There is no shortage of online retailers; from technology to apparel and accessories. So what is it that made the new online luxury retailer Ideeli special enough to receive $3.8 million in venture capital funding? Perhaps it’s the fact that Ideeli has targeted the fashion elite and sells luxury goods to die hard fashionistas; Ideeli knows who its target audience is and serves them well.

Caroline McCarthy of The Social noted aptly that the exclusiveness of Ideeli is further reinforced because luxury goods tend to be expensive and not just anyone can afford them, even with discounts. McCarthy likened Ideeli to a Woot with more of a Sex in the City edge and a “velvet rope” clientele. Currently, membership is open for a limited time after which, it will return to being by invitation only. Those wanting even more exclusivity can pay a subscription to become a first row member and gain access to giveaways and early notification for sales.

One thing that could be a definite draw for many fashionistas out there is the possibility of not only getting discounted luxury items, but also knowing that few people will have them. High fashion designer samples are not mass manufactured and are often one-of-a-kind. According to the New York Times, Ideeli only stocks enough of its wares to supply about 5 percent of its customer base, and when an item goes on sale, it sells out fast. Thus the challenge becomes clicking your mouse before someone else snags what you want.

So it would seem that the driving force behind Ideeli is the age old market principle of supply and demand – or rather a low supply of goods for which there is a high demand. What fashionista doesn’t want rare wares at discounted prices? In a society where high fashion and design are not only for the rich and extravagant, Ideeli  has certainly found a great niche.