online retail question?

[mike95910]

I wanted to get some insight as to why an online retailer may make money when many brands/products can have their own webpage and sell their own products? Really whats the point of trying to get into onlne retail when this is a factor.

[malumu200]

I wanted to get some insight as to why an online retailer may make money when many brands/products can have their own webpage and sell their own products? Really whats the point of trying to get into onlne retail when this is a factor.

They can either for less or the brands would rather not deal with more headaches or returns and all the problem that is going to arise with any business.

[KKoher]

most people don't know exactly what they are looking for, so they don't know which brand site to search for or go to. They usually just type in a style of clothing, and go to any sites that pop up. So, say some kids types in emo clothing...and get directed to our site..we sell Miami ink, Ordinary Clothing, Coastal Concepts...etc. The kids picks out 2 or 3 shirts, all different brands...isn't it easier for him to buy all three from us, instead of googling "Miami ink tee", "Ordinary clothing" or having to go to each of these brands websites and purchasing them separately?

[mike95910]

Yep thats true. Much less of a headache!

[Dmarks1986]

That way you can buy several different products, from different manufacturers, and only pay one shipping fee.

[pboychuk]

For one thing, the producer of a product never seems to be concerned with selling heavily on their website, unless this is their main selling front. But most brands which are found widely in retail stores only have websites because its kinda a given for any large company, but as you may have notice the prices on the company website are normally set at MSRP, and never drop. Why? Because why would they want to sell one shoe at a time when they could sell 1000 pairs to a shoe store.

Very few huge brand name companies actually sell retail. They basically wholesale to other stores or their own franchise.

[nickarnot]

also, if the individual websites have the ability to generate cash flow, the owner/ operator / web master has the ability to make profit. In turn they will pay for advertising on their site and the product the are promoting. FREE ADVERTISING for the wholesale product.

[Yiie]

Agree with the responses. It's cheap and convenient. Also keep in mind that if you purchase from different stores, there's still the cost of postage.

[Finandom]

For me, I can have more choices to choose and I love the reviews and comments feature in those retail sites. I love to read reviews before I buy.

[just1guy]

All boils down to one point that all the responses have danced around: Value Add

If a retailer can add value such as convenience, service, savings, etc. they will get the business in the long run.

Imagine you are purchasing a $100 product. There's a problem with it and you call and get no response and no help. Later you are looking for a product and you pull up two sources, one has the product for $100 but it is the company you had the bad experience with. A second has it for $5 more. Which are you going to choose? Then you have a problem with that product and the company is more than happy to exchange it and help you out. Next time you purchase are you even going to look at the first company? Did you pay more than you had too for a product, or was what you purchased (service piece of mind) valuable?

[ghart36]

I'd have to agree with guy, customer service is a big problem. I work at a retail store and hear customer's gripes about manufacturer customer service all day long, lucky for me it leads to more sales for my department! I simply explain to the potential laptop or gps owner that the manu's cust. service is horrible and it might take several months before their product is fixed, they buy our store's protection plan quick, and we really do take care of them if they spend the extra $, it's only fair