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Are Flash Sales Going Extinct

In: Computers and Technology

Submitted By lolakoko88
Words 610
Pages 3
-Flash Sale Sites: Friend or Faux?

At the beginning of 2004, companies like Woot.com and Groupon launched their daily deal site platform, a business model in which a website offers a single product for sale for a period time, usually 24 to 36 hours. Many believed that it would give normal e-commerce retailers a run for their money. Since then, sites like Gilt Groupe and Rue La La and more have emerged into the scene offering different brands daily at remarkable discounts. According to Time.com, visits to flash sale sites had doubled in 2011 to 2012. Doris Reyhan, a flash sale shopper, says she “loves the deals but hates the pressure to buy right away”
One of the major reasons why flash sale sites worked for a while was because the sinking economy back in 2008. This drove shoppers to save money and spend less. Flash sale sites offered high ticketed products like high tech gadgets or luxurious beauty treatments for more the two-third off the original price. This encouraged shoppers to buy heavily discounted products successfully from their site rather than going to the supplier. Besides the reductions, it made shopping fun. The limited time factor made the experience personalized, engaging them to click to buy knowing there were only 1 of the item left. While attracting consumers to spend was the mission, it also offered a variety of brands other methods of distribution and of course higher revenue margins. The retailers were able to build on brand loyalty and quickly sell surplus inventory.
This newly born business model, thought as a disrupter to e-commerce, has been deemed a marketing gimmick. While some sites say they are growing, the truth is there aren’t growing enough to make them sustainable let alone profitable. Flash sale sites need to throw the anchor overboard to prevent drifting and will have to adapt to the evolving market. Flash sale site…...

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