#1: An Introduction to Game Retail

[RPGnet Columns]

http://www.rpg.net/columns/businessofgamingretail/businessofgamingretail1.phtml

Summary:

Introducing a new column and Lloyd's experience in retail.

Go to the column (http://www.rpg.net/columns/businessofgamingretail/businessofgamingretail1.phtml) for more information.

[johnnyRPG]

Do you have any thoughts or cost analysis on opening an online game store? What do you need? Do the stores online really have all the games they have on their online stores or do they drop ship them? Something else?

Thank you.

[LBrownIII]

I haven't done a in-depth analysis on online stores, and I probably won't unless somebody pays me for it. Online stores don't grow the industry, and I can't advocate somethings that's generally only feasible in the short term.

However, effective online stores aren't much (if any) cheaper to open than brick & mortar stores, because the cost to set up a decent website is far greater than most people expect.

Most stores that have been around actually do have the inventory they claim on hand. Trying to offer services drop-shipped when the industry has such frequent stockouts would be suicide.

The only real savings that online stores have is in rent: you can probably work from home if you have any kind of space at all, or the commercial space you rent is leased at a lower rate than retail space. If you operate a brick & click store, then you lose that advantage, too.