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dictators_rule
Joined: 08 Jul 2003
Posts: 6300
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Posted: Sat Sep 19, 2009 2:32 am Post subject: Sears allowing 3rd Parties to sell online .
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http://www.internetretailer.com/dailyNews.asp?id=31845
Sears is allowing 3rd party online retailers to sell on their site for 15-20% commission. Sears process the orders and 3rd party must complete the transaction/order.
Wonder how Sears regular suppliers/vendors feel about having to compete even on Sears website even though they're the primary in store supplier.
An auto parts supplier is the only taker so far.
I guess one day you can get commission on a Ryobi saw on a store to web???
Talk about desperate-and expensive:15-20%?
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Xylian
Joined: 02 Jan 2004
Posts: 222
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Posted: Sat Sep 19, 2009 5:10 am Post subject:
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The rates are publicly available on sears.com as of yesterday.
If Sears handles the processing and support of the sale, then for most categories, they want 15-20% of the sale. If the vendor chooses this method of posting items for sale, the item is considered to be sold by Sears. However, vendors that choose this route also have to pay a $40/month fee for "logistics" costs.
The other (and so far more popular route) is Sears acting as a portal to the 3rd party website. Sears provides a 3rd party's price on an item and link to the 3rd party's website. Sears collects a commission on every redirect to the 3rd party website. Commissions vary based on the type of item, but typically range from 60 to 75 cents per redirect.
A memo was already released about store to web and 3rd party sites. The item has to be "sold by Sears" (either sold firsthand, or through Sears acting as the vendor [1st choice above]) in order for an associate to get a store to web commission. If the person buys an item through a redirect to another website, then there is no commission paid for the sale.
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goodole312
Joined: 15 Mar 2008
Posts: 668
Location: stuffed in the back room of a kmart
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Posted: Sat Sep 19, 2009 5:29 am Post subject:
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is that why the website is starting to look more and more like amazon.com?
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vickers
Joined: 14 Jul 2006
Posts: 583
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Posted: Sun Sep 20, 2009 7:18 pm Post subject:
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^ Exactly what I was going to say! I was searching for stuff for a customer and wondered why they had a "merchants" box with different merchant's offerings on hand. It doesn't seem like much now, though.
I...kind of like it, but I don't know how it's going to work out.
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Tool God
Joined: 13 Jun 2008
Posts: 195
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Posted: Mon Sep 21, 2009 12:12 am Post subject:
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I wonder how the NordicTrack show on QVC went. According to an email I received, the show was last night, and throughout it, QVC was to advertise that this was brought courtesy of "America's #1 Fitness Retailer" (Sears). It was also mentioned that this was a "one time only" deal between Sears and ICON.
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dictators_rule
Joined: 08 Jul 2003
Posts: 6300
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Posted: Mon Sep 21, 2009 12:58 am Post subject: Coimpete or Conflict
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TG -Nordic on QVC ' courtesy ' of Sears
Courtesy my butt, That's basically a free commercial for Sears. The Nordic bikes and treadmills are more heavy duty than Proform but you pay the price.Nordic is a pain to deal with as well.
But I guess the advertising value alone is why somone would put their stuff up DIRECTLY against the competition.
All this ' let third parties ' sell your stuff or compete on your own turf is a little puzzling at times.
For example if Horizon or TSA(Sports Authority) would be allowed or did sell on Sears website not only must Sears worry about competing but so must TSA worry about having their house brand go up against competition. With basically a 20% markdown/commission at that. It shows what the mark up on stuff like the auto supplies from Whitney.
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jbdet313
Joined: 03 Mar 2005
Posts: 1642
Location: Michigan
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Posted: Mon Sep 21, 2009 6:14 pm Post subject:
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Sears seems to be hoping that by inclusion of a "brand name" will help solidify, in the customer's mind, the Sears name by association. How many of those companies will see this scheme work solely to their advantage? Will customers who have a bad taste in their mouth about Sears do business with these third parties, or will they see that third-image "cheapened" by associating with Sears? Or, similarly, will they just bypass Sears and go directly to the third-party?
Exclusives could possibly work for Sears in this "scheme", similarly to what QVC does with certain items -- they are specifically manufactured and marketed by QVC, and may be a model in-between two others a manufacturer may already sell in other channels. But I'm thinking this is not the way they are leaning.
The click-through commissions, that's what I'm really questioning. It seems mighty high for a company trying to win back the customers it chased away. That section I'd expect to be modified first.
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Calapso
Joined: 26 Aug 2008
Posts: 306
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Posted: Mon Sep 21, 2009 10:10 pm Post subject:
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Kind of on the same line, but I have been seeing these Bank of America commercials advertising cash back and stuff if you use your BoA visa at places like Sears. Sears partnered with BoA for this, and it seems like a real sketchy move by Sears if you ask me. First, they provided a reason for customers to NOT use thier Sears account. They pound associates on credit share and credit apps, yet do this?
Secondly, isn't Citi the credit partner for Sears accounts? How did BoA weasel thier ways into Sears like this? Wouldn't BoA be considered a competitor of Citi, hence Sears?
The whole thing reaks.
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Nofsdad
Joined: 06 Jul 2003
Posts: 8380
Location: Central CA
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Posted: Mon Sep 21, 2009 11:04 pm Post subject:
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I'm not sure that all the big banks aren't just subsidiaries of the same conglomeration of parasitic bloodsuckers that run everything else in the country.
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bobcat
Joined: 28 Oct 2008
Posts: 23
Location: not a good place
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Posted: Mon Sep 21, 2009 11:21 pm Post subject:
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"I'm not sure that all the big banks aren't just subsidiaries of the same conglomeration of parasitic bloodsuckers that run everything else in the country."
Like the federal government?
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dictators_rule
Joined: 08 Jul 2003
Posts: 6300
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Posted: Tue Sep 22, 2009 4:28 am Post subject: conflicts or no nos
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Calapso -it wreeks
Yep. I think this is why Eddie wanted to break up the company into 5 entities. If the credit agreement was signed with the holding company he could claim it wasn't signed with a different company or branch that made the BoA deal.
The whole way the ESL crew operates is spread out or redirect liability by making LLCs(limited liability corps) do many of the preliminary transactions then RBS/ESL collects the fruits of their labor. This is also why mr ed owns Sears/Kmart/SHLD with STOCK. Stock holders have not liability in a B K but he could get sued for negligence or something as the CEO. As could SHLD.
What mr ed FAILS MISERABLY to understand is that if he degradates the Sears and Kmart too much the NAME will mean nothing. It won't even be worthy of an online visit. The online sales are mostly ex FLS/customers anyway. Throw in the third party must execute and flawlessly I might add is essential to Sears let alone the actual seller.
Would you buy from Circut City online ?
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