Thursday, January 10, 2013

online storefronts and the brick & mortar stores

target recently moved to overcome amazons pricing power. all of us have stood in a store, phone in hand. we check the store price, then we visit our preferred online retailers. lower price wins. and usually the lower price is online.

consider now that these storefront retailers are vital to online retailers. we go to the store to see if the product meets our needs, provides the services we think it should, and lives up to our expectations.

most of us prefer to try or to see before we buy. as long as this is the case we will go to the store. imagine what happens to the online retailer as stores fail.

we will order. they will ship. we will do as we would in the store. examine. evaluate. accept or reject. when we accept the online retailers takes revenue and we get what we want. when we reject, our return becomes their liability as the product returns to unsold or unsaleable inventory.

without the stores available to showcase the products, online purchase returns will increase. the online retailers will have permanently increased costs. amazon, blue nile, zappos, and the like benefit from the brick and mortar store providing consumers with a look before they buy. we don't usually buy what we can't check out first.


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