Home Startups Putting Doba to the test part III

Putting Doba to the test part III


This is the 3rd of 4 installments on the Doba case study as a viable revenue stream for entrepreneurs. (See part I and part II here) My full analysis will be in part 4. So far eight of my heavily researched products have not even obtained bids on Ebay say nothing about being sold. I have written Ebay off as a viable revenue stream with Doba products and push to marketplace feature. Ebay is a great marketplace for many other sales tricks and ecommerce techniques (just not Doba).

I moved on to greener pastures and jumped into the heavy hitting distribution outlets:


I am still seeing a large disparity on my Doba priced products verses competitor products. In some cases vendors are selling retail below what I can even pay Doba wholesale for it.

I have cooked up one of my famous insta-brand logos and websites and should have it launched in another couple weeks. The problem is I am rapidly leaving the “out of the box” territory for the average joe entrepreneur looking to make some extra money with Drop-shipping. Furthermore, the amount of research and time spent cultivating my sales / distribution outlets is rapidly making the coversion ratio for doba products meaningless

Now Doba itself is a strong company stats taken from Inc. clearly indicate that

No. 23 of Inc 500

Industry Software
Founded 2002
Growth 3,202.2%
2003 Revenue $229,000
2006 Revenue $7.6 million
Employees 87
Website www.doba.com

* Ranked No. 2 in the Top Companies in Software
* Ranked No. 5 in the Top 100 Companies Intending to Go Public

What it does: Doba’s Web-based service lets small Internet retailers link to wholesale suppliers of products from DVDs to power tools to bamboo rugs.

Why it’s growing: Chalk it up to that ballyhooed Long Tail. Doba’s software gives its customers access to more than one million products.
Read this company’s extended IncBizNet profile.

However, the purpose of the case study is showcase whether Doba is a viable revenue stream for the little guy. It appears it is only a viable revenue stream for an established or ecommerce pure play.

Based on the Inc stats, it is Doba itself that has created the nice revenue stream. Especially with the upfront fee of $299.00 for a year of access to the Doba website. My guess is the user churn was significant at the monthly rate and users were canceling after a month or two of no success.

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