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The case deals essentially with the e-tailing model of Fabmart.com. Fabmart was launched as a site for on-line shopping and later ventured into the opening of physical outlets. The case takes a look at how Fabmart maintained a balance between its on-line portal along with its physical stores. It discusses in detail the promotional schemes launched by the company and why it chose Microsoft as its platform. It elaborates on the design of the site and the steps involved in shopping on-line. It explains how different companies make use of the site to promote their products. It also looks into Fabmart''s fulfilment and payment mechanisms and gives a brief note on its major competitors. The case enables the students to: (1) understand the e-tailing strategy adopted by Fabmart and discuss the primary reasons for its success; (2) analyse the diversification strategies adopted by Fabmart, beginning with a few items and eventually expanding the number of items under various categories of products on its site; (3) discuss the promotion strategies of Fabmart and their contribution to the growth of the popularity and success of the site; (4) understand the adoption of innovative technologies to ensure customer convenience, satisfaction and security; (5) understand the sequence of steps involved in shopping on the site; (6) examine the rationale of Fabmart in establishing physical stores along with its on-line store and the pros and cons of the decision; and (7) discuss the industry success factors behind the success and failure of on-line shopping sites. The case is aimed at MBA/PGDBA students as part of the information technology curriculum.