Lockerz, a social commerce site that debuted its a self-expression platform earlier this month, said today that it will guarantee that no other online site will be able to match its prices.
Lockerz is similar to popular online pinboard site Pinterest, which lets users organize and share content and information they love. But Lockerz has put a monetization spin on Pinterest’s business model by offering rewards to its users for sharing content and driving users to make purchases at the site.
“We took our time — a little bit longer than Pinterest — to really come out with a full commerce solution,” Lockerz chief executive Kathy Savitt told VentureBeat.
The company recently announced its new “Locker” look, which allows users to curate “decals,” or the equivalent of a Pinterest Pin, on its website. Those decals can be categorized into groups such as makeup, clothing, and gadgets to be shared around Lockerz and other social networks. The incentive to share these decals is to get points. These points are similar to an arcade ticket. The more you earn, the bigger the prize you can buy at the gift shop. In Lockerz’s case, the more points you earn, the bigger the discount you get off of a “high-end product”. You earn points for each “grab” you get — a grab is when someone shares content you’ve assembled into your Locker.
The website includes a Lockerz shop, where you can use you points on inventory Lockerz has bought outright from retailers. Five-hundred points guarantees you at least a 50 percent discount off any item in the store. Brands in Lockerz’s shop include BCBG, Ella Moss, Xbox 360, and SkullCandy. With today’s low-price guarantee, users can be sure that if they purchase an item on Lockerz and find it cheaper somewhere else, the company will reimburse them for the price difference plus 10 percent.
“I think there are a lot of social companies that try to add commerce, and a lot of commerce companies that have tried to add social. We’ve tried to take a different path,” said Savitt.
Lockerz wants to be the big name in “social commerce,” where people buy products that they’ve seen their friends discuss online. Facebook’s Mark Zuckerberg has been saying for years that people are more likely to buy products if their friends have recommended them, and Facebook recently added new features to take advantage of that trend, such as the ability to “want” or “buy” something as opposed to just “like” it.
Seattle-based Lockerz launched in 2009 and currently has 20 million users. It has given out 3 billion points to be used in its store since its launch. Pinterest, on the other hand is rumored to have as many as 13 million users in the 10 months it has been open. If Pinterest finds a way to make money off its users and finally takes its website out of invite-only mode, it will pose a big threat to Lockerz, and potentially to its low-price guarantee.