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Tue Sept 9 2008 22:23:24

Brick-and-Mortars Fight Against Online Discounting

By: Ina Steiner

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Internet Retailer has an interesting article about online sellers and the issue of manufacturers' suggested retail prices. Some brick-and-mortar chains are trying to force manufacturers to impose minimum pricing rules on Internet retailers. Internet Retailer reports that online retailers BabyAge.com and BabyCatalog.com are suing the Babies 'R' Us unit of Toys 'R' Us over the issue.

The Leegin case that was mentioned in the article refers to last year's Supreme Court ruling that in some cases, manufacturers have the right to force retailers to minimum retail prices (price floors).

Manufacturers have also been known to prohibit their distributors from selling on eBay (or selling to eBay sellers), I interviewed a PowerSeller last year about the trend.

 

 




Comments (6) | Permalink

Readers Comments

Brick-and-Mortars Fight Against Online Discounting   Brick-and-Mortars Fight Against Online Discounting

by: Sun

Tue Sep 9 22:25:31 2008

Some online retailers get around Minimum Advertised Price (MAP) requirements by offering free shipping.

Brick-and-Mortars Fight Against Online Discounting   Brick-and-Mortars Fight Against Online Discounting

by: Capitalism

Tue Sep 9 23:54:39 2008

These cases never win.  It's a free-market society, people can (and should) be able to price at whatever they want without the government stepping in.

Brick-and-Mortars Fight Against Online Discounting   Brick-and-Mortars Fight Against Online Discounting

by: Donna

Wed Sep 10 07:06:32 2008

That is not the only way B&Ms fight back. I sell jewelry.  Retailers will refuse to do repair work on items bought on the Internet or the really nasty retailers will tell the customer what a substandard product they got from the Internet.  They outright lie about the product, thus further eroding trust in the online purchase.

Brick-and-Mortars Fight Against Online Discounting   Brick-and-Mortars Fight Against Online Discounting

by: Postal Changes

Wed Sep 10 09:15:19 2008

Any truth to these rumors:
I just got back from the local post office and although I don't believe a word what this one disgruntled window says,
he said starting tomorrow - there is NO MORE Printed Matter rate. I thought that was crazy since i haven't heard a word of that ever. And I remember you said you may things that way.
And he also said - they are planning to do away with MEDIA MAIL ! since the post office lost so much money and prefer people using credit cards with priority mail.

Brick-and-Mortars Fight Against Online Discounting   Brick-and-Mortars Fight Against Online Discounting

by: conspicuouschick

Wed Sep 10 12:10:00 2008

The U.S. is NOT a free-market society. If we were, the government would not have bailed out Bear-Sterns, the airlines after 911, the S&L's in the 80s or the current crisis involving Mac & Mae. "Free market" is the term corporations throw out when they want to abuse consumers and increase profits without anyone interfearing.

Brick-and-Mortars Fight Against Online Discounting   Brick-and-Mortars Fight Against Online Discounting

by: Cash Back Gal

Wed Sep 10 13:08:38 2008

You can't stay in business too long giving away merchandise just barely above wholesale on eBay. The best online sellers make a wonderful profit selling their wares at just 35% above retail. This gives merchants enough margin. It also gives buyers a good deal and helps compensate for shipping charges. It's more than just the price wars... brick and mortar retailers are worried because of the consumer loyalty that's building in the online world. Today it's easy to use an online coupon or to get cash back shopping eBay and hundreds of online stores. You simply can get a better deal shopping eBay or Amazon that you can at the brick and mortar stores. Look around your home town and you'll see that it's driving the local stores to close down.



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