Luxury Online Sales Lost Their Former Glory

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This business model started in the economic recession, when a lot of survival led these online sellers to come up with the idea of selling online, but now the stock of luxury goods is becoming less and less, while online stores are more and more. Many online sellers can only increase their cost substantially to find products.

At present, the biggest problem faced by many Internet vendors is whether they can create profits.

Online hot selling usually cuts prices for goods within a specified time. This pattern comes from accessories sales made by Vente Privee in France 10 years ago.

Vente Privee has developed rapidly, and this pattern has created a lot of profits for it, and many companies in the United States have begun to emulate it.

Gilt, founded in 2007, is the largest online hot seller in the United States, followed by Rue La La, HauteLook and Ideeli.

Once these companies were established, the economic crisis followed the climate. The sluggish market and the shrinking of the wealth of the rich brought great benefits to these companies.

Until September 2009, Gilt had 325000 monthly visits, HauteLook 433000, Ideeli 312000, Rue La La 206000, and traffic volume doubled after a year.

The development of these companies is bound to bring in large quantities of stock, but as the supply of goods decreases, the quantity of goods that these websites can buy become very limited, which will lose the advantage of mass purchase.

The discount offered by these websites has also shrunk considerably this year. The Gilt discount was originally 70%, and now it is only 40%-50%.

These websites also began to shift their target to cheaper products. Gilt began to expand its territory to travel, home, food, wine and so on.