I just added Ebiz5 onto my plate. This one should be an easy one to start because it is selling the exact same things as Ebiz1. The main difference is that this store is going for high volume, low prices, high shipping costs.
For the past few days I started a Halloween sale on ebiz1. I lowered a product from $92 down to $85 and I got 5 orders for that product. The biggest issue for ebiz1 has been product margins. I sell my products for $140 while others sell them for $99. Let’s say this product costs $90 so the margin is $41 vs. $9. I would need to sell 5 of them at $99 to equal one $140 sale. I don’t know which is the better method.
So ebiz5 was born! With ebiz5 I am going to be the lowest priced store out there. I will compete will the low price guys. I will guarantee the lowest price out there. However, I will be charging high shipping costs. I’m going for that ebay sell for $1 and charge $20 shipping model. I hope that this site will capture a decent amount of sales from the price shoppers.
You might think that ebiz5 will compete against ebiz1, but I believe that the people who shop price would not buy from ebiz1 no matter what. A few google searches and you can find many stores selling cheaper than it. What you get from ebiz1 is customer service, a toll free number and a general good feeling that you are buying from a legit business. What you will get from ebiz5 is the same customer service, a hard to find toll free number and a Sam’s Club, CostCo feeling. It’s going to have the feeling that its a huge outlet store. With outlet stores you generally get cheap prices and not much information or presentation.
Oh, and another thing. I’m also going to experiment with 00 pricing meaning products with not be $24.99, they will be $25.00. Everything in the store will end in 00. I’ve always hated the .99 pricing.