Chris Anderson, Pop Artist
“Chris Anderson is a big idea-man”
Mr. Anderson wrote The Long Tail, a book about the economic miracle of Amazon.com, where he is telling about the internet's infinite shelf space, where companies could make more money selling a product online.
The point of this is that if every store do this, they will save a lot of money. The cost of owning a store, with all the cost adds that belong to this, employees, cleaning etc., is big. In relation to how its like to have an internet site, where you even could make some money on having. It will be more more revenue/profit and less expenditure,
On the other hand, removing this employment, which would be a shame especially in this period we are now with financial crisis, where we need to build the world again and go all the work.
"The point of this is that if every store do this, they will save a lot of money"
ReplyDeleteAnalyse WHY not every store does this!
Why not every stores does these is often built on the theory about that the costumers need to trust and respect the stores to go there(and then the stores need personally contact with the costumers):
ReplyDeleteIts obvious that they lose contact over the internett. Shops: have an advantage, with the traditionally shops, with personal working there and infrastructure.
All the costumers has to get used to shop online, and that will take some time. often takes some time to get them. Rumors about people who have not got the products they ordered, been ruined, because they gave their account number has it going and stores there is no way you can get in contact with. Therefore some people are scare to go online, and the stores knows these.
Especially, with new types of online stores, not like books, but more like food stores and stuff like that, it is a large move, and if it falis they loose a lot of money. Therefore there is much more safe to hold on to their shops and then go after the others, when everyone is doing these.
At last, I just need to add, for the online stores, that the gain of shopping online, is not just about the money you get in with the ordering, but also about the channel, valuable facts, the stores can use to built costumers databases, and to advertising.
You would still need storage space and costs.
ReplyDeleteIf everyone has a website, say costing £10,000 and £3000 a year to maintain then unless the whole market increases all that would happen would be an increase in costs.
These would be passed on to the consumer and thus the perceived choice is in fact less choice at higher costs.
More consumer information would lead to targetted marketing and cut costs though.
yea... no.
ReplyDelete1. storage facilities will be no issue, because the decreasing in shops will be open for useage as storage complexes.
2. All your other assumptions of finacial costs are baced on your own assumptions, and I would realy like to see your data on these facts...
3. Maintaing a website is cheap, saying it will cost between 10.000 and 13.000 (as i assume you ment) pounds a year is bullox, buying a public website costs you about 90 punds a year, maintaining it i would guess would cost you about 2000 maybe 5000 pounds a year.