<<I dont believe Dell, Compaq or any other mainstream PC manufacturer will ever buy parts this way. To me, this sounds like more liquidation, very similar to what onsl has always done. Of course there is a market for liquidated goods, but it is not a mainstream market. There is something there, Im not denying that but how much?>>
"Mainstream Manufacturers" purchase their goods directly from two main sources (1) direct factory representatives and (2) merchandising agents representing several smaller manufacturers. It is the number (2) that gives new meaning to large mainstream, 2nd tier manufacturers purchasing goods directly from small suppliers on the net, bypassing merchandising agents. such agents generally represent a number of first tier small manufacturers, acting as brokers. in this case ONSL acts as a one stop site whereby such manufacturers can list their goods. ONSL gets a small premium on the goods sold, but nothing compared to the premium a merchandising agent receives. cost savings would equal 10% to 35% of the purchased good.
the list gets quite long when you eliminate merchandising agents. Dell uses such frequently in making product buys, as does Compaq.
the purchase of stocks over the net is a prime example of bypassing big ticket brokers, or agents. every raw product manufacturered on earth employs merchandising agents or brokers - coffee, sugar, tea, milk, etc. they could all, technically, use the net to sell their goods bypassing the agent. oil agents, for example, earn commissions of up to $2 million a year on average. gold agents, diamond agents. on and on. you add it up.
as for the "market for liquidated goods" - this is just the beginning. they also have a "Quick Bid" site whereby goods are purchased without the bidding process. The Quick Bid site could begin to be expanded to include MORE none liquidated goods, or more new merchandise as ONSL is already doing.
The softbank business to business site in Japan is a market much like the US ONSL site (according to ONSL) whereby businesses ply liquidated, refurbished, and new goods. |
