4 ms·

The Retail Industry

8 points by myoung8 19y ago

Did about $30B in sales this year, and it continues to grow at 20%+ YOY. Is there a compelling reason NOT to go into online retailing?

greendestiny 19y ago
Not really, but the first bubble crushed a lot of companies that thought online retailing was a totally distinct business to normal retailing.
- Goladus 19y ago
  Not to mention competition with eBay.
  - edw519 19y ago
    Why compete? Use their plumbing to get rich. Tens of thousands already have.
breily 19y ago
I think the main problem is that because margins are so low in online retail, you have to run a large and efficient business to make any money - seems like it would be difficult to start out of your garage and offer the same prices that amazon does.
- edw519 19y ago
  Small and efficient can work very well if you have a niche and know what you're doing. I have several clients that do exactly this and kick butt in the marketplace. And, ironically, they all sell through Amazon with better prices and service. (One of my hottest product/services is Amazon integration for small retailers. They take 15%, but the orders just keep flowing in...)
- mkull 19y ago
  I second edw, find a niche, don't try and compete with Amazon. Plenty of niche markets with relatively high margins. Drop-ship availability will determine whether you can start out of your garage or not. (unless you have a reallly big garage and make that your fulfillment center)
edw519 19y ago
Is there a compelling reason NOT to breathe? I know lots of online retailing millionaires. Is it easy? No. Is competition fierce? Of course. Are margins slim? Usually. But if you have passion for an idea, a market, a good plan, and are willing to work your butt off, then there are fantastic opportunities. (Aside: You won't get a whole lot of response from people making their fortunes in on-line retailing in December - many of them are working 20 hour days this month.) I have often thought about starting something, but I'd rather hack. (I think that anyone can retail, but few can hack - I'm not so sure how empowering this thinking is.) Things you'd better consider before taking the plunge: - How will you find customers? Search engines, email blasts, catalogs, list buying, renting, or sharing, advertising... - How will you fulfill orders? Your own garage, rented space, dropshipping from your vendors,... - What capital will you require and where will you get it? (This may be the biggest barrier vs. hacking) - How much volume will you have to do to break even? (Better be right about this or you're dead in a hurry) - What people will you require and how will you manage them? - What systems will you require and where will you get them? (Needless to say, there is great opportunity for competitive advantage here.) - What makes buying from you so much better than anyone else? (Maybe the most important question.) - There are hundreds of other things to consider, but you get the idea... People have started with a small idea are parlayed it into hundreds of thousands (and even millions) of dollars per year in less than a few years. The case studies are almost endless. Google a few and see how they did it. Or watch Donny Deutch's show "The Big Idea" on cable TV. If you decide to do something like this (not the best time of year now since everyone will be tapped in a few weeks), find your niche and go for it. Best wishes.
iamelgringo 19y ago
Hmmm... You're number $30B actually seems really low. A quick Google shows this from the census bureau: http://www.census.gov/mrts/www/data/html/06Q3.html http://www.census.gov/mrts/www/data/html/06Q3.html |Total retail sales for the third quarter of 2006 were estimated at $991.7 billion, an increase of 0.7 percent (X0.3%) from the second quarter of 2006. so, assuming that sales are close to $900 billion per quarter, I think that we can safely say that retail sales probably do business in the 2-4 trillions of dollars per year.
- byrneseyeview 19y ago
  I think he meant 'online retail'. Actual retail isn't growing at 20%.

The Retail Industry

8 points by myoung8 19y ago

Did about $30B in sales this year, and it continues to grow at 20%+ YOY. Is there a compelling reason NOT to go into online retailing?

greendestiny 19y ago

Not really, but the first bubble crushed a lot of companies that thought online retailing was a totally distinct business to normal retailing.

Goladus 19y ago
Not to mention competition with eBay.
- edw519 19y ago
  Why compete? Use their plumbing to get rich. Tens of thousands already have.

breily 19y ago

I think the main problem is that because margins are so low in online retail, you have to run a large and efficient business to make any money - seems like it would be difficult to start out of your garage and offer the same prices that amazon does.

edw519 19y ago
Small and efficient can work very well if you have a niche and know what you're doing. I have several clients that do exactly this and kick butt in the marketplace. And, ironically, they all sell through Amazon with better prices and service. (One of my hottest product/services is Amazon integration for small retailers. They take 15%, but the orders just keep flowing in...)
mkull 19y ago
I second edw, find a niche, don't try and compete with Amazon. Plenty of niche markets with relatively high margins. Drop-ship availability will determine whether you can start out of your garage or not. (unless you have a reallly big garage and make that your fulfillment center)

edw519 19y ago

Is there a compelling reason NOT to breathe? I know lots of online retailing millionaires. Is it easy? No. Is competition fierce? Of course. Are margins slim? Usually. But if you have passion for an idea, a market, a good plan, and are willing to work your butt off, then there are fantastic opportunities. (Aside: You won't get a whole lot of response from people making their fortunes in on-line retailing in December - many of them are working 20 hour days this month.) I have often thought about starting something, but I'd rather hack. (I think that anyone can retail, but few can hack - I'm not so sure how empowering this thinking is.) Things you'd better consider before taking the plunge: - How will you find customers? Search engines, email blasts, catalogs, list buying, renting, or sharing, advertising... - How will you fulfill orders? Your own garage, rented space, dropshipping from your vendors,... - What capital will you require and where will you get it? (This may be the biggest barrier vs. hacking) - How much volume will you have to do to break even? (Better be right about this or you're dead in a hurry) - What people will you require and how will you manage them? - What systems will you require and where will you get them? (Needless to say, there is great opportunity for competitive advantage here.) - What makes buying from you so much better than anyone else? (Maybe the most important question.) - There are hundreds of other things to consider, but you get the idea... People have started with a small idea are parlayed it into hundreds of thousands (and even millions) of dollars per year in less than a few years. The case studies are almost endless. Google a few and see how they did it. Or watch Donny Deutch's show "The Big Idea" on cable TV. If you decide to do something like this (not the best time of year now since everyone will be tapped in a few weeks), find your niche and go for it. Best wishes.

iamelgringo 19y ago

Hmmm... You're number $30B actually seems really low. A quick Google shows this from the census bureau: http://www.census.gov/mrts/www/data/html/06Q3.html http://www.census.gov/mrts/www/data/html/06Q3.html |Total retail sales for the third quarter of 2006 were estimated at $991.7 billion, an increase of 0.7 percent (X0.3%) from the second quarter of 2006. so, assuming that sales are close to $900 billion per quarter, I think that we can safely say that retail sales probably do business in the 2-4 trillions of dollars per year.

byrneseyeview 19y ago
I think he meant 'online retail'. Actual retail isn't growing at 20%.