Myhabit.com

Membership-only online retail store
Amazon Cemetery
GENERAL INFORMATION
Category:
e-Commerce
Started:
2011
BUSINESS FAILURE
Cause:
Obsolete
Closed:
2016

Description

MyHabit was Amazon’s membership-only online retail store launched in 2011. MyHabit was launched when the flash sales model was in its heyday, with other companies like Gilt bagging over hundreds of millions of dollars through it. With a wide selection of exclusive designer and boutique products for women, men, and children, MyHabit was an instant success in the flash sales market. The website featured up to 60 percent discounts on designer items through daily, limited-time sales.

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Cause of Failure

MyHabit.com was shut down by Amazon in May of 2016, just five years after its inception. The closure was followed by an official statement that highlighted how Amazon was moving towards being a bigger player in the fashion retail industry. According to Amazon, closing their exclusive membership site was an effort to simplify their offerings and improve customer experience.

Perhaps one of the biggest reasons for the shutdown was the end of the flash-sale craze. After the last recession, designers had been desperate to sell excess inventory at discounted prices which led to the popularity of flash sales. During this time, websites like Gilt made some major bucks through the model and Amazon jumped on the bandwagon with MyHabit.com.

However, it wasn’t long before the popularity of flash sales started dying down. As the economy grew more stable and designers ran out of excess inventory, the flash sale craze was over and websites such as Gilt were having a hard time staying afloat. This became more apparent when Gilt, once valued at almost $1 Billion, was eventually bought by Hudson’s Bay Co. for $250 million.

Despite the closure of MyHabit, Amazon continues to make efforts to grow its fashion retail business. For example, in 2019 Amazon launched the Amazon Personal Shopper as an online stylist solution for Prime users.

References

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