Startup offers rapid IT delivery service

Startup online reseller Grouptrade.com aims to take a large bite out of channel revenue by offering what it claims to be a "time saving, next day service" for IT equipment.

Startup online reseller Grouptrade.com aims to take a large bite out of channel revenue by offering what it claims to be a "time saving, next day service" for IT equipment.

James Twining, Grouptrade's chief financial officer, said: "We see ourselves as direct competition to the channel; we can promise to do everything better, cheaper and quicker than our competitors."

Twining claimed that the channel will become fragmented, with companies ordering from web-based resellers regularly and services forming an "added extra".

"Resellers must have an online presence to stay competitive," he said. "The internet is clearly going to play a huge role and resellers need to move with the times."

Distributors Computer 2000 and Ingram Micro will carry out Grouptrade.com's fulfilment.

Although the company is aiming at small to medium sized enterprises with up to 250 employees, Twining admitted that the company has its eyes on larger customers.

"There is going to be a change in purchasing behaviour and we believe that in three years roughly 80 per cent of business will be done through the net," he said. "We are fully expecting larger firms to turn to online resellers such as ourselves because it can save them so much more time than phoning and faxing."

But Mikael Arnbjerg, an analyst at IDC, said companies are looking for more than just cheap prices and quick delivery. "This site doesn't offer companies significant value apart from low prices, which I don't think is quite enough," he said.

"Although low price and good service is important, companies also need other services and support on top, which this site just doesn't seem to offer," he added.