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17
May/2008

Confessions of an Online Store Owner pt 1

I own an online gaming store. I'm hoping this series of blogs (which will be updated in a very non-scheduled manner) will help give some insight into the industry...

 It's really more of a hobby.  I don't make a ton of money off of it, certainly not enough to quit my day job.  I do it because I love gaming.  It supports my own gaming habits, and I suppose that's part of the point.

 Despite the fact that I own such a store, I still support my FLGS.  Thanks to certain publishers' rules regarding needing to have a brick and mortar store (WotC, WizKids, I'm looking at you), there are products I can't buy.  Also, I don't stock comic books.  I could, but since I don't get the volume of, say, an Amazon.com, it's not cost effective.

Among the publishers, it seems that online-only stores get something of a bad rap.  I don't really understand this.  Yes, we can sell things at a discount because our overhead is quite a bit lower, but I fail to see where this makes a difference to either the distributors (who get the same amount of money) nor the publishers (who get the same amount of money).  In fact, the only person that takes a hit is the online store owner.  The argument that FLGSes "grow the hobby" is somewhat valid, however, in the modern age it's not as valid an argument as it was, say 10 years ago. 

Don't get me wrong, if I had the capital, I'd start up an brick and mortar store (with a heavy online presence) in an instant.  The atmosphere of a FLGS beats the cold, hardness of an online store anyday.  I just don't see the argument against distributing to online-only stores.  The only thing the publishers and distributors are really doing in this case is shooting themselves in the foot.  Yeah, many online stores might not have the purchasing power of many of the FLGSes behind them, but even if such a store only orders, say, $1,000 worth of products a year, that's a $1,000 they're not making by refusing to sell to them. 

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Viewing 1 - 6 out of 6 Comments

06/10/2008 14:20:18
online stores are hard to start up and maintain, especially the meathod
I had tried...amazon affiliate store. You may look into this meathod to
sell those materials, it's free but I've only literally made a couple
bucks on it.


05/17/2008 17:15:11

Amazon is linked with Borders which is how they get their retail book store deals with WOTC.  For WizKids they go through their Toys R Us account. 

You may not think your 1000/mo is important to a store, but that could be the difference between paying their rent or not.  Originally WotC allowed anyone to purchase Magic cards and sell them and they saw a significant decline of game stores (including their own chain).  Also with all the competition to get the new sets many stores were losing their stock to online people who don't hold tournaments, or run demos, or anything else to promote the hobby.  I am not attacking anyone with an on line store, but I was a manager through these times and I understand WotC's reasons for their decision.  WizKid has the same concern for the places that run their events, so they followed suit when Mage Knight started to get popular.   

Over the last few yearz the game industry took well over a billion dollar hit with more people going to MMORPGs and many stores have had to close their doors permanently.  In my area alone (I am including more than one state) I know of ten stores that are no longer in business.  Now some of them were because of saturation in an area, but many just couldn't keep their heads afloat when the economy took a hit.

I wish you luck in your store, and as I vend at local conventions I can understand the need to discount.  I have a good arrangement with a local store to be able to do conventions, but it is a fine line to walk.  I would hate to see him close because I could undersell to his customers.



05/17/2008 14:32:23

Blinovitch,

 Pretty much anything from either of those companies.  Sadly, including 4th edition.  WotC (and I'm supposing WizKids) has a contract with most of the distributors that they'll only sell those companies' products to B&M stores.  So that leaves most online retailers out of the big name stuff.  At this point, you might be wondering how places like Amazon are selling such products.  Could be that they have a special arrangement, but it's more than likely in what is considered a "brick and mortar store."  Essentially, if they have a commercial shipping address (which Amazon does) and a sign, then it's sufficient for most distributors.  At least I know it's that way with the biggest of the distributors, Diamond (and Alliance, which is really part of Diamond).

MindStormLabs,

There's a link to my store on my profile under "favorite game store." 



05/17/2008 12:13:55
I find you blog quite interesting... I have been batting the idea of opening up a game store when I retire from my current job. 7-8 years from now. Keep the bogs coming...


05/17/2008 11:54:47
Can you post a link to your store?


05/17/2008 11:17:47

What a great topic for a blog series. Online stores are something I've wondered about.

So WotC and WizKids have specific items they won't allow distributors to sell to online-only stores? What kind of products?




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