Pinterest seems to be getting all the attention these days, but before we even met the now famous social commerce site, there was Polyvore. The site, which is three years older than Pinterest, has reached a new milestone with about 20 million users.
Aside from raking in a solid base of users, the company’s revenue also soared to a new record high. While Pinterest’s user base far surpasses that of Polyvore, the latter has strengthened its appeal to fashionistas and consequently achieved huge sales
With Polyvore, users can make visual collections dubbed as “sets” utilising real products. These fashion items are also connected to retail portals and for every sale made through the site, Polyvore gets an eight per cent cut.
On average, Polyvore users spend US$220 on one order, according to the company. Interestingly, the single largest transaction on the site amounted to US$67,315, which is proof of its well-heeled user base.
For example, the average income of 33 per cent of Polyvore’s users stands at US$77,000 and most of them earn more than US$100,000. Aside from that, seven out of the ten retailers featured on the portal sell high-end products, including Nordstrom.com and Neimanmarcus.com.
Apart from that, Polyvore provides product recommendations and does targeted advertising. As the portal attracts more users, these features are expected to become very important in the long-term growth of the company.
Polyvore kept exact figures for its 2012 revenue in the bag but earnings are said to have increased by more than two-fold compared to last year’s.
The company’s cash flow also became positive this year, meaning it is generating income on its own without any financial assistance from its investors. This is an important leap for startups, said Jess Lee, Chief Executive Officer of Polyvore.