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The Internet



             stiffer competition from hundreds of thousands of comparable Web sites.
             And as Internet commerce becomes subject to the same natural laws as the.
             real life marketplace, the once-glistening promise of small-time operators.
             taking on corporate giants armed with only their ingenious, basement-.
             developed Web sites is dimming fast.
             "The larger companies have so much of an advantage that it takes away lots.
             of business from the smaller companies," says James Delong, part owner of.
             CD ATTIC, a fledgling Tampa-based online music site competing with hundreds.
             of similar sites. "A smaller company may need to buy in minimums of $500 to.
             $600 from wholesalers and they are not given discounts.
             Only larger companies with hundreds of different stores (such as.
             Blockbuster Music, Sam Goody, etc.), can buy in minimums of $10,000 to.
             $20,000 and get discounts from distributors. So for now, on the price side.
             of things it will be very hard to compete and little profit will be made.".
             Still, even if you can't afford to distinguish your site with cut-rate.
             prices or massive advertising campaigns, you can lure a loyal, if not.
             massive, online customer base, some online merchants say.
             Steve Dershowitz, who runs the Foods of New York site, takes on the crush.
             of edible Web site competitors by offering something unique. Among the Big.
             Apple delicacies sold on his two-month-old site are "pushcart style" hot.
             dogs, Gabila knishes and Devil Dogs.
             "We don't yet know whether there is a big enough market," he says. "We are,.
             however, pleased with the unexpected inquiries we are receiving for bulk.
             quantities.".
             Niche marketing is also the business rationale behind the Last Vestige.
             Music Shop site.
             "I have reel to reel tapes," says Kim Wheatley, manager of the Albany, N.Y.,.
             store. "Not many other sites, if any, are offering them . We also sell LPs.
             online and people will always be buying LPs since the CD has not taken over.
             in everyone's mind. And a lot of people are looking for out of print stuff.


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