Firebox.com
Overcoming the online challenge: a case study
Firebox.com is a quirky online gift retailer with an intriguing history. On the dot.com roller coaster since 1998, Firebox.com has managed to survive and prosper while dozens of other better-funded outfits have crashed and burned.
Originally launched as an online‐only retailer, the business has since developed into a multi‐channel operation incorporating a website, mail‐order catalogue, in-house warehouse/despatch facility and telephone call centre. The core business - selling new, unusual and exciting gifts online - remains the same 11 years on, whilst it has grown from a specialist in the niche "gadgets and boys toys" sector to the ultimate destination for unique gift ideas for all ages.
Many major high street retailers watch Firebox to identify products that will go on to become successful in the mass market, and as a result the website and catalogue have become a reference bible for buyers working for mass market retailers.
University friends, Tom Boardman and Michael Smith realised that most of the lifestyle and men's magazines carried 'gadget' pages but there wasn't one dominant retailer selling these types of products. The pair quickly came to the conclusion that it would be a smart move to set up a company that specialised in these sorts of unusual, faddish and innovative products whose popularity grew by word of mouth rather than expensive ad campaigns.
Since launch, Firebox.com has experienced phenomenal growth as a result of our increasing global customer base. Thankfully, PayPoint.net has supported this rapid growth by offering truly innovative payment technology."
Firebox began humbly out of Tom's parents' attic with just £1,000 seed financing from Michael's mother. Tom and Michael even lent their hand to creating, marketing and selling their very own product - the shot glass chess set - which sold hundreds of thousands worldwide.
By 2004 Firebox was ranked as the 13th fastest-growing privately‐owned business in the UK (Sunday Times FastTrack 100, 2004). In 2006 the company was awarded the prestigious "eSuperbrand" status by the Superbrands Council.
Last year Firebox.com turned over a record £13 million.
Currently, the majority of revenue comes from the UK, however Firebox.com has extablished a base in Philadelphia and
plans to break the US market. The next move will be further
expansion into both the US and Europe.
This increased international development has led to a greater need for robust fraud solutions the ability to offer purchases in a number of currencies and comprehensive 24/7 payment processing - all provided by PayPoint.net. In addition, Firebox has taken advantage of PayPoint.net's latest innovation, PayCash, which allows UK customers who are concerned about using credit cards online (or do not have one) the opportunity to transact online and pay in cash at any of the 22,000 retailers in the nationwide PayPoint network. PayCash overcomes many retailers' concerns about fraud losses as the revenues are guaranteed because they have been received in cash.
Firebox.com goes head‐to‐head with giants of the online retail space, such as Play.com and Amazon. However, by offering a niche and focussed online retail experience, they have maintained an impressive level of success.
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