Etsy Adds to Its Business Portfolio with Wholesaling

Etsy, founded in 2005, is a popular online retailer that focuses on handmade, vintage, and other artisan products. It is a latter day eBay: “Etsy is a marketplace where people around the world connect to buy and sell unique goods. Our mission is to re-imagine commerce in ways that build a more fulfilling and lasting world.”
In 2013, Estsy facilitated $1.35 billion worldwide in sales transactions. It has more than 30 million members and more than 1 million active shops, and it has listed more than 20 million different items.
Now, Etsy has decided to move further into wholesaling as part of its business portfolio. Is this a good idea?
According to Elizabeth A. Harris, writing for the New York Times:
“Although Internet retailing is a growing market, more than 90 percent of retail commerce still takes place in physical stores, and like many retailers that started online, Etsy wants a piece of that action. Instead of opening locations, Etsy wants its sellers to take wholesale orders, so that through them, Etsy can be in thousands of stores at once without ever cutting a rent check.”
“After spending a year in beta, Etsy plans to make its role as a wholesaler official. Etsy will charge a 3.5 percent commission on each wholesale transaction, the same cut it takes on its retail Web site, and substantially lower than a standard wholesale markup. Etsy will start charging for wholesale in August.”
Its wholesale site URL is https://www.etsy.com/wholesale.
To see a NY Times’ video, click here.
To read more of Harris’ story, click the image below.

 

 

Posted in Online Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , | Leave a comment

7-Eleven’s BIG Pizza Sweepstakes

To generate more excitement among its customers, 7-Eleven is now sponsoring a “Pizza for Life” sweepstakes. 7-Eleven only started selling pizza — one of the most popular food items in America — about five years ago.
As the retailer says at its Web site:
“Here’s a slice of life. Actually, make that the whole pizza pie. 7-Eleven, Inc. will give some lucky pizza-lover a lifetime of hot, cheesy pizza in the first-ever Pizza for Life Sweepstakes. The contest runs through Friday, May 16, which happens to be National Pizza Party Day. Entrants must be at least 18 years old to participate and can enter once a day. The prize value is $10,500, and the winner will be notified by the end of May.”
“’Pizza is popular with our guests,’ said Laura Gordon, 7-Eleven vice president of marketing and brand innovation. ‘Because it tastes so good and is a great value. No coupons, no limited time offers – just large hot pizzas for $5.55 each. The only better deal is if you happen to win the Pizza for Life sweepstakes!’”


 

Posted in Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 7: Communicating with the Customer | Tagged , , , , , , , | Leave a comment

U.S. Retail E-Commerce Remains Strong

In 2014, eMarketer predicts that retail E-commerce sales in the United States will rise to more than $300 billion — led by computers & consumer electronics and apparel.
Click on the chart to learn more.

 

 

Posted in Online Retailing, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 7: Communicating with the Customer | Tagged , , , , , , , , | Leave a comment

Why Is It So Hard to Compete with Whole Foods?

For years, Whole Foods has been seen as the model for the next wave of food retailing, a chain that focuses on consumers interested in healthy eating.
Whole Foods describes itself as “America’s Healthiest Grocery Store.” “Who are we? Well, we seek out the finest natural and organic foods available, maintain the strictest quality standards in the industry, and have an unshakeable commitment to sustainable agriculture. Add to that the excitement and fun we bring to shopping for groceries, and you start to get a sense of what we’re all about. Oh yeah, we’re a mission-driven company too.”
As a result, many firms have tried to emulate Whole Foods, often with less than stellar performance. Why is it so hard to follow Whole Foods’ lead?
According to Annie Gasparro, writing for the Wall Street Journal: 
“It’s harder to be Whole Foods Market Inc.  than many companies thought. A year ago, interest in the specialty-grocery business was booming. Fairway Group Holdings Corp., a chain of about a dozen stores in New York and neighboring states, raised $177 million in an initial public offering last April, and its stock jumped 33% on its first day of trading. When Sprouts Farmers Market Inc. followed with an IPO in August, it fetched at least $333 million, and its shares surged 123% in their market debut. Today, that enthusiasm has given way to grim reality, as mounting competition and mistakes like overexpansion buffet their operations.”
“In March, Fresh Market Inc., based in Greensboro, N.C., reported a 90% drop in fourth-quarter net income, thanks partly to a write-down of real-estate and other assets, and said it would close four of its 155 stores. In September, British Grocer Tesco PLC put its U.S.-based Fresh & Easy chain into bankruptcy protection.”
Click the image to read more about the problems faced by fresh grocers.

 

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , | Leave a comment

Tracking Shoppers from the Web to the Store?

As store retailers continue to grapple with the competition from online firms, they have become more interested in tracking the success of digital advertising in luring shoppers to their stores.
With that in mind, Google is developing a new program for store retailers. In a Wall Street Journal article, Alistair Barr sums it up thusly:
“Retailers have long struggled to determine whether online ads fuel sales in their bricks-and-mortar stores. Now, Google Inc. is testing a way to solve that puzzle. A pilot program begun by the Internet company is helping about six advertisers match the anonymous tracking cookies on users’ computers to in-store sales information collected by data providers like Acxiom Corp.  and DataLogix Holdings Inc., according to people familiar with the test.”
“One participant in the program is the arts-and-crafts chain Michaels Stores Inc., the people said. The other participants couldn’t be identified. ‘We are running a number of tests to help clients use their own sales data to measure how their search campaigns impact sales,’ said a Google spokesman.”
What do YOU think of this concept?
Click the image to see a WSJ video clip on this subject.


 

Posted in Online Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 7: Communicating with the Customer, Privacy and Identity Theft Issues, Technology in Retailing | Tagged , , , , , , , , , | 1 Comment

An Interesting Slideshow on Retail Trends for 2014

Hubba, an information services company, has put together an informative slideshow on 2014 retail trends.
Check it out.

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information | Tagged , , , , , , | 1 Comment

A List Your CEO Does NOT Want to Be On!!

Glassdoor regularly rates the performance of company CEOs on the basis of employee feedback.
Recently, 24/7 Wall Street reviewed the data at Glassdoor’s Web site and came up with a list of the worst 9 CEOs. As reported by :
“A good manager understands the contribution of his or her employees. In return, managers often receive the respect of their workers. And indeed, more than two-thirds of American employees approve — even like — their companies’ chief executive officers. Some CEOs, however, are not popular with employees. At nine major companies, 40% or fewer employees gave their CEOs a positive review.”
Here’s the 2014 list of the FIVE retailers with CEOs rated among the worst 9 as determined by 24/7 Wall Street:
1. Sears Holdings (Sears/Kmart) Edward S. Lampert
2. Dillard’s – Bill Dillard II
3. Forever 21 Do Won Chang
6. Abercrombie & Fitch – Mike Jeffries
9. GameStop –  J. Paul Raines
Click the image to read more.

 

Posted in Career Useful Information, Careers in Retailing, Part 1: Overview/Planning, Part 5: Managing a Retail Business | Tagged , , , , | 2 Comments