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Technology Stocks : OnSale Inc.
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To: Doug Fowler who wrote (3543)1/21/1999 5:33:00 PM
From: JUDE GUZMAN  Read Replies (1) of 4903
 
Called ONSALE and spoke to a representative from Investor Relations Department Stephanie Elkins at (650) 470-2448 and she confirmed that ONSALE does not take hold of the items being sold at atCost site. There is NO INVENTORY.

I think a lot of different manufactures will start pounding on ONSALE doors to sell their products. ONSALE offers a very convenient way for manufactures to do business on the web. ONSALE has a great business infrastructure and web distribution channel that manufactures can take advantage of. Manufactures will benefit by avoiding the costs of building and maintaining their own site. They would rather outsource this overhead to a company like ONSALE. This is a win, win, win situation for consumers, manufactures and ONSALE investors.

1) Consumers WIN by buying products at a cheaper price. (In most cases. I checked about 10 items for sale and found about 3 cheaper at other sites. Most products will be cheaper at the atCost site, not everyone)

2) Manufactures WIN by having a cheap way to outsource Internet product delivery.

3) Investors WIN by increased volume of sales and additional advertising profits.

“Lots of $10 fees, low cost = profit.”

This is the beginning of a new era for e-commerce on the web and ONSALE is paving the way. Other sites will soon have to follow to compete with ONSALE.
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