Wednesday, August 22, 2007
Shopster Never Modified "Unlimited Profits" on their Website and Advertising Campaign.
The BBB wants Shopster to modify the use of their advertising term "Make Unlimited Profits". Reason is, because Shopster failed to prove that you can make "Unlimited Profits" with them. The BBB asked to see proof that people have been making "Unlimited Profits" with Shopster and asked to see client files. Shopster refused to allow the BBB the view such files stating that they are protecting the privacy of their clients. Shopster did agree to modify the term, "Unlimited Profits" since the law states you must prove such claim. Shopster has still not complied. They've changed 700,000 to 900,000. but as of yet changed the term "Unlimited Profits". Unless Shopster can prove their claim, they are breaking the law.
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3 comments:
Sorry, friend, but there is no way but simple logic to prove the claim of "unlimited profits." Your profit potential is indeed unlimited, since your sales potential is unlimited. If you do your job right and really apply yourself to proper marketing, you will sell your products.
Nothing in Shopster's claims suggests that your profit is a gift; indeed, you must EARN your profits.
Did I mention simple logic in that first sentence? Here it is: if you sell, you will profit. The selling is up to you. Logically one must believe that sales potential is "unlimited." Therefore, so is profit.
Its this type of "grey area" marketing that gives on-line retailing a bad name. Smacks of desperation from a small company pretending to have a large on-line persona. Seems like Shopster has lots of negative press because of its deceptive marketing (testimonials by their marketing staff pretending to be customers, the denials, and then the excuses). These guys are small time, just like their customers' potential.
Lets face it, Shopster is a company stuck between a rock and a hard place. They want to compete with ebay, amazon or yahoo store for sellers. They want to compete with amazon for buyers.
The market as it stands is pretty simple to assess. As the suppliers get more savvy and experienced with individual shipments, why does anyone need a middleman like Shopster? Beginners may feel they need the safety net. Intermediates will quickly outgrow them. Lets face it, what type of customers would identify with a brand name like Shopster? Hey dude, let's party on at the trailer park!
This leaves Shopster in a category of trying to sell the e-commerce dream to naive individuals. This is no different than other cult style retailers like Amway or Melaluca. But wait, Amway and Melaluca have unique products and figures out how to exploit the entire value chain from production to sales.
Shopster does not offer unique products or unique ways of selling. If they can get enough small minded naive individuals to buy their service to create their own stores, then this might work. News flash, no one selling on Shopster has any sort of competitive advantage. After a few mercy sales to friends and family, what is left? Who wants to deal with an unknown supplier on the internet? Trust is everything in retailing, on-line or brick and morter.
Has it occurred to Shopster customers that if Shopster becomes more successful in signing up customers, then there is just more competition, which means that price alone will be the determining factor to sell products. Pricing can be a competative advantage, alas, seems like ebay and amazon have already beaten Shopster to the punch. I don't want to sound negative, but Shopster is just slicing the pie into more pieces rather than creating true value and advantage for on-line retailers. Following the pack will not get you "unlimited profits" and there is not even the sniff of "potential unlimited profits". Wakeup call - if there was unlimited profits, Shopster would be an on-line retailer making those profits themselves. If they do not have confidence in their own product, what makes them think their customers can? They don't. That's why Shopster will not open its books to anyone.
Behind the scenes the company is probably limping along as a business and teetering on the edge of insolvency itself, unless it has some wealthy backers who would sink their cash into that black hole. This is a software company trying to market their software in a not so unique way.
Their staff turnover seems frequent with the only common thread the CEO Sarath S, who promotes the merits of the service shamelessly to anyone who will listen. He seems to spend more time trying to get heard and fabricate excitement about his company. No one can fault him for that. He is beating a dead horse.
Here is my advice to Shopster: think big and go after the big guys like amazon, facebook, my space, or go home. Otherwise Shopster is just a waste your time.
Slim Whittle
Phd Marketing
Using the term unlimited profits is completely deceptive. What Shopster doesn't tell you is that it's really unlimited minus 8%-75% because Shopster inflates the cost of the items by 3.9% and then deducts 3.5% of your sales and keeps it! Shopster doesn't tell you those two very key things. It took my own complaint to the BBB to get my money back from Shopster. Shopster admitted to the BBB that they left "overlooked discrepancies" off of the contract, but I don't believe for a second that it was overlooked. Every client of Shopster's has had their just profits taken by Shopster and if you are one of those, file a complaint to the BBB, www.betterbusinessbureau.ca, and you, too, will get your money back.
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