"Furthermore, Gilt generally becomes a large source of inbound traffic to the brand’s site (Forecast a 5x increase in traffic during the sale with a decreasing 25% daily following the sale) with conversion rates of 1-1.75% vs industry average of .50% conversion rates). Meaning that brands can offset some the Gilt losses with the 75% margins that we make on direct sales for products not in the sale or items that were sold out."
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How does Gilt’s business model work? - Quora
You may or may not be as obsessed with Gilt as my wife and I, but this is a hell of a fantastic rundown of how the entire operation works, from someone on the label side. Fascinating stuff.
