If a giant online retailer were to purchase BB.com...

[LoudyRowdy]

If Amaz0n purchased BB.com, would that be good for us customers?

[dragonalex]

2 day free ship and same prices, with more promos. ayeeee!
Protein and preworkout delivered by drones!? Turn down for what?

[Daycrawler]

Wouldn't impact us much I'd imagine.

There's too much business in the health section of Amazon's store that would get hit hard if they started cross-selling products.

The only way I could see it impacting consumers is if Amazon acted as a distributor (similar to Europa) for their existing health vertical resellers and left the bodybuilding brand to grow on its own.

[Vinny82]

It was already purchased by QVC.

[Daycrawler]

It was already purchased by QVC.

Liberty Media in 08. QVC is just one of the companies under them.

[OT2000]

500m supp company backed by the largest online retailer with over 100B in revenue. Yeah, I could think there may be some benefits.

[BrandG]

As long as the main warehouse stays no more than 20 miles away from me, I don't care who owns it

[HeavenBeyond]

Yeah I think there would only be upside potential if Amazon acquired bb.com, but don't foresee it happening in the near future.

[Daycrawler]

500m supp company backed by the largest online retailer with over 100B in revenue. Yeah, I could think there may be some benefits.

I'd imagine it's quite a bit more than 500m. Revenue was ~435M in 2013. I'd imagine in ~3 years it's up to 700M+.

The price would be super interesting to see, cause if a company like Amazon did acquire them i'd venture a guess it's not so much the revenue right now that interests them but rather the customer base.

If they can get that customer base to shop on Amazon, the value of each customer increases tremendously as they'll spend more $$$ with them.

Overall interesting thought exercise

[OT2000]

I'd imagine it's quite a bit more than 500m. Revenue was ~435M in 2013. I'd imagine in ~3 years it's up to 700M+.

The price would be super interesting to see, cause if a company like Amazon did acquire them i'd venture a guess it's not so much the revenue right now that interests them but rather the customer base.

If they can get that customer base to shop on Amazon, the value of each customer increases tremendously as they'll spend more $$$ with them.

Overall interesting thought exercise

They may be higher but I really doubt it. They were on the top 5000 growth companies up until 2014. Don't quote me on this but I am not sure if they're still on this list. To shoot from 420m to 700m is a 67% increase over those few years. It's possible though as GNC and VS are 1-3b companies I believe and I am sure BB.com has made growth for them pretty had.

IMO though, Amz is hurting everyone. Enough to stall BB growth.

[shockrock3]

Hope it happens....bring back the B1G1 BOGO's instead of the sham sales they've been having.

[LoudyRowdy]

Hope it happens....bring back the B1G1 BOGO's instead of the sham sales they've been having.

Any bogos at Amazon?

[hustlehard3r]

It would only be a good thing. One of Amazon's leadership principles is customer obsession. And trust me they take that seriously!

[stan47islav]

I'm down for free shipping..

[LoudyRowdy]

I'm down for free shipping..

that would be HUGE!!!

[Blainex]

I'd imagine they would leave it fairly autonomous and let them run themselves, pretty much like they do with any other company they purchase (woot for example)

[AMeyer9]

Hope it happens....bring back the B1G1 BOGO's instead of the sham sales they've been having.

Lol, still wouldn't happen. Don't expect bogos much, production costs aren't going down

[LoudyRowdy]

I'd imagine they would leave it fairly autonomous and let them run themselves, pretty much like they do with any other company they purchase (woot for example)

would this also mean only products sold at BB.com be allowed to be sold at Amazon?

[kbayne]

If you're seeing B1G1 taking place quite often on certain products, you should be concerned.

[Mike McCandless]

Hope it happens....bring back the B1G1 BOGO's instead of the sham sales they've been having.

Changing that has been insanely profitable for bb

[OT2000]

Was there concerns with their profit line prior to ending the BOGO's?

[masterg20]

I'd be worried about their business model where people can sell through them. For example; 40 used items of BPI creatine. Or XssfwEfdh is selling 10 cases of Bars for 1$.

[LoudyRowdy]

I'd be worried about their business model where people can sell through them. For example; 40 used items of BPI creatine. Or XssfwEfdh is selling 10 cases of Bars for 1$.

eBay? BB.com traders thread?

