Is a $1,000-a-month private shopping app the answer to luxury e-commerce’s woes?

With the recent announcements of the demise of Farfetch and Matches, Mytheresa is considering going private and acquiring Net-a-porter and Moda Operandi in search of investment, and luxury e-commerce retailers have seen better days. As WWD previously reported, “after more than 25 years, fashion is still trying to figure out how to take its business online and make money doing it.”

Enter Long Story Short, a private luxury shopping platform and app that requires a membership application and $1,000 per month. Noting that its primary customer target is affluent and discerning individuals who can afford to pay the membership fee, Long Story Short focuses on providing unique products and experiences that cannot be obtained anywhere else.

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Joe Einhorn, founder of Long Story Short, is best known for his social e-commerce platform Fancy. Einhorn’s network is extensive, having previously worked with companies such as Hermès on a limited platform collaboration and includes Kering CEO François-Henri Pinault as an investor and board member.

The Long Story Short app works directly with brands. It continues the long-term cooperation it has already established, while providing concierge services and ensuring privacy by not disclosing data to third parties. According to Einhorn, the heads of the largest luxury fashion brands are already part of it or are aware of its existence.

Given the significant increase in popularity of private membership clubs, it is not far off that luxury e-commerce customers will look for a new way to acquire the vintage and one-of-a-kind items that the app has to offer.

The story continues

Here, WWD sat down to talk to Einhorn about why he said his $1,000-a-month app pays for itself, the volatile nature of luxury e-commerce and its failure to evolve, and his principle that “everything is for sale and everything is That’s possible” .”

WWD: What is Long Story Short, in your own words?

Joe Einhorn: Long Story Short is a private online luxury shopping platform featuring a growing collection of people, products and experiences. Unlike typical, one-dimensional luxury online platforms, LSS is defined by four dimensions: discovery, convenience, trust and alignment of interests.

Discovery: an eclectic range of products added daily with experience and an expert point of view. Convenience: Shop the coolest things in the world – across brands, categories and price points – all in one place. Trust: buy anonymously and get the best possible prices. Alignment of interests: We forgo profits from sales to ensure pure alignment of interests with luxury brands and our members.

WWD: The digital luxury e-commerce model has been forced to adapt, evolve and often break down during the pandemic and current economic turmoil. What are the advantages of a “private club” or membership model?

JE: Looking back over the 30 years since the dawn of the consumer internet, there are no enduring success stories in online luxury. What worked for Amazon and eBay won’t work for anyone else. For a sustainable online luxury goods industry to emerge, there must be a leading institution that can put a good outcome for consumers ahead of its own self-interest. We hope that Long Story Short will become such an institution. As a private club, we strive to build value for members, not shareholders.

WWD: How does the app differ from traditional e-commerce and resale models?

JE: Traditional e-commerce platforms prioritize overpaying to buy leads from Google and Facebook using bait-and-switch ads and overcharging suppliers and consumers to cover the costs involved. LSS does not make money on orders. We only earn money from membership fees.

We remain focused on delighting members by offering the best products and experiences this world has to offer, enabling members to conveniently purchase all genres in one session, and providing a buffer between our members and the “wild, wild web” by conducting negotiations and acquisitions on their behalf . The only measure of success that matters for traditional e-commerce platforms is the profit margin achieved on sales. The only measure of success that matters to LSS is the satisfaction of our members.

WWD: What is the ROI for users on a $1,000/month membership?

JE: Time. We scour the world for magical products and experiences across genres and synthesize everything in a fun format, allowing members to shop everything in one place. This saves our members time exploring and shopping.

Discretion. We act as a buffer between members and the wild, wild network. Randoms will never know who you are, what you are buying and for whom. In addition to protecting your privacy, it is extremely related to your security: we live in a world where hackers only need an email address or phone number for you, your assistant or a family member, and they can send a message that you won’t even see and steal everything from you.

Money. We do not profit from your orders. If a member is interested in watches and asks us to find a watch that would normally cost $100,000, we will try to buy it for him for $80,000 – while that watch may be valued at $120,000 due to the flawed economics of the online marketplace for online shopping. 2024. We’re happy to limit our advantage to $1,000 per month in monthly fees, even if you end up spending a million dollars and we save hundreds of thousands of dollars on one order.

How does the app meet the needs of affluent customers in terms of privacy and providing a luxury experience? How does the concierge service work?

JE: Everything is for sale. Everything is available. Everything is possible. Members can browse our offerings or instruct us to go hunting for anything they want, even if what they want doesn’t seem available at LSS or anywhere else, even if it’s just a concept. Once you decide you want something, it’s our job to negotiate and get it for you at the best price possible. While we don’t share any information about you with any seller, we do share everything with you about who and where we purchased your item, its origin, price, etc.

WWD: What do you think is the future of luxury e-commerce?

JE: Online luxury is the last great opportunity in the consumer internet. Everyone gave up. Everything else was broken. 30 years later, e-commerce still only makes a small contribution to global luxury sales. LSS intends to break this with our model and eventually, between pure e-commerce and integrated e-commerce (physical in-store sales supported by in-store payment apps, etc.) the entire luxury business will move online.

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