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However, these promises may be illusory for most SMEs. Implicit promises include access to world markets, low-cost entry into new markets and the ability to gain efficiencies in business processes. In such an environment, small and medium-sized enterprises (SMEs) have tremendous opportunities. In such a knowledge-based economy, competitive advantage will be with those countries that have the capacity to deliver fast and have innovative forms of work organisations that raise productivity. The new economy is built on information technology and the sharing of knowledge and intellectual capital. Future research can examine other aspects, such as the order arrival on these sites. Originality/value – The current study contributes to both research and practice toward understanding prices and consumer behavior at “one deal a day” web sites.

The comparison of the “one deal a day” and the multi-product retail business model suggests that the former focuses on niche markets and primarily sells closeout and refurbished products to online bargain hungers. In addition, factors such as having the lowest online price, a large customer base, and selling during a “woot-off” and on weekdays all help increase sale outcomes. The analysis reveals that the price elasticity at is lower than those at internet retailers such as or. It is found that 's prices were usually lower than the lowest found elsewhere online, and the price differences were even greater during woot-offs. Findings – Two periods of the day were identified when most orders were placed. The data set of 572 products includes 270 products sold using the regular “one deal a day” format and 302 products sold on ten woot-off days. Design/methodology/approach – Product, pricing, and sales data for products sold on were collected using an automatic online data-collection agent. The paper also compares the “one deal a day” business model with the mainstream multi-product retail business model.

Purpose – The purpose of this paper is to analyze the prices and consumer behavior at, a deep discount online retailer, and compare two selling mechanisms it uses – the regular “one deal a day” and the “woot-off” mechanisms.

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