What advantages does operating solely online offer Gilt Groupe? What are the disadvantages?

It is noon on a typical weekday, and customers are waiting to pounce on the discounted merchandise as soon as the sale kicks off, eager to snap up a great deal on clothing from designers such as Rodarte, Derek Lam, Christian Louboutin, and others, because they know the best bargains go very quickly. Designer sample sales typically are by invitation only, and fashionistas work their list of contacts to finagle invitations to these private events, where they can purchase luxury brand merchandise at discounts of 50 to 70 percent. Shoppers line up around the block for the semi-annual Barneys Warehouse Sale in New York City and, because all sales are final, often strip down to their underwear between the racks to try on a $3,000 dress marked down to $600.