Tablet Sales: Pulling Profits from Tablets
Online Vs. Brick & Mortar
But for some e-tailers, carrying a wide assortment is more of a blessing than a curse. newegg.com, for example, sells iPads and 29 Android-based tablets, with prices ranging between $149 and $599. "We're essentially able to have unlimited 'shelf space' and carry more inventory," said Bob Bellack, newegg's CEO, North America. The e-tailer's ability to use virtual fulfillment—keeping inventory housed at distribution centers as a way to maintain a high assortment with no inventory costs—provides further advantages.
"Our strategy is very different from that of brick-and-mortar dealers," he said, adding that in-store buys are more impulse purchases, while people coming to the newegg.com site are willfully searching for tablets. Popular attachments online are OEM-specific accessories. "If a customer comes into our site and buys an Asus tablet, they might also buy an Asus case or an Asus docking station," he said. "Tablet-specific keyboards are also extremely popular."