E-Commerce Times Talkback

Re: Staying Pure in a Multichannel World
Posted by: ECT News 2001-06-01 14:14:29

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A year ago, pure plays still handily outnumbered
the multichannel retailers doing business both on the Net
and in the malls. Now, following the dot-com shakeout,
e-businesses that don't have a brick storefront or
catalog presence as well are nearly extinct.

However, before anyone writes off the pure-play business model,
take a look at the companies
that are showing stubborn resolve -- and even
profitability -- while doing business on the Internet only.
Although their path might not be easy to travel or to follow,
they're proving that with the
right format, it is possible to flourish as a Web-only seller.

Re: Staying Pure in a Multichannel World
Posted by: Gao dengyu 2001-06-07 19:24:34 In reply to: ECT News

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Re: Staying Pure in a Multichannel World
Posted by: Alan J. Zell 2001-06-04 12:06:41 In reply to: ECT News

When someone gives 50% to 60% off the retail price and doesn't own any merchandise, I doubt that they are making any money. Mark-up, yes, there is in fragrances, but that much mark-up, no way. Plus, getting small orders from suppliers means that the shipping/handling charges for small orders mean that, most likely, their discount from the supplier is less . . . or if the supplier drop-ships it, they charge for it.

I would like to see more than a verbal statement that the two businesses, especially the fragrance one, are making a profit.

It sounds to me like a version of the old story where the shoe store sells shoes at $1.00 under cost but says he makes up for it on volumn.

Alan J. Zell, Ambassador Of Selling
azell@aol.com
www.sellingselling.com
A member of www.salesbureau.com cadre of speakers, coaches, and trainers.
Winner of the Murray Award for Outstanding Achievement in Sales & Marketing
Chairman, PNW Sales & Marketing Group

Re: Staying Pure in a Multichannel World
Posted by: Steven Auldsq 2001-06-01 14:21:46 In reply to: ECT News

All you are really saying is that a pure-play is viable with a viable business plan. Imagine that. Clearly there are some opportunities for pure-plays, but most of them will be small niche opportunities where the market size is small and the customers are diverse.

Re: Staying Pure in a Multichannel World
Posted by: dot-com maven 2001-06-05 14:00:43 In reply to: Steven Auldsq

There are plenty of opportunities for pure-play businesses to succeed on the Internet. The problem is that so many tried to score big before getting to first base. Spending millions on infrastructure and marketing is absolutely nuts when a company has yet to develop a business model.

Now that the bubble has burst and shakeouts are nearly over (hopefully), there is time and space enought to look at all of the successful businesses on the Net. Even all of the people selling products via eBay and living off the profits as their sole job should be counted in as pure-play success stories!