Joe Ronning, CEO and founder of
Digital River, delivered a keynote
speech at the Company’s annual Globalocity commerce conference (http://www.youtube.com/watch?v=SsZovEjJpko
). Among other interesting things he mentioned a “show-rooming” phenomenon where
the brick & mortar stores of traditional retailer serve as a showroom for
an online retailer. Shoppers go to brick-and-mortar retailers' stores to "touch and feel" the product they want to buy and then purchase the item from an online retailer. Here is how e-shops parasite on traditional retailers' infrustructure.
Put yourself in the traditional retailers' shoes: you build a chain store, invest in equipment and inventory, train sales staff and so on. And here comes online shop and takes your customers away making your chain a mere show-room. Do you want to be in this business letting other to parasite on your business? I certainly do not.
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