Why Is Rue La La So Cheap? – A Deep Dive!

Rue La La has earned a reputation among fashionistas for offering coveted designer brands at shockingly low prices. But how exactly does Rue La La provide such deep discounts that other retailers simply can’t match?

The secrets behind Rue La La’s bargain basement pricing boil down to shrewd business strategies that allow them to acquire merchandise cheaply and run an ultra-lean operation.

Read on to learn about the ingenious ways this discount fashion mecca consistently undercuts traditional retailers.

Reasons For Rue La La Being So Cheap

Here is a list of those reasons:

  • They Sell Excess Inventory
  • Strict Limits on Deal Times
  • Direct-to-Consumer Approach
  • Special Order Products
  • Minimal Customer Service
  • Targeted Email Marketing
  • Lean Organization Structure
  • Order Volumes That Drive Discounts
  • The Thrill of the Hunt

Now, let’s get into the juicy details behind Rue La La’s tantalizing low prices!

  • They Sell Excess Inventory
Rue La La

A major way Rue La La keeps prices low is by selling excess inventory from brands. When fashion labels overestimate demand and get stuck with too much unsold merchandise, it devalues their brand to mark down prices across the board.

Instead, many brands prefer to unload these surplus goods discreetly through Rue La La. It’s a win-win: brands are able to recoup costs on slow-moving items without sullying their premium image, while Rue La La customers get access to the overstock at amazing prices.

On Rue La La you can find loads of current-season goods that simply didn’t sell well at higher price points. We’re talking sweaters, jeans, dresses, shoes – still brand new with tags but discounted by 50-75% off!

For fashion lovers, it’s like uncovering buried treasure – genuine designer wares at unheard of prices. The catch? You have to act lightning fast because sizes, styles and colors go quickly.

  • Strict Limits on Deal Times

Another ingenious aspect of Rue La La’s model is that they offer discounts for very short, finite windows. Boutiques and deals typically only stick around for 24-72 hours before disappearing into the fashion ether.

This sense of urgency drives customers to pull the trigger on purchases instead of hemming and hawing. Limiting deal times also prevents a brand’s image from being diluted by prolonged discounting.

Once the countdown clock expires, the boutique closes up shop and full prices are restored. For thrifty shoppers, the ephemeral deals create a shop-or-regret-it adrenaline rush. Miss out on those Manolo Blahniks for 70% off and you may kick yourself forever!

  • Direct-to-Consumer Approach
Rue La La App

Here’s another reason behind the alluring price tags: Rue La La eliminates the retail middleman by selling directly from brands to customers.

There’s no costly overhead from operating brick-and-mortar stores.

When you make a purchase on Rue La La, your order is drop-shipped from the brand’s warehouse, avoiding extra logistics costs.

Minimal warehousing and distribution expenses allow Rue La La to sell closer to wholesale prices.

Essentially, you get to buy straight from the source – albeit for a short time only. And you get access to coveted stock you wouldn’t find sitting on department store shelves marked down this low.

  • Special Order Products

In addition to selling overstock, Rue La La partners directly with brands to create special order products exclusively for their sales events.

For example, a fashion label might manufacture a sweater in a color that’s not available at regular retailers. Or they’ll produce a more budget-friendly version of a popular style using cheaper materials.

These products produced just for Rue La La allow the brand to profit from selling lower-priced goods without diminishing their collections sold elsewhere at full price.

As a shopper, you gain access to styles and products that no one else has – adding to the thrill of discovery that makes Rue La La so addictive for bargain hunters.

  • Minimal Customer Service

Providing bargain prices requires keeping overhead costs in check across all facets of business. At Rue La La, one way they maintain low operating expenses is through minimal customer service.

Don’t expect to spend an hour on the phone getting styling advice or changing an order. The site is designed to provide the pertinent details you need to make a buying decision. And with such great deals, prices often speak for themselves.

Rue La La also maintains a stringent no-returns policy to avoid costs associated with inspecting, processing, and re-stocking used merchandise. While this degresses some shoppers, most accept it as the necessary tradeoff for scoring coveted luxury brands at basement bargain prices.

