Some speakers were extremely optimistic with regard to future developments, predicting that as many as one in four sales in the USA will be made on the Internet five years from now. At present the ratio is no more than one in 24. Logic would indicate that higher priced articles, where savings could be more impressive, would more likely be purchased on the Internet rather than lower priced daily-use articles. Shipping charges, as well as delivery delays, will always be factors in online sales.
According to Do It Best (www.doitbest.com), one of the large US wholesaler cooperatives, one use of its site is to drive traffic to member stores. The firm, which serves 4 200 retail outlets, describes its site as “the world’s largest hardware store”. The affiliated retailers can be involved through customers ordering online but picking up merchandise at their local store. This saves shipping costs, speeds delivery and, from Do It Best’s standpoint, introduces customers to their local retailer and hopefully builds future business for their member-owners.
Do It Best sets its sights high.
However, communicating the advantages and signing up dealers to participate is not easy to do. After six months of effort about 300 of the 4 200 member stores are now participating. It is an ongoing process, and the company believes that when retailers begin registering significant sales, the word will spread and other member-dealers will join more quickly.
Do It Best says this system needs to ensure that employees in member stores are familiar with the program, know how to handle the customer and the transaction, and create a favourable impression on consumers who have purchased from the web site.
The Internet’s biggest success story is of course Amazon.com. Interestingly, Amazon is serving as a sales outlet for Tru Serv’s True Value stores, with product delivery being handled by Amazon.