Totsy

Totsy is a members-only, private sale site headquartered in New York City. Founded in 2009, Totsy offers online “flash” sales dedicated to providing apparel, accessories, toys, and services for kids, babies, moms, parents, and families. Members have access to top-name brands at discounted prices and registration is free. Currently, Totsy offers up to 90% off the MSRP.
History
Totsy was founded in 2009 by internet entrepreneur Christophe Garnier and ex-Lalique USA CEO Guillaume Gauthereau. They also have been joined by ex-FAO Schwartz President David Niggli who’s now the Chief Merchandising Officer for Totsy. Most recently, Ken O’Grady joined Totsy as the Vice President of Logistics and Operations, prior to his work at Totsy, Ken was a part of the Ideeli team.
Totsy acquired the member base of competitor, bTrendie, in September 2010.
Overview
To access sales on Totsy, visitors must be members. Visitors can acquire membership by visiting the website or by invitation from a current member. Sales events start at 9 pm EST and feature products and services from several brands at 40%-90% off the vendor’s suggested retail price. A daily email is sent to all members announcing each day’s sales events. Totsy has a very active social media presence, spanning Facebook, Twitter, a daily updated blog and many other destinations such as community and mom blogger sites.
Totsy’s outreach is within the continental U.S.
Business Model
Totsy offers limited time sales that typically last 48 to 72 hours. By following a “flash” sale model, Totsy moves merchandise from the vendor to members. As a private sale site, Totsy does not keep the inventory in-house and orders products directly with the brand. The brand delivers the products to Totsy’s warehouse, where it is quality controlled. The products are then shipped from Totsy’s warehouse to the consumer.
This particular business model is also used by other private sale or deal of the day sites, such as Gilt Groupe and Groupon. The flash sale model is one of the few business plans that prospered during the recession because of its economic and money-saving premise. Although the recession halted spending in many ways, it did not halt the want to shop; the flash sale model allows people to still go after the brands they love regardless of price. Whether people are looking for travel deals, clothes, accessories, cosmetics or furniture, Totsy emphasizes brand value instead of price-points.
Funding
DFJ Gotham and Rho Ventures are investors in Totsy. In November 2010, Totsy raised $5 million in Series A funding.
Green Initiative
Totsy is the first company in private sales to take on sustainable and socially responsible initiative in all areas of business. The company is 100% green. Totsy plants one tree in honor of your child for every purchase you make in the Peruvian forest.

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