posted on June 24, 2001 05:28:43 PM
Do you think Brick and Motar Malls and Shops will survive the Ebay impact and subsequent drop in prices of many lines of antiques and collectibles???
posted on June 24, 2001 05:37:24 PM
Oh yes, indeed I do. The worm is turning here in Mass. already. Business is picking up in our shop...and is VERY strong at the shows. People are remembering how important it is to be able to handle the merchandise, IMO. Plus, I'm talking to many folks who just plain hate to sit at the computer...
posted on June 24, 2001 05:38:43 PM
Hi mildreds. Not only do I think brick and mortar shops will survive the impact of eBay, I think they'll outlive it.
posted on June 24, 2001 05:46:06 PM
The shops will be around long after ebay is gone. With the USPS raising the postage higher and higher that helps stores too. I was at a sports card show talking to sellers and its nice to know we thought alike. Many have left ebay for the free sites, and some were handing out business cards with their user id's on them. Personally I like looking and feeling items I want to buy.
posted on June 24, 2001 05:55:19 PM
I think brick and mortar has benifited from eBay: The antique and collectible market is stronger because of it, and the department stores have somewhere to sell their liquidation items.
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posted on June 24, 2001 06:31:38 PM
Brick and mortar stores don't need to tack on an ever increasing shipping and handling charge to every order as we online auctioneers do. Instead they can add a similar amount to the cost of an item and still compete with online sellers. There's also the added benefit of being able to touch and feel your buys at a brick and mortar and deal with a live person. With the increasing expenses/fees online sellers are faced with (i.e. eBay listing, featuring and FVF, image hosting, auction management, postage, delivery confirmation, insurance, shipping supplies, PayPal, BillPoint, Internet access, etc.), the field may be leveling for brick and mortar stores. It's smarter to use both venues as the Internet does increase your reach and your target audience becomes the entire world as opposed to limited walk-by/drive-by traffic. JMHO
posted on June 24, 2001 06:58:23 PMeSeller004: How do you think brick and mortar stores get items to their stores? With fuel prices as high as they are, costs to ship these items to their stores is increasingly higher, which is one of the reasons prices have risen so fast in the past year.
I have a B&M antiques shop. Believe you me, it is much cheaper for me to buy locally. I have pickers come to the shop with merch...or we go to local private homes to buy. Also, B&M auctions.
I'm sure folks that sell new merchandise have different scenarios...but, eBay is NOT the place for me to buy stock...especially lately, with the rise in shipping costs. We are in the suburbs of a large urban area, so there's lots to choose from.
I still like eBay for the worldwide market...but, only for SOME items...and mainly to sell.
posted on June 24, 2001 07:23:42 PM
E-commerce is not the enemy of RL shopping venues. In fact, the internet has probably saved more mom-n-pop's from extinction than it has ruined.
My shop is open because of the internet. When I (and my inventory, shipping supplies, etc.) outgrew my basement, I moved it all to a storefront, where the counter sales cover the overhead. Half of my shop is "back room," i.e. shipping and work stations, and is actually the "meat and potatoes" of my business.
posted on June 24, 2001 07:35:09 PMtoke, I am not saying that B/M collectible or antique shops purchase their items on eBay, I am saying that B/M shops benefit from the influx of people into the antique and collectible market BECAUSE of eBay.
I am sure that "Antiques Roadshow" has a lot to do with it as well...
posted on June 24, 2001 08:38:04 PM
I purchase quite a few items on eBay and I resell them in our shop. Some things are not available in our area and I know collectors that always buy the items I search out for them. Some of them give me a list and let me know the price they are willing to pay.
Because of the Antiques Roadshow many of the people in this area are expecting ridiculous prices for their items and I can purchase them for less money on eBay and that includes shipping costs.
I have sold many items on the internet that never sold in our store. I try to use both the internet and our store to make myself and my customers happy.
posted on June 24, 2001 09:00:21 PM
Thanks for all the thoughts.
