ByKELLI B. GRANT
Faced with sluggish> consumer spending, some online retailers have taken a new approach to the customer is always right. They re letting shoppers dictate which items make it into the inventory, and even which go on sale.
Earlier this summer, social shopping site Kaboodle.com began offering limited time sales, called PopPicks, which offer discounts of up to 35% on the users 10 highest-rated items from a partner retailer. New site The Traveler s Collection lets shoppers submit recommendations for artisan crafts they ve seen while traveling, and offers a commission of up to 5% on its sales. And last fall, ModCloth.com started a Be the Buyer program to let shoppers vote on designs its employee buyers are considering.
Anything that gives retailers a really good read on what a customer will buy is a substantial advantage in this economy, says Randy Allen, an associate dean for Cornell University's Johnson Graduate School of Management. Big retailers already seed items, testing them in select stores to gauge how many they should order for the chain at large. The more direct approach of socially driven sales helps give smaller retailers the same insight while creating an active community that prompts shoppers to make repeat visits, she says.
Although the strategy can lead to better deals for consumers -- exactly what you want at the price you want -- the process is fraught with potential pitfalls, says Kit Yarrow, a professor of psychology and marketing at Golden Gate University in San Francisco.
When consumers feel some ownership over the process [of picking items to be part of the inventory or a sale], that makes them feel more inclined to own the product, she says. They re more focused on the fun than on the money spent.
Here s how to make the most of socially driven sales, without busting your budget:
Drive the vote
ites let users talk up items by sharing them on social networking sites including Facebook and Twitter. Enticing others to weigh in can help sway more shoppers to your cause. On a recent PopPicks with 80sPurple.com, the least-liked of Kaboodle.com users 10 winning picks had just 12 more votes than the next contender, but the difference was valuable. Winning picks were discounted by 35%, while the rest got 15% off. (Each retailer allocates discounts differently, says Shari Gunn, the chief marketing officer for Kaboodle. Some opt not to discount losing products at all.)
Watch inventory levels
Voted-in items are understandably popular, and they may sell out quickly. Alicia Barnes, the brand manager for ModCloth.com, says votes help employee buyers figure out if there s enough interest in an indie designer s item to offset the risk of the often-high minimum orders, however she adds that they always order the minimum on that first order. Shopper demand is more of a factor in deciding whether to re-order should an item sell out, she says.
Read voter comments
Threadless.com and ModCloth.com let voters submit comments on considered items. Read them, as well as reviews from purchasers, before you buy to make sure you re not overlooking a deal-breaker that another user saw, such as poor construction, an unusual fit or the availability of a similar item elsewhere for less money.
Compare prices
Keep in mind that sales are driven by an excess of inventory, Allen says. Hunt for the item online to make sure you re getting the best deal.
Reassess
Championing an item through the selection process isn t a commitment to buy, Yarrow says. Step back and assess whether the price works for your budget and the item is one you need.



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