1. Babylandia
An online marketplace to buy and sell used
baby gear in a way that is easy, safe and cheap
T a n y a B e j a
J e n n i f e r R o u b a u d
T h o m a s S t a c k
T e a m 2 8 , C o h o r t 5
C U S T O M E R I N T E R V I E W S
L A S T 2 4 H : 8
T O D A T E : 8 7
1

2. Day 1 Canvas
2

3. Posting
Activity
• Seller posts ad on
site
Pain
points
• Inefficient to take
photos with phone
and transfer to
computer, then
upload to site
Connecting Transaction
• Buyers and sellers
connect
• Unresponsive sellers
• Wasted time on
already sold items
• Unestablished level
of trust between
buyers and sellers
• Buyer pays seller for
item
• Sketchy sellers,
buyers worried about
safety
• Product does not
match advertising
• Delivery and
logistical issues
interfere with getting
transaction
completed
Old Process
Search
• Buyers search for
goods
• Hard to find what
you are looking for
• Questionable quality
• Have to use PC, not
great for mobile apps
3

4. Day 1 Key Initial Thoughts
1
 Website would provide
parents with a means of
disposing of and monetizing
baby products that are still in
reasonably good condition
Business
Opportunity
Untapped market for
the exchange of used,
high-ticket, durable
baby products
1 1
Our buyers and
sellers would come
from different
socioeconomic
classes
2
Creating a niche
marketplace with
some social elements
would create an
element of trust for
buyers and sellers
3
Buyers
Lower & middle
socioeconomic classes
Sellers
Middle & upper
socioeconomic classes
Daycares
Environment / Community
4

5. Day 2 Canvas
5

6. Day 2 Key Insights – 1/2
There is a real
opportunity to provide
a platform that is
trusted to transact used
baby gear
1
Only target mothers
2
First and second time
mothers have very
different attitudes as it
pertains to purchasing
used baby products
3
• Current alternatives are
not satisfying
 Proceed with idea!
• Purchases are not
household decisions
 Focus exclusively on
mothers as target
customers
• First time mothers are
apprehensive to buy used
products
• Second time mothers are
enthusiastic
 First adopters would
certainly be second time
mothers
6

7. Day 2 Key Insights – 2/2
Safety, quality and
cleanliness are key
product features
4
There are multiple
ways that moms
connect already
5
 Ad compliance team to
ensure sufficient
information on positing
 Lots of pictures to assess
features
 Some items will not be
sold (ie. Car seats)
• Blogs
• Facebook groups
• Geography-specific
groups (ie. UWS moms)
• Characteristic-specific
groups (ie. Twin moms)
 Leverage these channels
to acquire new customers
7

8. Day 3 Canvas
8

9. Day 3 Key Insights
Lower socioeconomic
classes are not potential
customers
1
The range of items that
interests buyers goes
beyond high-ticket
products
2
Some stores/associations
offer to used products
but target mainly very
lower socioeconomic
households and
are not dedicated
3
• They are not tech savvy
• They are often not
banked and/or afraid to
transact online
 Eliminate from target
segment
• Toys, clothes and books
are also used items that
are actively searched by
moms
 The platform won’t limit
the type of articles
proposed but will create
categories for ensure
ease of use
• These alternatives are
not commonly used by
our segments due to
unsatisfying customer
experiences
 Demand is here
 The ThredUp shipping
model can be used for
some of our customers
Iteration Pivot
9

10. Day 4 Canvas
10

11. Day 4 Key Insights – 1/2
Social connections
help foster a sense
of trust
Buyers and sellers
have similar profiles
The majority of
customers prefer
mobile app channel
1 2 3
• Different socioeconomic
status is not as salient as
originally hypothesized
• All buyers are also
sellers
• Most sellers are also
buyers
 Revise customer
archetype
• People are more willing
to transact with own
social circle regardless of
geography
• A platform that shows
social connections via
social media is very
attractive
 Provide social media log
in functionality
 Expand site beyond
Columbia community
• Web channel is not as
important as originally
thought
 Develop mobile app
from the onset
Pivot Pivot
11

