I'm actually getting pretty close to launching my newegg.com competitor.
It will be Bitcoin only, and competitive with newegg on just about everything.
It will have over 500,000 items available with real time inventory checks.
Here is a sneak preview:
This looked really exciting to me until I visited the shipping methods page of Memory Dealers
http://memorydealers.com/shipping-rates/ when it becomes a clear no deal for me. The reason is you do not offer and advertise the US Postal Service as a shipping option to your customers. Let me explain:
When it comes to international and residential package delivery the private shipping companies simply do not get it here in Canada. I have seen UPS charge a $50 brokerage fee to broker a $3.50 GST charge at the border on an Item that cost $50. This got so bad the there was a class action lawsuit in Canada against UPS over this.
http://www.classaction.ca/actions/Consumer-Protection/Current-Actions/United-Parcel-Service-Canada-Ltd-%28-UPS-%29.aspx. They have now changed their fees somewhat after the litigation but they are sill far to high. Canada Post charges a flat fee of $8.50 for brokerage.
http://www.canadapost.ca/tools/pg/manual/PGcustoms-e.asp#1382719. That is it
Then there is the issue of delivery to a residential address especially in the smaller centers. With Canada Post if I am not home I get a notice in my mailbox and I can go to a retail outlet in my neighborhood to pick up my package. This is simple and very convenient as these outlets are typically open evenings and weekends. With private couriers I may get a phone call or in some cases I have to contact them using the tracking information provided by the shipper. Then to arrange for delivery I have to either spend all day waiting of the courier to arrive or drive to some office in the outskirts of town, or in some cases in another community a few hundred miles away, open only from 8:30 to 4:30 on weekdays to pick up my package. Private couriers are very good at delivering documents to a business that has a reception. They fail very badly with delivering packages to residential addresses, and are even worse with international shipments.
This may sound like a real hearsay to many in this community, but it must be said: When it comes to shipping items purchased with Bitcoin to residential customers the "State Postal Monopoly" here in Canada
http://www.canadapost.ca does an excellent job, while the private sector fails miserably.
For me as a customer purchasing online it is very simple: Deliver using the Post Office or no sale.
Here are some examples regarding residential deliveries by private sector companies:
http://www.youtube.com/watch?v=D7Sb_r7BKTchttp://www.youtube.com/watch?v=ikanns26nDAhttp://www.youtube.com/watch?v=APqvq0Kn55ohttp://www.youtube.com/watch?v=W1qUd9na_PQThe store and pricing is actually very good, but as I suspected the deal killer for a customer in Canada is shipping. I include my post from earlier this year on the subject.
When it comes to shipping products from the United States to Canada there are basically 3 options
1) Private Courier by Air with prepaid brokerage. This can be good for certain customers but very expensive. It only really makes sense when one needs the item right away, and for shipment to a business address. For a $20.71 item the most economical shipping is $95.91 to Prince George BC and $87.30 to Vancouver BC. This is the only option offered at this point.
2) Private Courier by Ground with brokerage extra. On the surface this will appear cheap however the customer is charged expensive "brokerage" "bond" and "handling" fees as I noted in my previous post above. This is by far the worst and no self respecting merchant should offer this option. To Memory Dealers credit it is not offered.
3) USPS with various options regarding cost vs delivery time. This is by far the best option for residential customers and also for many small businesses. Unfortunately it is not offered at this time.
The bottom line is that to be competitive in the international mail order business a US based merchant needs to offer USPS as a shipping option.