Kitely market posts growth, adds new features

Growth in the Kitely Market‘s exportable products continued to exceed that of non-exportables this month, as Kitely rolled out several new features for merchants in recent weeks.

Exportable items growing at twice the rate of non-exportables on the Kitely Market. (Kitely Market data.)

Exportable items growing at twice the rate of non-exportables on the Kitely Market. (Kitely Market data.)

The Kitely Market currently contains 7,213 different items or “variations,” grouped into 3,449 product listings. On the Kitely Market, like on Amazon and other major online marketplaces, different colors or sizes of a product are sold as variations on the main product, and are listed together.

Number of product variations available for sale on the Kitely Market. (Kitely data.)

Number of product variations available for sale on the Kitely Market. (Kitely data.)

 

So, for example, Kitely allows merchants to offer a version of an item in non-exportable form, and a separate version of the same item in exportable form for a higher price.

The Kitely Market delivers to the 155 active public grids that are hypergrid enabled, and to any closed grid that decides to allow Kitely Market deliveries.

In a recent Hypergrid Business survey, content topped user respondents’ wish list for OpenSim, with 53 percent saying that an online marketplace or a better selection of content — or both — was the feature they most wanted.

Kitely Market to start advertising

Kitely will soon begin buying online ads in online media, and is calling on merchants to suggest good-looking products to feature in those ads.

There is no cost to the merchants to be included in the ads.

Kitely-Market-long

Sample Kitely Market ad. (Image courtesy Kitely.)

For the “We deliver to the Metaverse” campaign, only export-enabled products are eligible for inclusion.

Product sales pages

Kitely has already rolled out another way for its merchants to promote their products — sales prices.

Sale prices highlighted on the Kitely Market. (Image courtesy Kitely.)

Sale prices highlighted on the Kitely Market. (Image courtesy Kitely.)

According to Kitely, discount pricing can increase an item’s sales rates several times — more than paying for the amount of the discount.

Ilan Tochner

Ilan Tochner

“Other marketplaces that have rolled out similar systems have seen a big increase in sales as a result,” Kitely CEO Ilan Tochner told Hypergrid Business.

A sales campaign can last from one day to two weeks, and the sales items are highlighted with a big green sale button.

One benefit of putting items on sale is that Kitely Market customers who have that product on their wish list will get notified that it just went on sale.

There are restrictions, however, so that merchants don’t abuse the system. There is a limit to how often any particular item can go on sale, and a product can’t go on sale if its price was recently increased.

“Discounts are effective when buyers can trust that they’re a true bargain, and not a trick,” said Kitely’s Co-Founder and VP R&D Oren Hurvitz in the announcement describing the new functionality.

Product price analytics

To help merchants figure out how to price their products, and to see how well sales discounts performed, Kitely has rolled out a price analytics feature.

Kitely's new price analytics. (Image courtesy Kitely.)

Kitely’s new price analytics. (Image courtesy Kitely.)

“This new feature helps merchants decide how to best price their products in order to maximize their earnings,” Tochner told Hypergrid Business.

He added that the Kitely Market is the first online metaverse marketplace to offer this feature.

Kitely Market analytics.

Kitely Market analytics.

The sales history page has also been improved, allowing merchants to search for individual transactions by product, buyer, or both.

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maria@hypergridbusiness.com'

Maria Korolov

Maria Korolov is editor and publisher of Hypergrid Business. She has been a journalist for more than twenty years and has worked for the Chicago Tribune, Reuters, and Computerworld and has reported from over a dozen countries, including Russia and China.

  • “discount pricing can increase an items sales rates several times”

    Yes it can, but it can also serve to drive the pricing on the market significantly down in general, and when you are in a pricerange that already is significantly discounted compared to the effort involved in producing the item, you can easily end up in a situation where creators don’t bother simply because the reward for marketing the same item elsewhere is substantially higher.