12. Day 4 Key Insights – 2/2
Seller guarantee is
an attractive feature
for both sellers and
buyers
4
• Ability to signal
quality of product /
accuracy of posting
is attractive for
some buyers/sellers
 Provide “opt-in”
feature
Pivot
People are willing to
pay for this platform
5
• Willingness to pay
varies depending on
good transacted
• Pay per listing is
preferred
 Nail down a dollar
amount
 Dollar amount
needs to be “small”
12

13. Babylandia
Value Prop
• Easy to navigate mobile
platform
• Ads compliance team
verifies that ad has
sufficient product
information
• Easy to search
functionality
• Logical categorization of
goods to simplify search
• Dedicated marketplace
exclusively focused on
baby space eliminates
time spent on undesired
items
• Social network linkage
instills trust and signals
quality of product
• Opt in seller guarantee
feature instills signals
quality of product
• Opt in delivery feature
simplifies logistics
• Internal customer
service team to handle
complaints, should they
arise
Process Improvements
Posting
Activity • Seller posts ad on site
Pain
points
• Inefficient to take
photos with phone and
transfer to computer,
then upload to site
Connecting Transaction
• Buyers and sellers
connect
• Unresponsive sellers
• Wasted time on already
sold items
• Unestablished level of
trust between buyers
and sellers
• Buyer pays seller for
item
• Sketchy sellers, buyers
worried about safety
• Product does not match
advertising
• Delivery and logistical
issues interfere with
getting transaction
completed
Search
• Buyers search for goods
• Hard to find what you
are looking for
• Questionable quality
• Have to use PC, not
great for mobile apps
13

14. Day 5 Canvas
14

15. Day 5 Key Insights
There are important
tradeoffs between
revenue models
Need to refine
features of mobile
app
1 2
• Some potential
customers value a
messaging platform to
connect with sellers
• General feedback
indicates that
incorporating blog
element unnecessary
 Refine mobile app
based on customer
preferences
Pay-per Listing Model
• Prevents buyers and
sellers from bypassing
the service
• Dissuades small ticket
transactions and leaves
money on the table for
high ticket transactions
Transaction Model
• Could potentially be
more profitable
• Does not capture
haggling which is
important to buyers
• More prone to users
bypassing site altogether
 Key next step in figuring
out business plan!
Shipping is critical
for some but not for
others
3
• The value of shipping
depends on the
distance between
buyers and sellers
 Provide an “opt-in”
shipping for those who
wish
 Partner model (Uber,
Shyp)
Pivot
15

16. Next Steps
 Nail down revenue model
 Validate that fee per posting is preferred alternative
 Accurately quantify seller willingness to pay
 Key insight: sellers’ willingness to pay depends on profit margin which is very different across product
categories
 Finalize additional revenue streams (priority search & premium listing features)
 Build a MVP
 Complete mobile app
 Recruit engineers
 Complete design and structure of app
 Shipping partnerships
 Initiate conversations with potential shipping partners
 Shyp, Uber, FedEx
 Better assess cost structure
 Accurately quantify cost of mobile app and initial human capital expenditure
16

17. Appendix
17

18. Sarah is a full time mother.
She is in her mid thirties. Her
husband is a hedge fund
manager that is rarely with the
kids. She is part of the PTA
committee in her children’s
school. She loves yoga and
Juice Generation.
She loves shopping for her
kids and constantly needs to
get rid of no longer needed
stuff. She’d rather not throw it
out on the street.
Nancy is a working mother. She
is in her mid thirties. Her
husband is a sales executive; she
works at IBM. She enjoys
jogging and watching movies at
home.
She would love to sell the baby
gear that she no longer needs
and is taking up space in her 2
bedroom apartment. She is also
a bargain hunter and always
looking for good deals online.
She is busy and wants a hassle-
free experience.
Tara is a second time mother.
She works 40 hours a week as a
trainer. Her husband is a high
school teacher. She enjoys
going to the park with her kids.
She loves good deals and does
not want to spend money
unnecessarily. She would love
to buy used baby gear that is
safe, clean, and in good
condition.
Customer Archetypes
Seller Seller/Buyer Buyer
18

