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Commercial Warfare

Discussion in 'Business & Tax Advice' started by funky_c, Jun 14, 2010.

  1. funky_c

    funky_c Newbie

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    This is more related to traditional business competition than it is IM and SEO, but I think it could still make for an interesting discussion.

    I've just created a traditional web storefront. I sell a novelty clothing line for adults sizes. I purchased the .ca domain, and after a week realized that someone has already been selling an extremely similar clothing line for children, which has been branded in the exact same way! Whats more, she's making me look bad by charging half of my price.

    I initially started kicking myself for doing such poor due-diligence, but then realized that this could be a huge opportunity. 1) She's poorly branded, and is selling through venues like ebay/etsy (suggests she's not tech savy). 2) She's selling an identical product at half the price, which means I could start selling it as my own product and make 100% on the dropship arbitrage. 3) She's openly offering wholesale discounts, which suggests she's getting enough orders that will make this worth my while.

    My question for BHW is: How would you go about absorbing a competitior's revenue in this kind of situation?

    Parasitic dropshipping and stealing/modifying her designs is one thing, but I'm looking to take this one step further. How would you siphon away her sales to your own line, and then completely usurp her entire product line (which is very unlikely to havea copyright) behind her back?
     
  2. Newbie.

    Newbie. Registered Member

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    I am interested in this as well. Anyone have any incite?
     
  3. Fireice

    Fireice Newbie

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    It depends on the market size. If there are enough people looking for the product and you rank above her, then you will still get more sales no matter the price.