Last month the Silicon Valley Insider published the results of the “estimated” values of the digital startups based on information from readers, sources and an Advisory Board. The list is a work in progress and is said to adjust monthly as they gather more data. Zazzle is currently at number 24 at $250 million and Etsy is at $115 million.
The Insider value analysis is based on a 2006 report in Forbes that Zazzle was generating $20 million in revenue with a gross margin of 50%. the Insider estimates the revenue to hit $80 million in 2008 and with a 4x multiplier Zazzle would be valued at $250 million.
With that in mind I dug up some other interested funding/sales facts about the big Z.
Yes, $46 million is a lot of money. I have often wondered what I could do with $46 million. So after 3 years how many sales do you think you can bring in for one month?
2. “In February, Zazzle sold 900,000 different items to customers up from 500,000 the previous February. All told, Zazzle says, it has sold 30 million products.” [USA Today]
Yea, 900,000 different items. (FYI: Where is the fact checker when you need one?). Now to break it down by product:
3. 40% of Zazzle revenue comes from apparel, 25% from postage, 35% from other products (mugs, posters, neckties, and business cards) [USA Today]
So with all those mind boggling figures get ready………………
4. Zazzle It is NOT profitable. (but it says business doubled in 2007) [USA Today]
How many shirts does Zazzle have to sell to be profitable! What are they spending all their money on?