A sick, very sick, business model
Some online store providers have abnormal business models that deserve scrutinies. There is little doubt that online stores have great successful stories. However, no one, especially the store providers would be interested in finding out how many failures. The most questionable is that their upside potential.
Online store provides charge one-time software fee, monthly charges for search engine optimization and marketing supports to stores. The fees range from thousands to hundreds. Marketing techniques such as drop-listing are lectured in their courses. To attract potential store owners, stories such as retired personnel, unexperienced students, layoff workers, who almost never used computers before, had run their online stores from zero income to thousands per month in a period of couple months. Such flamable stories often ignite audience's interests. At last, promotional one-time charge prices would slam down price from 3-digit to 2-digit. Monthly fees remain the same.
Big name online store providers such as Amazon and Ebay don't rely purely on monthly fees but transaction fees (under pressure from free providers, e.g., the Craigslist). It is ambiguous what kind of support can provide if multiple stores have the same catalog. Only one can be successful while the other suffer. So the only outcome is that the suffered ones either change to selling something else or shut down the store. The former one is an error-and-try approach as there must be someone already selling or needs to find advantages such as price and services, which ends up on the owners' own decision. The later one is harmful to store owners and providers.
Such store business is not appropriate to be aggregated. Potential store owners, as said many don't know computer, don't know about this. Uniqueness is the word coming to building a good E-commerce website. Owners pay close attention to what they need (that is true that they don't need to know how to do it). Involvement is crucial. Online store provider business model strips off this important chain out of the process. This is not a sustainable business model.
Online store provides charge one-time software fee, monthly charges for search engine optimization and marketing supports to stores. The fees range from thousands to hundreds. Marketing techniques such as drop-listing are lectured in their courses. To attract potential store owners, stories such as retired personnel, unexperienced students, layoff workers, who almost never used computers before, had run their online stores from zero income to thousands per month in a period of couple months. Such flamable stories often ignite audience's interests. At last, promotional one-time charge prices would slam down price from 3-digit to 2-digit. Monthly fees remain the same.
Big name online store providers such as Amazon and Ebay don't rely purely on monthly fees but transaction fees (under pressure from free providers, e.g., the Craigslist). It is ambiguous what kind of support can provide if multiple stores have the same catalog. Only one can be successful while the other suffer. So the only outcome is that the suffered ones either change to selling something else or shut down the store. The former one is an error-and-try approach as there must be someone already selling or needs to find advantages such as price and services, which ends up on the owners' own decision. The later one is harmful to store owners and providers.
Such store business is not appropriate to be aggregated. Potential store owners, as said many don't know computer, don't know about this. Uniqueness is the word coming to building a good E-commerce website. Owners pay close attention to what they need (that is true that they don't need to know how to do it). Involvement is crucial. Online store provider business model strips off this important chain out of the process. This is not a sustainable business model.
posted by Intl.investment.services at
9:14 AM
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