Dell opens doors to online customers

Direct vendor Dell will launch its online superstore, Gigabuys.com, in the UK by the end of July, with fulfilment from either Ingram Micro or CHS Electronics.

The vendor opened its US Gigabuys store on 3 March with a list of 30,000 products, which will climb to 40,000 by the end of the year. Ingram Micro and Merisel are fulfilling orders in the US. The UK store will carry a similar number of products, ranging from software and printers to cables and routers.

Barry Collins, UK internet business manager at Dell, said fulfilment would also be through UK distributors: 'Dell uses Ingram and CHS in Europe as part of Dellware. There is no firm decision as to who will be back-ending Gigabuys.'

Dell would keep fulfilment flexible, he added: 'We'll be able to plug suppliers in or out as we need them.'

But Peter Rigby, marketing director at CHS, replied: 'We have held talks about putting the Dellware catalogue online but haven't been approached specifically about Gigabuys.'

Paul Berry, chairman of Simply Computers, said: 'Dell will be a powerful competitor. It is an efficient operation with an effective internet business model. It will take business away from resellers.'

Michael Dell, chairman and chief executive of Dell, stated: 'Gigabuys.com offers all online computer shoppers a convenient way to buy all the software and accessories they need.'

Jeremy Davies, analyst at Context, said: 'People in the UK are increasingly willing to buy online. Dell wants to establish itself early.'

Dell's Website business generates $14 million a day.