Ebags.com
Encyclopedia
eBags.com, a division of eBags, Inc., is an American
electronic commerce
company founded in 1998. Based in Greenwood Village, Colorado
. The primary purpose of eBags.com is to be an online retailer of handbags, backpacks, business cases, urban bags, luggage
, and travel accessories. eBags.com represents more than 700 brands. In addition, eBags Inc. operates e-commerce websites for such partners as Tumi.com and CaseLogic.com.
The website launched on March 1, 1999 with seven brands including Samsonite
, JanSport
, and Skyway Luggage
. The focus was primarily on luggage due to the backgrounds of the founders.
While eBags' growth rate (CAGR) was 42% from the summer of 1999 through summer 2005, three events caused eBags cash to dip below USD
$700,000. Those events were:
eBags.com, a division of eBags, Inc., is an American
electronic commerce
company founded in 1998. Based in Greenwood Village, Colorado
. The primary purpose of eBags.com is to be an online retailer of handbags, backpacks, business cases, urban bags, luggage
, and travel accessories. eBags.com represents more than 700 brands. In addition, eBags Inc. operates e-commerce websites for such partners as Tumi.com and CaseLogic.com.
The website launched on March 1, 1999 with seven brands including Samsonite
, JanSport
, and Skyway Luggage
. The focus was primarily on luggage due to the backgrounds of the founders.
While eBags' growth rate (CAGR) was 42% from the summer of 1999 through summer 2005, three events caused eBags cash to dip below USD
$700,000. Those events were:
eBags.com, a division of eBags, Inc., is an American
electronic commerce
company founded in 1998. Based in Greenwood Village, Colorado
. The primary purpose of eBags.com is to be an online retailer of handbags, backpacks, business cases, urban bags, luggage
, and travel accessories. eBags.com represents more than 700 brands. In addition, eBags Inc. operates e-commerce websites for such partners as Tumi.com and CaseLogic.com.
The website launched on March 1, 1999 with seven brands including Samsonite
, JanSport
, and Skyway Luggage
. The focus was primarily on luggage due to the backgrounds of the founders.
While eBags' growth rate (CAGR) was 42% from the summer of 1999 through summer 2005, three events caused eBags cash to dip below USD
$700,000. Those events were:
In 1999, the company hired San Francisco-based Collaborate to create and test traditional TV, radio and print advertising using celebrities including Reggie Jackson
, Gabrielle Reece
and Francis Ford Coppola
. But, after seeing little change in product demand from test markets, the traditional advertising efforts were tabled
After experiencing very rapid growth, September 11, specifically, caused eBags' luggage sales to slow to 2% growth for the next six months. During the 18 months following 9/11, more than 500 competing brick & mortar luggage specialty stores—most importantly, those operated by Bentleys and El Portal—closed. Another 200 closed in Germany.
To recharge the growth, eBags diversified more into handbags and purses, business cases, sport bags and backpacks. This allowed the company to rely on more daily use brands like Kathy Van Zeeland, Tignanello, Perlina, Stone Mountain
and Eastpak
. From the beginning, eBags drop-shipped most products direct from manufacturers to consumers. This reduced the company's inventory risk, which could have been substantial as sales slowed after the dot-bomb. In addition, having a call center outsourced to the Philippines has lowered operating costs and prevented problems during sale drops.
Over the years, eBags expanded its brand representation to more than 600 total, in the United States and in Europe. Part of the most recent expansion has been the focus on "on-the-streets" or boutique handbag designers. Not having to follow Minimum advertised price (MAP) pricing for all vendors has also allowed eBags to be a strong price competitor in the market. eBags features about 300 handbag designers, from popular ones like Kate Spade, Cole Haan and Rafe to trendy boutique designers like Babee D, Maruca and Linea Pelle.
prior to starting eBags. Collectively, they—Jon Nordmark, Peter Cobb, Frank Steed and Andy Youngs—worked more than 50 years at Samsonite, which was headquartered in Denver from 1910 through 1997. Eliot Cobb worked as VP of Finance at a national music retailer, Wherehouse Music, headquartered in Los Angeles, CA.
