We are starting to see Amazon playing in categories that will affect newsagency and similar businesses. As more an more categories fill and the company leverages better pricing deals and connects with online purchase levers, their success is growing and will grow further.
Take this simple pack of 4-colour Bic pens:
Beyond the price, there is the subscription offer, making re-purchase on a timed program easy, convenient. 10% off is compelling. As is free delivery on orders of $39.00 our more. This is an easy threshold to achieve when buying stationery.
The product information online for this item is terrific, making it easy for the online shopper. This is what newsagents are competing with when it comes to online sales of stationery.
In capital city situations it is challenging. Not as much in regional Australia. however, with online, geography is not a challenge in that the free delivery offer is there for all who meet the requirements.
What it is taking a while for Amazon to reach critical mass in Australia, they are having success by getting their online pitch right. This Bic pen offer is, to meta good example of them getting it right, creating compelling price, product information and service experience that will be a good foundation for long term success.
Right now, the Amazon everyday stationery experience is better than others in this space in Australia. That, of course, can change quickly.
This does not mean you would give up chasing online stationery sales. However, it does mean that in Amazon you have a formidable competitor.
The real irony and something that is very telling is that that offer on Amazon is about 30% cheaper than the prices being offered at wholesale from GNS.
I guess it just goes to show once again how far out of the equation GNS is becoming.
Paul, GNS and other suppliers to newsagency businesses are as competitive as the support they receive enables them to be.
Hi, Paul.
The GNS fair is the best price to source deals.
8 years ago, Newell has its 4 color pens @ 69 cents, We took the deal through GNS and sold over 300 pens @$1 each in 16 months. ( We sold the Bic pens @ $4 at the same time)
Some years ago, Bic has its 4 color pens at similar price point, we also took the deal and sold over 250 pens @$1.5 to $2 in 12 months.
The problem though Mark is that they have to be competitive in the first place to gain the support so it’s a vicious circle. GNS are becoming less relevant unfortunately across the channel which, as you point out, means their offer in general is less relevant.
The problem is that they are a wholesaler owned by the retailer that cannot support the previous quantity of variety to cover lesser demand without seeking outside accounts or services.
On top of this a lot of newsagents have not embrace omni retail this could be attributed to the fact that GNS could maybe in hindsight they should have organised a co-operative website aggressively competing with Office Works
They had the outlets and they HAVE the outlets as newsagents they need to lead not follow.
The real point is two things Growth and Value when operating or buying a business. i know they are just words howver when put into action -where is your GROWTH and or where is the value of your business. Think both and if there is no growth it is lack of capital or imagination maybe both.
I see many opportunities out there of both Growth and this creates Value. Doing nothing destroys both.
GNS needs their shareholders to shake them up to discuss this with a plan. Going to Amazon with service typoe operations is futile.
Mark has belted this point home for a long time and I suspect because it is obvious not self interest for NewsXpress for he knows and states it is not for all newsagents yet it is for far more than use use. Others there are opportunities get into GNS and make your wholesaler work with you for you. just recently I was talking with a Private Equity Investment Company that own 3 well known retail chains and their attitude is miles in front of where we are. Perhaps GNS needs to look at this type of funding.
II guess what I am trying to get across is that there are plenty of people interested in our retail channel. They are rightly confused, aren’t we all? yet we have the foundation of a very good retail business.
The basic foundation of being a newsagent has changed. Diversification from base is essential. Some Gifts and Social Expression others what suits their area however services that are or can be in the future accommodated by internet or digital access are on a hiding to nowhere If this is your model use it to change your direction. Stop Yes concern yourself with what Amazon is doing howvever mor concern yourself with what your own enterprise GNS is doing-selling you out * Go for it -take control and get some outside finance to develop this enterprise GNS for you the shareholder.