The popularity of flash sale sites continues to grow and Fab.com entered the market in the summer of 2011 with $8,000,000 of funds from venture capital firms and angel investors.
Fab.com offers a variety of merchandise. It stays away from apparel in order to avoid relying upon fashion like some other flash sale companies. Instead, Fab.com is focused on providing a sound distribution channel for suppliers. The company’s biggest sellers have been outdoor planters and maps. But the site offers gadgets and durable goods of many types.
Fab.com reports that it is already profitable and recently surpassed 400,000 users. The site has experienced significant activity by repeat buyers. When the company started in 2010, it was originally a social network for gay men before transforming itself and launching the Fab.com site in 2011. The company found that greater mainstream cultural acceptance of the gay lifestyle resulted in reduced demand for a site specifically targeted to gays.
Now, the rapidly growing company aims to locate items with appealing design qualities and offer them to a broad audience on the web. The new funding is earmarked to expand Fab.com into new categories. The company intends to connect with more designers and build new community features into its website. By offering more products on multiple platforms, Fab.com expects to attain millions of users and be a major force in e-commerce.