Dell's Online Superstore ['gigabuys'] to expand internationally.
Kemble:
....and the saga continues......
=================
Dell Launches Online Computer Mall
03 Mar 1999, 1:38 PM CST
By Matt Hines, Newsbytes.
ROUND ROCK, TEXAS, U.S.A.,
Direct market PC giant Dell Computer Corp. [NASDAQ:DELL] is broadening its electronic commerce strategy by launching a sprawling new computer shopping site on the Internet.
Dubbed Gigabuys.com, Dell is hoping that the site will attract consumers to order, not only its own PCs, but also a range of peripherals and software which it is making available through the online store. The site opens for business today in the US and will be expanded internationally in coming months, Dell spokesmen said.
Dell called the new site a "logical extension" of the company's existing online sales strategy. The company currently lays claim to $14 million in products sold over the Web each day, which accounts for 25 percent of Dell's overall business. The firm said it plans to do 50 percent of its business online by the end of the year 2000.
While Dell has been at the forefront of taking PC orders over the Internet, some analysts said that the firm could improve its reach to consumers shopping online.
"For the most part, Dell's online sales numbers represent orders made by companies that already have a relationship with the manufacturer and know what they want," said Steven Baker, chief hardware analyst for research group PC Data. "They can do a better job of attracting consumers."
However, Baker pointed out that Dell has led the way in moving the PC industry toward build-to-order manufacturing and should be able to capitalize on greater Internet sales opportunities.
Gigabuys.com will offer an estimated 30,000 computer-related products and services from a number of leading brands. Dell said that it plans to offer more than 40,000 products by the end of this year. Among consumer-oriented selection of products available at the site are digital cameras, personal digital assistants, scanners, and games as well as businesses-related products such as routers and network interface cards.
Shoppers will be able to search for products by category, manufacturer, product model, features and price, Dell reported. The firm said that it will also feature customer product reviews and substitute product recommendations.
Customized features at Gigabuys.com include Dell.com's "customer kit," which identifies appropriate software and hardware upgrades for Dell systems according to system model. Shoppers on Dell.com can use the same shopping cart for both sites. Dell also announced it will offer customized versions of the superstore content to its corporate customers.
Dell is not the only PC maker taking a closer look at how to increase sales over the Internet. Gateway Inc., the next-largest direct model PC vendor after Dell, has announced plans to join forces with electronics and peripherals suppliers NECX to create a new Internet-based computer superstore labeled SpotShop.com.
Dell's biggest rival, Compaq Computer Corp., is also struggling with the issues around how it will market PCs online. Last week, Compaq suspended sales of its computers through its partners marketing machines exclusively over the Internet. Company officials said the firm has temporarily revoked authorization for Internet-only retailers to sell its Presario line of computers for at least a 90-day evaluation period which began Feb. 15.
It is believed that Compaq was running into pricing conflicts between its various channel partners and the online brokers.
Among the online retailers affected by the policy are Value America, Cyberian Outpost, PCSave, Buy.com and Shopping.com.
"Clearly, the online sales got away from Compaq in terms of who was selling at what price," said Baker. "I'm sure that this latest move was caused by complaints from the traditional channel players. They need to implement a system so that the online resellers aren't able to radically undercut everyone else."
The new online store is located at gigabuys
|
