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Businesses Technology

Online-only Platforms Are Going Offline With Permanent Spaces (engadget.com) 31

An anonymous reader shares a report: The retailpocalypse started in 2010. It followed the 2008 global recession, with the parallel birth and rise of social media adding fuel to the growth of online shopping. Suburban and rural malls sat empty, underutilized or poorly maintained as the most affected brands lost their customer base in the squeezed middle class. Meanwhile, online retailers thrived without the overhead costs of a physical space. Nearly a decade later, the online-only platforms that disrupted retail are choosing to pay rent as an additional, unnecessary expense. There are items available for purchase in each space, but the stores' ultimate goal is to offer a tangible experience offline to their users or consumers.

Hunker describes itself as an editorial website to help "first-timers improve their homes -- with inspiring tours, practical solutions and design advice for real people." Shopify is an all-in-one commerce platform where users can start and run an online business, facilitating 820,000 online stores since June 2019. Depop calls itself "the creative community's marketplace" and projects that its existing user base will increase threefold over the next three years, from 5 million to 15 million users. In the last two years, each company has added a physical space that isn't exactly a store and isn't really an office, though they definitely borrow aspects of each. Hunker's space, known as Hunker House, is a three-story loft in the Abbot-Kinney neighborhood of Venice, CA. Shopify opened a 1,600 square foot location in downtown Los Angeles' The Row, and Depop's two community spots are in Little Italy, Manhattan, and Silver Lake, LA.

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Online-only Platforms Are Going Offline With Permanent Spaces

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  • Online shopping for anything other than commodity things (like a computer) is awful. I don't understand how/why people buy so much stuff online. I prefer to see/touch what I'm buying before I buy it.
    • Re: (Score:1, Funny)

      by Neddies ( 4140129 )
      ok, boomer
    • by rtb61 ( 674572 ) on Friday February 14, 2020 @06:58PM (#59729590) Homepage

      It's called click and mortar. You shop online for the product but buy in the store, that final check, and you know you have the product, no waiting to see what actually arrives, if it arrives.

      The new question in the market, how many disappointing online purchases does it take to put shoppers off the idea and have them leaning to click and mortar, shop online to select the product but buy instore for the final check and service if things go wrong with the product.

      For the business, click and mortar, use online to get them too the store and whilst they are there they buy something else and you avoid the delivery risk, the missing product and the broken product. There is also the up sell, all completely gone.

      What click and mortar chains need to do is make sure online sales are booked to the store that serves the delivery address, so those stores do not compete against their head office for sales. The stores provides certainty of sale, provides sales and support to generate customer loyalty and the up sell opportunity.

      Online fraud in both directions makes click and mortar the best shopping choice and online only, well, the good get measured with the bad, how many bad transaction does it take to put people off in either direction of the trade.

    • by Kjella ( 173770 )

      Online shopping for anything other than commodity things (like a computer) is awful. I don't understand how/why people buy so much stuff online. I prefer to see/touch what I'm buying before I buy it.

      Personally I'm no fan of shopping in general. I feel buying things is generally a chore, either because I'm running out of food, my clothes are wearing out or no longer fits, something broke and needs replacing and so on meaning it's mostly need driven. I want it over and done with - obviously with an acceptable, but not necessarily optimal outcome - as quickly and effortlessly as possible and without overpaying for it.

      This touch/see thing is often part of a bigger pattern of browsing and window shopping, c

  • In the social sectors, you're seeing prominent participants setting up their own meat-side locations.

    Because it's REALLY hard for some Social Justice Jackhole to censor you on your property.

    • by DogDude ( 805747 )
      What does that mean, "social sectors"?
      • He's talking about hate groups that get banned online forming terrorist training camps instead of just trading terrorist propaganda online.

        • by DogDude ( 805747 )
          Oh, that's just sad.
        • by Chas ( 5144 )

          No.
          Actually I'm talking about the opposite.
          Groups discussing things that are not hate-based, yet being labeled "hate groups", racists, etc by the oh-so-"tolerant" people who're hell bent on silencing anything that isn't lockstep with their personal ideological bubble.

