Page 13 - Simply Electronics Case

Retailers to Sell It Consumers to Buy It Consumers to Buy It

Inventory Risks & Facility Costs Inventory Risks & Store Costs Negligible Inventory

Assembling Product In-store Merchandising N/A
Assortments

Sorting: Break down into small Shelving N/A
quantities

Delivery to Retailers Delivery to Customers Delivery to Customers

Financing Retailer Buys Financing Customer Buys N/A

Grading the Product Handling Returns Handling Returns

Market Info Feedback to Market Feedback to Wholesaler N/A

Manufacturer

Table 1

However, the suspicion emerged that SE were not simply exploiting price
differentials and arbitrage opportunities but were also exploiting the customer
through a consistent basis of manipulating cash flow receipts and delayed
refunds allied to risky product acquisition, scheduling and dispatch.