This morning, on Marketplace Radio (NPR) , I heard about Alice.com (named after the Brady Bunch maid, Alice).  You can buy your household ‘staples' (e.g., detergent, shampoo, toothpaste, TP, etc.) online and have them delivered - FREE! And without mark-ups that you get at the store (e.g., 10oz bottle of Aveeno shampoo is 25¢ less than at Target (didn't mention Wal*Mart).  They say they let the manufacturers (Consumer Product Goods - CPGs) sell directly to consumers (but actually it's thru a distributor cuz the CPGs aren't stupid - they don't want to tick off their retailers and lose shelf space!)

So what's the business model (cuz if these guys are for real, I will use them and want them around!) - because Alice says it doesn't make money off handling the transaction and the shipping (which it does)?

• Alice makes $$ (or will) off the ads! (no, you don't say!) - they'll offer manufacturers ad space on the site
• Alice makes $$ off the data they collect (The CPGs get great consumer information -in the aggregate since I don't think Alice will sell individual names/addresses if it wants business).
• Alice will be the "Switzerland" between the CPG and the consumer

For now, membership is free.  That could be another source of revenue.  Reminds me a bit of the wholesale clubs - like Sams & Costco.  Costco's revenue comes from the membership dues (several levels)...stay tuned.