SkyMall: The Ultimate Catalog Business Model

The Old Model

Worsley’s initial plan served seven major airports. A traveler placed an in-flight order and met the SkyMall messenger in the baggage claim area to pick up the merchandise. What appeared to be a great idea turned out to be a logistical nightmare. A complete roster of SKUs had to be stocked in seven separate warehouses. In the confusion of crowded airports, many customers missed the SkyMall messenger and never collected their merchandise. Delivery costs could be as high as $40 an order. Ultimately, Worsley discovered that many travelers did not want to add extra baggage to their already bloated impediments, opting instead to take the catalog and order from their own homes.