What are the reasons internet Web stores are closing?

[gredodenda]

What are the reasons internet Web stores are closing?

Even with the prices are dirt cheap, some sites are closing, why?.....


Please give me your inside knowhow why internet stores are closing and please read my other posts also.

gredodenda
Thanks all

 

[gopunk]

stores, or sites?

 

[jadinolf]

Dirt cheap prices is one reason these businesses are failing.

To stay in business one must be profitable.

Also, it is very expensive to just get people to visit your site let alone place orders.

I could go on forever, but the other ATOTers will contribute.

 

[tm37]

One thing that has hurt the internet stores is the fact that there is very little profit.

The convenince of shopping at the local store is no londer an issue with internet buying because they are all right there on your screen for you to veiw.

Also there aren't as many Impulse buys oin websites as in stires so LOSS LEADERS don;t work.

 

[DaveSimmons]

<< Also there aren't as many Impulse buys oin websites as in stires so LOSS LEADERS don;t work. >>

and when a site does offer one, the Hot Deals vultures swoop in with stacked coupons to buy just the loss leader.

 

[Cyberian]

Don't answer this NEF!

He has 183 posts and he's only been here about 2 1/2 years!!

 

[gredodenda]

thanks all, but I need more details though. I'm just a college student and this is for my friend who wants to build a web site store for his auto parts shop (b&m) in Texas.

Could anyone explain to me because I have 183 posts and only been here about 2 1/2 years, makes any problem? Please help me to understand then I will follow the rule if such exist. I won't these questions again.

My friend is having little doubt that there are so many web site stores out there, but failing? What are the reasons? I think it is a common question to ask, isn't it? Some sites are making tons of money why is that they are succesful.

If you know any particular store who fail/succeed to make profit and if you know why, please tell me. I'm here to learn.
Thanks

gredodenda

 

[fatbaby]

1. The cost of advertising is going down
2. Websites usually depend on revenue from ads to keep up
3. Its a buyers market
4. Those that are making money either have built a sturdy foundation or have some sort of innovative idea or trend

 

[DaveSimmons]

<< Could anyone explain to me because I have 183 posts and only been here about 2 1/2 years, makes any problem? Please help me to understand then I will follow the rule if such exist. I won't these questions again. >>



Cyberian was being a smartass, notice the smiley at the bottom? Nothing wrong with not posting 20 messages a day.

Most general web stores are failing because they all sell the same "stuff," and given a choice Jane Consumer will buy her MP3 player or game from Amazon instead of "Bob's Komputer Hut."

Many specialty web stores failed because they wildly overspent on advertising, lavish offices, web site development, loss leader prices, etc. expecting that their sales would grow 100 times last month's forever.

I'd say to your friend to take a hard look at what other competing stores are already online and whether he can really offer something unique. Carefully figure out how much must be sold to break even after figuring out all the costs including advertising, website design, updates, and server hosting.