Find fields & stores near you!
Find fields and stores
Zipcode
PbNation News
PbNation News
Community Focus
Community Focus

Reply
 
Thread Tools
Old 10-18-2014, 01:07 PM #1
TradeMyGun Paintball
trademygun.com
 
TradeMyGun Paintball's Avatar
 
Join Date: Mar 2008
Location: Fort Wayne, Indiana
TradeMyGun Paintball owns a Planet Eclipse Ego
Do you Think Manufacturers Should Sell To Amazon ?

I'm writing this as an awareness article. I don't know if there is a right or wrong answer but I spend many days and nights thinking about this topic.

Many paintball retailers (including www.trademygun.com) sell on Amazon. Amazon is a huge marketplace that attracts millions of buyers. When you buy something from Amazon you always pay Amazon. When you receive the item it may have been shipped by Amazon or by the Retailer (like trademygun).

There are at least three types of companies that own the inventory that is being sold on Amazon:

1) The retailer (like trademygun)

2) The Manufacturer (in the paintball world a good example is Virtue)

3) Amazon (they actually buy inventory from places like Valken, Kee, etc)


In the business world it is common practice to have a Manufacturer sell to a Store (ie, the distributor, middleman, etc) and then have the store sell to the consumer.

I think it's wrong for a Manufacturer to sell directly to the consumer.

So let's get back to Amazon.

As previously noted, I therefore think it is wrong for the Paintball Manufacturer (like Virtue) to sell on Amazon. They are selling to our customers.

Is it ok for the Paintball Manufacturer to sell to Amazon ?

I think most Paintball Manufacturers consider Amazon a customer / store (like Walmart for example). I hate to agree with them but they are probably right.

I could go into a dozen reasons why I would disagree, but instead I'll just point out a few things that are note worthy. These are my opinions and may not be 100% factual. However, I've sold online since 1998 and spend my life researching online sales related trends. I think most of my points are accurate.

1) Amazon.com is just another website. Amazon is in the business of using other stores to figure out high velocity selling items. They make at least 15% from every sales dollar sold on their website (and they never have to own the inventory). As soon as these great selling items are found out, Amazon sources the products for themselves. They have all the data they need to make BIG buys and get the very best price. Amazon then takes control of the "buy box" and essentially shuts down all the other stores selling the same item on Amazon. Now instead of making 15% on the sales price, they make much more (they sell at retail just like our stores).

I wish I would have thought of this. Genius.

2) Amazon will always have a cost advantage over a store that sells on Amazon. Amazon doesn't have to pay the 15% fee charged to the other stores.

3) Over time, Amazon will put all the other stores out of business (on amazon.com). As soon as they pick up a product from a mfg, the store that was selling the item stops selling it.

As you can see this is a real puzzle.

If stores stopped selling on Amazon, Amazon would never find the best selling items and therefore wouldn't take over the sales on said products.

If Manufacturers stopped selling TO Amazon and ON Amazon, their loyal stores (The Paintball Fields and Stores that Keep This Industry Alive) would keep a sales channel that is slowly being stolen from us.

Thank You!
Mike
__________________
BRAND NEW WEBSITE - CHECK US OUT:
http://www.trademygun.com


MORE THAN JUST GUNS AT WWW.TRADEMYGUN.COM

trademygun.com
paintballplex.com
TradeMyGun Paintball is offline   Reply With Quote
Old Sponsored Links Remove Advertisement
Advertisement
Old 10-18-2014, 03:52 PM #2
GatSplat
 
 
GatSplat's Avatar
 
Join Date: Feb 2006
Location: Dallas Area
 has been a member for 10 years
Age old question... I did millions in ecommerce scuba and the same questions was always there. But if you expand the question....

Should manufacturers sell to amazon, because they are bigger than walmart? Should they sell to walmart because they are bigger than trade my gun? Should they sell to trade my gun because they are bigger than bobs paintball on line? should they sell to bobs paintball on line because they are bigger than Jims brick and mortar?

I found the margins and manufactuter policies turned me off so much that I did not want to sell paintball equipment at all. But if you do want to sell gear, get used to the fact that the manufacturers are going to sell to anyone who has enough money to place an order. Dealer, straight to consumers and disguise the sale as a "sponsorship", amazon, big box, anyone who will write the check.

That did not happen in scuba because the industry is driven by the need for certification, and that means there has to be stores. And stores that see a particular manufacturer is supporting big box more than small stores get dropped from the lines of the stores that are doing the training. So that check and balance has at least kept most the scuba manufacturers from selling directly to amazon or big box stores.

But with paintball margins being so low, stores cannot make a profit from selling, so they have all but closed up. Used to be 8 pretty big paintball stores in the Dallas area including me, now there are 2... soon to be one. So now when people want to buy paintball equipment, they go to the net. If I was a manufacturer, I'd consider reversing the trend, and start a company that did not allow any internet sales. Try to get store and field support for the products. But that will probably never happen, and if you are a manufacturer selling to people who sell on the net.. why skip the biggest presence out there.
__________________
Larry GatSplat.com


Paintball Field Reservation & Digital Waiver System.
3 Months Free! No set up fees! Then just $50 / month.
GatSplat is online now   Reply With Quote
Old 10-18-2014, 04:38 PM #3
coyote5987
 
 
Join Date: Dec 2002
Annual Supporting Member
 has been a member for 10 years
I HATE paintball on the retail side.....

