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%