Make money selling on the internet - here's how!

[acompton]

I’m currently talking to a small UK supplier about stocking their products. In a recent email, the owner expressed the opinion that he always expected to pay less on the internet because online stores didn’t have overheads like rent or staff.

I guess it’s the packing elves that do the work in the night.

[george]

He does have a point though. It is (in my opinion) cheaper to run a website than it is to run a real shop with brinks and stuff.

Hours spent `keeping an eye on customers` in a real shop is a killer, whereas working time is much more devoted when in a website situation, unless they're allowed online of course.

Although, for certain products, a real salesman would seal that sale in a real shop, whereas is down to the presentation given on the website.

Interesting discussion though.

[pnagames]

ahhh but i think you are slightly wrong alan

you may need to pack and send etc your products but compare against a B&M???

if its one or two of you on the business on the B&M you are talking at least two people (more than likely three) on the shop constantly

a lot of the other bills are pretty much the same i think (rent will probably be higher) (obviously this is if you are not running a home based business)

the issue is that everyone (and i mean everyone) that is not involved in an online selling business does not fully appreciate the requirements. so they under the impression that most of the online companies are kinda oneman company that you run at the back end of your house (hence the low cost impressions)

[acompton]

I well understand that the overheads are much higher on a B&M store, but to actually believe that the entire internet trading is run by one-man-bands working from home and that they do it just for fun (ie. no wages)? I just thought it was funny.

[rmorrow]

so they under the impression that most of the online companies are kinda oneman company that you run at the back end of your house (hence the low cost impressions)

But they still expect you to be on the end of a phone 24/7!!

[Darren B]

The main reason for people believing things are cheaper was originaly true, companies used to take on units in the middle of a field were rent was a fraction of having a shop in the high street.

Keep in mind that an average furniture store like harveys will probably pay £250k in rent and around £80k in rates yet a simple industrial unit in non-prime location would probabbly cost you 50k in rent and 10k in rates (obviously your location will vary to these examples)

As already said, running a shop costs more in staff dealing face to face with customers and keeping an eye on them.

It's interesting the amount of people still think this to be the case for most companies. We get asked at least once a week is it cheaper if i buy it online, normally after they have given you there whole life story as to why they want the materials, and to be honest they are supprised when you say no.

customers huh, who would have them

[Chunkford]

And to be honest, if you tot up the costs involved running a site it would be way more that what people think.

[TraceyHand]

do these same people also believe that it's cheaper to buy their Tesco's bread and milk online than it is in the store?
There's a word I'm dying to use...but I won't...not here, anyway

[leehack]

It is cheaper to buy it online, you don't have to pay the travel expenses to go get it lol.

[Chunkford]

And you don't get the impulse buys either, keeping the total cost down

[george]

And you don't get the impulse buys either, keeping the total cost down

Related Products and Customer Also Bought innit.

[TraceyHand]

that's not the point and you know it.
I didn't say that the experience wasn't cheaper for the customer.
I was making the point that Tesco don't lower their prices simply because they have 'lower overheads'
I know it's not a perfect argument.

[pnagames]

But they still expect you to be on the end of a phone 24/7!!

obviously since you are at your house doing nothing bu drinking tea/coffeee all day

[rmorrow]

Tesco don't lower their prices simply because they have 'lower overheads'

In fact, they have higher overheads for on-line shopping as they have to pay a packer and a van-driver - so they charge you £7.50 for the privilege....

[pnagames]

The main reason for people believing things are cheaper was originaly true, companies used to take on units in the middle of a field were rent was a fraction of having a shop in the high street.

Keep in mind that an average furniture store like harveys will probably pay £250k in rent and around £80k in rates yet a simple industrial unit in non-prime location would probabbly cost you 50k in rent and 10k in rates (obviously your location will vary to these examples)

As already said, running a shop costs more in staff dealing face to face with customers and keeping an eye on them.

It's interesting the amount of people still think this to be the case for most companies. We get asked at least once a week is it cheaper if i buy it online, normally after they have given you there whole life story as to why they want the materials, and to be honest they are supprised when you say no.

customers huh, who would have them

D i did not know that your company is the equivalent size of harveys?