Online resellers grab discounts, peddle overseas
Posted on February 26, 2013 at 21:59 PM EST
Online resellers grab discounts, peddle overseas Instead of selling used stuff, a growing number of individuals in the U.S. are buying new consumer goods at steep discounts and reselling them to buyers overseas, where demand for American brands far outstrips supply. "Say Kate Spade has a one-day, 75 percent-off sale," said Scot Wingo, chief executive officer of e-commerce software provider ChannelAdvisor, which has about 2,000 customers using its technology to run their online retail sites. Liz Crawford, a retail consultant in Westport, Conn., and author of "The Shopper Economy," describes the phenomenon as "a consumer arbitrage market that is really new and fueled by technology and growing income disparity." When American entrepreneurs can figure out how to master the distribution, the retailers are certainly not happy about it, but if (the small businesses are) providing value to the customer base, a lot of them don't care who they (tick) off, Muscarello says. Little regulation, taxesLike many interstate online sales, these types of transactions generally take place outside the tax and regulatory structure that governs traditional retail sales, including the collection of sales tax. The company has a warehouse and a 24-hour call center staffed mostly by Russian immigrants, who must master the complexities of customs, shipping, currency conversions and cultural issues.
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