Case Study: The Hubs
The business behind the hubs started in 2008, selling kayaks on eBay. Now they sell two distinct product ranges – the Outdoor Hub sells kayaks and water sport accessories, the Fancy Dress Hub sells a wide range of fancy dress outfits and equipment.
From 2008 through 2011 the business sold exclusively on Amazon and eBay, building the product ranges, understanding customer needs, and testing various product ideas. There’s no doubt this is a PiggyBack business – selling products using eBay and Amazon to provide the route to market.
Building a PiggyBack business is not without technical challenges. Trading in such price sensitive environments means it is essential to get all systems as streamlined as possible to reduce cost and wastage, and that’s just what The Hubs have done – moving to a purpose built office and warehouse in early 2012. The other key criteria for success in the PiggyBack world, is great customer service – not only are they price-sensitive marketplaces, they’re also feedback-sensitive too.
The Hubs 2 ebay sites both have 99% feedback ratings, and on Amazon 97% positive.
So, what is the businesses USP? Is it the product range? The price? The Customer Service? It’s actually in some part all of them, as it’s the systems that sit behind everything – meaning it’s easy for them to get in and out of product ranges as the opportunities appear. Today The Hubs are selling fancy dress and kayaks – by next year it could be anything. Which makes The Hubs not only a great PiggyBack example, but also a great example of the power of picking Niche Product Ranges.
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