RESALE VS. RETAIL -- Economic Theory Question

Discussion in 'Growing and Managing a Business' started by Chrisanova, Feb 19, 2012.

  1. Chrisanova

    Chrisanova
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    I need someone to tell me what the following would be called:

    Let's say I sell a USED PRODUCT on eBay.

    I grow the category SO LARGE that it makes BILLIONS per year on eBay alone.

    Let's say the impact was so heavy that it started making serious dents in the profits of brick-and-mortar RETAIL stores, that carry the same item, NEW.

    The manufacturers/distributors/retailers were damaged by that, and had to adjust their prices accordingly;
    or maybe even go out of business because the RESALE angle caused the RETAIL to implode in on itself.

    It's like a 2ndary market causes a massive draw from the primary market, and causes a sort of "vacuum" ?, could I call it ?

    What is that economic term called ?

    Thank you.
     
  2. Fergal

    Fergal
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    Good to see you here again Chrisanova, I'd call it a "game changer" although I'm not sure what the correct economics term is for that situation.
     
  3. Chrisanova

    Chrisanova
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    Thanks for the welcome back.

    I am putting the finishing touches on a business plan,
    and trying to explain how the resale angle can take away so much market share, that it causes a fundamental change in the retail end.


    Speaking of which, does your website here have a section where I can post an "investor wanted" ad ?

    Is that allowed ?
     
  4. Fergal

    Fergal
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  5. Sahil

    Sahil
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    It can be termed as "Customer Attitude Reflection". Mostly it is observed in the market that customers have misconception that used products are cheap in market, now that psychology of customers has gone so deep that they even do not consider checking up the prices of the new products or even a small variation from the resale prices means a lot to them. And they end up buying used ones.

    I don't think that the given situation can be possible as the consumers buying products online are a different category people, it is hardly possible that any customer buying a product would not have checked alternate option. They would easily compare the prices of new products and the other 10 suppliers providing that product, maybe the advancement and smartness have grown parallel.
     
  6. merryscanlan

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    Resale means when you sell and item again and again is called resale. When you purchased items in list or bulk and sell these items piece by piece or one by one. This whole process called resale.

    A lot of things distribute to distributors and distributors re distribute that thing to next distributor after distributor to shop and from shop we purchase that is called retail. There are per steps commissions for distributor to next step and final profit gains by retailers. . Retail is nothing but only the transaction of the products or goods between seller and end users.
     
  7. Chrisanova

    Chrisanova
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    Thank you for the terminology. I will look it up.
     
  8. Chrisanova

    Chrisanova
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    You didn't really understand my question, but thanks anyway.
     

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