'Net Features : retail

The Retailer with the Highest Showrooming Risk Is…

Allison Howen — Mon, 04 Mar 2013 18:55:00 GMT

The momentum of mobile has made showrooming a growing threat to brick-and-mortar retailers. A new study, however, reveals that some retailers are at higher risk than others.

The Aisle to Amazon study from location analytics company Placed unsurprisingly identified Best Buy and Target as high-risk retailers when it comes to consumers viewing products offline and then making purchases online. That being said, Best Buy and Target are actually not the most at risk when it comes to showrooming. In fact, Bed Bath & Beyond, PetSmart and Toys ‘R’ Us all face greater risk, with Amazon shoppers being 27 percent more likely to visit Bed Bath & Beyond, 25 percent more likely to visit PetSmart and 21 percent more likely to visit Toys ‘R’ Us before making a purchase online.

“Amazon was the clear winner in e-commerce 1.0, and unless brick-and-mortar retailers shift from reactive to proactive, Amazon will win e-commerce 2.0 on the backs of offline retailers,” said David Shim, Founder and CEO at Placed. "All the attention to date has been on Target and Best Buy as the early victims of showrooming, but significantly more retailers are at risk. Retailers need to know that it’s not a question of if or when showrooming will impact their business, as an aisle to Amazon is already in their store.”

In an attempt to combat showrooming, both Best Buy and Target recently announced Amazon price-matching policies, but this isn’t the only way that brick-and-mortar retailers can combat Amazon shoppers. Other strategies include:

1. Selling exclusive products – retailers can take Amazon out of the equation by selling customizable products or products that are exclusive to their brand or a brick-and-mortar location.

2. Integrating online features offline – If consumers are already shopping in-stores with their mobile phones, why not make the process easier? One way merchants can do this is by posting QR codes next to items that will take consumers to product reviews when scanned. Moreover, merchants can launch location-based promotions on platforms like Foursquare, such as a coupon for 25 percent off an in-store purchase when someone checks-in. This allows consumers to participate with mobile, while also giving them an incentive to make an immediate purchase.

3. Maintaining great service – One of the biggest advantages brick-and-mortar merchants have over online retailers is their ability to provide excellent service to any customer that walks through the door. This is why merchants should make sure that every member on their staff has a good attitude and is educated about the products and services that are being sold.

The Switch: Re-Platforming Project Guide for E-Commerce Merchants

Pete Prestipino — Mon, 07 Jan 2013 18:45:00 GMT

With the 2012 holiday comfortably behind Web retailers now is the perfect time to begin the process of moving a digital storefront to a brand new e-commerce platform. If you’re actively involved in a retail platform switch (or are only considering it), Website Magazine has put together a three-part series to guide digital merchants through this immensely challenging project.

In this, the first part of Website Magazine’s guide to e-commerce re-platforming, the focus is on auditing the numerous features that are required and in demand by retail-centered enterprises in 2013. The next two installments will focus on the specifics of making the technology transition to a new platform, and, on developing a post-transition strategy for moving forward.

Do I Really Need to Re-platform?

For many the interest in finding a new online store software provider will ultimately relate to their performance - in the most recent holiday shopping season as well as throughout the rest of the year.

While those that had a “good” 2012 and improved results (e.g. sales) are unlikely to make the transition to a new platform, it remains important for successful merchants to routinely explore the solution vendor landscape in order to understand the variances in licensing, maintenance and support costs offered by other providers as well as the features currently in use by their retail competitors (so as not to fall too far behind in their efforts to meet or exceed customer expectations).

Those that performed poorly however will first need to explore what’s preventing greater sales performance. That’s not always easy but with a data-driven understanding of performance it is possible to eventually choose a platform which meets your enterprises expectations and can correct the virtual ills plaguing any retail Web presence.

Quick Re-Platforming Analytics Audit

There are dozens of reasons why a digital retail enterprise may consider switching ecommerce platforms - from a lack of organic traffic due to poor SEO controls, to a failure to integrate with other essential ecommerce-friendly software solutions/platforms like robust CRM systems. To find out what’s preventing your e-commerce storefront, dive into the analytics.