Kathyg: I'm 43. So I know trends, its just I have a shop and just had a lousy weekend and it is hot and HUMID. Many lookers and lots of comments "wonderful store" "so clean" "mechandise in excellent condition" every piece is in mint condition., "wow only $20.00 or only $30.00" and then "We'll be back". But not a lot of sales.
eseller "the field may be leveling for brick and mortar stores". I do agree and hope so. Cost of Selling online has been no where near the cost of a B&M. I like to sell online just get limited by the time it takes for unique items.
[ edited by mildreds on Jun 24, 2001 09:05 PM ]
[ edited by mildreds on Jun 24, 2001 09:08 PM ]
posted on June 24, 2001 09:18:54 PM
mildreds, dear . . . make eBay work FOR you.
I tell my customers that offer "we'll be back" that I plan on placing the item on eBay that week and it surely will sell for alot more than what I'm asking for in the store.
If by chance it doesn't, they're welcome to check back in a week or so.
I sell so many items this way that I feel a wee bit guilty for not offering eBay a finder's fee!
posted on June 24, 2001 09:42:54 PM
"Many lookers and lots of comments "wonderful store" "so clean".
We hear that also. B&M stores are a lot like ebay at times. Good and bad, up and down. Except on ebay you don't have to look at and listen to all the people.
posted on June 24, 2001 09:59:30 PM
revvassago: I loved the cartoon. Sounds like me to my daughter. "Don't touch. Its listed on ebay this week!!!"
shaani: How True. It does always go up and down. This weekend the comments got to be annoying but I suspect the high humdity had something to do with my tolerance level.
posted on June 24, 2001 10:03:20 PM
There are several antique & collectibles group shops that I like to browse. But I can't stand visiting them more than three times per year. It's getting to the point that the merchandise is not moving and I know it all by heart!
Most of the prices are so high, I don't understand why they don't sell tickets at the door to vist the "museum." They would make more money too!!!!
Often, I'll pizz off a shop keeper or store manager by commenting on the "lovely museum pieces" in stock...
Seems they all got wind of eBay a year or so ago and it's "great" prices. But nobody seems to know about the decline. Therefore, In my neck of the woods, shops are no good.
posted on June 25, 2001 01:20:41 AM
May was my worst month in 10 years in a B&M store. My sales did not cover rent. This month looks even worse than last month.
I don't know where you all are located, but I would love to come and join you. Traffic is way down where we are, everyone is shopping on eBay, and it just isn't what it used to be.
(eBay sales aren't that great either, so I haven't a clue what to do!!)
posted on June 25, 2001 03:55:25 AM
Putting in my 2 cents with the folks who think b/m's will do fine.
I think the shake-out will go like this. Yes, prices on eBay are lower than at a b/m. Great news for buyers - not so great for small sellers. Small sellers will have to quit or diversify to realize decent profits. And savvy buyers will follow, though this may take time. This will result in fewer collectibles on eBay, leading to higher prices. And as mentioned, shipping keeps increasing. Fewer items to choose from + higher prices + higher shipping will lead customers back to b/m's and hopefully, other sites.
A lot of other reasons already mentioned are also a factor: the need to actually touch what you are buying, some people's aversion to the computer, and while it is true that a b/m may perpetrate fraud either on purpose or by accident, fraud is easier to commit online.
I think we're all feeling the crunch right now as prices rise and the economy sinks.
Flexibility is key. A variety of venues in which to sell your inventory is key.
My crystal ball predicts this too shall pass - November 2004 will show a booming economy! Until then, hang on and diversify!
posted on June 25, 2001 06:01:31 AM
Maybe I'm a bit backwards, but I used my E-bay business to buy a brick & mortar shop. I think being online and having a brick & mortar are the best way to be in business, both compliment each other. E-bay has brought many good customers to my store, allowed me to grow inventory faster, and made my business into a global concern not just a neighborhood shop.(which we are also). I think E-bays biggest competetion will be more and more businesses learning to set up lucrative e-commerce sites cheaply and quickly. If you think about it, how much more do you know about the net and computers now than you did say 3 years ago?
