Fab

About Fab

Fab.com, originally launched in 2010 as a social network for gay men called Fabulis, was co-founded by Jason Goldberg and Bradford Shellhammer. Goldberg, with a background that includes founding Jobster and working at T-Mobile and AOL, provided the operational and financial acumen, while Shellhammer, a designer and merchandiser, brought the creative and curatorial vision. Following a significant pivot in 2011, the company relaunched as Fab.com, an e-commerce platform specializing in design-led products, from home goods to personal accessories. The business model centered on flash sales, offering curated, design-focused items to its members for a limited time, creating a sense of urgency and discovery.

The platform experienced meteoric growth, quickly reaching a valuation of over $1 billion and attracting substantial venture capital investment. Its target market was consumers who valued aesthetics and well-designed products, a segment the founders felt was underserved by mainstream retailers. Fab's unique selling proposition was its sharp, colorful, and often quirky curation, driven by Shellhammer's distinct taste, which set it apart from competitors like Amazon. The company sourced products from thousands of independent designers and brands globally, making money by taking a percentage of each sale conducted through its platform.

Despite its initial success, Fab faced significant operational challenges related to inventory management, logistics, and scaling its flash-sales model. The rapid expansion into Europe and ventures into custom furniture proved costly and difficult to manage. By 2013, the company underwent substantial layoffs and strategic shifts away from flash sales towards a more traditional inventory-holding model. Ultimately, the high burn rate and strategic missteps led to a dramatic decline. In 2015, the core e-commerce business was acquired by PCH International for a fraction of its peak valuation. The brand was later repositioned and now operates with a focus on health and wellness products, a stark departure from its design-centric origins.