Online Vinyl Record Sales - A New Business Model

The music industry is an ever changing business entity.'brick and mortar' store for more than nine years, she
Slowly, CDs are disappearing as the format of choicesold her business and has been supplying fine vinyl
and the sales leader of retail music. However, there isrecords online with her web site and as an ebay
an old and friendly favorite emerging for millions of'Power Seller.'
music lovers and competing for that almighty musicHowever one of the obstacles of the business is
dollar.actually finding records to sell, Laura is always looking
Vinyl records are back, as the youth of today arefor collections.
finding the listening experience is greatly enriched when"I buy collections from individuals and estates," explains
utilizing this historic music medium. In fact, the resurgentLaura. "Three years ago I bought an incredible large
vinyl record market shows no signs of a slowdown.collection (6,000 records) from a music critic. Finding
Nielsen SoundScan has released estimated figurescollections is the most challenging part of my business. I
that indicate that sales of vinyl in the US are up 50%am always looking for large collections of vinyl records
through the first five months of 2009. The counting(LPs and 45s) and music memorabilia, especially from
giant also predicts that vinyl record sales will reachpeople who have been in the music business; music
over 2.7 million units sold in 2009; up from 1.9 million unitscritics, former record company folks or broadcasters. I
in 2008.am mainly interested in 1950's & 1960's jazz, blues,
To be fair, these numbers are somewhatrock, soul and country and will travel for large
underestimated because of the sale of used vinyl incollections. I also offer finder's fees for tips that lead to
our ever shrinking record stores. Additionally, they don'tthe purchase of large collections."
count some of the independent record stores whereLaura also explained some of the advantages &
vinyl sells the best. However, there is a new vinyldisadvantages of selling online.
model emerging, places where millions do their 'vinyl"The advantage of selling on line is that I can receive
shopping,' the online record store. Although shoppingorders 24 hours a day and I have an international
online can never replace the experience of visiting yourclientele. A record store has limited hours, it has to be
local record store, vinyl consumers can visit hundredsstaffed and it has a limited geographical reach. One of
of online record sellers and find records that may notthe disadvantages of selling online is shipping records
be offered at their local store, such as rare imports,by media mail within the United States. The post office
picture discs, boxed sets or obscure releases fromclaims that it takes 4-14 days to ship by media mail, but
other countries. There are websites that cater toit can take up to three weeks or longer. Most people
strictly jazz, some that offer classic rock ordon't realize how long it takes, and we do get
psychedelic music, rap or R&B, and some thatoccasional e-mails from angry customers asking
deal with 45rpm records; why they still sell 78 rpmwhere is my order?"
records for those who are in need of this rusticTell us more about your online business.
medium. There are some that specialize in audiophile"We carry multiple genres of music including jazz, rock,
vinyl, rare and out-of-print records as well. But mostblues, country, and soul and have over 10,000 records
online vinyl retailers offer an eclectic array of music toin stock. I would say that the jazz and rock LPs are
choose from and millions of music lovers are nowour bestsellers. We grade conservatively according to
satisfying their musical palette and finding the onlinethe Goldmine Magazine Standards and the highest
record website to suit their needs.grade we give a record would be near mint (NM),"
Let's explore this phenomenon in greater detail with theexplained Laura. "As an ebay power seller (seller
owner of Laura Miller, who started in the musicname is littlelam), I am very careful about grading
business as a DJ at KVMR, a community radio stationrecords."
in Nevada City, California; so she has a keenThere are literally hundreds of vinyl retailers online who
understanding and love for the format.carry on this tradition of offering quality used vinyl at
"I felt compelled to open a record store and as a vinylreasonable prices. Record buyers must weed out the
enthusiast wanted to help people find reasonable vinylbest and worst and the great aspect of this retailing
records at a reasonable price," explained Laura.method is that it is quite easy to find an online vendor
She started in the business of selling vinyl records inthat suits your needs. Now, if they can only be
1988 near Sacramento, California, running a retail storecounted....
named "In The Groove Records." After operating the