For Samsonite, Jon Nordmark lead development of luggage
, duffel
and backpack
products while managing about 20 different distribution channels in North America. In 1997-8, he performed similar duties for Samsonite South America. Nordmark helped build hardside and softside products in Asia, Europe and the U.S.
During his six years at Samsonite, Peter Cobb lead USA marketing for both Samsonite and American Tourister
. This included marketing communications activities—often created in partnership with Chicago-based ad agency Leo Burnett—and new product development. Before that, Cobb developed golf bags for a Ben Hogan licensing company.
Frank Steed was president of both Samsonite and American Tourister, USA. He served as Chairman of eBags, Inc. until the summer of 2001.
The final founder to join eBags from Samsonite was Andy Youngs. At Samsonite he served in both marketing and sales capacities.
Nordmark and Peter Cobb continue to work for eBags. Correction - Nordmark resigned as CEO in the latter half of 2008, but remains a Director. In 2008, Nordmark became co-founder and CEO of Wambo, a Denver-based venture knowledgist company that helps startups find paths to revenues. Steed and Youngs left eBags during the downturn of the dot coms in the summer of 2001. Steed became president of a travel accessories company based in New York. Youngs joined Case Logic—a company that produces storage cases for PDA
s, iPod
s and CDs
—as their Vice President of Marketing.
Mark De'Orio
Jon Nordmark
Peter Cobb
Eliot Cobb
Joe Devine
Mike Frazzini
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
electronic commerce
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
company founded in 1998. Based in Greenwood Village, Colorado
Greenwood Village, Colorado
The city of Greenwood Village is a prominent suburb of the Denver-Aurora Metropolitan Statistical Area and a Home Rule Municipality located in Arapahoe County, Colorado, United States...
. The primary purpose of eBags.com is to be an online retailer of handbags, backpacks, business cases, urban bags, luggage
Luggage
Baggage is any number of bags, cases and containers which hold a traveller's articles during transit.Luggage is more or less the same concept as "baggage", but is normally used in relation to the personal luggage of a specific person or persons Baggage is any number of bags, cases and containers...
, and travel accessories. eBags.com represents more than 700 brands. In addition, eBags Inc. operates e-commerce websites for such partners as Tumi.com and CaseLogic.com.
History
The website launched on March 1, 1999 with seven brands including Samsonite
Samsonite
The Samsonite Corporation makes luggage with its products ranging from large suitcases to small toiletries bags and briefcases. It was started in Denver, Colorado, USA in 1910 byJesse Shwayder, as the Shwayder Trunk Manufacturing Company. Shwayder named one of his initial cases "Samson", after the...
, JanSport
JanSport
JanSport is a brand of backpacks owned by VF Corporation, one of the world's largest apparel companies. The company was founded in 1967 in Seattle, Washington by Jan Lewis , Murray Pletz and Skip Yowell...
, and Skyway Luggage
Skyway Luggage
Skyway Luggage Co. is a luggage manufacturer headquartered in Seattle, Washington. The company was founded in 1910 and has been held privately under the same family since its founding...
. The focus was primarily on luggage due to the backgrounds of the founders.
While eBags' growth rate (CAGR) was 42% from the summer of 1999 through summer 2005, three events caused eBags cash to dip below USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
$700,000. Those events were:
- The "dot bomb" of 2000
- The following recessionRecessionIn economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
of 2001 - The terrorist attacks on September 11, 2001
eBags.com, a division of eBags, Inc., is an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
electronic commerce
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
company founded in 1998. Based in Greenwood Village, Colorado
Greenwood Village, Colorado
The city of Greenwood Village is a prominent suburb of the Denver-Aurora Metropolitan Statistical Area and a Home Rule Municipality located in Arapahoe County, Colorado, United States...
