Sometimes the deals on flash-sale sites like Gilt, Ideeli, and Rue LaLa seem too good to be true. We see amazing deals that give us more than 70 percent off brand-new designer apparel, but what's the catch? Turns out that we may not be receiving the quality product we're expecting from those high-end brands. Shauna Mei, the CEO of AHAlife, a site that sells goods recommended by industry trendsetters, shines a light on what goes on behind the deals in an interview with the New York Times:
"The dirty little secret of flash-sale sites is that brands now make cheaper products directly for the sites. You’re not actually getting inventory Saks couldn’t sell, and it’s not 80 percent off. They’re selling items that are cheaply made and cheaply priced, things Saks would never consider carrying. But these sites convince people they’re getting a deal, which attracts customers. So we have a harder time with customer acquisition. It’s harder for people to discover us."
Are you satisfied with purchases from sites like Gilt?