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Kirby Lee/USA TODAY SportsAs e commerce has continued to rise in terms of the percentage of purchases versus those made at brick and mortar stores, Fanatics has continued to grow and change how business has been done.Last year, the NFLPA made Fanatics its master licensee, meaning that any company that wanted to produce player branded items would have to go through Fanatics for approval. Starting this year, companies making NFL player branded items are paying a sub licensing fee to Fanatics.Being the largest distributor of licensed products in sports had its benefits, but the company really started to take off when it started making its own products.Before selling his main business, GSI Commerce, to eBay in 2011, Rubin secured the online shop rights to all the major sports leagues, winning the business by promising to physically warehouse the merchandise to ensure faster delivery compared to competitors who only offered a virtual service.That meant that an inventory risk had to be taken; if a player got traded or became significantly less relevant, the company would have a glut of product it couldn't move and would have to write it off as a loss.In recent years, Fanatics has solved that problem by investing more than $100 million in technology and production that allows it to create the ultimate vertical platform conceiving ideas, getting them quickly approved and posting to the main site, as well as the league and team sites it manages, where the product can be sold minutes later.Soon, the company will producing on field jerseys itself. Fanatics, with Under Armour, will have a contract to produce on field uniforms for Major League Baseball in 2020.
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