. The primary purpose of eBags.com is to be an online retailer of handbags, backpacks, business cases, urban bags, luggage
Luggage
Baggage is any number of bags, cases and containers which hold a traveller's articles during transit.Luggage is more or less the same concept as "baggage", but is normally used in relation to the personal luggage of a specific person or persons Baggage is any number of bags, cases and containers...
, and travel accessories. eBags.com represents more than 700 brands. In addition, eBags Inc. operates e-commerce websites for such partners as Tumi.com and CaseLogic.com.
History
The website launched on March 1, 1999 with seven brands including Samsonite
Samsonite
The Samsonite Corporation makes luggage with its products ranging from large suitcases to small toiletries bags and briefcases. It was started in Denver, Colorado, USA in 1910 byJesse Shwayder, as the Shwayder Trunk Manufacturing Company. Shwayder named one of his initial cases "Samson", after the...
, JanSport
JanSport
JanSport is a brand of backpacks owned by VF Corporation, one of the world's largest apparel companies. The company was founded in 1967 in Seattle, Washington by Jan Lewis , Murray Pletz and Skip Yowell...
, and Skyway Luggage
Skyway Luggage
Skyway Luggage Co. is a luggage manufacturer headquartered in Seattle, Washington. The company was founded in 1910 and has been held privately under the same family since its founding...
. The focus was primarily on luggage due to the backgrounds of the founders.
While eBags' growth rate (CAGR) was 42% from the summer of 1999 through summer 2005, three events caused eBags cash to dip below USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
$700,000. Those events were:
- The "dot bomb" of 2000
- The following recessionRecessionIn economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
of 2001 - The terrorist attacks on September 11, 2001
eBags.com, a division of eBags, Inc., is an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
electronic commerce
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
company founded in 1998. Based in Greenwood Village, Colorado
Greenwood Village, Colorado
The city of Greenwood Village is a prominent suburb of the Denver-Aurora Metropolitan Statistical Area and a Home Rule Municipality located in Arapahoe County, Colorado, United States...
. The primary purpose of eBags.com is to be an online retailer of handbags, backpacks, business cases, urban bags, luggage
Luggage
Baggage is any number of bags, cases and containers which hold a traveller's articles during transit.Luggage is more or less the same concept as "baggage", but is normally used in relation to the personal luggage of a specific person or persons Baggage is any number of bags, cases and containers...
, and travel accessories. eBags.com represents more than 700 brands. In addition, eBags Inc. operates e-commerce websites for such partners as Tumi.com and CaseLogic.com.
History
The website launched on March 1, 1999 with seven brands including Samsonite
Samsonite
The Samsonite Corporation makes luggage with its products ranging from large suitcases to small toiletries bags and briefcases. It was started in Denver, Colorado, USA in 1910 byJesse Shwayder, as the Shwayder Trunk Manufacturing Company. Shwayder named one of his initial cases "Samson", after the...
, JanSport
JanSport
JanSport is a brand of backpacks owned by VF Corporation, one of the world's largest apparel companies. The company was founded in 1967 in Seattle, Washington by Jan Lewis , Murray Pletz and Skip Yowell...
, and Skyway Luggage
Skyway Luggage
Skyway Luggage Co. is a luggage manufacturer headquartered in Seattle, Washington. The company was founded in 1910 and has been held privately under the same family since its founding...
. The focus was primarily on luggage due to the backgrounds of the founders.
While eBags' growth rate (CAGR) was 42% from the summer of 1999 through summer 2005, three events caused eBags cash to dip below USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
$700,000. Those events were:
- The "dot bomb" of 2000
- The following recessionRecessionIn economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
of 2001 - The terrorist attacks on September 11, 2001
In 1999, the company hired San Francisco-based Collaborate to create and test traditional TV, radio and print advertising using celebrities including Reggie Jackson
Reggie Jackson
Reginald Martinez "Reggie" Jackson , nicknamed "Mr. October" for his clutch hitting in the postseason with the New York Yankees, is a former American Major League Baseball right fielder. During a 21-year baseball career, he played from 1967-1987 for four different teams. Jackson currently serves as...
