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Digi-Key has changed and it is not very good

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helius:

--- Quote from: james_s on October 18, 2020, 05:20:55 am ---These stupid marketplace things are everywhere now. Amazon, Newegg, even brick  mortar stores.... It seems like retailers just keep jumping on that bandwagon and what is the point? All of these stores acting as storefront for everyone else's products.

--- End quote ---
The key to understand this trend is that the most profitable corporations in the world (Google, Amazon, Apple) operate two-sided markets. In Google's case, they stand between advertisers and website operators. Amazon's arrangement with sellers is well-known. Apple stands between app developers and App Store users. They connect producers with purchasers and take a slice of the action (an old school racketeer would call it a vig) without taking on any business risk. This is why every company wants to ape this pattern. Controlling a two-sided market is the ultimate asperation of contemporary rentier capitalism.

james_s:

--- Quote from: helius on October 23, 2020, 01:21:59 am ---The key to understand this trend is that the most profitable corporations in the world (Google, Amazon, Apple) operate two-sided markets. In Google's case, they stand between advertisers and website operators. Amazon's arrangement with sellers is well-known. Apple stands between app developers and App Store users. They connect producers with purchasers and take a slice of the action (an old school racketeer would call it a vig) without taking on any business risk. This is why every company wants to ape this pattern. Controlling a two-sided market is the ultimate asperation of contemporary rentier capitalism.

--- End quote ---

But the result is I give up in frustration and I go shop elsewhere. I see all the usual Chinese widgets on Amazon being sold at a markup so I go buy them from DX, Aliexpress, or other Chinese sellers directly. I search for something at a store and it comes up with all this marketplace crap so I go search for it somewhere else, hoping to find somewhere with a better signal to noise ratio. Places like Newegg that I formerly went directly to in many cases without even considering other less known sellers have now been degraded to the point that I'm much less likely to go there. It's a big race to the bottom.

SilverSolder:

--- Quote from: james_s on October 23, 2020, 03:07:51 am ---
--- Quote from: helius on October 23, 2020, 01:21:59 am ---The key to understand this trend is that the most profitable corporations in the world (Google, Amazon, Apple) operate two-sided markets. In Google's case, they stand between advertisers and website operators. Amazon's arrangement with sellers is well-known. Apple stands between app developers and App Store users. They connect producers with purchasers and take a slice of the action (an old school racketeer would call it a vig) without taking on any business risk. This is why every company wants to ape this pattern. Controlling a two-sided market is the ultimate asperation of contemporary rentier capitalism.

--- End quote ---

But the result is I give up in frustration and I go shop elsewhere. I see all the usual Chinese widgets on Amazon being sold at a markup so I go buy them from DX, Aliexpress, or other Chinese sellers directly. I search for something at a store and it comes up with all this marketplace crap so I go search for it somewhere else, hoping to find somewhere with a better signal to noise ratio. Places like Newegg that I formerly went directly to in many cases without even considering other less known sellers have now been degraded to the point that I'm much less likely to go there. It's a big race to the bottom.

--- End quote ---

There are still a lot of naive buyers that just go ahead and overpay.   That's why everything is too expensive, from housing to cars to everything else -  it is all because naive buyers are willing to pay whatever the bank (or credit card company) will lend them...  the limit to their spending is literally only held back by the limits on their credit.

jfiresto:
So why are Digikey's prices now higher compared to some other stocking distributors in traditionally less competitive markets? They did not used to be. Is it really because of their credit crazed customers? I am merely curious.

SilverSolder:

--- Quote from: jfiresto on October 23, 2020, 05:09:58 pm ---So why are Digikey's prices now higher compared to some other stocking distributors in traditionally less competitive markets? They did not used to be. Is it really because of their credit crazed customers? I am merely curious.

--- End quote ---

Put it this way:  If nobody was buying at the posted prices -  would they stay at that level?

In our system, it is the seller's job to set the price as high as possible, and it is the buyer's job to find the lowest price!  If buyers don't care about finding the lowest price...   what happens?

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