The Overlooked Revenue Recognition Challenge in D2C
Learn moreA closer look at D2C inventory management complexities
Learn moreLimited and rare items, like special edition sneakers, are coveted by fans and collectors alike. The more exclusive and unique they are, the more the obsession grows. The fashion and lifestyle industry uses artificial scarcity, also known as a “drop”, to boost sales and provide exclusive brand experiences. Resellers can and do exploit this, reselling products for several times their original value. You might be thinking, “Kerching!”. But this is really an unwanted side effect – one which more and more companies are taking technical steps to tackle.
Special sneakers or fashion products by “Supreme” harness the principle of supply and demand intelligently. They’re only sold at certain locations, at specific times, and in a limited quantity. This practice is highly effective. In seconds, they’re sold out! Similar offers are available online and resellers snap up these branded products hungrily.
To do this, they increasingly use automated programs (bots), grabbing sought-after items at lightning speed. Mass use of these bots results in poor store page performance, as a flood of orders are submitted in a short timeframe. That means real fans, itching to buy, get left with empty shopping carts. Even if the shop sells out, companies need limited products to end up in the hands of genuine fans, as this promotes brand loyalty. To successfully run limited drops, they must prevent store visits by bots.
By using technical analyses, you can spot bots and block them at different points of the order process. Here are some methods we use.