Tag Archives: retail

Amazon Has An Oversupply Problem



During lockdown, I’ve been doing my very best to support local businesses and shop locally. However, sometimes the thing you want is simply too specialist to be carried by any emporium within a reasonable distance so inevitably I’ve fired up the browser and hopped on over to see what’s available at world’s largest online retailer, Amazon.

And it hasn’t always been a great experience. Too much of the market seems to be given over to sellers with company names full of consonants selling identikit products at similar prices. And there’s no way that the reviews are authentic: some of the products have hundreds of reviews but I very much doubt that they’ve sold that many items.

Take these ring LEDs…there are fifty three pages of sponsored products alone – that’s 367 items. Yes, there are variations based on ring size, accessories and so on but it’s obvious that many of the products are the same unit.

Some product categories are worse than others, but I’m quite sure everyone has seen this problem, whether with electronics, cookware or home furnishings. You can understand why companies are so keen on getting good reviews to bump their rankings to the first few pages.

In contrast, traditional bricks’n’mortar stores have a much more limited product range selected by the owners or a buying team who decide the best fit for the people coming into the shop. In this example, you could imagine a selection based on ring size but you’re probably choosing from three or four products at most. Not 367.

Brands are very relevant in these crowded markets too. I can’t be bothered to root through every single example and often rely on a brand name to help make the selection. Over the years, I’ve gathered my own selection of favourite go-to brands for preferred products and I’ll choose those over no-name clones every time.

Amazon does label goods as “Amazon’s Choice” as if this is the best product, whatever best might might be. My understanding is that these are only curated by algorithm and there’s no one behind the scenes checking, reviewing or testing.

There are consumer organisations like the UK’s Which? which provides advice and guidance on products in different categories. It’s a subscription service at just under GB£10 per month but perhaps worth considering if you are buying big ticket items. As an independent organisation it’s trusted and respected.

A tempting solution would be for Amazon to provide a similar service to Which? for its Prime members where real people test a range of products in a category and recommend the best. But would anyone trust Amazon’s recommendations? I’m not sure I would given some of the recent revelations about Amazon Basics.

There’s no doubt that Amazon has profited during the pandemic, but I’m seriously beginning to wonder if Amazon is allowing too many vendors with too many similar products. I know that I’m increasingly looking to other stores and branded products rather than going straight to Amazon. This week I’ve one delivery from Amazon but two from other online stores.

What about you?


PaySaber Point-of-Sale Terminal for iPhone



POS PaySaberAndy chats to Matt from PaySaber at CES‘s Showstoppers about their iPhone-based point-of-sale (POS) solutions.

The PaySaber is a portable handheld POS terminal sled that incorporates a barcode reader, card swipe and thermal printer into the unit. An iPhone or iPod Touch slots into the PaySaber to provide the screen and the wireless communication for the transaction.

The flexibility provided by the iPhone allows credit processing in the normal way, but gives additional benefits such as emailed receipts. From the moment the card is swiped, the whole transaction is encrypted and secure, so the credit card information is never transmitted in cleartext. As you’d expect from any POS system, PaySaber can be configured to interface with inventory systems to automatically deduct items from stock as a sale is completed.

Interview by Andy McCaskey of SDR News and RV News Net.

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Trading Tough for the UK Big Boxes



Best Buy LogoFrom recent news in the UK, the tough economic conditions appear to be hitting the technology and electrical particularly hard with Best Buy and Comet in the front line.

After losing nearly £50 million in the last six months, Best Buy is going to close all 11 stores in the UK after just 18 months in   operation. Best Buy Europe was a joint venture between Best Buy, Inc and Carphone Warehouse, with Best Buy purchasing half of Carphone Warehouse’s retail division for over $1 billion. Over 200 stores were originally planned but now 1,000 jobs are at risk.

Roger Taylor, CEO of Carphone Warehouse said, “The eleven Best Buy UK ‘Big Box’ stores have performed exceptionally at the level of customer satisfaction, but they do not have the national reach to achieve scale and brand economies. Due to the lack of visibility of an acceptable rate of return on historical and future potential investment we have decided against rolling out more ‘Big Box’ stores and we will be closing our existing stores, subject to consultation with our employees. Our immediate focus is our people and we are confident that the large majority will be offered alternative positions elsewhere in our UK business.

Today, Comet has been sold for just £2 to a holding company “Hailey” after revenue in Comet fell 22% over the summer. A further £50 million will be invested by Comet’s parent company in the holding company. 17 stores are already earmarked for closure with a further nine to be reduced in size.

In guarded comments, Bob Darke, Comet managing director said, “We are encouraged by today’s announcement and – with shareholder approval – absolutely committed to a smooth handover. For our customers and our people, it is business as usual and we are 100 per cent focused on delivering a successful Christmas trading period and great business performance into 2012 and beyond.

DSG Retail with its Dixons, Currys and PC World brands is the main player in the UK market but even it saw a fall of 7% earlier in the year. The next set of results isn’t due for a few months and it will be interesting to see what they show.

Overall, it’s not looking good for the big boxes in the UK.