The FIRST Online Mass Offer and Sales Transaction
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Projections for 2011 ecommerce revenue is $680 Billion. But In what year did the FIRST VERIFIED online mass offer and sales transaction take place?
This story should show all that the process of sales has NEVER changed!
- Identify a need.
- Find something that fills that need.
- Make a compelling offer.
In years past, a common practice was for Wholesalers to ship their products to retailers that had not ordered the items. Upon refusal, the wholesaler would offer the already price-hiked items to the retailer at a lower consignment cost in the guise of alleviating the cost to ship the items back. The unsuspecting retailer would then agree to take this new found “bargain” off of the wholesaler’s hands, mark up the items and sell them to the public, making a small profit in the transaction. But one savvy retailer flatly refused a shipment of 2500 “unit items” that had been sent to him in this manner.
Though not involved in the actual event, a young man had a front row seat to see this event (from his position of responsibility) as it unfolded. This young man recognized a need he could fill for a Specific Target Market and jumped at the opportunity. This event would change his life forever and forge a new path for the American economy and eventually, the world.
He made an agreement with the wholesaler to keep any profit he reaped above the cost of each “unit item”, and then he set about offering them at a small 16% margin. Within six months, he had netted 9 times his annual salary and felt so successful and confident in this venture that he quit his “job” and started his own company. Eager and enthusiastic, he began trying his hand at writing letters to prospective buyers of his goods, but knew that he would need to expand his market to make any real profit. His now famous “guarantee” offer enabled him to gain the trust and business of his most important and largest market segment…
in the 1890s…. Yes… I said 1890′s, that is not a typo.. How? Read on…
(You know … I really should have saved this for some compelling sales copy I swear if this ends up on someones promo I WANT A HUGE CUT!!!!!
:sigh:: oh well… read on)
The year of the first “Online Sale” was 1886.
His Age? 23 years old.
His Position? Railroad Station Agent and Telegraph Operator in North Redwood MN.
His Niche? Fashionable and Accurate pocket watches, a necessity for Railroad agents and the rural communities they served.
His Target Market? Fellow Railroad Station agents who HAD to keep accurate time and their rural populations up and down the Railroad Line.
His Method? He “Wired” a Sales offer to the other agents up and down the line via telegraph and the first sale was “made” in a matter of minutes.
His name? Richard Warren Sears.
The First “Online” Sale summary:
Richard Warren Sears purchased the 2500 gold-filled pockets watches that had been refused by the local jewelry retailer, then offered them for sale to other station agents via telegraph messages, and even got them to “sell” for him (First Affiliate maybe?). He made his first sale with in minutes of sending out his first “wired” message, sold all of the watches for a considerable profit, then ordered more for resale. Soon he started a business selling watches through mail order catalogs. The next year, he moved to Chicago, Illinois where he met Alvah C. Roebuck, who joined him in the business. In 1893, the corporate name became Sears, Roebuck and Co.
So now, you all realize, online selling started MUCH sooner than people think!!