I think E-bay did two major mistakes in the last few months, raising fees and banning links. I have seen a lot of big/power sellers cut back or leave because of this. It will be interesting to see how their e-shops pan out.
posted on June 25, 2001 08:12:48 AM
I think internet sales can replace B&M stores for certain items. But the experience must be hassle free and cheaper than a B&M.
If B&M's remain cost competitive on items then net sales will not eclipse B&M sales.
posted on June 25, 2001 08:46:40 AM
Convienence on the internet makes buying nice. But, some sellers make it a memory worth forgetting. B/M stores are dropping out and simply doing ebay that sell collectibles as the stores get too much to finance and maintain. Selling off old inventory on ebay floats the stores. However, many mall stores have no sell clauses in their leases that restrict them from b2c selling on the web. That sucks. Question is, will the stores want to front money for a fickle buying community and if not will ebay have what it takes to pay our school taxes worldwide.
posted on June 28, 2001 11:55:40 AM new
When looking for merchandise to sell on eBay, I would constantly come across really great deals. I found myself constantly saying, "That's a great price, but it's not low enough for eBay."
Before the internet, it took a reasonable amount of money, or business acumen to obtain a loan for money, to start a brick and mortar business. But with eBay, there are basically no barriers to entry.
So what you have is business minded sellers, that really look at their margins and bottom line, selling right along side hobby or non-business minded sellers. So, while you may need a certain margin or $$ profit per item to make it worthwhile, you have sellers who are delighted to make $1-3 profit per unit on something that may cost them $8-15 to obtain. So it pushes the prices down because buyers can get the same things for less.
So the business minded seller has to decide whether to sell their merchandise for a very low price, pack up and move, or find something else to sell that is still profitable.
Now I know there are a lot of sellers that are not faced with this, but a lot are.
A friend of mine recently visited a jobber (a seller of off-priced merchandise). She told her about one of her largest clients, an eBay seller that sells 1500 items a day. My friend called me in complete awe. .. until I told her that the seller was making an average of $3.50 profit per auction and had employees and warehouse space to pay for.
this is the kind of large liquidator/dealer eBay is courting.
Low margins, low profits, but high volume.
As a result, many of the sellers with quality merchandise will get tired of giving it away and will seek other venues. Not necessarily other auction sites, but will put their good stuff somewhere else until the prices realized on eBay become attractive again.
posted on June 28, 2001 12:17:20 PM new
We closed up our shop after 12 years in business. Had a nice store. But when 95% of our customers came in and said if we can match Ebay prices, it was it for us. Now we sell on Ebay and other sites and are actually doing better than the store. We sold sports collectibles. Seems the customers forgot about us paying rent, pay, overhead etc. And also when our wholesalers were selling below what they charged us that was another nail in our coffin. All of our wholesalers are on ebay. Cant match those prices in a shop.
posted on June 28, 2001 08:16:59 PM new
MaterialGirl: Wow Thank You for the excellent post. This quote is so true and very well stated. Thanks
"So what you have is business minded sellers, that really look at their margins and bottom line, selling right along side hobby or non-business minded sellers. So, while you may need a certain margin or $$ profit per item to make it worthwhile, you have sellers who are delighted to make $1-3 profit per unit on something that may cost them $8-15 to obtain. So it pushes the prices down because buyers can get the same things for less. ""
posted on June 28, 2001 09:25:32 PM newSo it pushes the prices down because buyers can get the same things for less.
Pushing prices down? Depends on your point of view.
Before eBay, a collector wanting to sell extras from his collection didn't have many options. Usually, it came down to selling to a dealer, who would pay maybe 20-30% of his retail price for a particular item.
Now, because of online auctions, that same collector can easily sell his extras to other collectors. Maybe he won't get the full retail price for it, but he can expect to get maybe 70-80% of retail, which is a whole lot better than 20-30%.
