Retailer predicts death of Apple retail channel, eBay gets cozy with brands Controversialist and online retailer Ruslan Kogan has caused a minor sensation by using a conference stage to say that successful bricks-and-mortar retailers are “Apple’s bitch”. The thrust of his argument – ignoring, by the way, that most bricks-and-mortar retail in Australia has nothing to do with the consumer electronics …
I was hoping somebody was finally going to pimp themselves as the "iTunes Killer". I have a little poster-board filled with "iPod killers"; and a smaller group that asserted they would be "iPhone Killers". So far, the "iTunes Killer" board is pretty lonely. I was hoping this was it.
Rock on, formerly unheard of and destined to remain, Rusian Kogan: your 15 msec is up.
Seriously, why would any reputable “brand” retailer risk their reputation, and the loss of control of their selling process, by going aboard this sinking eBay ship that has at its helm a group of most disingenuous and unscrupulous, indeed white-collar-criminal, senior executives—other than, of course, to ultimately direct any potential customers to their own website for a cheaper deal?
eBay/PayPal/Donahoe: Dead Men Walking.
... if it works (sales increase natch) = do more.
It is probably a very simple formula along lines of:
if it works do more of the same
if it ain't broke don't fix it
keep your eye on the market and innovate
Bricks & mortar provide hands on experience along with face-to-face genius access and seems to compliment online access to purchasing kit/training?
Here in Oz at least, the top brands - at least those that people will seek out, rather than those that need passing traffic - are moving to an agency model, where the customer deals with the brand owner (facilitated on-line in the retailer's shop!) and then the retailer is paid a commission.
This means that the goods are the same price everywhere. (We can only guess the competition regulator's view on this, maybe they also realise how rapidly the retail game is changing.)
So working through the consequences for eBay -
Would the brand owner allow a different price on the net - don't think so
Would eBay get a different commission compared to a retailer - probably
Would it be more or less than a retailer gets - the retailer provides a much more valuable service, so probably less
So, the conclusion seems to be: brand owner takes all, eBay gets not much.
This aligns with the viewpoint of the brand owner - would they get an additional sale by selling through eBay? Seems unlikely.
Ruslan Kogan is a small time online retailer with some chinese TVs and thats about it. Why would anyone listen to him to even worry about publishing his rants. Bricks and Mortar retailers will be around for a long time at least until someone can work out how to send consumers goods through a Star Trek type teleporter...
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