The margins are terrible for the store....we only carry the basics....if u want something I can order it, but I don't look at it as a profit center.....

Companies want me to stock a variety of pants that cost me $120 and I sell for $170 ??? Tie up 1k into a gun that I profit $350 off of it???
They can keep theirs stuff!!!

I would imagine the companies making the real money are the manufacturers who ALSO own a large Internet retail site!!! It's perfect, no stocking anything, plus they get retail margins. The current model makes manufacturers so much money why change? Ill bet u anything both Dye and KEE have their own Internet sites......who owns ANSgear and the other couple big sites ?
coyote5987 is offline   Reply With Quote
Old 10-18-2014, 06:06 PM #4
Kirko017
 
 
Kirko017's Avatar
 
Join Date: Aug 2005
Location: Akron, Ohio
Kirko017 plays in the PSP
 plays in the NXL
Kirko017 posts videos on PbNation
Kirko017 is an NCPA player
Quote:
Originally Posted by coyote5987 View Post
I HATE paintball on the retail side.....

The margins are terrible for the store....we only carry the basics....if u want something I can order it, but I don't look at it as a profit center.....

Companies want me to stock a variety of pants that cost me $120 and I sell for $170 ??? Tie up 1k into a gun that I profit $350 off of it???
They can keep theirs stuff!!!

I would imagine the companies making the real money are the manufacturers who ALSO own a large Internet retail site!!! It's perfect, no stocking anything, plus they get retail margins. The current model makes manufacturers so much money why change? Ill bet u anything both Dye and KEE have their own Internet sites......who owns ANSgear and the other couple big sites ?
Well Dye and KEE both have their own website where I, as a consumer, can purchase their stuff at full retail..

I buy stuff from Amazon and it gives me an option to either buy directly from Amazon or other dealers who list the same item.. They don't close the options of buying from other dealers once they start keeping stock of a certain product.

As for manufacturers selling directly to customers. I think that's wrong/unfair to their dealers if that manufacture has a dealer program because it underminds their dealers. So I would say yes that is wrong of Virtue to be selling directly to customers through Amazon.. I have no problem if dealers sell through Amazon. Or if Amazon bought product from Virtue to sell and keep it in stock. I have no problem with that, because now they're a dealer like everyone else. It's up to Virtue if they want to make Amazon a dealer or keep their dealers strictly to paintball stores/fields.

Last edited by Kirko017 : 10-18-2014 at 06:19 PM.
Kirko017 is offline   Reply With Quote
Old 10-19-2014, 01:58 PM #5
raehl
NCPA President
 
raehl's Avatar
 
Join Date: Mar 2001
Location: Chippewa Falls, WI
Annual Supporting Member
raehl is a Moderator
raehl is a Supporting Member
raehl is a founding member
 has been a member for 10 years
raehl plays in the PSP
raehl is an NCPA National Champion
raehl plays in the APPA D5 division
The amazon setup is bad for smaller retailers who want to sell paintball products online.

But is it bad for either the consumer or manufacturer? Does the consumer care who shipped the product? Does the manufacturer?

Business relies on both parties getting something of value. Not selling to Amazon may help smaller internet retailers - but how would that improve sales for the manufacturer?


- Chris
__________________
A cyborg whose sole sustenance is Mountain Dew, craft beer and internet disagreements.

Check Out Paintball on TV!

National Collegiate Paintball Association, President - http://www.ncpapaintball.com

American Paintball Players Association - www.paintball-players.org
raehl is offline   Reply With Quote
Old 10-19-2014, 06:50 PM #6
7paintball
Service at its best.
 
7paintball's Avatar
 
Join Date: Apr 2010
Location: Lockport, IL
7paintball owns a Planet Eclipse Gtek
7paintball supports Ninja Paintball
Makes me want to call my Virtue rep.

I know lots of the big guys Vaken, GI, and Kee all sell on Shopaton, but I know we take full advantage of that.
__________________
7pbA.com
ALL THINGS PAINTBALL & AIRSOFT
1143 E 9th St.
Lockport, IL 60441
(815) 588-1777


We always offer discounts to the Military, Police and Fire Departments.
7paintball is offline   Reply With Quote
Old 10-27-2014, 02:56 PM #7
KEFarris
 
 
Join Date: Sep 2002
Location: Lawrence, KS
 has been a member for 10 years
KEFarris has achieved Level 1 in PbNation Pursuit
It is ok for Virtue to sell on Amazon, but it is bad for them to do so. They are decreasing the demand for their product at the local store level. This results in fewer store carrying their products and exposing new players to their gear.
Shopatron is the best way to go for manufacturers. It allows sales online while rewarding stores for stocking their products.
KEFarris is offline   Reply With Quote
Reply


Thread Tools

Posting Rules
Forum Jump