Quidsi Opens Third Website to Sell Women’s Beauty Products

Quidsi Inc., the owner of Diapers.com and Soap.com, opened a third site focused on upscale beauty products as it seeks to gain share in online commerce.

BeautyBar.com will carry 3,000 items from brands including Bliss, Bond No. 9 and Dermalogica, the Jersey City, New Jersey- based company said in an e-mailed statement.

Quidsi, which opened in 2005, is trying to make inroads against Amazon.com Inc. and Drugstore.com Inc. by offering faster shipping and customer service that includes a 365-day return policy. The company relies on robots to keep costs down in its three U.S. warehouses as it opens more sites. A toy website is in the works for next year, the company said.

“To win in e-commerce, you have to have scale,” Chief Executive Officer Marc Lore said in an interview. “We’re trying to launch new verticals to increase our revenue but drive them through the same fixed infrastructure.”

Lore expects revenue to grow 67 percent to $300 million this year and to $1.3 billion in 2012. The broader e-commerce market will increase 11 percent to $173 billion this year, according to estimates by Forrester Research Inc.

Quidsi’s three sites share a common online shopping cart so consumers can purchase items from any of them and check out once. The company’s free overnight shipping extends to consumers in almost 70 percent of the U.S. on orders of more than $25. The rest of the orders are delivered within two days.

To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net