      • What does that mean, "social sectors"?

        I found this:

        The term social sector refers to that part of social and economic activity done for the purpose of benefiting society and which is funded, in part or whole, through charitable gifts.

        Yeah, I don't see the relevance either.

        • by Chas ( 5144 )

          By "social sectors", I mean communities of interest that don't necessarily come together for a business purpose.

          One example is the "Cleetus McFarland" YouTube community. They're kinda at the "crazy" end of car culture.
          The owner of the channel, and several co-investors just bought themselves a shuttered racetrack in Florida and are in the early stages of refurbishment.
          Intent is to hold events for their community, as well as returning the track to it's race circuit.
          Basically, as long as they make enough to c

          • By "social sectors", I mean communities of interest that don't necessarily come together for a business purpose.

            One example is the "Cleetus McFarland" YouTube community. They're kinda at the "crazy" end of car culture.
            The owner of the channel, and several co-investors just bought themselves a shuttered racetrack in Florida and are in the early stages of refurbishment.
            Intent is to hold events for their community, as well as returning the track to it's race circuit.
            Basically, as long as they make enough to continue being able to finance their car hobby, they're good.
            And they can't get shut out by anyone, since the facilities are theirs.

            Try this, then:

            A community of interest, or interest-based community, is a community of people who share a common interest or passion.

          • by DogDude ( 805747 )
            If we're talking about them getting "shut out" online, why can't they just make a website? It's only a few bucks a month.
            • by Chas ( 5144 )

              Because, like it or not, for distributing video content, the greatest penetration is going to be at YouTube.
              For microblogging, Twitter and Facebook see far more traffic.

              Try building an audience as just some random Wordpress site with a similar speed.

              Is it POSSIBLE to do so?

              Sure.

              But the odds that you do so are MUCH lower.

              • by DogDude ( 805747 )
                You may be right, but that still doesn't mean that anybody is "shut out" from the Internet if they can't post on a Google or Facebook property. It just means that they don't get free promotion from Google or Facebook. Censoring has nothing to do with it.
                • by Chas ( 5144 )

                  I see this argument all the time.

                  It's bullshit. Always.

                  Take several years. Build a community of thousands, or even millions of people.
                  Then have the platform make you go *POOF* overnight.

                  Now tell me that has ZERO effect because "you've got other options".

                  • by DogDude ( 805747 )
                    Sure it has an effect. What do you want to do with it, comrade? Government run social media?
                    • by Chas ( 5144 )

                      I don't know what the "right" answer for this is.

                      I just know that what's going on right now isn't working right and is leading to various forms of discrimination and abuses.

                      So, maybe EVERYONE involved needs to be in on this conversation.

  • Let's not forget (Score:5, Insightful)

    by sjames ( 1099 ) on Friday February 14, 2020 @07:54PM (#59729732) Homepage Journal

    Crappy banking practices were a big part of the reasons shopping spaces went to seed. The real estate market went BOOM, and shops were feeling the squeeze from the follow-on economic problems. But even as the mall went down to 50% occupancy or less, if they dared cut a deal on rent, the bank's crystal ball would suddenly devalue the property, declare it under collateralized and trigger foreclosure even as shops started moving in and the mall slowly returned to profitability.

    So instead, they RAISED the rent to satisfy the bank even as they naturally (and obviously) drove away the remainder of their tenants.

    Since the market didn't turn up in time, the vacant properties decayed to the point that they really can't be put back into use (some LITERALLY have weeds and grass growing inside), so the banks maintain complex ownership so they can avoid being forced to properly tear down and clean up the carcasses.

    Of course, what do they care, they had their fingers crossed behind their backs when they accepted the bailout money and they know nobody will actually hold them to anything because they'rer TOO BIG TO FAIL and TOO BIG TO JAIL (tm, pat pend.)

  • I find it extremely hard to judge the quality of the build of a product online. It is very difficult to determine weight, the materials used, see how parts fit together, etc. I buy a lot online, but all of it is things that I've already purchased in the past or have checked out elsewhere.

  • Can anybody actually parse this summary? What is it about, and is it indicative of the article being summarized?

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