Online discount store Woot.com is the originator of the One Day, One Deal industry. Launched in 2004, Woot! sells one single item a day, usually at a steep discount. At first, the goal was to find a way of moving excess inventory from Woot’s wholesale consumer electronics business. Today, Woot has six sites and 2.5 million registered members. In his interview with Tiburon-TV, Darold Rydl - President of Woot Wholesale LLC - explains how Woot! gained their unique competitive advantage.
„As a wholesale company we buy all of the product in order to control the market and to get aggressive pricing. As some other websites start up and try to sell one item a day, that’s a key component they are missing“ stresses Darold. „The other thing is that we did a really good job on building the community. We’ve actually spent no money on advertising from day one. All of our growth has been viral and word of mouth.“
Darol mentions yet another reason why Woot has been so successful: „We sell a product at a great price. Then we make the product description humorous. When you buy something on Woot! you’ve got a great deal and you had fun while doing it.“ As a key way to grow without spending money on advertising Darold recommends to find a way to make what you do exciting and utilize social commerce when you can – Twitter, Facebook or Blippy...
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