NU6 - by ML, Locker Store Concept

New Business Idea: Locker store concept as an alternative or supplement to online selling
By: R100022

We are all probably aware of the online selling boom happening right now in the Philippines. These online sellers utilize a variety of websites to post and advertise their items for sale (ebay.ph, multiply.com, facebook.com, sulit.com.ph, etc.). There are many advantages to selling online—there is little to no fixed overhead costs, the effort required to keep the business running is minimal, and it allows sellers to reach a huge audience without the need for expensive advertising.

However, there are disadvantages to selling online as well. (1) Buyers are not able to see the actual items for sale which may cause them to hesitate from buying the products. (2) Shipping adds to the price of the products which makes buying items, especially cheaper ones, not appealing. (3) There is a delay before the buyer gets the purchased items, therefore buyers would not get the instant gratification involved with buying the item. And lastly, (4) fraudulent sellers discourage buyers from taking the risk to buy online.

My new business idea will eliminate the disadvantages of online selling while maintaining its advantages. This was actually inspired by a recent trip to Singapore. While perusing one of its many malls, I happened to stop by a curious looking store. This store had glass shelves with different sized compartments. Inside these compartments were the most interesting things: bejewelled iPhone cases, tiny character replicas and action figures, one of a kind collectibles, hand-made jewellery, etc. It was a "locker store" where individuals can rent a compartment (called a "locker") to house their wares for sale. I realized this business model may also work here in the Philippines. This is because sometimes, when online sellers want to boost their sales or meet up with buyers, they join weekend bazaars. Doing so allows them to create a physical presence for their online store. However, bazaars are temporary—most lasting only a few days, and joining one is labor intensive since the seller would have to be physically present to conduct business with customers. My idea is to put up a local version of a locker store with online sellers as target tenants.

I can get a store space at a mall for my locker store and rent out lockers to individual online sellers. I would have to do more research to figure out the optimal locker size but I would have to offer different sizes and configurations since Philippine online sellers sell a variety of items like clothes, books, shoes, jewelry, etc. For a minimal rental fee, sellers can get a small piece of prime selling real estate. I can provide merchant services like sales associates, credit card transactions, and sales monitoring. In exchange for these services, I will also ask for a small commission on sales. Sellers can use their lockers as an alternative or as a supplement to their online stores. Since I will be putting these stores in high traffic areas, sellers will be sure that they will get a lot of exposure to potential buyers even without online advertising. However, they also have the option to advertise their products online and redirect their potential buyers to their lockers. This allows buyers to see the actual product in person before deciding to buy it.

With this concept, overhead will remain small, there will still be virtually no effort needed to keep the store running, and sellers can still reach a huge audience. Aside from these, the disadvantages involved with online selling will also be eliminated making this a win win solution for both sellers and buyers.