The advantage of Personalization in Rotating Stores (part two)

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In the last blog post, the goal was to explain a rotating store’s core concepts while imposing some minor personalization details. We generated a quick estimate to understand personalization’s monetary impact on a rotating store. Unfortunately, this painted a naive optimism towards personalization; this post aims to dig into the areas where the previous fell short. Let’s get started!

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The advantage of Personalization in Rotating Stores (part one)

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The concept behind a rotating store is relatively simple; only a fraction of a catalog’s items are purchasable at any given time. The store effectively hides the remaining products, and transactions on that subset are impossible until a “rotation” occurs. In most cases, a rotation takes place at some predetermined cadence known by the consumer. In this sense, a rotating store shares similarities with a “flash sale.” Under this scenario, items that were likely purchasable beforehand have now been discounted for a short time, usually 1–2 days. However, the mechanism is slightly different as the “sale” in a rotating store is the opportunity to purchase the item. While possible, it does not have to include an actual discount.

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