19. The eight most-desired second-hand
products according to our potential buyers
Strollers Cribs High-chairs Swings
Dressers Toys Clothes
1
5
2
6
3
7
4
Books
8
19

20. What they need
to do
Buyers
• Buy baby gear for
their babies
Sellers
• Dispose of no
longer wanted baby
gear and by
eventually
monetizing the
process
What are their pains
What are their
expected benefits
What we offer
• Baby gear is expensive
• Unsatisfying customers’
experiences with
generalist websites
(Craigslist is sketchy, eBay
is expensive and not
dedicated, doesn’t seem
like the right place for
baby products
• Limited storage space
• Existing selling options
are not satisfying
• Donate is not always easy
(delivery is time-
consuming)
• Unsatisfying customers’
experiences with
generalist websites
(Craiglist is sketchy, Ebay
is expensive and not
dedicated)
• Save money
• Get a refund on
initial investment
• Dispose of
cumbersome and
no longer used
baby’s equipment
• Cheaper/quality
products
• Trustworthy
environment through
display of social
connections
• Return to sellers option
• Secure opt-in online
payment (Paypal)
• Ease of use
• Mobile technology
• Door-to-door service
• Secure payment
• Free and secure opt-in
online payment (Paypal)
What we learned from our customers and
how we responded to their feedback
20

21. How our value proposition matches
our customer’s expected benefits
21

22. Hypothesis tested (Day 4)
– see results on Canvas Day 4
22

23. Hypotheses tested (Day 3)
23

24. Hypotheses tested (Days 1 & 2) – 1/2
24

25. Hypotheses tested (Days 1 & 2) – 2/2
25

26. Babylandia
Generalist
sites or stores
to buy used
products
Hand-me-
downs from
friends and
family
New baby
product
retailers
Home or paid
storage
Charitable
donations
Trash
Competitive Landscape
26

27. Channel Revenue Model
• Mobile application
• Android and iPhone
compatible
• Downloadable in iTunes or
Play Store
Option 1
• $2 listing fee
Option 2
• 3% of transaction price
Additional Revenue Streams
• $10 for priority search
• Premium listing features
• $1 Different font size
• $1 Different background color
Channel and Revenue Model
27

28. Get Strategy
http://www.entrepreneur.com/article/229305
1. Build a microsite. This one or two-pager showcases your app to
the web audience.
11. Post on Pinterest.
2. Build a teaser website. Do this a month or two before your
launch to collect email addresses of people who would like to
know when the app launches.
12. Recruit customers personally. Visit day care center, new baby
product stores and used baby product stores.
3. Start a blog. Attach it to your microsite. Write interesting
content that will draw people to your website.
13. Run a contest. A random person every week can win a promo
code to download your app for free if it is a paid one.
4. Share content. Use Twitter, Facebook, Google+ and LinkedIn
profiles to promote the app several times in a week.
14. Create a Facebook group.
5. Create a product video. Make it creative, funny, thought-
provoking or personal.
15. Get speaking opportunities.
6. Get press, tons of it. 16. Be obsessive about resolving negative reviews.
7. Pitch to app review websites. Sites
like 148apps, AppStoreApps andAppAdvice can generate a lot of
buzz for your app if they mention it.
17. Make good use of App Store Optimization.
8. Contact bloggers who would care. 18. Contact admins of related Facebook pages. Look for pages with
100k+ likes and reach out to their admins. Then give them a
compelling reason to mention it.
9. Apply for awards. Look into awards such as the Kiip Build
Fund orThe Mobileys.
19. Consider offering a promotional price. If your app is a pay-to-
download one, consider a promotional pricing of $0.99 during the
launch time. This price point encourages impulse purchases.
10. Create a six-second how-to series. 20. Integrate social within the app. This will make it obvious to users
to share with others.
28

