Geeks.com Closes – Was Google the Cause?
Today I went to look at Geeks.com.
I found this on their home page:
17 years of service, almost half a billion dollars worth of computer products put in the hands of loyal Geeks worldwide, jobs for hundreds of people and support for their family members. That is what Geeks.com meant to us and the people who worked here.
But all good things come to an end.
As of today, Friday, August 2nd, 2013, we are turning off ordering on Geeks.com. We will cease to sell and ship products immediately. Geeks.com has always stood behind our products and don’t intend to stop now. Any orders placed will ship. We plan on fulfilling all of our responsibilities, including orders, credits, and we will have a small staff on hand to answer questions, to process returns, and to faithfully honor warranties. Be patient as we will have no phone support.
They went on to say more about why. I am pretty sure that they are blaming Amazon.com for their demise. When they said:
Our vision has always been to provide the geeky tech consumer an alternative avenue to purchase quality refurbished and new high tech products and gadgets. That vision was the cornerstone of our slogan “Best Deals Every Nanosecond”. Unfortunately after a lot of difficult consideration the owners of Geeks.com feel we are unable to fulfill this vision any longer.
There are many why’s… The e-commerce landscape, as well as the consumer electronics market, has changed dramatically with intense competition and a 1000lb gorilla (do we really need to say who) competitor that can lose millions of dollars. They can lose money with impunity, supported by the stock market. We cannot.
Google contributed more to the failure than Amazon
However, I don’t think that Amazon is the only reason. People will buy (even if it isn’t the best price) if they simply find you. Geeks’ SEO results were dying. As I have said many times. Google giveth and Google taketh away. Their sales were surely falling. They blamed their competition, but they most likely never saw the SEO side failure coming and when it did they didn’t know what to do about it. The graph below shows they were hammered by Google’s Panda update and then again by Google’s Penguin update.
You can tell that they tried to recover from this because they boosted their Adwords presence in one last attempt to increase sales.
Their highly discounted business model depended on high volumes of low cost traffic. There was simply no way to support this model when they were forced to pay for visitors. Especially if the adwords account wasn’t operated in the absolutely most effective manner.
This is truly a sad day. I personally loved Geeks, I ordered from them pretty regularly, and they will truly be missed.
Goodbye old friend.