The nature of online stores
October 20, 2011 No CommentsOnline stores are, for the most part, middlemen who are the link between the manufacturer and the buyer. The exceptions are the manufacturers who opt to directly sell their goods to their target market at the same time.
This leads to the question, why don’t all manufacturers bypass the middlemen and sell straight to their markets themselves?
The simplified answer is that the middlemen are able to do things that the manufacturers cannot. They are, in other words, the experts in selling. They not only provide the knowhow, but can devote all their time to selling as many of the makers’ products as possible.
It would therefore seem that the sellers are on the side of the manufacturers at all times.
Not so. The good sellers will also consider the needs of the buyers. They give equal importance to buyer and manufacturer. Precisely because they are in the middle, it is imperative that they take care of the needs of both sides. When both product and market are considered “difficult” or highly specialized, it may seem that the seller is walking a tightrope. One serious mistake can lead to ruin. On the plus side, the difficult products can have greater profit margins.
Owners of online stores should keep this in mind at all times. They represent both sides of the selling equation, yet do not belong to either. Most of all they have to take care of their own need to show a profit at the end of the day.
When all three are in sync, the books of the online store will usually be in the black.
Sorry, the comment form is closed at this time.