Ventes Privées - Le phénomène

The Private Sales concept has popped up recently as another e-business opportunity of purchases and sales. The difference it brought to others e-commerce sites lays on the need of each party be invited to enter as a member of a private network. The sponsorship system is very similar to Orkut, the first successful e-platform created to increase and narrow relationship worldwide. Basically a sponsor, who might be a seller or another purchaser, already member in the network, invites a third party to join the group. As a full registered member everyone is entitled to receive by e-mail all information on good deals offered by all kind of stores and web sites promoting best deals over internet.

The phenomenon has gathered momentum with the explosion of e-commerce. The sites of private sales are proliferating in fields as varied as fashion or the appliance industry. The principles are always the same: to offer, under a limited period of time, high discount rates over articles mainly of renowned brands.



Benefits
Regarding the unquestionable success achieved by this sort of trading benefits are being profited by both sides. For customers, eager to consume good quality products from famous brands, at a highly discounted prices and being noticed in advance and privately apart them from ordinary buyers. It is a luxury for those who are not keen to pay what famous brands charges for its products. Also there is a group of customers who don’t like to go shopping searching for Shops Sales. It is definitely unpleasant entering into a crowded store and get close to fight against others customers for the last available desired items. Also, this process of trading attracts those who like to feel they are part of something special as a private network suggests. Besides them, everyone who gets an invitation from a sponsor can get benefit from the Private Sales system.

On the other hand, producers have an extensive network of consumers just waiting to be advised of their sales through this e-shopping channel to clean up its inventories of old collections or just to reduce its size of inventory (the inventory keeping cost might be higher than sell it for a low price), depending on the sort of articles we are talking about.

In order to connect these 2 avid extremities web shops have proliferated offering e-platforms and strong marketing strategies to narrow the size of this trading wire. They are profiting of the situation mostly by getting commissions over each sale. Also, websites get revenues coming from customers’ subscriptions and advertising. Some websites have developed extra source of revenues by using the private network to market other sort of deals, even gathering donation to unprivileged people in developing countries. I suppose they charge commissions over these funding raises as well.

The idea has achieved this tremendous success because it is good for everyone. All parties have a benefit to take from this business, as long as each part does correctly its role on the chain. There are growing concerns on legal aspects of this sort of trading as most of countries don’t count on up to date legal system for open e-business relationship the more for private networking deals to protect customers’ rights.

The Private Sales model
In spite of the fact the remarkable success of this trading model has been based on the existence of numerous e-platforms available, this model might be, and I believe it should be, adopted by “brick and mortar” stores. Most of big stores or renowned brands have its own data over its clients. Having such powerful tool they should split the annual or semi-annual Sales between ordinary customers and special customers. The latter might be invited to enter into a selected group of clients that would be informed in advance of special sales and would have preferred time sessions to profit of all benefits coming from the Sales before non-private-networking clients. These procedures might increase interests from its special customers to be more present (and to buy more) of each Special Sales. In terms of scale, it can go as big as the size of the retail market worldwide. Big retail chains stores, famous brands with self stores and others can make use of this strategy to enter this new world of opportunities.

Stretching
It is a quite tricky strategy expanding your internet marketing actions without facing the risk of becoming or to be seen more as a spammer rather than a serious trader. There is no internet user who amuses himself of getting spams all the time. It is easier to get an enemy instead of a costumer if a very selective marketing strategy is not appropriated adopted.

In order to increase my own sales l would invest on knowing my clients better. Regular customers use to respond to researches (as long as it is short and not boring) if they see any further compensation. The major cost of marketing l would invest would be in creating this compensation programs in order to enlarge as much as possible the data bank with my customers’ information; and the Data Bank Software itself. That would make difference to understand how to reach each of their weaknesses, desires, financial capabilities, consumption interests, and many other power information which might be explored towards consumption motivation. It might re-direct my sales efforts to other products or to add services, by instance.

The growth of users and revenues would come naturally by knowing for real what my portfolio of clients seek instead of pushing products that l would like to see my clients buying. Moreover, this growth would enhance my ability to negotiate with suppliers that are still not in my list but should be as their name was captured by my Clients’ Data Bank Analysis Software.

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