551 replies to this topic

[sebberry]

Online stores likely result in high quantities of returns and this is a major hassle for a supplier.

 

Better product descriptions would help to avoid returns.

 

Online retailers could also extend their shipping discount to customers for returned goods.  Shipping product back at full price is expensive. 

[spanky123]

Who knows, but that's what some manufacturers are doing.

Remember that it's not the big retailer who takes a hit when a product has returns or doesn't move, the supplier does. Online stores likely result in high quantities of returns and this is a major hassle for a supplier.

Most manufacturers factor in a defect / return ratio into their products and either discount the invoice or oversupply quantity. Walmart isn't shipping back returns or defects to manufacturers.

[dasmo]

The B&M + online is the way. A lot of indie retailers are already there not just Walmart. I for one benefit from online sales with one of my businesses. Local sales simply would not allow our sales to be growing as they are. So I am all for online commerce!

[Mike K.]

Most manufacturers factor in a defect / return ratio into their products and either discount the invoice or oversupply quantity. Walmart isn't shipping back returns or defects to manufacturers.

The big brands for sure. This is why Wal-Mart is laden with product from only several massive suppliers for any item category. They may sell products under different brand names but it all comes back to Unilever, Johnson & Johnson, Gilette, Procter & Gamble, and GlaxoSmithKline, and so on, for every department.

Where small retailers excel and will for the foreseeable future is with offering product that the big retailers, even online retailers, don't want to carry or the supplier does not want to bother with the massive orders big organizations place and the great complexities involved in filling them.

Part of our business relies on supplying brick and mortar and online businesses with retail products. The difference in dealing between the two types of establishments is huge, and dealing with big operations is very tricky whether for online or brick and mortar locations. Sometimes it's even not worth the time and effort to supply the big guys due to their demanding procedures.

[dasmo]

But Amazon is still a part of that equation. Have you noticed they are more and more a portal for other retailers to sell online? For example, Russell books sells online on Abe books. The Abe books model is purely just a portal (owed by Amazon). I think this is the future of online sales. It's a crowd sources shipping and distribution model that is probably less expensive than developing drones that can deliver a dishwasher to your home a few days from ordering.... If you have experience online shopping you start to pay attention to shipping costs, especially us Canadians.... I buy online for availability and convenience not price. Odds are you can get it cheaper in a store because you won't get dinged for shipping once and then duties and brokerage fees upon delivery...

[VicHockeyFan]

But Amazon is still a part of that equation. Have you noticed they are more and more a portal for other retailers to sell online? For example, Russell books sells online on Abe books. The Abe books model is purely just a portal (owed by Amazon). I think this is the future of online sales. It's a crowd sources shipping and distribution model that is probably less expensive than developing drones that can deliver a dishwasher to your home a few days from ordering.... If you have experience online shopping you start to pay attention to shipping costs, especially us Canadians.... I buy online for availability and convenience not price. Odds are you can get it cheaper in a store because you won't get dinged for shipping once and then duties and brokerage fees upon delivery...

 

True.  But the online stores also benefit for the lower pricetag, like airline pricing (before they were legislated to include fees).  So sometimes we see a low price online and just assume it's lower than in the store, where we saw the item yesterday.  But when we order it, we then see it's in US$ and then shipping extra.  But sometimes we still order.

[dasmo]

I hear ya VHF. The airline industry has become extremely irritating because we only buy  a price, in a column, on a screen. Thus we now have zero free bag allowance. You are hit with a cost of $70 at the air port per bag. (I say cost because I guess it can't be called a fee). Also there seems to be no more free entertainment on board. That will cost ya. Free WiFi? extra. Food? extra... a non middle seat? extra. Exit row? extra. Expedia should at least add a features column so a consumer could at least consider such options which might lead to experience being an option to compete with... 

[Jason-L]

What will be interesting is to see what impact the attempt by various levels of government to grab taxes out of online retailers has.  As B&M stores close up and tax revenues shrink, I'd expect the current market advantage online retailers have in avoiding various taxes will be eroded and the online pricing will creep up.

[spanky123]

What will be interesting is to see what impact the attempt by various levels of government to grab taxes out of online retailers has.  As B&M stores close up and tax revenues shrink, I'd expect the current market advantage online retailers have in avoiding various taxes will be eroded and the online pricing will creep up.

 

Major retailers charge tax. If you purchased from Amazon you pay PST/GST. Even eBay now is starting to include taxes as part of the purchase process when you buy from their retailers.

[Nparker]

http://www.upworthy....enator-5?c=ufb1

[VicHockeyFan]

Walmart has 2.1M employees, and not a single one of them has to work if they do not want to.  NONE.  That's a new world record for voluntary employment.

[Mike K.]

Now the big question is would 2.1 million voluntary employees be enough to build a couple of massive pyramids?

[LJ]

What I hear Walmart is doing is setting up a site very similar to Amazon but which allows consumers to pick up the item at their local Walmart if it is available but return it to their local Walmart even if it was shipped to them. That would solve the one issue Amazon has with returns.

Costco does this as well, very handy.

I once ordered online from Costco a box of dish detergent, it was shipped right to my door, for free, and arrived in a day. Now that's service. I don't know how they make money on that tho.

[VicHockeyFan]

Walmart is closing 269 stores, including 150+ in the US.

 

http://www.wsj.com/a...ally-1452868122

 

That's very interesting.

[AllseeingEye]

I don't think there is any move to close Canadian stores...yet. Should be interesting to see in which direction they move once the dust settles after this round of closures, and whether they ultimately look north of the 49th at some point. We're not at all regular Walmart customers, very occasionally running in to grab a few basic staples like milk, cheese or yogurt etc. as needed and if we happen to be in the neighborhood, but on those occasions when we have been in the Uptown location its always a beehive of activity. 

[Mike K.]

You gotta feel sorry for China.

[dasmo]

This is a very small percentage of their stores and almost all are the small "express" ones they built out to "defend against competition." They messed up... The competition is on something called the Internet and it's called AMAZON!!! They figured this out and are refocusing on their online presence.

Edited by dasmo, 17 January 2016 - 11:04 AM.

[VicHockeyFan]

This is a very small percentage of their stores and almost all are the small "express" ones they built out to "defend against competition." They messed up... The competition is on something called the Internet and it's called AMAZON!!! They figured this out and are refocusing on their online presence.

 

Ya, that sounds right.  

[Bingo]

I don't think there is any move to close Canadian stores...yet. Should be interesting to see in which direction they move once the dust settles after this round of closures, and whether they ultimately look north of the 49th at some point. We're not at all regular Walmart customers, very occasionally running in to grab a few basic staples like milk, cheese or yogurt etc. as needed and if we happen to be in the neighborhood, but on those occasions when we have been in the Uptown location its always a beehive of activity. 

 

The Walmart grocery section will feel some pressure once Whole Foods opens.

After the demise of Target in Victoria I think the days of huge stores like Walmart are numbered.

[insanelydeadlydisease]

People doing grocery shopping at Walmart are not going to switch to whole foods. They might take a look but once they see the prices they'll walk out.