Toygaroo – the “Netflix of Toys” ?

Toygaroo (http://www.toygaroo.com) is a Netflix like service for children’s toys. parents sign up for three different levels of service (4, 6 or 8 toys outstanding) and pay a monthly fee. All shipping is through federal Express and is free to the customer. As toys are returned, new toys are shipped.  The shipping flexibility permits parents to get toys sent directly to hotels during vacations, so that they can be sent back to Toygaroo without the need to lug along toys along with baggage.  The company claims a Sanitization process that steam cleans toys and uses approved bleaches to assure parents about hygienic toys.  Will the flexibility to have different toys at a steady rate, thus keeping children engaged, be key to the success of this service ? How important is the sanitization guarantee in ensuring that parents subscribe – are the worries any different from those when children share toys during playtime ? The company permits sending back toys with missing parts with associated fees, and has a charge for missing toys – how important is the fairness of this charging in ensuring the expectd level of service ? What other industries could such services extend to ?

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About aviyer2010

Professor
This entry was posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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