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Making it Big on the Web: RedWagons.com
With the right product, plus lots of hard work and determination, small entrepreneurs can do big business on the Web. Tony Roeder, owner of RedWagons.com, proves that small guys can win the online game.

by Isabel M. Isidro
Managing Editor

How did Yahoo! help you in promoting your site?

Yahoo! was great for us. We met at a great time. They were concerned about stores like eToys and Amazon expanding their extensive toy line. And Yahoo wanted to have their shopping portal; but they were shy in the toy area. So they gave us very good exposure up front to come into the store and be part of it.

 

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 We brought some cache - the Radio Flyer name is a known name. It is a company used and trusted by many generations. My grandfather had a Radio Flyer. My parents had a Radio Flyer. I had a Radio Flyer. My child is to going to have Radio Flyer.

We leveraged the Radio Flyer brand. It's a brand that's known, that enables itself to be a great niche product. We've leveraged that name because people know that name. They know the product. When we say, "hey, we're the Internet retailer of that product", people then go "Oh wow, I remember that product. What a great idea." So we felt the doors opened for us because of the fact that that we could say, hey we are selling that product

How is your online business doing now?

We have over 50% of the Radio Flyer market online, even when EToys was still up. We do better than Etoys and Amazon combined, and all the other ones. 

Our revenues were over a million last year and we'll be in the mid-$2 million this year.

How did you do that?

Just through carrying the whole product line. We are a top rated site at Yahoo. We are proud of the quality of our customer service.

How did you fulfill the orders?

In 1998, we went live. Our goal then was to get our foot in the door. We had a web site, but we didn't really have a phone number for the holiday season of 1998. We would download orders off the Internet, convert them into purchase orders, which we would fax to the manufacturer and they would fulfill the order.

In 1999, we toyed with the idea of outsourcing. However, we went in-house and we fulfilled out of a 900 sq. foot storefront that we converted into a warehouse. We practiced just-in-time inventory. Trucks would come in the morning; unload all the stuff to go out to the shipping lines. We would then fulfill the orders.

Our customer service was at 98% during the peak holiday season of 1999. Where everyone else crashed - where Etoys can't fulfill, Amazon, ToysRUs where giving $100 certificates for all the orders they didn't fulfill - we were able to fulfill just about every order. There were about 4 where we had problems, but they were UPS issues.

So in 1999, we went the complete opposite of all the big people. They all went and outsourced their fulfillment and they crashed. We in-sourced our fulfillment and we were able to deliver.

We shipped out our products the same day if the order was placed before 1:00 p.m. After 1 o'clock, orders go out the next business day. We follow a strict schedule so customers never have to worry about when they can get their purchase. They receive their products 3-4 days after they placed the order.

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