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The Retail Industry

8 点作者 myoung8超过 17 年前
Did about $30B in sales this year, and it continues to grow at 20%+ YOY.<p>Is there a compelling reason NOT to go into online retailing?

4 条评论

iamelgringo超过 17 年前
Hmmm... You're number $30B actually seems really low. A quick Google shows this from the census bureau:<p><a href="http://www.census.gov/mrts/www/data/html/06Q3.html" rel="nofollow">http://www.census.gov/mrts/www/data/html/06Q3.html</a><p>|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.<p>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 <i> trillions </i> of dollars per year.
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edw519超过 17 年前
Is there a compelling reason NOT to breathe?<p>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.<p>(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.)<p>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.)<p>Things you'd better consider before taking the plunge:<p>- How will you find customers? Search engines, email blasts, catalogs, list buying, renting, or sharing, advertising...<p>- How will you fulfill orders? Your own garage, rented space, dropshipping from your vendors,...<p>- What capital will you require and where will you get it? (This may be the biggest barrier vs. hacking)<p>- How much volume will you have to do to break even? (Better be right about this or you're dead in a hurry)<p>- What people will you require and how will you manage them?<p>- What systems will you require and where will you get them? (Needless to say, there is great opportunity for competitive advantage here.)<p>- What makes buying from you so much better than anyone else? (Maybe the most important question.)<p>- There are hundreds of other things to consider, but you get the idea...<p>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.<p>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.
breily超过 17 年前
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.
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greendestiny超过 17 年前
Not really, but the first bubble crushed a lot of companies that thought online retailing was a totally distinct business to normal retailing.
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