The recent eBay online index survey has confirmed what Australian shoppers already know – retailers are very reluctant to embrace online selling and according to the respondent survey, some retailers have actually sought to either prevent or restrict the sale of specific products online.
Not really surprising, the big brand retailers have developed their business model around saturation advertising from Thursday to Sunday – usually those very annoying "last ever" or "mega sale" advertisements promising fantastic deals. Of course the advertising does not bring in the droves of customers like before but the retailers still have the same business model, and are reluctant to scale back their physical presence. The fact is, people today are much savvier and know they can buy online safely and in most cases get a much better deal.
What does this all mean for a prospective new business looking to develop an online offering? Well, there are great opportunities to sell product where traditional retailers once dominated. Without the burden of a retail shopfront, new online businesses can target product lines that are currently sold via retail and undercut the margins enjoyed by the big retailers. Big retailers will tell you their customer service is much better…….but we know that is not true in many cases.
Critically though, online businesses have to work very hard to develop market reputation and deliver customer service to ensure customers make the conversion.
My Import Label works with our customers to develop the business case for their new import concept or product line, before they commit. Call My Import Label to chat about how we can assist you to develop a new business based on imported products sourced direct form the overseas manufacturer.
Article in Sydney Morning Herald, 21/03/2011