Analytics solutions contain lots of actionable information on performance and those insights should not be ignored by retailers switching to a new e-commerce platform. For example, how often are products posted to social networks? Are support requests increasing? Did conversions fall off after a new feature integration? Are there water-cooler complaints circulating internally within your enterprise about the complexity of the system you’re currently using?

Ideally, there should be some available mechanism in place to track and regularly perform audits that can be used to indicate the right time to consider a formal switch. In order to do that, conversion goals (e.g. for support tickets generated, or social shares initiated) and performance benchmarks must be in place. Moving to a new platform without empirical evidence that a move is required is a dangerous game that the savviest merchants avoid at all costs.

Ecommerce Platform Feature Audit

In the first part of Website Magazine’s Ecommerce Re-platforming Project Guide, let’s explore five essential, high-level features that should be audited – on your existing site and in any new shopping cart being considered.

Marketing Features: The features that enable an ecommerce enterprise to promote its’ products effectively to prospective and returning customers – both on and off the website (or application) itself – should be an area of immense interest for retailers. Areas of discovery should be site search capabilities, recommendation, and merchandising controls – as well as how these features impact conversion.

Technical Features: It’s often what happens behind the scenes that most impacts what occurs in the front. While a well-staffed and smart team of developers can ultimately make anything functional, a well-documented code base and supportive developer community, not to mention a reliable infrastructure, are of immense importance.

Administrative Features: It might be the least “sexy” of all the features, but they are undeniably the most important – features for those that make formal business decisions. Administrative requirements such as the ability to run performance reports and export data are often one-off line items are the feature request list but their importance is critical.

Support Features: Merchants are demanding in their requests for support features. Ticket-based support systems, while still in regular use among top merchants, aren’t the only way to provide assistance to product buyers and site visitors. For example, it’s not uncommon today for merchants to buy into third-party software providers of support technologies such as live chat. Are these and other integrations available through modules, plugins or add-ons?

Design Features: Most ecommerce platforms today offer their e-commerce customers a great deal of control over the visual elements of their websites. “Fully-customizable” however doesn’t necessarily mean that designers shouldn’t be involved in decisions made related to an online ecommerce presence. If there’s a trend toward going mobile within your enterprise, know whether the solution you’re evaluating can keep pace.

So how should you approach your re-platforming project? Can what you learn from an audit influence which ecommerce solution is chosen? Ultimately, the features listed above need far more exploration and discovery on a merchant-by-merchant basis. They do serve as a good starter guide for making a platform switch.

Selling (More) Digital Products (Better)

Pete Prestipino — Mon, 03 Dec 2012 19:30:00 GMT

Digital product retailers, perk up your virtual ears! Omni-channel commerce software provider hybris has announced new features that enable publishers of books, magazines, games and software to sell digital goods, content and services online.

“Digital products are different from physical products. They’re alive,” said Ariel Ludi, CEO of hybris. “Using the internet to stay connected after the initial sale, offering related or next-in-series products in context, gives publishers of any digital goods or content the ability to have high-value perpetual digital relationships with their customers. hybris helps them create – and grow – those relationships.”

The new features at hybris enable sellers to offer a variety of flexible pricing models, construct complex bundles of products, and set up sophisticated rule-based discounts. By giving customers the ability to create their own “packages” with a guided-selling user-experience, higher conversion rates, average order values and lifetime value may result. Book and magazine publishers for example can sell individual chapters or articles, while software and game publishers can use the system to sell add-ons, upgrades and subscription renewals as well as downloadable content.

“As the shift from paper and CDs to downloaded or streaming content accelerates, companies are increasingly experimenting with innovative selling models,” said Moritz Zimmerman, chief technology officer at hybris. “hybris supports these initiatives with an agile selling platform that is engineered for extension, expansion, and innovation. With these new capabilities, publishers selling to consumers, professionals, academics or industry will get much faster time to innovation and a much better total cost of ownership.”

Increase Sales with Retail-Integrated E-Commerce

Michael Garrity — Mon, 18 Jun 2012 16:00:00 GMT

A new study from e-commerce solutions provider Shopatron has found that 73 percent of brands increased their overall sales – both online and in stores – through retail-integrated e-commerce.

