Deal of the Day Site Sells for $110 Million

Amazon.com, earth’s biggest selection of books, magazines, music, DVDs, videos, electronics, computers, software, apparel & accessories, etc. purchases Woot.com for $110 Million!

Woot.com is the originator of One Day, One Deal. Every midnight (central) they launch an event: one sale that lives until it sells out, or lasts until the end of the day. Woot specializes in selling the best prices, daily, on big name consumer electronics. For an example of what Woot’s homepage looks like, take a look below:

From here, you can see that there is a deal of the day, for a very reasonable cost. Woot has done a fantastic job of targeting a niche and and capitalizing HUGE. They are known for their hot deals and great prices on all sorts of brand name electronics. Consumers who are looking for deals, are now going to Woot and waiting for a deal that suits them. Woot has become the hub of this niche and deal seekers know it.

So was Amazon’s decision to pay $110 Million a good one? Of course! Think about the amount of impressions that advertisers are getting due to this site’s “sticky” nature. People keep coming back, buying more, and Woot’s list of subscribers is growing exponentially.

But enough about Woot and it’s disgusting sale price. I want to talk about the power of Deal of the Day style sites. Seriously, everyone I know is looking for the best deal; especially in these times, and so the idea of a deal at a time is very attractive.

Once you can position yourself within a niche, and become the hub of sale items, you can convert sales very efficiently. Woot and many other deal of the day sites, like SteepandCheap.com are taking this too a new level, because they add scarcity, and urgency to the equation. Check it out for yourself. Below, you can see SteepandCheap’s homepage:

I know it’s a small picture, so go to steepandcheap.com and see for yourself. Basically I am showing you that there are some cool features that make these sites so powerful. You have a timer, that is counting down. This creates urgency to act. There is also a “units left” timer, that counts down the remaining quantity of sale items left. If you like this rock climbing shoe, you see that it’s $54, but is usually priced at $105, it is going to be hard to back out and not make a purchase. This may be a total impulse purchase, but because you know this deal ends in 13 minutes, it makes sense to grab the deal why it’s hot!

Having seen these sites, and many more like them, we decided to make the opportunity for folks to own their own deal of the day site. Bloopio is what we call it, and this name is popping up all over the place now, as the new name for deal of the day styled sites. When you use Bloopio, you get the framework for making a deal of the day styled web page. You have the online store, and all you need to do is make a header (your stores sign) and then add some products as well.

During the first round of Beta testing Bloopio, we found that our beta group love the idea of owning their own site, but when it came time to take action and sell some stuff, frankly, most of our sample was clueless. Having said this, we wanted to offer the best, full circle system for owning this kind of website, as well as offer the perfect product line to sell within Bloopio’s walls.

I mean just knowing how much ONE of these sites sold for, we like to ponder the possibilities for owning and managing multiple sites in a wide variety of e-commerce savvy niches. Take a look at this article below and see what the New York Times is saying about Deal of the Day/Bloopio styled web sites:

http://www.nytimes.com/2010/07/01/technology/01woot.html

This article is impressive and I recommend taking a look at these other posts on deal of the day sites:

Seattle’s Deal-A-Day Sites, DealPop and Tippr, Challenge Groupon …

There is no arguing that the Internet has made the world smaller. Because of the Internet we can now share information instantly—and virally—from Seattle to.

Publish Date: 07/16/2010 8:10

http://www.xconomy.com/seattle/2010/07/16/seattle%E2%80%99s-deal-a-day-sites-dealpop-and-tippr-seek-to-rival-groupon-and-livingsocial/

Woot’s Deal Of The Day: Woot! — Amazon Buys It. Price? $110 Million

Woot shot to popularity with their “one deal per day” idea. Similar timed deal ideas have since become very popular for sites like Gilt (for fashion) and Groupon (for food and activities). The company also has always had an interesting …

Publish Date: 06/30/2010 16:17

http://techcrunch.com/2010/06/30/woot-amazon/

What’s your best one day deal purchase? « List of all the one day …

TheSniff was set up to help consumers deal with the influx of 1 day deal & sale sites throughout NZ; to save you time, give you the ability to sniff out the best deal and compare prices on the various sites. We do this by ‘sniffing’ out …

Publish Date: 07/17/2010 17:01

http://www.thesniff.co.nz/whats-your-best-one-day-deal-purchase/