[Blainex]

Pretty hard to speculate as there would be a lot of factors involved. Such as if BB didn't change their shipping - then you would be cannibalizing and stealing profits away from their subsidiaries.

On the other hand, if BB started a free shipping program (spend $49, free shipping) then you could possibly see those products at Amazon - but the same problems would arise if customers were able to get prime shipping instead of having to meet that minimum.

You could also see those products show up on Amazon but ineligible for prime shipping which would be a disaster since it would irritate their most valuable customers.


In all cases, I'd have to imagine that most things wouldn't change in regards to BB.com if they were acquired by Amazon - or anyone - since they are pretty profitable.

[Mike McCandless]

Company formulates product for b1g1 free selling strategy. Cost of product, 5 bucks. Will retail on bb for 30, but always be on sale for b1g150% or b1g1 free. The first year of product is b1g1. Bodybuilding will buy this product for 8 bucks. Giving them 7 bucks profit per unit, minimum (15 cost average for 2 units). The product can't sell at 30, so it's always on sale. Company spends 1m on marketing to keep product going out in mass emails, front page and other marketing bits.

Amazon realizes what's going on, buys millions in product during b1g1 free deals, then sells it cost average. 2 for 30 = 15ea, they sell for 20 all day. Bodybuilding had to constantly keep on sale due to amazon. They decide to cut out deals, too much hassle.

The fallout? In the example I gave, which is a real example, this product does really well non bb. They still buy it for 8, but now it makes them 20 a unit. The product stays in the top 15 list, so it continues to turn. At b1g150% they have 16 bucks into a 45 buck transaction vs 16 into a 30. They can sell significantly less and still make more money. The company in this example knows it's hard to sell their product at this new price, so they continue to spend 7 figures on marketing within bb to push the product.

This post was done on my phone, sorry for crap writing, but you get the point.

[Blainex]

In regards to third parties selling supps on Amazon, you have to get the okay from Amazon seller support before listing. They could just revoke everyone's ability to sell in the supplement section.

[masterg20]

eBay? BB.com traders thread?

For those who know what they are doing and what the risks are that's great. But I would want to make sure whatever I was buying was legitimate and to me, it would open up a lot of new doubts if this were to be handled the way their website is set up now.

[OT2000]

Company formulates product for b1g1 free selling strategy. Cost of product, 5 bucks. Will retail on bb for 30, but always be on sale for b1g150% or b1g1 free. The first year of product is b1g1. Bodybuilding will buy this product for 8 bucks. Giving them 7 bucks profit per unit, minimum (15 cost average for 2 units). The product can't sell at 30, so it's always on sale. Company spends 1m on marketing to keep product going out in mass emails, front page and other marketing bits.

Amazon realizes what's going on, buys millions in product during b1g1 free deals, then sells it cost average. 2 for 30 = 15ea, they sell for 20 all day. Bodybuilding had to constantly keep on sale due to amazon. They decide to cut out deals, too much hassle.

The fallout? In the example I gave, which is a real example, this product does really well non bb. They still buy it for 8, but now it makes them 20 a unit. The product stays in the top 15 list, so it continues to turn. At b1g150% they have 16 bucks into a 45 buck transaction vs 16 into a 30. They can sell significantly less and still make more money. The company in this example knows it's hard to sell their product at this new price, so they continue to spend 7 figures on marketing within bb to push the product.

This post was done on my phone, sorry for crap writing, but you get the point.

One would assume under the changes that the overall transaction and ticket count would lower. Gross margin percent would be higher but not the overall margin dollars as the units would lower ( unless negotiating lower costs )You would have to make that up by somehow. If the business is thriving which I believe BB is, you could weather a lower yoy comp if the margin and ROI is higher. Of course with expenses in check. At some point without innovation or less competition, it catches up though. I am willing to bet that Amz is BB.com biggest threat, not GNC or VS.

[COUNTRYMIKE]

No matter what rumors you've heard, I Am Not Selling BB.Com!

It's muh lyfe!

[johnny4125]

No matter what rumors you've heard, I Am Not Selling BB.Com!

It's muh lyfe!

Dammit i gotta spread some reputation around before i can rep you again! lmao! ;-)