Hardfacts on Software – Private Sales Sites 2
Last week we looked at Private Sales Sites, but we didn’t really finish that subject. So lets continue this week with part two of that subject. We were last looking for reasons why some luxury items can be so cheap. In some online stores, items are offered at up to 90% discount. Let’s continue with more reasons as found on the blog on the American Express Open Forum.
“Sometimes, a fashion designer may have made too many pieces of a particular item — this typically occurs during mass production. In the past, if a designer was unable to sell the pieces at retail prices, the last call was to load them off to warehouse sales and for dirt cheap. Now, sample sale sites are another option.
Whether the items are samples or overstock, the result is inexpensively priced, quality goods. Private sale sites buy these goods for cheap and then mark them up for a profit. Because the items were so deeply discounted by the designers, even a large markup by the sample site will still be a remarkable discount for the average sample site shopper.
How these sites appeal to consumers
First and foremost, online sample sale sites afford customers the opportunity to buy designer items for cheap.
Another reason these sites are so popular is that they work under the guise that they are “exclusive” and “members-only.” While some still require an invite from an existing member, more frequently it’s possible to just sign up on your own. Of course, it’s to both the website’s and the brand’s benefit to have as many customers as possible, but the idea of being a VIP customer is very appealing to many and will draw users to sign up or request invites. These sites also fare well because they have great control over the product selection and can tailor it specifically to meet their target audience through the information they collect when members sign up, resulting in happy customers. Lastly, these sites are working wonders by capitalising on a sense of urgency and relying on the impulse of shoppers who want to make sure they get an item in their size or color before anyone else, while not missing out on a great deal. Private sale sites use the ticking pressure of the clock to encourage this impulse shopping, with no exit strategy for buyer’s remorse as some items are often non-refundable and shipping for returns is often paid for by the customer.
How can your business benefit?
Private online sales are a relatively new way to successfully sell items, and small businesses should take notice. While most of the websites promote big, brand name, designer and luxury products, as this model continues to grow in popularity, there will be more opportunities for smaller businesses to offer their products as well. What started with designer clothes has quickly branched out to travel, restaurants, home decor and even kitchen-wares — meaning there is plenty of room for all sorts of products and services to be sold this way. If your company produces samples or ever experiences overstock or dead stock, private sales sites could be a great way to get rid of those items. Instead of compromising your brand’s reputation or image by selling leftover products to bargain stores, your company could consider selling extra merchandise to these online private sample sales that still have that luxury touch.
Has your company sold to private sale sites? If so, how would you compare the experience with the traditional model of selling leftover samples and overstock to large bargain retailers, or sitting for ages on marked down stock that just deteriorates on your showroom floor?”
Think about it – this is a great opportunity in any market!