Valuations & Acquisitions: The 5 Cs for Better Gross Margins

CREDIBILITY: Consumers want to know they're buying the right products that will deliver the proper functionality, and that’ve been accepted by others, Solomon points out. So the marketers must have credibility with consumers.

Hit products have delivered functionality and developed this social acceptance to become brands over time. So a retailer can sell existing brands, such as Zappos’ products, or develop its own brand. Zappos, for example, has become a credible brand that delivers on its promise.