTH.
Author | PETERSON, ERIC |
Position | Brief Article - Statistical Data Included |
COLLECTIBLETOWN.COM INC.
FORT COLLINS
www.collectibletown.com
FOUNDED: LATE 1999
WEBSITE LAUNCHED: JULY 17, 2000
Initial Lightbulb: As founder and owner of Cobabe Designs, a decade-old collectibles manufacturer, CollectibleTown.com co-founder and CEO Laura Cobabe saw a virtual void on the Net for new collectibles -- not the pre-owned fodder on eBay, but rather figurines, plates, bears and more, fresh from a limited run at the factory. (Margins are generally around 50%) Unhindered by the brick-and-mortar concerns of space and geography, Cobabe set out to create on online retail hub for the industry.
In a Nutshell: CollectibleTown.com wants to become the one-stop website for new collectibles. So far, it sells the products of more than 65 manufacturers, including Disney, Hummel and Mattel, Cobabe and company plan to steer clear of: 1) the secondary market (i.e. eBay); and 2) such fads as Beanie Babies and Pokemon. While the latter crazes garner mainstream attention, the products don't translate well to e-commerce, because slender margins in their primary market often are eclipsed by shipping costs. All of CollectibleTown.com's revenues are generated by e-commerce, and a Michigan-based specialist handles warehousing and fulfillment for its 50,000-item inventory. Additionally, the website will feature multimedia chats (with regular appearances by industry figures and designers) and other relevant content.
The Market: In 1998, the U.S. market for new collectibles was $10.6 billion, with a 10% annual growth rate. Industry analysts expect the tally to hit $16 billion in 2004, with some $2 billion in e-commerce. The market is unique in that product is...
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