Buy.com Buys Into Magalog Format

In the wake of the dot-com bust, Irvine, CA-based Web marketer Buy.com has launched a 40-page magalog as a means of garnering additional sales.

The Buy.com book mailed in early March to 5 million Web customers; the company plans to produce it quarterly. Like the Buy.com site, the magalog sells digital cameras, notebook computers, Palm Pilots, Gameboys, and software. Prices range from a Belkin Desktop Network PCI card for $13.95 to a Samsung 65″ wide-screen television for $3,229.95. Like similar Web marketers, Buy.com does not house physical inventory. Rather, product is drop-shipped to customers from equipment manufacturers.

The book features an 800-number on every page; it also includes 14 pages of advertising from Buy.com’s vendors and partners, who purchased the ads for a whopping $50,000. Advertisers include networking products marketer Belkin and cable-modem supplier Linksys.

The magalog is part of what company founder Scott Blum calls a “pixels and paper strategy,” with the goal of “making the buying decision easier. We’re not just marketing to techies. That’s why our editorial is written in a way that will cut through the mystery of making a purchase.” For instance, in the section selling digital cameras, a staff writer advises that five-megapixel digital cameras are best for framing or enlarging images.

It’s been a wild five years for Buy.com. Blum founded the company in November 1997, then sold it to Japanese investment bank Softbank for $230 million in 1999. This past November, Blum bought the company back from Softbank for $26 million and took it private.

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Buy.com buys into magalog format

In the wake of the dot-com bust, electronics i.merchantBuy.com is launching a 40-page magalog. The book will mail early next month to 5 million Web customers and is slated to come out quarterly.

The magalog sells digital cameras, notebook computers, Palm Pilots, Gameboys, and software and features an 800-number on every page. It also includes 14 pages of advertising from Buy.com’s vendors and partners, such as networking products marketer Belkin and cable-modem supplier Linksys, which purchased the ads for a whopping $50,000. Like similar Web marketers, Buy.com does not house physical inventory. Rather, product is drop-shipped to customers from equipment manufacturers.

It’s been a wild five years for Buy.com. Blum founded the Irvine, CA-based company in November 1997, then sold it to Japanese investment bank Softbank for $230 million in 1999. This past November, Blum bought the company back from Softbank for $26 million and took it private.

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Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
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Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
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