Once again to me its common sense. Gas prices are high, and shipping costs are way up over what they were just a few years ago. Since I first mentioned Local pick-up trading its become one of the most successful and fastest growing internet models first with sites like Craigslist but also more recently with brick 'n' mortar stores offering online sale with local pickup
While not every Ebay seller could offer this service, I think Ebay would have a leg up over Amazon. Combine this with revenue share on content and auto-affiliate for stores (for new sign ups and cross promos with other seller items) and Ebay would have the model that noone could touch . Here are some clips from the news...
Wal-Mart's Online Pickup Program Proving Successful by Todd Sullivan July 12, 2007 Wal-Mart's (WMT) buy-online-pickup-in-store strategy has reduced customer shipping costs by $5 million while sharply increasing new customer acquisitions and in-store sales, the world's largest retailer reported Tuesday. In announcing that it is extending the program to more than 3,300 stores in the U.S., Wal-Mart released statistics to show the strategy is working. Wal-Mart's approach is different than the traditional approach at retailers like Target (TGT) and JC Penny (JCP) which use the Web to help move in-store merchandise. Walmart.com promotes "tens of thousands of products" that are not available in stores and ships them free to a local Wal-Mart, where customers can pick them up. Since the launch, about one-third of all Walmart.com sales have been placed through Site-to-Store and "more than half-a-million total units have been shipped through Site-to-Store, saving customers more than $5 million in shipping fees." Great, but is it growing sales? Wal-Mart said that "more than 50 percent of Site-to-Store orders [came] from new customers who make their first purchase at Walmart.com using the service." The chain also reported a 20 percent increase in the number of Site-to-Store "customers who spend an additional $60 on purchases in the store when picking up their orders." Bingo. Wal-Mart also claimed the $345 billion chain reported a weekly gasoline savings of 1,000 gallons and a monthly box reduction of 20,000 "as a result of transportation and packaging efficiencies." Increased sales and decreases expenses . . . very nice indeed.
Also from the article "Online sales Lose Steam" "But Ms. Koehn and others say that online shopping is running into practical problems, too. For one, Ms. Koehn noted, online sellers have been steadily raising their shipping fees to bolster profits or make up for their low prices. In response, a so-called clicks-and-bricks hybrid model is emerging, said Dan Whaley, the founder of GetThere, which became one of the largest Internet travel businesses after it was acquired by Sabre Holdings. The bookseller Borders, for example, recently revamped its Web site to allow users to reserve books online and pick them up in the store. Similar services were started by companies like Best Buy and Sears. Other retailers are working to follow suit. “You don’t realize how powerful of a phenomenon this new strategy has become,” Mr. Whaley said. “Nearly every big box retailer is opening it up.”Barnes & Noble recently upgraded its site to include online book clubs, reader forums and interviews with authors. The company hopes the changes will make the online world feel more like the offline one, said Marie J. Toulantis, the chief executive of BarnesandNoble.com. “We emulate the in-store experience by having a book club online,” she said. The retailers that have started in-store pickup programs, like Sears and REI, have found that customers who choose the hybrid model are more likely to buy additional products when they pick up their items, said Patti Freeman Evans, an analyst at Jupiter Research.
And this article from February...
The online/in-store answer for retailersEcommerce hubs are working hard to improve their websites to increase user engagement and revenue. But the best solution could be as simple as in-store pick-up. Some indicators point to pick-up being the key for future online shopping.by Kristina Knight Rather than waiting for an item ordered online to be shipped, many online shoppers prefer the in-store pick-up option. Many of these shoppers will actually visit several etailers to find in-store availability so that they can have the item as soon as possible. When in-store pick-up isn't available, for instance with online-only retailers, a new service from Shopatron can be used. The Shopatron platform helps etailers connect with brick-and-mortar stores in the consumer's area so that practically any item ordered online can be picked up within a few hours or a day.
More soon on this topic..
(picture is of Ebay's 1999 look of Ebay Local -Seattle)
