Gateway Drops Online Sales

Gateway is dropping its online sales presence to concentrate on third party resale.The corporate jujitsu is ‘to align costs’. UnHuh. An online order can be the cheapest way to generate and deliver a product on the planet if you know what your are doing. One business rule is don’t put too many layers between you and the customer base, otherwise you become irrelevant. –

Gateway has decided that it will halt the sales of computers through its web site, and will concentrate instead on selling PCs via third party stores and other online retailers. This is the direct opposite of what Dell is doing at the moment, with most of its sales happening through online orders, while their foray into brick and mortar stores have been less than encouraging to say the least. Never mind about Dell - we’ll look at Gateway for the moment. Gateway will be cutting direct online sales to consumers so that costs can be further reduced and its business model can be aligned with parent company Acer. I suppose this comes as no surprise, as it is always better to remove an ailing part of the business instead of hoping that one day, a spectacular turnaround will happen.

Of course its their money!

Linky.