Ecommerce Versus Retail
From NYT: Manufacturers Find Ways to Navigate Web Retailing
“…retailers are not balking too much at manufacturers who sell online because, analysts said, Web sales are not high enough for retailers to fear that a vendor will steal a lot of business.
‘Retailers aren’t necessarily feeling the pinch from their suppliers’ online sales efforts,’ said Dan Stanek, an analyst with TNS Retail Forward, a consulting firm. “So it’s not been as big of an issue as in the past.’”
I not-so-humbly suggest that the reason the retailers aren’t feeling the pinch is that the vast majority of their suppliers’ web sites are so bad. If, for example, Peace Works (a specialty food company whose CEO is quoted in the NYT article) ever gets its site to the level of Amazon’s, there could be some serious trouble out in the brick and mortar sector (and, Peace Works could make a lot more money, not to mention profit. Among other things, those nav buttons could be a lot easier to read.)
Have you ever tried to buy from some of the suppliers’ sites? Or Target’s? (Also mentioned in the article. I tried, really. The in-store sign said “longer lengths available on our web site.” Oh well…) Or, or…or…Ah, yahh.
Related Post: Why You Didn’t Get My Business: The Web List
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Tags: ecommerce, marketing, marketing troubleshooting, Target, retail sales
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On the other hand – and speaking of Amazon – one of the current spasms going through the book publishing industry has to do with the independent booksellers complaining about publishers selling direct to consumers.
Of course, they are actually referring to the big publishers with the huge megahits but there’s also the issue of independent publishers who have trouble getting shelf space at those neighborhood book stores. The booksellers complain about the publishers as if we were evil but, we counter, if you’re not going to carry our books, what else can we do but sell direct to consumers?
On another note, besides fixing their web sites, I suspect many consumers will go to retailers rather than suppliers for their goodies is because the consumers simply aren’t used to buying direct from suppliers any more than suppliers are used to selling direct to consumers.
I suspect, when the suppliers figure stuff out (assuming that they ever do), then the retailers really will have something to worry about.