Retailers seek Click Frenzy refunds

Reported by Alexandra Pleffer, ninemsn
Wednesday, November 21, 2012

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Retailers who paid thousands of dollars to advertise on Australia's first nationwide online sale could ask for their money back after it crashed last night.

Click Frenzy, billed as the online sale event that would stop the nation, was due to open at 7pm AEDT yesterday but collapsed when more than 2m shoppers hit the website.

It has been available sporadically today.

The online sale charged retailers up to $33,000 for a banner advertisement or four premium ads on the site and $1650 for listing a single deal.

Additional ads cost $2000 to $6000, plus GST.

Organiser Grant Arnott told Channel Nine's TODAY that Click Frenzy prepared for record-breaking numbers but had not expected the "tsunami of traffic" it experienced.

"Our registrations grew by half a million just before the event and what happened come 7pm was we had a couple of million users trying to query the site all at the same time," Mr Arnott said.

"We'd geared up for a million users and that was through the 24 hour period."

He said they were disappointed the event had not run according to plan.

"Of course we let people down," Mr Arnott said.

"What it showed us was that the concept and the idea and the desire for an online shopping event of this nature is way, way beyond what we thought, so we'll regroup."

A spokeswoman for online retailer The Iconic told News Limited it had extended its 30 percent off sale by another day for customers and would discuss recouping their investment with Click Frenzy.

"This could have damaged our brand as well," she said.

"There's a conversation to be had this morning between our media guys and Click Frenzy."

Kogan founder Ruslan Kogan said he was glad his company had pulled out of the online event.

"Every single [retailer] who paid them for a listing will be disappointed," Mr Kogan said.

"It's like paying to advertise in the Daily Telegraph and then the Daily Telegraph deciding not to print the newspaper that day."

Despite the website collapse, many retailers have reported high sales during the sale.

Myer spokeswoman Jo Lynch said the company would analyse the success of Click Frenzy after it finished up this evening but it had been the department store's biggest online sales day ever.

Source: Herald Sun, TODAY

Author: Alexandra Pleffer, Approving editor: Nick Pearson.

23/04/2014 17:26Sydney, Australia. 23 April,2014
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