Woot.com has capitalized on the "thrill of the hunt" shopping phenomenon with its unique sales strategy. It sells only one product for one day on its website, and as soon as the product is sold out or the clock strikes midnight, the product is no longer available for purchase. Each day there is a different product, always significantly discounted from suggested retail prices.
Imagine tens of thousands of customers lined up at the virtual door every day, waiting to see what the "Woot of the day" is, and racing to the community boards to be the first to post! That's exactly what happens on Woot's site.
People posting in the community boards exhibit behavior that can only be described as obsessive-compulsive. Woot users vie to be the first to post when a new Woot is announced each night at midnight Central time. Many posts simply say, "woot," but when the Woot of the day is deemed to be a dud, posts complain, "I stayed up for this?" Users also post links to product reviews and discuss their own experiences with featured products.
What about the name of the site?
"Woot has roots in the online gaming group crowd, it's an expression of excitement like hurray or yahoo," siad Matthew Rutledge, Woot's founder and owner.
Rutledge isn't certain how many people are signed up for Woot's daily RSS alert service, but said 200,000 people have clicked on the RSS link on engadget.com, Woot's only advertising partner. (Woot also participates in Overstock.com's affiliate program.)
Customers are limited to a maximum of 3 items on a given day, even if they are a wholesaler, retailer, or Bill Gates, according to the website's Frequently Asked Questions (FAQ) section.
One reason Woot can sell items so cheaply is the lack of customer support and the almost-no-return policy. What happens if you buy buy something you don't like or you have "buyers remorse"? "Sell it on ebay," the site suggests in its FAQs. "It's likely you'll make money doing this and save everyone a hassle."
What happens if the item doesn't work? "Find out what you're doing wrong," states the Woot FAQ. "Yes, we know you think the item is bad, but it's probably your fault. Google your problem, or come back to that product's topic in our community and ask other people if they know."
Another reason for Woot's low prices is the founder's relationship with manufacturers. Rutledge owns Synapse Micro, a 12-year old specialty distributor headquartered in Carrollton, Texas, supplying products to retailers like Buy.com, Fryes and Overstock.com.
Some manufacturers believe exposure on Woot creates buzz about their product, and will agree to do a special promotional deal, Rutledge said.
How did he come up with the idea for Woot? "Laziness," the founder said. Rutledge said he didn't want to have 50,000 products up for sale at a time and grow to be an Amazon.com. It's easier to sell one product at a time.
Do people buy on Woot to resell on eBay? "We do have people reselling on eBay, I neither welcome nor reject it, but it is not the intention to be a wholesale source." Rutledge said he would direct larger eBay Powersellers to Synapse Micro (http://www.synmicro.com), but they must have a resellers license.
Rutledge said Woot will be "opening up our audience" and hinted Woot would have something directed at eBay Powersellers next year, but did not divulge further information.
http://www.woot.com
