A local version of US online discount retailer 1saleaday.com has been opened by two Melbourne entrepreneurs, in a direct challenge to market rivals including Deals Direct and Catch of the Day.
Founder and local operator Simon Mochkin says the company is able to offer better deals than Australian operators, such as Zazz, due to its relationship with the parent company in the US.
“We think we have a better deal because we’ve partnered with the US company. We have the advantage of sourcing products from overseas, and given the value of the Australian dollar, that’s a good deal with prices you don’t ever see.”
Mochkin claims the US version of the site is the second-largest discount online retailer in the world, second to founder of the one-sale-a-day concept Woot.com, with a market value of about $US30 million. Like its rivals, the site sells only one product per day until sold out.
He also says the US site records sales of between 15,000 to 20,000 units a day, while sales at the Australian site can vary from $10,000 a day to $100,000. Products can range from pairs of sunglasses to large flat-screen televisions.
Mochkin says the new site differs from its rivals by offering free products, with users only forced to pay for shipping and handling costs.
“That is a bit different from what others are doing. When we opened, we started with free products for a few weeks, and that really had a good response and got us going. We also think we differ from Catch of the Day, which might have a few products going at the one time, but we only have one deal at one time.”
“And those deals are often different from what others can offer. Just the other day we sold a BlackBerry Bold phone that isn’t available in Australia yet, and we sold that for $700. I don’t think you are able to get that anywhere else.”
Catch of the Day co-founder Gabby Leibovich declined to comment.
Mochkin says he and business partner Eli Feiglin took up the local partnership offer after working as distributors for other online retailers.
“We were working as suppliers, and had this concept of doing a one-sale-a-day site of our own. Then this deal came along, and we partnered up, and we think that has been the better decision.”
Mochkin says the site has plans to move into New Zealand next year. But for now, he intends to focus on the Australian market.
“Australia has been a bit slower coming into the concept of online buying, and hopefully that will start to change,” he says.
The US site began in 2007 when chief executive Ben Federman began operating from his apartment. The site now operates from a 10,000 square metre warehouse, and has four sister sites.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
