A three-man startup that wants to go head-to-head with Amazon this Christmas has managed to persuade the majority of major retailers on London’s Oxford Street to list sale items on its website.
Love the Sales, launched just 18 months ago, features sale items from over 500 retailers. It sells everything from t-shirts to washing machines, most of which are at reduced prices.
The London-based company, which takes a commission on any items sold over its platform, has registered over 3,000 people in the last two months.
When a customer clicks an item on the Love the Sales website they’re automatically redirected to a retailer’s website where they can complete their purchase. Love the Sales gets a commission on any purchases made at the end of this chain.
“We aggregate sale items from retailers,” Love the Sales cofounder Stuart McClure told Business Insider. “So you walk down Regent Street/Oxford Street, it’s all those sorts of companies, all the big brands. We aggregate all of their sales onto our site.”
Brands such as Reiss, Ben Sherman, Calvin Klein, and Topman can all be found on the website.
McClure, who used to work for men’s shirt retailer T.M. Lewin, claims retailers are signing up in droves because they’re keen to find alternative ways of pushing stock that’s a loss leader or reaching the end of season.
“The basics of what they get through this sort of affiliate marketing is extra sales across sale products and non sale products,” he said.
Only six retailers have turned down the opportunity to have their products featured on the Love the Sales website, according to McClure. One of those is Selfridges, he said, adding that the 106-year-old department store didn’t want to be associated with reduced prices.
The amount of commission that Love the Sales takes varies depending on the product being sold. For fashion items it’s anywhere between 5% and 20% but for electrical products like an £800 washing machine it can be as low as 2%.
“At the moment we’re just on the standard commission levels for most of the retailers,” said McClure. “We’ve got to reach a tipping point where we can say to them, ‘if you want to be on our site, you’ve got to give us this.'”
Love the Sales claims that it is processing two million online products a day with its proprietary technology. Not all of those products end up getting featured on the Love the Sales platform.
Mark Solomon, cofounder of Love the Sales, said: “We have a myriad of tools that we’ve built that take the disparate feeds from hundreds of retailers and organise them and put them into categories on our site.”
Love the Sales received an investment from property developer The Collective in “the high six-figures” in May, according to McClure.
Amazon’s net sales for the last three months of 2014 were $US89 billion (£57 billion).