Online Shoe Sales

Targeting A $500 Million Year, CSN Stores Builds Out Home Goods Vertical

Currently CSN Stores has more than 200 websites focusing on almost every possible niche of home products. The Wayfair.com website will consolidate all those sites into one brand. The company will still maintain two other brands, Allmodern.com , a design-oriented site, and Joss & Main , a private or flash sales site.

The company spends upwards of $50 million per year on advertising–all in online ads for products. But CSN Stores plans to soon launch more traditional brand advertising for Wayfair.

How has CSN Stores become successful? The company, which started out in furniture, focused on customer service and low prices. It built its own technology platform to run the business. It now has categories such as bed & bath, kitchen & dining, home improvement and garden.

“We figured out that furniture and home goods were underserved online,” says co-founder and CEO Niraj Shah. “We stuck to it, figuring out a lot of the tough parts of the business such as logistics and how to ship large home goods consistently and fast into the home.”

Most of its products are shipped directly from the company’s vendors. CSN Stores handles the complex logistics of managing its 3 million products, including transportation, shipping, packaging and purchasing. CSN Stores figured out the best ways to ship and return large items such as furniture. Shipping a book is different from shipping an armoire, Shah points out.

CSN Stores entered Europe three years ago and is now in the U.K. and Germany and planning to expand to other European countries soon.

The main challenge now is building its brand with consumers, many of whom may already have purchased from one of the company’s websites but not even know it.

CSN Stores competes with Amazon as well as brick and mortar stores such as Target and Walmart. CSN Stores, however, focuses just on home products, which gives it an advantage, co-founder Steve Conine says.

There have been several other vertical ecommerce acquisitions recently such as Quidsi, the operator of Diapers.com, which was acquired for $545 million and online shoe retailer Zappos.com, also acquired by Amazon.com for $850 million.

Conine believes there still is no vertical brand like a Zappos or Diapers.com, particularly online sales of home goods.

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