Nick Rosenthal is looking to revolutionize the way brands and retailers clear goods with Drop ’Til You Shop — a reverse auction Web site that officially launched this week.
Rosenthal, cofounder and chief executive officer, said the site would offer “rapid-fire deals,” putting goods up at a price that drops steadily until the sale ends suddenly. Shoppers can wait longer to get a better price, but risk missing out on the deal.
How consumers use the site influences how fast prices drop, what’s for sale, how many units are sold and how long the sales last.
“All of this information [is] being calculated in real time based on user behavior, and we’ve put this technology to use in a public-facing form,” Rosenthal told WWD. Early this year, the site raised nearly $1.3 million in a round of seed funding, with Robinhood Ventures as lead investor. The company’s been working out the kinks with a beta version of Drop ’Til You Shop.
Each day, there are two three-hour shopping events — 9 a.m. to noon and 9 p.m. to midnight — where three products are for sale at any given time.
Although the test version of the site has mostly sold tickets and electronics, the company has a partnership with Jewelry TV. Rosenthal said the technology could impact the fashion world significantly.
“End-of-season merchandise that retailers have goes through this process of incremental discounts that lasts from three to six months. This Drop ’Til You Shop system can be used as a way to expedite that process,” Rosenthal said, adding that the longer stores discounts goods, the more irrelevant and out-of-date the merchandise becomes. He sees the platform as a viable alternative for retailers that want to speed up the discounting process.
Designed for branded partnerships, Rosenthal said everything on the site is modular. This means that the technology works on a third-party site with very little integration necessary.
“We have this system that can mirror that experience at multiple storefronts simultaneously,” Rosenthal said. “The same sale can exist on droptilyoushop.com, on a retailer’s site and on a magazine’s site.”