Will Dell drop shipping from their orders?
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Last week Dell announced that they would open stores in Dallas and New York. It will be all display models and is not a major departure from their kiosks in 160 malls around the U.S. But here is my question. What is the real motivation behind it? They will really be glorified kiosks. You will still have to order online and you won’t be able to actually order anything at the store. You will only be able to ask questions of the personnel at the store.
So here is what I am thinking this is. I think this is going to be a good idea on their part in the long run. I hate paying for shipping for something like a computer because that adds the major shipping costs that make the overall machine cost that much more. So I believe what they are going to do is slowly add actual stores to these two that are already on the way so they can get rid of shipping costs and undercut their competition.
Think about it. If you have the option of getting a computer from a name that you are comfortable with online where you can custom build your machine. Then you have the option of going to pick it up without shipping costs, and ask questions of the staff at the establishment, most people would be onboard with that completely. Because most people are not truly computer literate so they have questions when they buy a computer as to what its capabilities are and how to do certain items. So it makes sense for them to ask questions of the place of purchase. But I just wonder about their possibility of becoming a desolate place like the Gateway stores of old. But because they are not going to be freestanding stores, but instead are going to have mall traffic, then it is more of a possibility that this will be a successful venture.
I think this could be a good idea for them. If they undercut the competition by getting rid of shipping, and instead having the item shipped to a local store. Then they have knowledgeable personnel on hand to answer questions for customers, this could strengthen their market share even more than it already is.