A retail-integrated e-commerce model allows branded manufacturers to sell directly to consumers on their websites and then pass those orders to their authorized, local retailers for delivery to the customer. According to the survey results, the model strengthens retailer relationships, boosts retailer stocking and increases sales.

Over half of the 200 surveyed branded manufacturers said their online sales increased since launching retail-integrated e-commerce, with 10 percent stating that their online sales more than doubled.

The benefits of the model are also mutual, as over 65 percent of the 1,300 retailers surveyed noted improved profit numbers and customer acquisition, and 23 percent of them said that the model actually increased both statistics.

Furthermore, 59 percent said that they now stock more brands that send them sales using retail-integrated e-commerce, and 70 percent are prepared to or have already stopped buying from brands that continue to sell direct-to-consumer.

The full results of the survey can be found here.

What's New With Google Shopping?

Michael Garrity — Mon, 04 Jun 2012 20:15:00 GMT

The Internet was buzzing last week at the beta launch of Google’s latest service, Google Shopping. As always, the most recognizable name on the ‘Net is trying to wedge its way into another industry, but what will this mean for the e-commerce industry?

First of all, it’s important to understand exactly what Google is up to here, in case you haven’t heard. Essentially, Google is re-branding its Google Product Search services with a whole new business model. Soon, only merchants that pay to advertise with Google will be listed in the company’s product search.

In other words, Google has created a secondary retail-focused search engine that exclusively features paid advertisers.

However, as far as anyone can tell right now, this will definitely also play a role in regular search engine results, at least when users are searching for a specific product (or when a search can be construed as product-related). When Google presumes that the user has a potential intent to purchase, they’ll offer up paid (sponsored) listings next to the Web search results, so that they’re actually the first thing users see. Although the organic results will remain the same, they will not necessarily be the focal point of the SERPs any longer.

Of course, these product listings are more than just text ads, as they feature images, descriptions, links to the retailer’s sites and the current price. All of this is presented as a single, separate experience from the rest of the search results.

Either multiple product listings partitioned off in their own “sponsored” box, or a single product can appear on the right side of the page that includes a more detailed description. The former is typically designated for more general product searches, while the latter is reserved for very specific product queries (see examples below).

This practice combines product ads and Google Product Search, and helps to ensure that the paid listings don’t actually affect the organic search results – if we’re still calling Google Search organic. While this is all currently in a very experimental beta period, it's clearly an idea to which Google appears committed.

So, what does this mean for online retail, Google ads and product search?

Well, for one, it will force merchants to keep their ads up-to-date and accurate, since they are going to be charged as advertising partners just for the opportunity to list their products. This will be easy for them, as Google Shopping ads will come complete with an API that merchants can use to update their listings.

Bidding will be different, as now merchants will no longer be competing for keywords, but rather bidding how much they’d be willing to pay, if their listings appear and get clicks or generate conversions. Higher rankings will then depend on a combination of perceived relevance and the price of the bid.

Theoretically, these Google Shopping listings will help weed out redundant or irrelevant results for searchers, making them more enticing to consumers and, thus, more profitable (or worth the investment) for retailers.

Most of all, this whole scheme seems to be Google’s attempt to combat major e-commerce retailers, specifically Amazon. Whereas before Amazon was something of a one-stop shop for consumers looking to buy online, Google has now presented itself as an (arguably more efficient) alternative, allowing users to base their purchasing decisions on more product options from a wider variety of retailers.

This could drastically alter the e-commerce landscape and give smaller online retailers a much better chance at competing with the big boys.

Of course, it also runs the risk of shutting out those same smaller businesses that don't have the budget to afford buying product listings. Those companies that survive on the Web largely through the existence of free product search listings could also see some negative effects from this change.

Details are slim at the moment, and there is no official word on when Google will do away with free product listings, but the company did state in a blog post that it would like to have Google Shopping up-and-running by the fall of 2012.