, Gabrielle Reece
Gabrielle Reece
Gabrielle Allyse Reece is an American professional volleyball player, sports announcer, fashion model and actress.-Early life:...
and Francis Ford Coppola
Francis Ford Coppola
Francis Ford Coppola is an American film director, producer and screenwriter. He is widely acclaimed as one of Hollywood's most innovative and influential film directors...
. But, after seeing little change in product demand from test markets, the traditional advertising efforts were tabled
After experiencing very rapid growth, September 11, specifically, caused eBags' luggage sales to slow to 2% growth for the next six months. During the 18 months following 9/11, more than 500 competing brick & mortar luggage specialty stores—most importantly, those operated by Bentleys and El Portal—closed. Another 200 closed in Germany.
To recharge the growth, eBags diversified more into handbags and purses, business cases, sport bags and backpacks. This allowed the company to rely on more daily use brands like Kathy Van Zeeland, Tignanello, Perlina, Stone Mountain
Stone Mountain
Stone Mountain is a quartz monzonite dome monadnock in Stone Mountain, Georgia, United States. At its summit, the elevation is 1,686 feet amsl and 825 feet above the surrounding area. Stone Mountain granite extends underground at its longest point into Gwinnett County...
and Eastpak
Eastpak
Eastpak is an American manufacturer of packs, bags, luggage and clothing. It is part of the VF Corporation, brand portfolio which is one of the world's largest apparel companies.-Founding:...
. From the beginning, eBags drop-shipped most products direct from manufacturers to consumers. This reduced the company's inventory risk, which could have been substantial as sales slowed after the dot-bomb. In addition, having a call center outsourced to the Philippines has lowered operating costs and prevented problems during sale drops.
Over the years, eBags expanded its brand representation to more than 600 total, in the United States and in Europe. Part of the most recent expansion has been the focus on "on-the-streets" or boutique handbag designers. Not having to follow Minimum advertised price (MAP) pricing for all vendors has also allowed eBags to be a strong price competitor in the market. eBags features about 300 handbag designers, from popular ones like Kate Spade, Cole Haan and Rafe to trendy boutique designers like Babee D, Maruca and Linea Pelle.
Timeline
- December 1998 = Convertible bridge loanBridge loanA bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years pending the arrangement of larger or longer-term financing.-Description:A bridge loan is interim financing for an individual or business until...
from angel investorAngel investorAn angel investor or angel is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity...
s - March 1999 = eBags.com launch
- April 1999 = $8 million raised from Benchmark CapitalBenchmark CapitalBenchmark Capital is a venture capital firm responsible for the early stage funding of some very successful startups. In 1997, the firm invested $6.7 million in eBay, which became worth more than $5 billion by the spring of 1999. Other high-profile investments include Ariba, Juniper Networks, Red...
and angel investors - October 1999 = $22 million raised from Technology Crossover Ventures, Amerindo Investment AdvisorsAmerindo Investment AdvisorsAmerindo Investment Advisors Inc. was an Investment services firm, best known for making large profits during the Dot-com boom of the 1990s and 2000s....
and previous investors - October 2002 = Began operating Tumi.com
- March 2004 = Purchased Shoedini.com from Saxon Shoes in RichmondRichmond, VirginiaRichmond is the capital of the Commonwealth of Virginia, in the United States. It is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...
, VA - October 2004 = Launched eBags.co.uk
- November 2005 = Changed Shoedini to 6PM.com, matching bags with shoes
- July 2005 = Launched CaseLogic.com
- October 2005 = Launched Tumi UK
- July 2006 = Launched Tumi Germany
- August 2006 = Started Tumi Japan
- October 2007 = Sold 6PM to Zappos
- May 2008 = Passed $100 million in annual gross orders
- June 2008 = Nordmark resigns CEO position but remains a Director
- December 2008 = eBags.co.uk is closed
- January 2009 = Vince Jones joins company as CEO
Founders
Five people founded eBags in the late spring of 1998. Four of them worked for SamsoniteSamsonite
The Samsonite Corporation makes luggage with its products ranging from large suitcases to small toiletries bags and briefcases. It was started in Denver, Colorado, USA in 1910 byJesse Shwayder, as the Shwayder Trunk Manufacturing Company. Shwayder named one of his initial cases "Samson", after the...
