It’s The Internet Economy, Stupid!

Recent headlines scream the news:

Best Buy announces list of 50 stores closing in 2012

Staples to close 140 stores as online rivals take sales away

RadioShack to close up to 1,100 stores

Sears to close 35 more stores as it boosts online presence

We’re all doomed!

Don't Panic!

It’s just the Internet economy.

We used to complain about the large brick and mortar corporations, like Walmart, putting the locally owned mom and pop shops out of business.  But now we get all bent out of shape when we read about the large corporate stores falling to Internet-based retailers like Amazon.

The failure and closing of these stores is their own fault.

They failed to recognize that advancements in technology has radically changed the marketplace.  Your nearest competitor is no longer the store down the street.  The big chain stores need to come to terms with the fact that consumers now carry the Internet in their pocket.

Shoppers can compare prices from a brick and mortar store by simply using their smart phone.  Not only can they compare prices, they can order that exact item from an Internet seller while standing in someone else’s store.

I recently needed a fresh supply of blank DVD discs.  I checked my local brick and mortar retailer:

Local price for Memorex 100-pack blank DVD-R

And then I checked my online Internet retailer:

Online price for Memorex 100-pack blank DVD-R

Same exact product.  Huge price difference.

Given the choice, which one would you buy?

I could drive twenty miles up, pay local sales tax and drive twenty miles back.  Or I could stay home, save my gas, save a bundle of money and pay no tax.

Buy local and go bankrupt.  It’s a buyer’s market.

Your local mom and pop shops that attempt to compete by posting an e-commerce website will fail.  They don’t have the purchasing power to buy in bulk volume to qualify for the discounts offered to large national retailers.  Plus their website gets buried by search engines, relegating them to obscurity.

Yes.  Jobs will be lost in one sector, but more jobs will be created in other industries.  This is a natural progression of our willingness to adapt to changing technologies.

It’s the Internet economy, stupid!  Deal with it.

 

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3 Responses to “It’s The Internet Economy, Stupid!”

  1. paulettemotzko Says:

    Reblogged this on Computer Users Forum.

  2. mua Says:

    As the development is altering, there is a stiff competition between the assorted online shops. One might discover numerous online shops where one may get lot many gadgets. There are unique online stores that cater to all kind of wants. The net stores are open 24/7.

    • The Doctor Says:

      Good points!

      Lower overhead is also a major advantage of online retailers. It’s cheaper to staff and maintain a warehouse than a large number of showroom stores in multiple cities.

      Online sellers have no geographical restrictions. Almost anyone with Internet access is a potential customer.

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