Levi Strauss Throws In The Internet Sales Towel

Selling online is difficult – and costly. Clothing giant, Levi Strauss, confirmed last Friday that it will discontinue selling its products via the web. The company now will allow Macys.com and JCPenney.com to sell Levi’s and Dockers products to online customers.

Levi Strauss discovered what other online stores have known for a while now; it’s very expensive "to run a world-class e-commerce business." And though it’s more costly, it’s usually not more profitable, unfortunately. Other e-commerce companies have struggled with this. Just ask Amazon.com.

Manufacturers going online also have to keep retailers in mind. Although Levi Strauss denies that retailers complained about direct competition from the Levi site, other manufacturers signed on for trouble when they went direct to the public. Compaq Computer Corp. recently squabbled with retailers over the computer company’s online discounting. Levi Strauss will keep its expensive web site and may sell products online for "special events" in the future. However, it’s clear that it won’t be direct competition for offline retailers.

And while Levi and others are scrambling to leave the Internet sales world, many more are signing on. According to a new study by researchers at the University of Texas, revenues for Internet businesses will total an estimated $507 billion in 1999.

You may like these other stories...

In the old days, we used to tape down receipts from our travels and submit them to accounts payable. But that was before remote employees who may live in a different city from the home office. And of course, there's all...
In 2011, electrical services and technology provider Parsons Electric in Minneapolis, Minn., decided to take its accounting to the cloud. Monica Ross, the company's director of strategic projects, talked with AWEB about...
Event Date: July 24, 2014, 2 pm ET In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.