Launching a business in a space with many established players is not always a profitable endeavor. But that’s just what friends Marc Lore and Vinit Bharara did in 2005. Despite the number of retailers selling parenting supplies online, the pair felt there was room for a site that sold diapers that were cheap and arrived quickly. Over the next five years, Diapers.com raised $59 million from outside investors, hired 300 employees and now brings in over $180 million a year. In 2010 alone, the site is set to bring in $300 million. Today their company Quidsi is launching a new site in a similarly crowded field. Soap.com will sell household goods online.
I spoke with Quidsi cofounder Marc Lore to talk about the importance of free shipping and why his company likes going after the business of large e-tailers.