Merchants have two incentives for transitioning to the new format, a 10-percent monthly credit through 2012 for ads created by August 15, or a $100 AdWords credit for existing Product Search merchants who fill out a form by the same date.

Three Areas of Focus for Retailers in 2012

Allison Howen — Mon, 26 Mar 2012 19:30:00 GMT

A recent report from Baynote, a provider of personalized customer experience solutions for multi-channel retailers, suggests three areas where retailers should be focusing more than any others right now.

The Marketplace Model
E-commerce giant Amazon has created an online retail model that proves to be a great example for any retail business starting out on the Web. In fact, 30 percent of all consumers who make purchases online begin their shopping on Amazon.com, according to the Baynote report.

Retailers can take note of Amazon’s success and apply it to their own business model by incorporating their products into online marketplaces. This will provide retailers with more visibility and can lead to an increase in customers and conversions.

Additionally, merchants should take note of Amazon’s aggressive pricing model. By obtaining a clear understanding of your business's pricing flexibility and ability to price match, retailers will be able to stay competitive and gain an edge over their competition.

Average Order Value
According to the Baynote report, most of the online shopping growth is coming from consumers spending more of their money online rather than new shoppers making online purchases. This is why retailers must take steps to attract consumers and increase their average order value (AOV).

One way to increase AOV is by adding suggested product functionality to your online store. For example, after a consumer adds earrings to the shopping cart, a suggested product window could appear that gives the consumer complementary suggestions like a necklace or a ring.

Other ways to increase conversions are by maintaining a strong social media presence, getting listed on sites like Google Places, and including customer testimonials and product ratings and reviews.

More Mobile
Although 91 percent of retailers had mobile strategies set in place by mid-2011, it is important that this channel isn’t neglected in 2012, especially with the rising usage of tablet devices.

Retailers should be offering more elaborate m-commerce functionality, including enabling their mobile sites or apps to support store shoppers and associates. According to the report, many retailers claim that in the near future their mobile strategies will include information about in-store events, real-time store couponing, and store maps.

Additionally, 14 percent of the surveyed retailers want to provide selling tools for store associates on their mobile sites.

Tablets are gaining momentum, and many users are utilizing these devices for online shopping – with Forrester Research claiming that 70 percent of tablet owners browse or research products, and 47 percent place purchase orders. This makes it increasingly important for retailers to utilize the tablet in creative ways, either in brick-and-mortar stores as a sales tool or by providing unique and interactive apps.

Affluent Shoppers May Drive Online Holiday Sales

Michael Garrity — Mon, 31 Oct 2011 19:35:00 GMT

Despite the consistently depressing news about the state of the economy as a whole, the National Retail Federation (NRF) is still predicting a 2.8-percent increase in holiday retail sales in 2011, thanks in large part to the influence of affluent shoppers.

The increase, however, is smaller than the 5.2-percent gain seen in 2010. Last year's holiday season also saw a greater lift in the number of visits to online retail sites than in sales, meaning that many users were visiting these retailers just to research product and store information.

Past Performance
These predictions from the NRF come from studying the data garnered from the Retail 500 companies during the 2010 holiday season. During the week of Thanksgiving and Black Friday last year, visits to these sites spiked 8 percent. The week of Cyber Monday saw an increase of 11 percent.

However, consumer feelings on the current economic climate are more negative now than they have been in the last two years, which obviously worries retailers.

Things are Looking Up
Never fear, though, because the NRF is reporting that "traffic to online retailers has grown with visits up 10 percent year-over-year for the week ending October 23, 2011."

This is a considerable amount of growth at any time, but it is especially promising with the holiday season right around the corner. What is important to note is that 28 percent of this traffic is made up of the four most affluent "Mosaic Groups" over-indexed against the population.

These groups are the Power Elite (household incomes of $125K+), Flourishing Families ($75K-$250K), Booming with Confidence ($75K+) and Suburban Style ($75K-$175K). Increased interest in online shopping by this more prosperous segment of the consumer population could likely be the driving force behind another lift in online sales during the 2011 holiday season and, as such, should be targeted appropriately by Internet marketers and retailers.

