Just-Released Report Shows `New Consumer" Spends Big at Online Auctions, Creating Never-Before-Seen Sales Opportunities for Retailers and Manufacturers
Auctions to Be the "Next Wave" of Retail, Far Outdistancing Off-Price/Discount
Retail Storefronts, According to Research Conducted by Slingshot Solutions
Philadelphia, PA - March 6, 2002 -- A new report that instructs retailers and manufacturers on how to use online auctions as highly-profitable new distribution and liquidation channels was released today by Slingshot Solutions.
In addition to clearly defining the role that online auctions now play for both small and large companies to achieve the highest possible dollar returns on excess inventory, the report also introduces a "New Consumer" profile that has evolved since 2000.
Developed by Slingshot after managing thousands of online auctions for major retailers and manufacturers, the New Consumer profile describes a cautious and thoughtful shopper who, strongly influenced by an uncertain sociopolitical environment and a weakened economy, gravitates to online auctions as a reliable source for quality products, low prices, and - most surprisingly - entertainment in the form of "stay-at-home window shopping."
The New Consumer is increasingly turning to online auctions as an accepted retail venue. This phenomenon introduces a whole new sales channel, with what may be the most substantial impact on retailing since the introduction of off-price or discount retail malls in the eighties.
Other interesting facts raised in the report include:
Online auctions are yielding three to four times greater net cost recovery than existing retail liquidation channels
Retailers and manufacturers are avoiding brand erosion or excessive product markdowns by using online auctions to sell products under new "masked" brands or through third-party online storefronts
Online auctions are proving to be ideal channels for distributing new products, often allowing retailers to achieve higher than retail returns on popular items.
By contrast, online auctions present a unique opportunity to sell heavily-damaged/non-operational goods that could not be sold through any other channel. These items, sold on a "caveat emptor" no-return basis, carry strong appeal to hobbyists, handypeople and professional repair services
"The report underscores the fact that online auctions are rapidly becoming a strong and highly profitable distribution channel for any type of product at any point in its lifecycle," said Bob Hornsby, Slingshot Solutions President. "It sends a clear signal to retailers and manufacturers: online auctions are the next-wave retail opportunity, presenting even greater possibilities than discount malls did several years ago by offering the added bonus of low overhead costs, worldwide audience reach, and the ability to immediately adjust prices to take advantage of fluctuations in customer demand."
The report "Leveraging Digital Channels to Meet the Demand of the New Consumer" can be downloaded from the Slingshot Solutions Web site at http://www.slingshotsolutions.com/solution.htm.
About Slingshot Solutions
Slingshot provides patent-pending inventory and merchandising solutions that help manufacturers, retailers, and wholesalers achieve the highest possible sales returns on excess, new, refurbished, and returned products. Slingshot bridges the gap between excess inventory and unmet demand in online auctions, by leveraging existing marketplaces such as eBay, Yahoo, and Amazon, to optimize returns on any volume of any product, in any condition, at any stage of the product lifecycle.
The company has received national recognition for its business focus and was named a finalist in both the 1999/2000 Wharton School of Business Plan Competition and the 2001 Futuredex Match-a-Million venture capital competition. Slingshot Solutions is supported by Genco Distribution System, private investors, and the Commonwealth of Pennsylvania`s Ben Franklin Technology Development Authority and the Ben Franklin Technology Partners of Southeastern Pennsylvania. Founded in 2000, Slingshot Solutions is headquartered in Philadelphia, PA. More information can be found at www.slingshotsolutions.com.
Contact:
Ben Samson
215.717.0919 ext. 14
ben@slingshotsolutions.com
Stuart McFaul
Spiralgroup for Slingshot Solutions
650.941.6282
stuartm@spiralgroup.com
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