Have you ever been in one of those eCommerce who spend the day doing Adwords and remarketing and lowering the prices of their products to the minimum?
And, like me, have you ever wondered: what’s going on with this guys, what do they live out of? Oi, friend, you’re not his target. Neither the man who is supposed to be their customer is. The client is the shareholder / investor.
In fact, the scheme is very simple. Bottomline is: you don’t care about your revenues or costs, you just want to sell in order to have good numbers to present to your potential investors. Yup: all I want to do is have good numbers to sell the fish to someone to put money. You do not want to have an eCommerce. You want to sell that eCommerce or get money from funding rounds.
And it goes like this
Lower the price to the bottom, spend good money in CPC campaigns, give your clients free shipping, start affiliate programs, give away as much promocodes as you need, etc. The result: an exponential database growth.
Once you have a huge database and a bunch of data in your backoffice’s orders tab, you’re ready to sell. Sell out the numbers to investors and get your money back (if you’re lucky).
In the meanwhile, you have completely fucked up the chain between the manufacturer and the retailer. Why? Because you never cared for sustainability. That’s why you have the lowest price. Fuck up the sector, sell out your website and move on to the next one.
This kind of projects represent a paradigm shift: the customer does not care. The client is a number and is an end that just feeds your statistics that, will be used later to recover the money you’ve invested attracting these customers. Customer service is not the purpose of this eCommerce. The customer is the means.
What do you think? Personally I see it as a shit model (and not sustainable), a sector killer-ruiner.