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Old 04-11-19, 12:58 PM
  #213  
TiHabanero
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"What the online store does is process the order the day it comes in, has a system of pulling the order at the warehouse and ships as soon as possible. That's the customer service model they have intentionally chosen. A local store could do the same but doesn't. They build a buffer of time for THEIR convenience, not the customers. "

This statement ends in folly. The local store cannot duplicate the same warehouse operation as the warehouse operation uses because it is not a warehouse operation.

I spent some time in the motorcycle aftermarket biz helping to build an online company. We had lots and lots of competitors. The only way to succeed in the online world is volume. 3 or 4 orders a day will kill you. We needed 200 orders a day to break even. Can you imagine a brick and mortar store having enough space and personnel to process that many orders plus maintain a website with that amount of traffic?

There is a local motorcycle store that has a very successful online biz, however it is run as a warehouse operation out of a separate building using a different name. It is its own entity. The motorcycle shop buys directly from their sister company warehouse as it does not "stock" parts of its own. What I am attempting to demonstrate is that the online biz market is very different than that of the brick and mortar biz and requires a completely different model. Certainly a brick and mortar shop can run an online biz, however to make it profitable it needs to be a serious operation and requires resources outside the realm of most small businesses.

FWIW, that online motorcycle parts biz is doing quite well. Took 8 years of toil and toughing it out, and a large sum of money to rely upon to get it going. Not many bike shops can access enough resources to make it happen.

Last edited by TiHabanero; 04-11-19 at 01:05 PM.
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