Tim Ray: Subscriptions E-Commerce Will Rule the World
The CEO & Founder of Carnivore Club gives us five predictions for the future of subscription e-commerce
I am lucky to have participated in back-to-back e-commerce trends that frenzied media and consumers alike. I witnessed firsthand the craze of daily deals and flash sales, as hundreds of aspiring entrepreneurs hopped on the bandwagon and started their own daily deal startups.
Between 2010-2011, the term “Group Buying” was at its peak, but by 2012, the bubble had burst and millions in investments evaporated. Businesses, restaurants especially, quickly learned that the lure of free advertising by deep discounting was a quick way to lower the perceived value of their product or service and did nothing to attract long-term customers. The only way to make the business model work was to artificially inflate the manufacturer’s suggested retail price (MSRP) or count on breakage (customers who pay but don’t redeem).