Reno Kustom Solutions Inc. (renoks.com) is a Dropship Distributor of Aftermarket Car Accessories we carry many wide variety of brands and products for all popular vehicle make models and years. We have Direct Factory accounts to ensure that you get the best possible discount available. No business is too big or too small for us as we offer a comprehensive dropship program which is designed to fit all your wholesale Dropshipping needs. We offer many programs for startups to ensure their success when trying to set up an online business from selling on ebay to start a website and a complete Ecommerce Education Program.
Brief History about eCommerce retailing
A lot has changed since the birth of online retailing (eCommerce). Products that were once only available at specialty stores with high margins are now readily found on the internet. However, basic economics dictate when a product is no longer "special" due to the availability everywhere and resulted in downward pricing pressure. For example if there is an exclusive retailer selling auto parts called Dash Kits in the United States, they can control the price and the distribution. If more retailers appear in the marketplace selling the same product, all of them may begin to lower their price. The result will slowly be lowered prices and margins.
In the late 90's, the Internet put parts availability at the finger tips of every consumer. Internet giants in the automotive sector such as Jegs & Summit waged a fierce discounting battle, while at the same time eBay created resellers in basements overnight. The basement resellers, in an attempt to receive Master Distribution discounts, offered cut-rate prices to increase their volume of sales.
Auto parts became commodities and pricing erosion seemed endless until web resellers started failing nearly as fast as they started. Web resellers took for granted their cheap basement operation on ultra narrow profit would be a viable business. Not being skilled in business concepts - they figured they could make it up on volume. To their surprise, that volume never happened and underestimated eBay fees finished them off. Older businesses began to fail and the newer start-up businesses were also unsuccessful because of the slim margins.
In 2007, eBay started to lower advertising fees and increasing eBay seller listing fees. This drove less people to their website and drove more eBay sellers out of business. eBay reputation started to diminish and right as the weak eBay basement business models started to fade, the online giants like Jeg's and Summit finally figured out that they were the market leaders and could influence pricing upwards the same as downwards! While the larger companies remained fierce competitors they also improved the pricing structures and margins.
Recession and the Rise of a New Economy
Chris Anderson from wired magazine wrote an article about The New New Economy: More Startups, Fewer Giants, Infinite Opportunity. To summarize the article in the late 1980s, an MIT professor named Tom Malone started thinking about how it could change the structure of industries. In a series of papers, he predicted that the big top-down companies of the 20th century would soon "decentralize and externalize" into industry ecosystems. "Imagine an AT&T that breaks up into not two or three different companies but two or three hundred thousand different companies," Malone told Wired in a July 1998 interview. "This sort of voluntary, radical disaggregation is an attractive alternative for some large organizations."
The missing puzzle to Tom Malone's strategy was the synchronization, communication and technology that was required to make his theory possible, to have one single company transition into thousands of small companies and operate as one. Shopping Cart Elite can make this business model work effectively, designed specifically for eCommerce wholesalers and retailers, Shopping Cart Elite is able to synchronize all parties where one entrepreneur can run multiple companies retail companies effectively while another entrepreneur can run a wholesale company handling thousands of accounts by themselves. Shopping Cart Elite requires you to be a good entrepreneur , not a good computer programmer, graphic designer or marketing expert. As long as you are a good entrepreneur all around with strong sales skills, sky is your limit. Shopping Cart Elite is your all around technology partner that can turn a startup company into a multi million dollar company in less than one year.
Reno Kustom Solutions Inc (renoks.com) is here to help entrepreneurs put it altogether and execute a successful business plan using Shopping Cart Elite software. Be a part of the new economy that Tom Malone spoke about and hop on the train before it will be long gone and the place holder that was once available to you, will be taken by someone else.