The hype and demand for sneaker drops and limited-edition products shows no signs of slowing down. A study by Ypulse, a New York-based Gen Z and Millennial analytics firm, shows that two out of five people in this age group have bought a limited-edition product.
The strategy of drops, i.e. the time-limited sale of streetwear and sneakers, for example, is now also used in other industries with similar marketing and sales strategies. Special editions or limited items are released to attract customers’ attention.
For these, the drops have their price. Limited editions are often more expensive than the ‘normal’ collections. They’re also harder to come by, not only, but more recently, because bots scour websites to buy them up in bulk.
To snag the latest deals, some shoppers have enlisted the help of artificial intelligence (AI) bots that are specifically designed for buying limited-edition goods. These bots are not illegal. In fact, bots are used to crawl many of the websites we use every day, meaning they search for terms or images. However, these bots are primarily used to resell the purchased products at a much higher price, causing irritation in the sneaker and streetwear community.
Use of bots to purchase limited edition products
Although many companies, such as Adidas and Nike, secure their websites to block and protect themselves from these bots in the interests of their customers, the programs can occasionally get through.
“These bots are a sore point for many sneaker fans who are unable to purchase coveted products. The bots can cause problems for both brands and customers, such as reduced brand loyalty and lost sales,” Josh Herbert, director of Captain Creps, a website that publishes sneaker news and the launch of new drops, told FashionUnited.
“If customers lose their sneakers to bots, they are less likely to try again in the future. They may also be dissatisfied with the brand as they allow these bots to appear. This leads to lower revenues for companies and can ultimately cast them in a bad light. It is unclear what is being done at the moment to combat this problem, but the big brands have given assurances that they are aware of the problem and are doing their best to prevent it.”
“Sneaker resale isn’t necessarily a problem per se, but when people take advantage of that and use bots to buy in bulk, it gives the market a bad name.”
When a label has released a limited edition item online, invested in online marketing, and generated enough anticipation and hype to guarantee a sellout, real customers are at a disadvantage when a few bots acquire the bulk of the inventory. Since sneaker and retail bots are not yet illegal, stopping them is difficult.
While the label’s website is still making sales, the brand can’t build long-term relationships with its customers because bots are booting people out, according to Kasada, a platform that aims to track down and deter bots.
Companies like Kasada, founded in Australia, offer anti-bot solutions and protection to ensure sales to real people and prevent reputation damage and possible website crashes.
Still, the bot industry is booming, and there are DIY videos on YouTube that explain how to create them. It is therefore important for brands to always be one step ahead of the programs.
This article was published on FashionUnited.com. Translation and editing: Barbara Russ