Cyberian Outpost
Encyclopedia
Cyberian Outpost was an online vendor of discount computer hardware and software, and was one of the first successful online retailers. CybOut was founded in 1994 by Darryl Peck and announced its IPO in 1998 . After its stock reached a high of $60 in 2000, Cyberian Outpost fell victim to the burst of the dot-com bubble
and its stock price fell rapidly. The company's assets were acquired by Fry's Electronics
in 2001. Fry's maintained its online store through the Outpost.com domain and brand until 2006, when it was rebranded as Fry's.com. As of July 2011, Outpost.com simply redirects to Frys.com.
The company continued a rapid expansion, taking advantage of the booming Internet. In 1997, Money Magazine
rated the site as "best online retail site" and "the best computer equipment site," placing it among giants like PC Connection
and Amazon.com
. Outpost.com raised $2.7 million in venture capital in 1997, and claimed 25,000 visitors per day and 1.3 million customers. It secured another $22 million in private equity financing in 1998, and $70 million from its IPO. Outpost.com opened a warehouse in Ohio that could guarantee next-morning domestic delivery and worldwide delivery within 48 hours, a notable achievement for the nascent online retail industry which competed directly with large and well-established mail-order companies.
Cyberian Outpost had many unique and unusual marketing programs. The company created an Affiliate program whereby partners could receive a commission for referring customers to the site. Outpost.com also forged marketing partnerships with major Internet portals, such as AOL, C|Net, and Lycos. Outpost.com hired Cliff Freeman to produce TV ads, whose agency Freeman & Partners had created the "Pizza Pizza" campaign for Little Caesar's and the "Where's the Beef?" campaigns for Wendy's International
. Outpost.com adopted a zealous and controversial marketing program which included a Super Bowl ad where fake gerbils were shot out of a cannon at a target.
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
and its stock price fell rapidly. The company's assets were acquired by Fry's Electronics
Fry's Electronics
Fry's Electronics is a big-box store and retailer of software, consumer electronics, computer hardware, with in store computer repair and custom computer building services and household appliances with a chain of superstores headquartered in Silicon Valley...
in 2001. Fry's maintained its online store through the Outpost.com domain and brand until 2006, when it was rebranded as Fry's.com. As of July 2011, Outpost.com simply redirects to Frys.com.
History
Cyberian Outpost was one of the earliest successful online-only retailers and is an interesting case study in the history of the nascent online retail industry. Unlike many large retailers of the time, founder Peck marketed directly to expert consumers instead of businesses, and specialized in hard-to-find Macintosh products in a market saturated with Microsoft-compatible products. Having no physical retail store to manage, Outpost.com marketed its products overseas where it gained a strong word-of-mouth reputation for its low prices. Outpost.com was soon offered in 11 languages.The company continued a rapid expansion, taking advantage of the booming Internet. In 1997, Money Magazine
Money Magazine
Money Magazine is a business news and financial programme that is broadcast on Sundays at 7:00pm in Hong Kong by television channel TVB Pearl.-Producers and reporters:...
rated the site as "best online retail site" and "the best computer equipment site," placing it among giants like PC Connection
PC Connection
PC Connection is a direct marketer of a wide range of information technology products and services, including computer systems, software and peripheral equipment, networking communications, system configuration, and repair....
and Amazon.com
Amazon.com
Amazon.com, Inc. is a multinational electronic commerce company headquartered in Seattle, Washington, United States. It is the world's largest online retailer. Amazon has separate websites for the following countries: United States, Canada, United Kingdom, Germany, France, Italy, Spain, Japan, and...
. Outpost.com raised $2.7 million in venture capital in 1997, and claimed 25,000 visitors per day and 1.3 million customers. It secured another $22 million in private equity financing in 1998, and $70 million from its IPO. Outpost.com opened a warehouse in Ohio that could guarantee next-morning domestic delivery and worldwide delivery within 48 hours, a notable achievement for the nascent online retail industry which competed directly with large and well-established mail-order companies.
Cyberian Outpost had many unique and unusual marketing programs. The company created an Affiliate program whereby partners could receive a commission for referring customers to the site. Outpost.com also forged marketing partnerships with major Internet portals, such as AOL, C|Net, and Lycos. Outpost.com hired Cliff Freeman to produce TV ads, whose agency Freeman & Partners had created the "Pizza Pizza" campaign for Little Caesar's and the "Where's the Beef?" campaigns for Wendy's International
Wendy's International
Wendy's International, Inc. is the parent company of Wendy's Old Fashioned Hamburgers. It also owns 70 percent of Cafe Express. The Tim Hortons chain was spun off by Wendy's into a separate company in September 2006. The Baja Fresh chain was sold in October 2006. On September 15, 2008, the...
. Outpost.com adopted a zealous and controversial marketing program which included a Super Bowl ad where fake gerbils were shot out of a cannon at a target.
External links
- Outpost.com TV Ad: Gerbils shot out of a cannon
- Outpost.com TV Ad: Wolves attack a high school marching band