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Technology Stocks : OnSale Inc.

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To: Lizzie Tudor who wrote (2327)12/4/1998 4:36:00 PM
From: j_b  Read Replies (1) of 4903
 
<<I dont understand this - you are saying a drawback to consignments was inventory and obsolescence? >>

Heavens no!! The move AWAY from consignments lead to those issues. If you were to look at the early ONSL numbers, you would find that the percentage of goods sold that were on a consignment basis was much higher than it is now. ONSL began to own a higher percentage of the goods sold through their site, which, although it gave them more control over the fulfillment process and the quality control of the goods, resulted in the need for merchandise buyers, warehouse space, a fulfillment process, and all the related risks.
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