Consumer websites The recent explosion in consumer websites has been quite alarming. They are cropping up all over the Internet and in particular in the US and even more particularly around families searching for the best deals. Websites such as couponcouch.org, consumerqueen.com, forthemommas.com, pennypinchinmom.com and couponfairies. com are all providing an online community of bargain hunters and price comparers to beat any advertising or slick marketing Washington-based manufacturer that has had much success with Amazon following the June 2010 launch of its zero waste office products, told OPI that Prime made all the difference. He says: “When we chose to have Amazon sell our products, it was imperative that we were fully inclusive in Amazon Prime. I know, as an end-user, when I’m shopping on Amazon I always favour the products that are shipped by Amazon and are included in Amazon Prime.
to reach the hearts and minds of US consumers. In the vital BTS season these sites were being updated on the hour and the big winner appeared to be pharmacy giant Walgreens, affectionately known by the sites’ users as ‘Wags’, which was hailed as the winner of the BTS bun-fight by many US consumers. Despite annual revenues of $67 billion, Walgreens is hungry for more and seems to have captivated the BTS audience. opportunity for OP wholesalers that is much more of a defined article than the drip-drip revenue possibilities available to dealers. Callies says: “We do procure office products and consumables from wholesalers. Our goal is to provide a wide selection of products to our customers and these wholesalers have products from
California-based Newegg.com has come a long way since Taiwanese immigrant Fred Chang founded it in 2001. It now boasts annual revenue that tips over the $2.5 billion mark and in 2009 it was listed as #234 on the Forbes America’s Largest Private Companies list. As its revenues have grown so has its product offering and it now boasts a comprehensive selection of traditional office products, not to mention some 16 million registered customers at last count. It also now has several web-storefronts including its primary US site Newegg.com: NeweggBusiness. com for corporations, resellers, schools and non-profit organisations; a Chinese site (Newegg.com.cn); and
“I know in the world of a B2B enduser two days is a long time, but not for the B2C market” – Brant Williams, Chief Marketing Officer, ReBinder “It makes a huge difference to any purchaser, corporate or otherwise, to be able to wrap up a number of their purchases into one shopping cart and then get them very quickly. The usual shipping time by Amazon in the US is between 5-7 days, so two days guaranteed really makes a difference. I know in the world of a B2B end-user two days is a long time, but not for the B2C market.” Despite the opportunities for dealers on Amazon the truth is that this is not the place for independent OP dealers to build up brand loyalty or stake a strong business case, as you don’t typically build up any customer loyalty on Amazon as a marketplace trader. A customer needs a product, finds it on the marketplace and instantly forgets who supplied it. Interestingly though, Amazon does present a potentially tantalising
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manufacturers where we do not have direct relationships. There are also certain situations with large and/or heavy products where it makes sense to have the wholesaler ship directly to the customer. For these products it doesn’t make sense logistically to ship the product from the wholesaler to Amazon and then from Amazon to the customer.”
A good egg While many of the names discussed so far are familiar household brands known the world over, private companies are also stealing a march and none more so than online computer hardware, software and accessories retailer Newegg.
US Office Products Industry Annual Review 2011
ChiefValue.com, a sister website of Newegg.com which contains mainly computer products. There’s little question that in 2011 pressure from alternative retail channels on the OP industry grew. And while this appears to be a case of swimming against the tide there is still plenty of opportunities for specialist OP retailers to flourish, providing they keep themselves well versed in what these competitors are doing. The motto here really should be: know your enemy.