We've bought the small Internet Retailer company in Aug 2009 . this company has been working since 200o but mostly on EBAY and AMAZON. We have total 5 full time workes in USA and 4 offshore workers. Right now we re-design our E-commerce site and add DROP SHIP suppliers and so on. We have about 35 K of items in our Internet Store. We have our own inventory but also we are going to sell DROP SHIP items. Could You explain me one thing - we checked a lot of big wholesalers and DropShip distributors of Consumer Electronis. And a lot of them say that a lot of famous brands - like SONY, SAMSUNG, PANASONICS does not allow to sell their product via internet - For example Sony No Internet Sales Allowed Panasonic TV -No Internet Sales Allowed etc.. Is it politics of Sony and Panasonic ? But how big E-tailer can sell these products ? I study Consumer Electronics and Computer Hardware E-tailer market for 6 months - and still don't see good niche and good profit. We are ready to invest serious money ( several million USD ) but in fact I see very low margin. BTW - what do you think - what is the gross margin just say for Apple or Sony retailer 10% ? 15 %, 20% ?
I worked under their sales department for few years back. Their enforce this law to prevent any reputation damage to their brand name. Coz some online retailer selling rejected product.
I understand the politics of manufaturer. But if they have the sale politics - it should the same for everybody. Isn't it ? But I can buy Sony and Panasonic products from all biggest internet retailers. What is it ? Or manufacturers shut eyes to it ? Or they allow it only to companies, who also has retail shops ?