Kitsy Lane Overview.
Kitsy Lane was founded in 2012 by a CEO Andy Fox. The company is based in Boston, Massachusetts and functions as a jewelry retailer, based by the community of distributors, who create their personal e-boutiques on the Kitsy Lane website in order to sell their products. The so called “boutique owners” are able to customize their own storefronts and organize the sales of their jewelry with shipping and order processing handled by the website.
Kitsy Lane offers its customers more than 700 pieces of jewelry and accessories, including necklaces, bracelets, earrings, rings, etc from the beginner designers and the well recognized brands, with the reasonable prices, sales and discounts. The retailer also gives an opportunity for anyone to start their own line of jewelry and conduct the selling and promotion of it with the help of the website and the social networks.
How It Works.
The signup to the website is free of charge, and one is not obligated to buy anything from the website to become a member, so creating your own e-boutique is very easy. In order to get a storefront, it’s enough to fill in the standard application form and think over the name of your future boutique. Since it’s free to sign up, no billing information is needed to get started.
Once the signup is confirmed, Kitsy Lane provides the new user with the standard storefront, which can be personalized by changing the colors of font, background of the page, and customizing textures and logos. Each vendor is also given a personal URL address in a format of YourStoreName.KitsyLane.com, and the marketing opportunities for the boutique.
In order to promote the jewelry pieces of its vendors, Kitsy Lane gives the boutique owners a possibility to share their products through social networks, such as Twitter, Facebook, etc, invite friends to your own store, suggest people your own items, attend the exclusive webinars? And even design your own e-coupons and send them to friends and potential buyers.
As mentioned earlier, the processing of orders and shipping are handled by the service, making the business easier for the customers. And although Kitsy Lane is not credited by the Better Business Bureau, it’s a legit business that doesn’t demand any money upfront, and mainly earns its funds from sale of the real products, so the company is interested in the success of its users.
Prices and Commissions.
The Kitsy Lane website states its customers can earn up to 25% commissions from each sale they make. However, there is no clear explanation provided by the service of a detailed process of getting the maximum 25%. Instead, the compensation plan includes the formulas defining:
- the income of $3,500 per year reached with 5 weekly orders of average $75 price for a piece
- the income of $25.000 per year reached with 5 daily orders of average $75 price for a piece
- the income of $100.000 per year reached with 20 daily orders of average $75 price for a piece
Calculating these formulas, one will discover, that the numbers of income are based on a 18% commission, and not the 25%, as it originally states, so make sure you contact the company and ask about the exact commissions rates, and specify how precisely the process of getting the maximum 25% works. Taking into account that you don’t face any risks, pay no merchant fees or money upfront, the 18% rate isn’t bad, though in comparison to the expected 25% do seem disappointing. The service also provides a nice bonus of commissions paid for the customers’ own purchases.
The commissions’ payments are issued in checks on a monthly basis, around the 15 th of every month by a third-party vendor. Please note that there is a processing fee for every check that costs $1, plus the service will require your social security number to issue 1099 for taxes.
Advantages and Disadvantages of the Service.
Kitsy Lane is legit, and can be a lucrative business opportunity for those who want to work from home. However, you’re still thinking about whether it’s worth trying or not, pointing out the main pros and cons of the service would be very useful.
The advantages of Kitsy Lane are:
- A free and easy signup to the retailer with no upfront money payments obligations
- An opportunity to start your own online boutique and earn up to 25% commissions rate, plus the additional commission earned from the own customer’s purchases
- The service promotes the boutiques by using the social networks as marketing tools
- The service offers only the real items for selling, so it’s not a financial pyramid
The most often reported disadvantages of Kitsy Lane include:
- The commissions rates are not clearly explained, which confuses the customers
- There are some complaints concerning the wrong sums paid to the customers, and the payment delays