Comments on: Manufacturers fed up with internet retail? http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html Internet Marketing News Sun, 21 Mar 2010 09:17:41 -0400 http://wordpress.org/?v=2.9.1 hourly 1 By: Greg Howlett http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-37987 Greg Howlett Mon, 10 Dec 2007 01:56:08 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-37987 Tyler, the question is whether your advertising is expanding their market share. If for example, you sell bird cages and are bidding on terms like "bird cages", you likely are. However, if you are primarily bidding on the brand names of your suppliers, you are not really helping them but rather just "rearranging" the distribution of orders among the retailers. Suppliers are starting to figure this out and may not give as much love to those advertisers. Tyler, the question is whether your advertising is expanding their market share. If for example, you sell bird cages and are bidding on terms like “bird cages”, you likely are. However, if you are primarily bidding on the brand names of your suppliers, you are not really helping them but rather just “rearranging” the distribution of orders among the retailers. Suppliers are starting to figure this out and may not give as much love to those advertisers.

]]> By: Tyler http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-37982 Tyler Sun, 09 Dec 2007 20:12:37 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-37982 As an online retailer we have poured hundreds of dollars each day into marketing. I think manufacturers in my industry don't get that concept. I know plenty of brick and mortars that don't spend that much. Suppliers think because my employees work from home, that somehow our business is not legitimate. I actually hate price cutting, but we do it to stay competitive, and not have our marketing efforts wasted. Unfortunately, online consumers typically go for the lowest price and only regret that decision IF they have a bad experience. Then they will try another retailer next time that has the lowest price...never learning their lesson. I know in my industry, online retailing has been a blessing for many suppliers. But these suppliers hate to admit it. We e-retailers are like mopeds. The suppliers love the ride, but don't want their friends to see them doing it. At the end of the day they know our money can pay the bills just like everybody elses. But even after 7 years in this business I find myself constantly fighting for respect among suppliers who hate to admit that I am one of their biggest customers...if not the largest. As an online retailer we have poured hundreds of dollars each day into marketing. I think manufacturers in my industry don’t get that concept. I know plenty of brick and mortars that don’t spend that much. Suppliers think because my employees work from home, that somehow our business is not legitimate. I actually hate price cutting, but we do it to stay competitive, and not have our marketing efforts wasted. Unfortunately, online consumers typically go for the lowest price and only regret that decision IF they have a bad experience. Then they will try another retailer next time that has the lowest price…never learning their lesson. I know in my industry, online retailing has been a blessing for many suppliers. But these suppliers hate to admit it. We e-retailers are like mopeds. The suppliers love the ride, but don’t want their friends to see them doing it.

At the end of the day they know our money can pay the bills just like everybody elses.

But even after 7 years in this business I find myself constantly fighting for respect among suppliers who hate to admit that I am one of their biggest customers…if not the largest.

]]> By: Online business will benefit from aggressive retail cross-selling : The Ecommerce Blog http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-35841 Online business will benefit from aggressive retail cross-selling : The Ecommerce Blog Fri, 02 Nov 2007 14:31:04 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-35841 [...] business is growing a lot, and retailers have definitely taken interest in the online competition. Manufacturers have the ability to limit prices which stands to benefit strong brands a [...] [...] business is growing a lot, and retailers have definitely taken interest in the online competition. Manufacturers have the ability to limit prices which stands to benefit strong brands a [...]

]]> By: Greg Howlett http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-35606 Greg Howlett Wed, 31 Oct 2007 17:55:02 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-35606 @Ed, it is not that simple. Price-cutting is not a losing strategy as much as it is a short term strategy. I can assure you that we made tons of cash in our price-cutting days. The problem was that it was not sustainable. Also, it is important to understand that for all the talk about other differentiating factors, by far the most important factor to customers is price. Survey after survey shows that to be true. @Ed, it is not that simple. Price-cutting is not a losing strategy as much as it is a short term strategy. I can assure you that we made tons of cash in our price-cutting days. The problem was that it was not sustainable.

Also, it is important to understand that for all the talk about other differentiating factors, by far the most important factor to customers is price. Survey after survey shows that to be true.

]]> By: Ed G http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-35599 Ed G Wed, 31 Oct 2007 16:42:32 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-35599 If the only thing a company can compete on is price, that company is run by a bunch of losers. They are forgetting some of the things that make e/tailing unique: the convenience of having a product delivered right to a customer's door; a shopping environment available 24 x 7; the ability to educate customers on products and accessories. I welcome competition from e/tailers that fail to capitalize on those unique characteristics. You have my blessing to price cut yourself into oblivion. If the only thing a company can compete on is price, that company is run by a bunch of losers. They are forgetting some of the things that make e/tailing unique: the convenience of having a product delivered right to a customer’s door; a shopping environment available 24 x 7; the ability to educate customers on products and accessories.

I welcome competition from e/tailers that fail to capitalize on those unique characteristics. You have my blessing to price cut yourself into oblivion.

]]> By: Jeff "Big Slick" http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-35502 Jeff "Big Slick" Tue, 30 Oct 2007 17:34:24 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-35502 Trying to put the geneii in the bottle has never worked before. Those that have attempted to do so have normally perished as the market evolves. Trying to put the geneii in the bottle has never worked before. Those that have attempted to do so have normally perished as the market evolves.

]]> By: Music Software http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-35469 Music Software Tue, 30 Oct 2007 10:53:15 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-35469 Nothing will beat one's own branding in the long run. Most manufacturers now have either websites that direct visitors to partners for online sales or to off line solutions besides giving serious thought to blogging too. In the end, individual brands and reputation will win on internet retail. Nothing will beat one’s own branding in the long run. Most manufacturers now have either websites that direct visitors to partners for online sales or to off line solutions besides giving serious thought to blogging too. In the end, individual brands and reputation will win on internet retail.

]]> By: Furniture Store http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html/comment-page-1#comment-35447 Furniture Store Tue, 30 Oct 2007 03:45:21 +0000 http://www.marketingpilgrim.com/2007/10/manufacturers-fed-up-with-internet-retail.html#comment-35447 I don't know that it is any good anyone being 'fed up' with internet retail. It is an entrenched market reality and as long as it is possible to attract more customers with lower pricing, I don't see price cutting going away either. I don’t know that it is any good anyone being ‘fed up’ with internet retail. It is an entrenched market reality and as long as it is possible to attract more customers with lower pricing, I don’t see price cutting going away either.

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