Wednesday, November 12, 2008

Small Online Sellers May Have an Advantage

This will be more of a stream of consciousness post then anything else, as I'm just commenting on the terrible retail news we have been hearing in recent days. What is the old saying? The bigger you are, the harder you fall".  The only major retailers not affected by this seem to be Wal-Mart and Costco.

Here is some recent news:
Large retailers have so much money tied up in facilities, labor, inventory, and advertising that the smallest downturn in sales can affect them. Small online sellers still have overhead, inventory and advertising, but their needs are not as great and when you are already close to the ground you don't hit very hard when you fall.

Small sellers should be looking at this downturn as an opportunity. Get as lean as you can get and start looking for those deals. Companies like Circuit City, Linens & Things and Mervyn's will be liquidating inventory, so there may be some real opportunities out there.

Consider the current economic climate, much like a forest fire. The damage will be swift and devastating, but the benefit will be the new growth that come after the fire ends.

Small sellers are nimble and crafty, they need to take advantage of those traits during this trying time.
 
Just my 15%

5 comments:

Cliff said...

You know what's funny, Randy, is I'm wondering if for all of eBay's effort to shed it's garage sale/lower scale seller image, that maybe that self-loathed image is actually bringing in the traffic today.

People want to economize...hmmm, if the casual shopper thinks eBay=cheap, maybe that's okay right now.

fitzcharming said...

I like the forest fire alalogy. Makes me feel positive about the current state for some reason.

Randy Smythe said...

Cliff,

If management would just grasp that they might be able to take advantage of it.

Fitzcharming,

I honestly believe those folks that look for the opportunities during this down economy will reap the rewards after the fire has cleared the forest.

David said...

Randy, I went to circuit city last week. 20% off media and all electronics were 10%

I'm guessing that the really good stuff such as Plasma TV's, Blu-Ray Players are going to be shipped to other stores before they get marked down to 60 or 70% off.

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