Yep, selling to the ultimate consumer IS the definition of retailing. Increasingly, manufacturers assume that only they can "do justice" to their product line.
We all know what these companies are trying to do. They have immense confidence in the merits of their respective products, and they think retailing is easy. But it's not just the product. And retailing isn't easy.
The real test is whether these technology giants-turned-manufacturers-turned-retailers actually can be merchants? That is, can they consistently provide value to the customer?
Value: the benefits received for the burdens endured.
In our view, Google and Amazon are asking consumers to assume most of the burdens in these transactions.
- Go to the website, learn about the product, choose the item
- Ring up the transaction; send the money to us safely
- Be available to take delivery of the product
- Have questions? Use the online help forums.
- Have a return? Box it up and send it back.
- And "trust us" about receiving the credit.
Remarkable cost savings for the manufacturer. All those burdensome "retailing" issues have been shifted to the customer. Granted, maybe 10% of the market will think this is wonderful. No muss, no fuss.
Still this nagging question: Will the rest of the customers willingly endure these burdens?
Hasn't Apple proven that there's a role for storefronts "for the rest of us"?
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