With people trying to save money by bargain shopping, daily deal websites have become extremely popular. What began with one or two websites selling one coupon per day has turned into a huge industry with hundreds of competitors. You may need to sell your stock at a discount with these online stores, but the volume and exposure to new customers can make it worthwhile.
What’s the Deal?
Daily deal websites offer steep discounts on events, restaurants, and products for a short period of time. For the most part, they do not charge the retailer they are partnering with, but they do take a steep percentage of the cost of the item. Here is an example of how the deal works: Deal Website an offers a hair iron to consumers for one day at half the retail price. Instead of selling the hair iron for $150 the deal website offers it for $75. The merchant and the daily deal website then split the $75 from purchasers. Thus, the hair iron manufacturer receives $37.50, and Deal Website A receives $37.50. The incentive for the hair iron manufacturer is bringing in a group of consumers who would have not bought the iron in the first place but may become repeat customers of their brand.
Where Can I Make a Deal?
There are hundreds of daily deal websites. They each take a different cut of the sale depending on how much traffic and volume they expect. A website with greater reach may ask for as much as 75 percent. A newer website may ask for 40 percent of the sale and leave you with 60 percent. If you are concerned about selling too much stock in one sale, you also have the option to sell a limited number of orders. This can actually be a strong sales tactic. If you sell out you can expect calls from people who missed the deal but still want your shirts. Here are a few of the biggest daily deal sites:
- Woot! – This is daily deal site focuses on one product a day.
- Groupon – Along with restaurants and experiences, this site has a goods section, and you can offer your shirts for a few days. You can focus nationally or locally depending on your preference.
- LivingSocial – This site is extremely similar to Groupon, but you may receive a more favorable percentage since it is not the market leader
Deciding if a daily deal website is right for you will depend on how much inventory you have, and how low the price you are willing to sell your shirts will be. Many brands have made a name for themselves with daily deal websites. If you come through for these discount seeking customers, you may find that you have done a year’s worth of marketing in the span of a few hours. The bottom line is exposure to thousands of new customers, not having to pay for marketing, and potential for repeat business at full price. These factors can make the discount worth it.