Business models for online retail
If you loathe waiting in line, battling crowds and digging through racks and shelves as much as I do then the continued online retail explosion of 2013 should give you much to be excited about. Everyone is stepping up their online retailing game and with good reason! According to Forrester: Online retail in the US continues to grow at a rapid rate, outpacing sales growth at traditional stores and stealing market share from them. We predict that online retail in 2013 will reach $262 billion — a rise of 13% over 2012′s $231 billion in online sales and representing 8% of the total retail pie.
More consumers are shifting spending from physical stores to retail and travel websites thanks to lower prices, greater convenience, broader selection and richer product information. From grocery purchases to fashion and accessories, you can get just about anything you want!
From Gilt.com’s focus on curated exclusivity to Fab.com’s subscription model and rentthereunway.com’s rental model, we are seeing more and more copies of these online retail business models popping up everywhere! Here’s a rundown of our favorite retail trendsetters putting a new spin on some old business models with some online retail ingenuity!
Rent the Runway, characterized as the “Netflix” for fashion, allows you to rent designer dresses and accessories for a fraction of the retail price.
Online fashion retailer that provides personalized shopping experiences to nearly 10 million shoppers. JustFab features on-trend selections of shoes, handbags, jewelry, and denim, all for $39.95 or less. There are no membership fees or commitment to purchase. For members who don’t want to make a monthly purchase, they can simply use the “skip the month” feature.
New visitors register and complete a style profile or, in the case of BeautyMint, a survey about their skin. Based on results, stylists recommend personalized items for customers each month via email. Every product on StyleMint and JewelMint costs $29.99. The business model is similar to book, music, and wine of the month clubs. If customers want to skip a month, they must go to the website and cancel the order