29. Possible Items to Sell
Low End High End Median Resalable? Value after HC
Gear
Infant Car Seat $60 $150 $105 Y $52.50
Convertible Car Seat $80 $300 $190 Y $95.00
Basic Stroller $70 $900 $485 Y $242.50
Double Stroller $100 $300 $200 Y $100.00
Snap-on Stroller Frame $40 $90 $65 Y $32.50
Jogging Stroller $100 $300 $200 Y $100.00
Play Yard $59 $150 $105 Y $52.25
Baby Backpack $40 $300 $170 Y $85.00
Front Carrier $25 $120 $73 Y $36.25
Sling or Wrap Carrier $29 $60 $45 Y $22.25
Diaper Bag $25 $200 $113 N $56.25
Activity Equipment
Swing $85 $120 $103 Y $51.25
Bouncer/bouncy seat $30 $70 $50 Y $25.00
Activity Center $70 $80 $75 Y $37.50
Play mat/gym $25 $80 $53 Y $26.25
Doorway jumper $30 $40 $35 Y $17.50
Nursery
Crib $120 $850 $485 Y $242.50
Changing Table $80 $250 $165 N $82.50
Glider or Rocker $189 $600 $395 Y $197.25
Bassinet $50 $260 $155 Y $77.50
Co-sleeper $130 $200 $165 Y $82.50
Hamper $20 $60 $40 Y $20.00
Basic Bedding/Blankets $60 $70 $65 N $32.50
Coordinated crib bedding set $50 $600 $325 N $162.50
Mobile $20 $55 $38 Y $18.75
Dresser $80 $500 $290 Y $145.00
Lamp $24 $70 $47 Y $23.50
Decorations $100 $200 $150 Y $75.00
Crib Mattress $60 $140 $100 N $50.00
Baby Monitor $40 $60 $50 Y $25.00
Low End High End Median Re-saleble? Value after HC
Feeding
Bottles and nipples $60 $60 $60 N $30.00
Highchair $60 $250 $155 Y $77.50
Utensils $10 $15 $13 N $6.25
Plates and Bowls $10 $10 $10 N $5.00
Cups and Sippy Cups $15 $20 $18 N $8.75
Burp Cloths (6) $10 $10 $10 N $5.00
Bottle Brush (2) $8 $8 $8 N $4.00
Bibs (10) $10 $12 $11 N $5.50
Breastfeeding
Electric breast pump $150 $350 $250 Y $125.00
Manual breast pump $30 $30 $30 N $15.00
Milk storage bags, breast pads, etc. $70 $75 $73 N $36.25
Nursing Bras (3) $75 $75 $75 N $37.50
Nursing Pillow $24 $44 $34 N $17.00
Bathing/Grooming
Baby Towel with hood (2) $16 $26 $21 N $10.50
Infant Bathtub $20 $20 $20 N $10.00
Tub for older baby $15 $15 $15 N $7.50
Baby washcloths (5) $10 $10 $10 N $5.00
Brush and Comb $8 $8 $8 N $4.00
Baby nail clippers $3 $3 $3 N $1.50
Other
Childproofing Supplies $40 $45 $43 Y $21.25
Safety gates (2) $100 $140 $120 Y $60.00
Diaper Pail $25 $25 $25 N $12.50
Diaper Pail refills (16) $96 $96 $96 N $48.00
Pacifiers (6) $8 $8 $8 N $4.00
Humidifier $29 $69 $49 Y $24.50
Birth Announcements (50) $50 $50 $50 N $25.00
Baby Scrapbook $12 $40 $26 N $13.00
Photo Printing Costs $127 $127 $127 N $63.50
Miscellaneous Toys $500 $1,000 $750 Y $375.00
29

30. Market Size
 Children < 5yrs old in NYC = 540,878
 Assume 1/5 of that = new babies born
per year = 108,176
 Estimates of Spending on child in first
year range from $10-14k. We
estimate ~$6,600 is resalable (see
Appendix).
 With a 50% haircut on the resale
price, that gives a Target Addressable
Market (TAM) of ~$360 million.
 Assuming 50% of babies have parents
online and willing to resell goods,
Served Available Market (SAM) =
~$180 million.
 Want to target low-middle income
segment for buyers and low-upper
middle income segment for sellers so
assume 75% of SAM = Target Market
(TM) of $135 million.
TAM = $360M
SAM = $180M
TM = $135M
30

31. Original Website Mock-up
Pivoted to
mobile
app!
31