Private sales clubs are  a novel service institution arising out of the Internet's ability to allow an exclusively online channel to distribute out of season or out of fashion inventories to a large set of customers. They have become a thriving industry in the 21st century. In this paper we enhance understanding of this technoloy mediated institution as a distribution channel. Furthemore, we show how to measure the impact of the distribution services it provides through the Internet on customer satisfaction and of the latter on economic performance.