  • Targeted Email Marketing

Rue La La also keeps new customer acquisition costs low through targeted email marketing. When you join the site, you fill out your sizes, style preferences, and favorite brands. Rue La La then sends sale alerts and personalized boutique picks to your inbox.

This allows them to drive sales while avoiding expensive broad advertising campaigns. The savings get passed along directly to shoppers in the form of steeper markdowns.

  • Lean Organization Structure
Rue La La Collection

As a primarily online retailer, Rue La La doesn’t need the large staff and organizational hierarchy of traditional department stores.

Their e-commerce model allows them to operate lean and mean.

By keeping the overall operation streamlined, they’re able to funnel more profits into acquiring merchandise for less and offering lower prices that induce more sales.

It’s a self-perpetuating cycle that starts with an efficient behind-the-scenes operation.

  • Order Volumes That Drive Discounts

Here’s one last critical element that can’t be overlooked – Rue La La moves serious merchandise volume. We’re talking thousands of orders daily and millions monthly.

These order volumes give Rue La La major leverage in negotiating wholesale costs with designers. Brands are willing to slash prices more for a retailer that can buy and move 200 dresses in a weekend versus one that will sell 20.

The savings realized from bulk orders are ultimately what makes the jaw-dropping discounts possible. And the alluring prices keep customers coming back in droves – fueling the cycle of rampant consumption that is every discount retailer’s dream scenario.

  • The Thrill of the Hunt

For shoppers, the chance to score coveted luxury brands at steal-worthy prices taps into the universal thrill of finding great deals. Rue La La replicates the experience of thumbing through clearance racks but on a digital scale – with new boutiques launching daily.

The constant influx of new-to-discount merchandise makes bargain hunting on Rue La La a daily addiction for some. Even at 3 am on a Wednesday you can discover diamond studs for 80% off or a cashmere throw blanket marked down to $49.

With new steals launching around the clock, Rue La La has mastered the art of conjuring shopper FOMO. For those hooked on the high of snagging great deals, Rue La La offers a never-ending stream of new discounts to feed the fashion fix.

Too Good To Be True?

With prices this tempting, some may wonder – what’s the catch? Well, there are a few caveats to keep in mind.

First, sizing and inventory is limited, so popular sizes go fast. Second, you can’t return most purchases, so know your measurements and read descriptions carefully.

Lastly, as noted above, Rue La La achieves such great pricing in part by minimizing service. So expectations for customer service should be set accordingly.

However, most shoppers agree the unbeatable deals are well worth these tradeoffs. Where else can you score designer goods at up to 80% off retail prices?

For fashionistas seeking luxury on the cheap, Rue La La delivers in spades.

Frequently Asked Questions (FAQ)

Here are answers to some frequently asked questions about Rue La La’s business model and cheap pricing:

Who owns Rue La La?

Rue La La is owned by Rue Gilt Groupe, which also owns Gilt. Rue Gilt Groupe is a privately held ecommerce company based in New York City.

What kind of company is Rue La La?

Rue La La is an online fashion retailer that offers time-limited sales events featuring discounted designer brands.

How much is Rue La La shipping fee?

Rue La La offers free shipping on orders over $100. For orders under $100, the shipping cost is a flat rate of $5.95.

Are Gilt and Rue La La the same company?

Yes, Gilt and Rue La La are owned by the same parent company – Rue Gilt Groupe. While they are under the same ownership, Gilt and Rue La La operate as separate online retailers with different brand names.

Wrapping Up

In summary, Rue La La provides incredible discounts by focusing on limited-time deals, selling excess inventory, minimizing overhead costs, negotiating bulk pricing, streamlining customer service, strictly limiting returns, and using targeted email marketing.

For deal-savvy shoppers, Rue La La is a go-to source for scoring designer brands at bargain basement prices. Just act quickly on the short-lived offers and make sure to carefully assess sizing since returns are not allowed.

With the right strategy, you can outfit your wardrobe in style for less at Rue La La.

Clayton S. Johnson

Well, I am Clayton who writes, manages, and does overall stuff for this website. I live somewhere in Stone Mountain, Georgia, and used to have a full-time job. But the pandemic taught me to do more do with my life. So, I quit my job and travel a lot! Since I have tons of time now, I write about all the stuff I have done, used, and have first-hand experiences.

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