Shares of Digital Brands Group Inc. (NASDAQ: DBGI) are soaring on Thursday morning as the stock is up 50%. The spike comes as the company announces that it has launched DSTLD on Amazon prime while also launching its affiliates across all of its brands.
DSTLD on Amazon
Today, the luxury lifestyles brand announced that it passed the “on-boarding” stage on its deal with Amazon regarding DSTLD. As a result, DSTLD will now be available on sale on Amazon Prime.
The Chief Marketing Officer of Digital Brands Group believes that the extra time taken to seal the deal with Amazon will give it a much better value in both the short term and long term when compared to selling on the site as a third-party seller. He said:
We believe the extra time and work it took to qualify for Amazon Prime will result in much higher short and long-term value versus just selling as a third party on Amazon’s site.
Due to this deal, DSTLD’s Brand Store on Amazon will include DSTLD’s videos and content, all of which are expected to be in the next three days. According to eMarketer and statista.com, 63% of online shoppers start searching on amazon for products. The company believes it will increase customer acquisition and brand awareness.
Affiliate Program
DGBI is also launching an affiliate program across all of its brands. It’s the first time for the company that most of its brands have launched an affiliate program. In the past, DSTLD has created significant customer acquisition growth and revenue through affiliate programs.
The main benefit of affiliate program is the remarkable reach it produces while working with other online giants and their huge customer base. So for the traditional digital marketing programs, the customer reach and brand awareness created is huge. The Chief Executive Officer of Digital Brands Group said:
We are excited to finally move into our growth phase, and believe these programs will show the power of our platform and the growth opportunity for Q4 of 2021 and 2022.
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