"Consumers plan to cut back their online purchases to only the most essential items, say separate reports by eBillme, an electronic payment service; market tracker Forrester Research (NasdaqGS:FORR - News); and PriceGrabber, an online comparison shopping service.
The message is clear, says Ron LaPierre, president of PriceGrabber.
"The economy is such that people don't have as much to spend this year as they did last year," he said. "Christmas will be very interesting."
Web retailers likely will fight harder than ever this year to claim a greater share of consumer retail dollars, says Sucharita Mulpuru, a Forrester Research analyst.
"There is no way people are going to be spending more in this bad economy," she said. "It's more about where they are shifting their spending to." (bold is mine)
- eBay is undergoing more changes and still charges a listing fee, so even though the risk of not selling an item has been shifted to the FVF (Final Value Fee) on the sale. There is still a risk that you will list something that does not sell. My suggestion for your eBay dedicated inventory is to sell only those items you have a solid track record for sales on that platform. I truly believe there will be a demand problem on eBay this holiday season.
- Overstock is a different type of marketplace where merchants serve as the wholesaler and drop-shipper. My suggestion with this marketplace is to commit only those SKU's that are sufficiently deep and have a high likelihood of a sale.
- Buy.com is a relatively new marketplace and more likely for incremental sales but when you think about committing inventory to any marketplace consider which one will give you the most bang for your buck.