Groupon's GAP in Judgment

Mike Phillips — Fri, 20 Aug 2010 18:30:00 GMT

Yesterday, Groupon launched its first national deal, teaming up with clothing retailer the Gap and spawning hundreds of thousands of sales.

Early reports showed that Groupon, the crowd-sourced coupon dealer, was selling 534 Gap coupons per minute in Chicago, where Groupon was founded and is based. By early afternoon, more than 300,000 total coupons were sold and today Groupon reported a total of 445,000 sold for a hefty sum of $11 million. By the numbers, the campaign was a huge success. But did Groupon sell its virtual soul in the process?

Alienating the Consumer

Groupon's wild success started at home -- with small businesses offering deals to lure local customers. These mom-and-pop companies found an entirely new way to bring in business. And consumers were feeling special -- insiders, so to speak, to a special deal with like-minded individuals. It worked.

Then, the Gap.

What I find most disturbing about Groupon's unholy alliance with the most vanilla clothing retailer in the country is its lack of personalization. Before, I felt part of a cool club. Buying a Groupon made me a trend-setter. Now, I feel like sheep dressed in khaki and cotton. On any given day, there might be a dozen styles from which to choose on any one clothing item at the Gap. As this coupon is set to expire this fall, and hundreds of thousands of coupons are out there, you can expect to see plenty of men and women looking like clones roaming the streets very soon. That's not "cool" at all.

Alienating the Retailer

Let's not forget ol' mom and pop. It's safe to say that local businesses are not too thrilled with being placed on the back burner. If consumers become trained to expect deals from big retailers with arguably lower prices for similar goods (think McDonald's over the local burger joint), will they save their money for those deals and pass on the local retailer? After all, we are in a money-saving mentality here.

What's more, this nationalization of coupon dealing raises some interesting questions about consumers' expectations of retail goods, in general. Groupon's flashy deal has already made the rounds on Internet and even national television. If I'm not a Groupon user but see that other people are getting this great deal, do I feel cheated? In the larger picture, are we training consumers to never expect to pay retail prices again?

For local retailers there are plenty of alternatives, too. Consider the rise of location-aware applications and their potential for increased brand awareness and revenue generation. Services like Foursquare and Gowalla reward local consumers with deals when they visit a location -- be it a free appetizer at a restaurant or a percentage off of a purchase. Where Groupon pushes its deals on consumers, these alternatives reward participation in the "club." And, retailers can avoid Groupon's hefty cut of each deal -- as much as 50 percent.

Groupon had its most successful day ever, in terms of sales. But at what cost? Did they deep-six the model that made them a cultural shopping phenomenon in the first place? Time will tell. But one thing is certain: If a competitor comes along -- and several are already on the way -- I'll be open to their offers if it means I don't have to feel like a notch in the corporate belt.

Low Price Guarantee from BuySafe Brings Bonding in Focus

Pete Prestipino — Thu, 22 Apr 2010 14:49:00 GMT

Those shopping online have every reason in the world not to buy from you - they question your reliability and the performance of your products, they fear you will use their financial and personal information nefariously, they worry about getting the best deal. Until now.

E-commerce bonding service Buysafe took a step towards minimizing these consumer concerns today by releasing a “Lowest Price Guarantee” to its already confidence-inspiring product offering.

BuySafe is now providing in total a 3-in-1 bond guarantee which includes a $25,000 purchase guarantee (a third-party guarantee of all the purchase terms of sale), $10,000 worth of ID Theft protection coverage and now the $100 Lowest Price Guarantee. If the store price drops within 30 days of a purchase, BuySafe will pay the difference. For many consumers that will be just the push they need to buy from your e-store.

Jeff Grass, CEO of buySAFE said, “As one merchant told me recently, ‘buySAFE now gives my shoppers every reason to buy from me and to buy right now. The Lowest Price Guarantee encourages the shopper to not wait, but rather buy today.” Mr. Grass adds “After extensive consumer research and months of live tests, we know that the Lowest Price Guarantee is highly valued by online shoppers. This significantly expands buySAFE’s overall value to buyers and is one of the core benefits of our new buySAFE 3-in-1 Bond Guarantee.”