Fab.com formerly Fabulis.com was developed in 2010 as a gay social networking site. On December 13, 2010, Fabulis.com was renamed to fab.com. And, In March 2011 the owners relaunched the site as an online retailer.

How Fab.com turned out to be an Online Retailer ?

  • Fabulis attracted 50,000 members in first three months, but updated projections showed that Fabulis would never pass the $10 million revenue mark with ongoing business model at that time.
  • Also, Gay rights progress over the past year had a positive impact on the gay community but a negative impact on the demand for services of Fabulis.com. There was no need of separating gays from mainstream by creating gay Facebook or a gay Foursquare or a gay Groupon.
  • Jason Goldberg, “Our maniacal focus on customer input drove us to a new opportunity. From selling daily deals we discovered that the idea of a design site had legs. We found that out when we introduced a Gay Deal of the Day program that sold more than $40,000 of goods in the first 20 days alone. The biggest sellers weren’t gay-focused, nearly half of the buyers were straight, and the response showed that there was a demand for good design available online at affordable prices – sexual orientation notwithstanding.”

Hence they changed their business model and moved fast. As there was no web-native e-commerce website at that time for design products, particularly at discount pricing, so they filled up that void.