Online flash sale prices are often heavily discounted, and the cost of buying goods during these flash sales typically is less than the cost of buying them in outlet stores. In most cases, brands have online flash sales to clear their stock to make way for new stock.
Some designer companies have private shopping clubs through which members get online flash sales that last for a short while. During these flash sales, online shoppers may purchase goods at discounts of as much as 70 percent off the retail prices. Examples of private clubs that offer flash sales of luxury goods include Editor's Closet, Gilt Groupe, Haute Group and Beyond the Rack.
Flash sales have lower prices because they are a way for companies to market themselves and to attract new clients. Companies and suppliers can also use flash sales to efficiently deal with their overstock. The hope is that after using the products, the consumers may become loyal customers who seek out the brands and purchase them at the normal prices when the flash sales are over.
Flash sales are attractive to consumers because they allows them to get deals on value products. The demand is much higher than the supply, and this is another reason why the prices are significantly lower.