We look at Bidz.com to find out how this gem of a company reached yearly sales of $207 million with live, online-jewelry auctions that start at a dollar.
The big incentive for consumers to buy on Bidz.com is that they can bid on jewelry with just a dollar – and we’re talking jewelry that typically retails for tens of thousands or even hundreds of thousands of dollars. At any given time you can expect to see 2,000 or more items open for bids on the site.
Bidz.com turns a profit even when selling product below market value because the company buys direct from manufacturers—this includes distressed products, manufacturer overruns and closeout merchandise.
Kuperman said that the dynamic-pricing business model is why Bidz.com can offer such extreme value to its customers. Offering well-known brand names on the site helps bring repeat customers back to bid and purchase.
eBiz Profile: Bidz.com Cashes in on Bling
By Vangie Beal, June 17, 2009