In this model, a single website will pull from multiple
brands and companies and sell through one single portal. Amazon.com is a great
example of this, as is Overstock.com which focuses on discount products and
extra inventory. In the clicks and
bricks category of conglomerate e-tailers, we can look at monsters like
Target.com, JCPenney.com or Walmart.com.
The information comes into these sites in various ways - and
this is when we get into the nitty gritty of IT and Marketing coming together
in the Vulcan mind meld. In the example of Target.com or JCPenney.com, these
department based stores essentially offer their products in the online
environment much as they do within their brick and mortar storefront. Their
supply chain and their product information is already highly organized and is
merely translated by their inhouse team onto the web. (heh. Merely...)
In the case of an Amazon.com or Overstock.com, smaller
e-tailers literally create feeds of the products they want to offer through the
conglomerate website, and the products are then offered within the category
schema of the larger website. Although the transaction goes through, for
example, Amazon, when you buy an item, it may actually ship from the original
e-tailer. Amazon gets their cut, the e-tailer gets the benefit of the traffic
and marketing power of Amazon and the consumer gets the benefit of finding what
they wanted easily on Amazon and enjoying their simple, secure checkout
process.
This model requires advanced technology to offer feeds into
the conglomerate and smaller companies need to ensure that the profit margins
work - but the benefit is the trust these types of companies have already
established with consumers. While some might think this sounds very much like
an affiliate program or a comparison shopping engine, these sites are different
because you will always check out through the conglomerate website ensuring
that, at the end of the day, their brand further saturates the market - not
that of the smaller e-tailer.
http://www.amazon.com/
It almost goes without
saying that Amazon is an incredible example of a site that sells across
brand and industry. They bring in feeds, the partner with other
companies, they offer user reviews, their checkout is easy and secure and
they pay attention to what you buy so they can offer suggestions of what
you might like in the future.
Even if you don't buy from Amazon,
you can probably do research and find enough information on the site to make an
informed decision. Not only are they a conglomerate e-tailer, they are also an
information provider.
http://www.overstock.com/
Overstock.com is another
excellent example of a conglomerate e-tailer, bringing together "over
stock" from multiple stores and brands and selling their goods at a
discount. The high end look, excellent shipping rates and security of the
site have secured their success.
They, like Amazon, contract with
many smaller e-tailers and offer products on the site via a feed.
http://www.bluefly.com/
We consider Bluefly.com
to be an example of a conglomerate e-tailer because they sell multiple
brands from multiple providers - but they are niche in that they
specifically sell designer clothing.
With
a great niche and smart marketing through venues like Project Runway,
BlueFly.com is positioned well to offer designer clothing and accessories in a
new way and it has become a go-to website for fashion followers everywhere.