Froggy Girl Designs

A glimpse into my daily life of crafting, frugal living, and being a mom!

Friday, August 03, 2007

Brick & Mortar Retailers trying to curb internet reselling

I was recently passed a link to this story on regarding retailer's views on those who purchase large amounts of discounted items to resell online. It is a very interesting article, although short and not very in depth. The premise is that traditionally brick and mortar sellers such as Coach handbags and Gymboree, are breaking down on those who "mass purchase" off of clearance racks.

I'll admit, I have been known to resell items I find on clearance on Ebay. Generally, my experience has been that I might make a buck or two, or lose money after fees and such. Really not worth my time. I do much better with yard sale type finds. Now, that being said, I can understand why retailers are upset about Average Jane making a profit on their goods. They would much rather have the money go in their pockets than the consumers. My issue with it is this, if they can't sell it at their own stores, and don't have the desire to sell it online themselves (yes, there are big box retailers who sell their own product on Ebay and the like), then why not allow their customers to make that money? Sales are sales, and their analysts are the ones who choose just how low they can price their items on clearance. It's all about supply and demand, and while Coach bags may not sell so well at the store in Podunk, Wisconsin due to lack of demand, that store may have the bag that three people on opposite edges of the globe just HAVE to have.

Any way it goes, the retailers still get the brand recognition from the sales generated, whether it be through Ebay, their own stores, or wherever else; that is a good thing for them. Not everyone tries to find "deals" on Ebay, many will see an item they love that someone else is wearing/carrying/using, and go right to the stores or their website to buy it. It all pads their bottom line!


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