Arrowtown Developer Plans NZ's Largest Mall
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Arrowtown Developer Plans New Zealand’s Largest Shopping Mall.
Arrowtown Web Developer Glen Wallace plans to build New Zealand’s largest online retail shopping Mall with his ecommerce website PriceDirect.co.nz.
“I think the time is right now for online shopping to take off and the buy-in I am getting from national and local clients underlines this. It is a growing phenomenon throughout the world and although there have been significant failures in this area I am confident that PriceDirect.co.nz has the right formula to succeed.”
Glen has a strong background in online shopping previously working for Fairfax Digital in Sydney, managing the Fairfax portal and online shopping directory.
“I was employed just before the dotcom bubble burst when internet stocks were running at a record high based on false promises. It was fundamental. The cost of sale was too high in relation to the revenue generated, so nobody was making any money.”
“Back then the cost to set up an ecom website was a minimum $100k, and then you had to employ a web developer who cost you a further $100k per year to run it, not to mention business development and account and sales managers.”
“These days it is much less expensive,” he says. “Ecom websites can be set up at a fraction of the cost and typically run by the owner or staff rather than a web developer, which is the basis PriceDirect.co.nz operates under.”
Glen says there have been some notable collapses however in the online shopping space, with the likes of ferrit.co.nz running up losses, and closing down within three years of start up.
“I feel one of the reasons why Ferrit fell over was that their cost of advertising was too high for the retailer, as they pumped a significant amount of money into television advertising to stimulate an audience, which had to be passed onto the retailer. They would have been wiser to focus on lower cost internet advertising because internet drives internet.”
PriceDirect targets small to medium sized businesses that need representation on the web at an affordable advertising rate.
“The Internet is so vast it is often difficult for people to find what they are looking for. Some companies are building great websites, with great products but no-one knows about them. To take a new product to market through traditional retail avenues is very expensive and many great products never see the light of day.”
“Working on a low cost of sale model, PriceDirect allows shoppers to find products online, then buy direct from the vendor’s website,” says Glen. “This puts the responsibility for the product on the vendor, who must stand behind the sale and the product, which in turn creates a safer more responsible online shopping environment from a retail perspective.”
He says results so far have been most encouraging.
“Some retailers that have been with PriceDirect from start up have received a 1500% return on investment in sales, during the last year of advertising on the website. With a modest advertising fee of $295 per year to advertise, retailers are happy to stay on board as they are getting real value for money.”
“Our aim is to create a win, win and win situation. A win for the customer in finding a unique selection of products at great prices. A win for the retailer with an affordable sales channel and a win for PriceDirect with a viable online business allowing us to share our extensive knowledge in online advertising and shopping.”