5 Unconventional E-commerce Success Stories
August 15, 2024 - 11 minutes readE-commerce triumphs come in all shapes and sizes.
There is no shortage of online sales competition, with over 26 million E-commerce websites already in operation around the world, and more appearing every day. A unique product, an effective marketing strategy, and a bit of luck go a long way towards making online businesses profitable. But there are also some notable E-commerce success stories that have defied the odds by following a more unconventional path.
As brick-and-mortar businesses expand their horizons through omni-channel commerce and countless entrepreneurs begin their sales journeys online, each new day brings important decisions. Choosing the right E-commerce platform and inventory management software are among the choices with long-lasting impact, regardless of the product, market, or approach.
“If you’re trying to create a company, it’s like baking a cake. You have to have all the ingredients in the right proportion.” – Elon Musk
The seeds of E-commerce
What would eventually be known as E-commerce began long before the dawn of the internet. In 1979, English inventor Michael Aldrich used a doctored television and a homespun computer to complete the first online sales transaction. Just three years later, Boston Computer Exchange, the world’s first online marketplace, provided a forum for selling and trading computer equipment using online bulletin boards.
The age of E-commerce began in earnest in 1995, when both Amazon and eBay were founded, and consumers began to recognize the benefits of quick and hassle-free E-commerce shopping. Almost 30 years later, over 20% of retail purchases now take place online. To expand and level the playing field, companies including Amazon, Walmart, Shopify, and Magento also provide individual storefronts to smaller businesses as an expedient way to enter the digital marketplace.
Common threads of E-commerce success
Not every business will resonate with their target audience and become profitable, given the intense competition for online sales. While there is no magic formula, many top brands share traits that steadily attract new customers while ensuring they become repeat customers.
- Search engine optimization: Consumers are unlikely to find an E-commerce website unless it ranks highly with search engines consistently. Search engine optimization (SEO) must be considered before, during, and after launch to ensure your products and audience continue to find each other.
- Secure checkout: Customers have adapted to the digital shopping experience, but they expect (or demand) a checkout process that is fast, flexible, and secure.
- Customer service: It is essential to provide the options customers are looking for at an affordable price, then ensure all returns, questions, concerns are handled seamlessly.
Even the best web content, photos, and checkout experience will not translate into profits without high-quality offerings. The overall value of the online shopping experience, with great products at its core, is what ultimately builds a successful brand.
5 unconventional E-commerce success stories
E-commerce stalwarts like Amazon and eBay were once considered unconventional by customers accustomed to brick-and-mortar shopping and cash payments. Since these early days, E-commerce retailers have continued to break down (or ignore) conventional barriers as they redefine their respective markets.
1. Scrubz
In 2005, founder Roberta Perry was inspired to launch ScrubzBody Skin Care when she was unable to find existing skincare products to address her own unique needs and surmised that she may not have been alone in this. With no previous background in skincare, science, or medicine, Perry and her sister developed new products in their kitchen that were more effective than anything available in retail stores.
The unconventional and unlikely success of the Scrubz E-Commerce business began with financial bootstrapping and personalized marketing through local fairs, charity events, and word of mouth. Perry cites her commitments to customer service and weaving her own personality into the company website, images, and descriptions as key drivers of Scrubz eventual success.
2. Dollar Shave Club
When Mark Levine and Michael Dubin launched Dollar Shave Club in 2011, they realized razors and other grooming products were not items consumers typically had shipped to their doorstep. They also realized the razor market had been dominated by industry titans Gillette and Schick for decades. Listening to their intuition instead of their advisors, or the public, was the X factor behind Dollar Shave Club’s success.
The viral social media video that put Shave Club on the map in 2012 might have fit the traditional startup marketing mold, but the low $4,500 budget and profanity laced pitch certainly did not. After four years of continually optimizing their customers’ online experience, Dollar Shave Club was acquired for an astounding $1 billion in 2016.
“Don’t worry about what everyone else is doing. Despite how great their choices may seem, or how much they all seem to have it figured out. They don’t.” – Michael Dubin
3. Etsy
As an online platform showcasing unique handmade products, Etsy has become yet another E-commerce stalwart since its humble launch from a Brooklyn apartment in 2005. The Etsy business model does not seem unconventional today, since individual storefronts within larger, well-respected E-commerce platforms are now commonplace, but Etsy was one of first companies to popularize this approach. Additional business practices that made Etsy successful included:
- Limiting their business to vendors of handmade items
- Fostering a sense of community among buyers and sellers
- Ensuring the authenticity of vendors and their offerings
Etsy reported over $13 billion in overall sales in 2023, with seven million active sellers and a steady increase in habitual (repeat) customers.
4. Common Projects
Few of the conventional rules applied to Common Projects, a successful E-commerce shoe company. When the business was launched, athletic footwear was viewed as a difficult online market segment, since customers were unable to try on shoes in person. Common Projects’ sneakers incorporated:
- Hand-crafted shoe production in Italy
- Simple materials and clean aesthetics
- A conspicuous lack of product branding
Common Projects sales continued to increase as they carved out their unique niche in the multi-billion dollar shoe market. After establishing their brand and B2C sales through their original men’s sneaker, Common Projects branched out into women’s shoes, boots, running shoes, and brick-and mortar retail sales.
5. Hello Matcha
A commitment to shade-grown tea leaves, eco-friendly packaging, and exceptional customer service made Hello Matcha a runaway E-commerce success. This online-only business focused on bringing the unique flavor and health benefits of traditional Japanese tea to customers all around the world. The origin story of Hello Matcha is what made them truly unconventional.
The company grew out of a Shopify product team challenge aimed at launching a new online business around a compelling product, in record time. Shopify consumer research pointed to matcha green tea as a potential opportunity. Premium branding and packaging strategies were developed to align with the exclusive vibe of the products. The positive results of this digital experiment proved the right product and strategy could underpin a viable business in a matter of days.
The importance of software
These unconventional E-commerce success stories underscore the value of creativity, determination, and inner belief when launching a new E-commerce business. Fundamentally, no online business can succeed without the right E-commerce platform, inventory management, and order management software to ensure customers remain satisfied and engaged throughout the buying experience. Seamless integration between platforms and data sources allows inventory levels, shipments, and deliveries to be tracked in real-time, while making the latest information available for customer service teams.
E-commerce success: Final thoughts
The first E-commerce retailers were pioneers in a vast new field, with shifting market conditions weeding out all but a few of the original players. With the convenience brought by third party storefront hosting, payment processing, and security, it has never been easier to open a new online business. Today’s entrepreneurs look to these past innovators, along with the opportunities presented by new E-commerce tools, for inspiration.
Cloud-based Agiliron software solutions, including inventory management, mobile point of sale (POS), and full featured CRM, integrate seamlessly with all leading E-commerce platforms, so you can sell in more places while managing from one. Agiliron also provides an extensive library of templates to help you get new E-commerce stores up and running or migrate existing stores.
The options for E-commerce entrepreneurs are nearly limitless, with cloud-based software and dynamic online storefronts coming together to support the latest success stories. We can help you choose the right inventory management software and E-commerce platform to complement your business model. Contact us today and allow our solution experts to share their advice and expertise.
