November 11, 2006

Zappos Verses Macy's: A Multichannel Test

Featured to the right are "Bhavin" boots from Nine West. These stylish boots are available at both Zappos and Macy's (and also at Nine West and other retailers, but I digress). I will assume they are available in Macy's stores, though I don't know for certain if this is true.

How much do these boots cost?

Zappos: $112.95. Sales Tax = $0.00. Shipping Cost = $0.00. Total Cost = $112.95.

Macy's Retail: $109.00. Sales Tax = $9.59 in Western Washington. Total Cost = $118.59.

Macy's Online: $109.00. Shipping Cost = $13.95 (item does not qualify for free shipping on $125 purchase promotion). Sales Tax = $10.82 in Western Washington. Total Cost = $133.77.

The multichannel merchant (Macy's) offers you the item for $118.59 if you are willing to spend time driving to the mall, or offers the item for $133.77 if you purchase it online.

The single-channel merchant (Zappos) offers you the item for $112.95.

As a consumer, do you choose the multichannel merchant (Macy's), or do you choose the single-channel merchant (Zappos)? Please provide your opinions in the comments section of this post.