Private online shopping sites cash in
There's a new trend in e-commerce, and it's one that you should take note of for your business. It's the online market for private-sale sites, a movement that is growing in the wake of bleak retail sales over the last year.
"It looks like these sites are growing revenues significantly faster than any other part of retail," JPMorgan retail analyst Brian Tunick tells Business Week. Tunick says sales are growing fourfold and fivefold a year in this segment and venture capital firms have begun placing bets in the space.
Whether you are selling hats or gadgets, services or tech advice, it's possible that the online market is the way for you to venture beyond tepid sales and weak bottom lines.
"We think the (retail) market is quite large," says Jeff Lieberman, a partner at Insight Venture Partners, which invested $10 million in members-only shopping site HauteLook in May.
It's not only a good lure for the bargain-hunting fashionistas, it's a new way of thinking about technology, not just as an enabler for your business but as the sales vehicle, too. It's estimated that private online sales are $1 billion a year. So why leave this new way of marketing goods to Gucci and other high-end merchants?
For more on private online sales sites:
- see this Business Week article
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The perils of online shopping
Public hits the brakes on online shopping




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