RE: UKNM: Boo.com's demise?

[Robin Edwards]

On Friday, May 05, 2000 2:37 PM, Chinwag [SMTP:

ownerchinwag [dot] com

] wrote:


> When price information is available at almost no cost (even ignoring

> Hyperlink's (sorry Asda's) Valuemad shopbots) no one is ever going to

make

> large profits selling goods online. They might get a reasonable

commission

> (ebookers, lastminute, expedia....(and jungle, dabs, simply computers

(all

> of whom basically operate to a similar model))) but there won't be the

large

> 50% markups that make shops viable.

>

> And without that I can't see online shopping ever being profitable. After

> all, when Amazon and the other online retailers try to raise they prices

how

> quickly will  someone else wander in and offer large discounts again.

>

> Ben Thompson


Only affects like-for-like products. Manufacturers/retailers (or

manufacturer-retailers such as Thorntons and The Body Shop) of unique

products won't have to compete against people selling their products at a

cut price. They may have to reduce prices to be generally competetive, but

no more so than usual in retail business.


For the like-for-like guys, sure things are tough. A l-o-o-o-o-n-g time ago

we had a big debate about loyalty in e-commerce, beyond simple points and

discount schemes. Now the comparison engines are truly here, does anyone

have any thoughts on how Amazon et al will survive (other than simply

spending a bit less on advertising...)


Robin



--

Robin Edwards

Clockworx

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