Fab.com Ends Their Flash Sales Deals
Fab.com has raised a lot of venture capital funding. The company started off as a social network, but then turned into a flash sales company. Now the company is no longer sending daily flash sales e-mails. Fab.com no longer has to depend on the flash sales approach because they can now sustain their company based on a premium focus. Fab.com is raising additional venture capital and has hit 14 million active users as of June. The company’s margins on their purchases is now above 43%.
The company now has a Twitter and Pinterest-like “Follow” model. Fab.com users can follow the designer that they like. Fab.com has a similar design as Pinterest. Fab.com will personalize the website experience based on data and will send notifications when there are new arrivals of the brands that you follow. Initially, Fab.com customers will be able to follow departments, but soon they will allow you to follow designers and topics. These changes will be added to the iPhone, iPad, and Android soon.
Fab.com is expected to hit $250 million in 2013 revenues. Fortunately, most of their revenue is not from their flash sales. Fab.com has raised a total of $310 million in funding, including a $150 million round announced last month.