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Cannibalization of running both online and retail shop

PO Box, contact info, ups, fedex, usps

     
6:16 am on Oct 8, 2011 (gmt 0)

5+ Year Member



I am running retail shop. I want to start online store but I'm worry about retail shop customer may ask online store price. Most of all, online store price is much cheaper and naturally retail shopper is going to buy via online store not retail shop. In this case, retail shop employee will be frustrated due to cannibalization.

I'm thinking of PO Box address but many online seller saying this is not a good idea because not look like a professional seller and seller pay more UPS for rerouting fee.

What is the best option on this case?
I want to hide my physical retail shop address.
I can imagine local customer come to my retail shop to ask matching online price. My employee will be upset for this request because loss in sales commission.

Thank you in advance for your help.
7:19 am on Oct 8, 2011 (gmt 0)

WebmasterWorld Administrator incredibill is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



Why would your prices be different?

I know a lot of small B&M shops with ecommerce and the prices are exactly the same. They may run some online specials and sales, but they don't undercut their retail prices and do just fine.

The discount of shopping online is NO TAX, you need to rethink this venture IMO or create a completely different online store name that can't be associated with your retail store if you plan to discount like crazy.
10:59 am on Oct 8, 2011 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I have often seen on ecommerce sites with B&M stores "these prices and/or offers apply to online sales only".
I can imagine that people still go to the B&M store and ask for the same price but then they had been warned and you can refuse.
1:56 pm on Oct 8, 2011 (gmt 0)

5+ Year Member



Why change your price structure for the online store? The locals who come in are still going to take the time of your sales staff with questions, returns, etc etc.. and then just order online if its cheaper.

I usually advise businesses to build their website like its just another salesperson in your store.
5:06 pm on Oct 8, 2011 (gmt 0)

5+ Year Member



Thank you all.

The discount of shopping online is NO TAX

Selling apparrel goods is no tax in B&M. There is not price discount advantage in selling online.

Why change your price structure for the online store?

Still I think my online price is higher than others in Google product search. I have to always do pricing comparison and need to down the price to win price competive market.

"these prices and/or offers apply to online sales only".

Nice suggestion, and I'll just see what happens between B&M employee and local customer...not easy.
 

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