prior to starting eBags. Collectively, they—Jon Nordmark, Peter Cobb, Frank Steed and Andy Youngs—worked more than 50 years at Samsonite, which was headquartered in Denver from 1910 through 1997. Eliot Cobb worked as VP of Finance at a national music retailer, Wherehouse Music, headquartered in Los Angeles, CA.
For Samsonite, Jon Nordmark lead development of luggage
Luggage
Baggage is any number of bags, cases and containers which hold a traveller's articles during transit.Luggage is more or less the same concept as "baggage", but is normally used in relation to the personal luggage of a specific person or persons Baggage is any number of bags, cases and containers...
, duffel
Duffel
Duffel is a municipality in the Belgian province of Antwerp.The municipality comprises only the town of Duffel proper. On January 1, 2006 Duffel had a total population of 16,019...
and backpack
Backpack
A backpack is, in its simplest form, a cloth sack carried on one's back and secured with two straps that go over the shoulders, but there can be exceptions...
products while managing about 20 different distribution channels in North America. In 1997-8, he performed similar duties for Samsonite South America. Nordmark helped build hardside and softside products in Asia, Europe and the U.S.
During his six years at Samsonite, Peter Cobb lead USA marketing for both Samsonite and American Tourister
American Tourister
American Tourister is a well known brand of suitcase.Immigrant Sol Koffler founded American Luggage Works in Providence, Rhode Island in either 1932 or 1933 with his life savings. He was determined to produce luggage priced at $1 in the midst of the Great Depression...
. This included marketing communications activities—often created in partnership with Chicago-based ad agency Leo Burnett—and new product development. Before that, Cobb developed golf bags for a Ben Hogan licensing company.
Frank Steed was president of both Samsonite and American Tourister, USA. He served as Chairman of eBags, Inc. until the summer of 2001.
The final founder to join eBags from Samsonite was Andy Youngs. At Samsonite he served in both marketing and sales capacities.
Nordmark and Peter Cobb continue to work for eBags. Correction - Nordmark resigned as CEO in the latter half of 2008, but remains a Director. In 2008, Nordmark became co-founder and CEO of Wambo, a Denver-based venture knowledgist company that helps startups find paths to revenues. Steed and Youngs left eBags during the downturn of the dot coms in the summer of 2001. Steed became president of a travel accessories company based in New York. Youngs joined Case Logic—a company that produces storage cases for PDA
PDA
A PDA is most commonly a Personal digital assistant, also known as a Personal data assistant, a mobile electronic device.PDA may also refer to:In science, medicine and technology:...
s, iPod
IPod
iPod is a line of portable media players created and marketed by Apple Inc. The product line-up currently consists of the hard drive-based iPod Classic, the touchscreen iPod Touch, the compact iPod Nano, and the ultra-compact iPod Shuffle...
s and CDs
CDS
-Computing and electronics:* Cadence Design Systems, American Electronic Design Automation software company* Chromatography data system, software to control chromatography instruments* Cockpit display system* Compact Discs...
—as their Vice President of Marketing.
Notable Executives
eBags has had its fair share of talent, but here are some notable executives.Mark De'Orio
- CFO
Jon Nordmark
- Founder, former CEO
Peter Cobb
- Co-Founder, various roles
Eliot Cobb
- Co-Founder, former CFO
Joe Devine
- Former CTO, VP of Marketing
Mike Frazzini
- VP of IT
Websites
The following websites are owned and operated by eBags, Inc.- eBags.com
- eBags.de
- eBagsCorporate.com
Further reading
- "eBags Carries It Off" from BusinessWeekBusinessWeekBloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...
- "Your Personal Shopper With the Initials R.S.S." from the New York Times