    This is atually the difference between Samsung and Apple. Samsung run their discounted smartphone business with significanly lower margin and profit than Apple who never discount anything at all, and yet Apple are unable to meet demand with the highest profit and margins in the business.

    It is also what happened on the DAZ Studio market where it is now not possible to sell anything without offering 20-40% discount, so in reality they have lowered the pricepoint accordingly without substantially increasing volume. They have also lost quite a bit of creators who rather list their products elsewhere.

    • Products have a 60 day cooldown period between sales in Kitely Market so products can’t be on sale for more than 19% of the time (14 days out of 74). If someone wants to buy a product that isn’t currently on sale they may need to wait quite a bit of time until the next time that product may (potentially) go on sale. This means that if you want to buy a particular item now/soon then waiting for it to go on sale won’t be a viable option.

      You may decide you only wish to buy items when they are on sale but some people won’t choose to wait an unknown amount of time to get an item they want that only costs a few dollars even when it isn’t on sale (prices in Kitely Market are generally lower than in DAZ to begin with). The sales therefore remain an incentive to buy items you want but don’t need to buy right now. The exact price point for items on sale / not on sale is something that will evolve over time as more items are added to the marketplace and as more people buy from it. That is why we’ve added a tool that can help merchants decide how to price their items.

      In other words, the limitations that are placed on when/how sales can be made affect the actions of both buyers and sellers in a marketplace. If those limitations aren’t effective then the people who run the marketplace need to adjust them to change the dynamics of their ecosystem.

      • Yes 🙂

        Here is how a sales cycle on the DAZ market transpires:

        1. Introduce new product with 15 – 35% discount. Largest discount given to Premier Club members. Offer good for a week, and is driven by daily (nag) mail sent to the entire customer base. Mail almost always have new products intro-ed this way. In reailty this establish the marketplace price point.

        2. Product goes to normal pricing – very few products if any are moved at this price. People add product to wish list. Could very well be this period must be 60 days – not sure.

        3a) Release wish list sales by offering 40% discount for limited period.

        3b) Participate in some marketplace drive that usually place product in the 30-50% discount range

        3c) Run a store wide sale (all or most merchant prod that most often run in the 30-35% range

        4. Return product to normal pricing – hardly any product moves at all

        5. List product at Premium Club price of $1.99. After this point no product sells at any other price than this.

        • I couldn’t find any reference to DAZ having limitations on sale periods. If you have any please link to them. In Kitely Market items can only be on sale about 19% of the time. There are also no marketplace-wide forced sales in Kitely Market. Merchants are always free to decide what, if any, of their items they wish to place on sale and at what discount level.

          You’ll note that other than merchant-defined sales campaign areas that can only be reached if you have a link to them (e.g. from a social network share, or a Store Ad in Kitely Market), there aren’t special sections for items that are on sale in Kitely Market. This is by design. The goal is to keep sales special so when they happen buyers will have a real incentive to take advantage of the savings they offer and merchants won’t be pressured to always keep their items on sale.

          • I am not sure about any limitations on sales periods, but the initial discount is fixed to 7 or 8 days (probably enforced by the market). They also release to the Premium Club customers a day or two in advance (hence 8 days). Apart from that I am not sure, but the product cycle transpires more or less as I described. Some products goes to PC pricing fast, others never, but normally appear in a sale or two in addition to the intro sale before they do.

            What you probably would want to do is to block new listings from entering a discount campaign for a number of days so this mechanism is not used to drive down introductory pricing till it hits the $1 limit for exportable items. If a price point does not work, merchants are always free to re-price their products at any time, and over time they will probably get it right most of the time.

          • You probably want to have provisioning for an introductory price (which technically is a time limited one product only sale, but you wrap it in other wording and remove the -xx% discount labeling) in addition to upgrade pricing.

            There are not so many products that qualify for upgrade pricing perhaps, but scripted items could be candidates or say if someone had purchased your product such as skins, system clothing etc in SecondLife or another closed world, you could offer an upgrade pricing for their Kitely / Opensim avatar.