The Internet Boom’s Affect on Wholesalers
25 October 2009It’s difficult to ignore the internet boom that’s been gathering momentum over the past 7-8 years, especially as it shows no sign of slowing down. The internet has changed the way we work, communicate, date, research and game, but especially the way we shop.
Ecommerce is so huge these days that revenue generated from purely web based sales has eclipsed the amount of money spent on Britain’s high streets.Internet sales have played their part in the collapse of Woolworths and Dixons, two of the UKs best kown retailers, with shoppers preferring the convenience and cost benefits of buying online rather than venturing into busy town centres to buy computer games, cds and toys.
Dixons were simply unable to compete with the likes of Amazon, Ebuyer and other online electricals retailers, who were able to offer the same products at significantly lower prices. 5 years ago the company were a mainstay of most British Highstreets but the costs of running a chain of stores in premium retail sites created their downfall.
Rather than do away with the brand name Dixons altogether, however, the parent company decided to capitalise on the trusted name by opening an online store themselves. Now Dixons can compete on price with the likes of Amazon and Ebuyer. This was a bold and very forward thinking move that, given the current recession, was very well timed indeed.
Ebay is possibly the biggest and most recognisable phenomenon of the new web generation. Who’d have thought online auctions would be such a huge success!
The second hand goods market online is huge, and Ebay is the main contributor to this. Of course Ebay, like any good business, has evolved over time, It’s no longer just second-hand items that can be auctioned off through Ebay - new goods represent a huge percentage of all items sold through the site.
Ebay has also become very popular with clearance dealers anf wholesalers who use the auction facility as a way to get rid of surplus stock. In the past these dealers may have been forced to write off the value of the stock or try to sell direct to the public through car boot sales and classified ads. Ebay now provides them with a means of recouping the unit price they paid for items they couldn’t sell, thereby contributing to a healthier business.
One area of business where this is particularly relevant is wholesale jewellery. Like other fashion-driven businesses, wholesale fashion jewellery is dictated by the latest season’s trends, which means jewellery wholesalers have to predict, with some guidance from fashion experts, which items or styles will be popular in the coming months. This can lead to large surpluses of stock for ranges that didn’t do as well as predicted. Ebay now gives suppliers of wholesale fashion jewellery a vehicle to cut their losses which helps towards a healthy cash flow.
