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MULTI-CHANNEL RETAILING

SHOPPING DESTINATION SITES & AFFILIATES

Industry Trends

July 11, 2008

Marketing for Holiday Season Should Begin in October

This just in from the "experts." It is a good read for all online merchants! Prepare now for online holiday shopping....or very soon. :-)

From eTaildTail friends over at Internet Retailer and MarketLive:

Internet_retailer_general_logo"While most consumers don’t start holiday shopping in earnest until the day after Thanksgiving, online retailers should begin marketing for the season as early as October, according to MarketLive Inc., an e-commerce platform provider.

During 2007’s fourth quarter, online merchants in the MarketLive Performance Index experienced an overall conversion rate of 4.8%, an 18% increase from the third quarter. The engagement rate (visit-to-cart) ratio rose 9.87%, up 4% from the prior quarter, and cart abandonment dropped 6% to 55.64%."

<<<CLICK HERE>>> to read full article

Chip Arndt

May 05, 2008

Online Shopping, E-Commerce Sales Increase Because of "Perceived" US Recession

eTaildTail friends over at Marketing Vox have an interesting study that mirrors the correlation I hypothesized about 6 months ago of the increase in fuel prices, and the credit crunch, to an increase in internet and mobile shopping. 

PumpinggasIn those comments, I stated that people still like to buy/consume and, while they have less money to spend due to stagnant wages and high gas prices, would turn to internet e-commerce and mobile shopping as a means to buy products to save money and avoid spending money on gas to buy products at brick and mortar stores. Furthermore, I stated that once they start to shop online, or via mobile commerce, they would also be introduced to price savings, and other offers, that they were of unaware of before.  In turn, this would lead to increased loyalty to the online and mobile shopping experience into the future from new online shoppers.

It seems that my thoughts now have some credibility in statistics.  The great news for small to mid-sized e-commerce merchants is that a whole new group of people are learning how powerful, cost-effective, and easy online and mobile shopping is and existing online shoppers are still shopping.

What Does This Mean For the Future of Online and Mobile Shoppping?

My next hypothesis, and you can hold me to this, is that as many new online shoppers will shop online because of:

  1. adverse economic conditions
  2. flat pricing plans to surf online from mobile carriers
  3. better shopping interfaces by e-commerce storefronts,
  4. better "shopping experiences" from shopping destination portals as Amazon, eBay, Like.com, mShopper.com, mPoria.com, PriceGrabber, Shop.com, Shopzilla, and many others, and
  5. ongoing better pricing, special offers, reduced shipping costs, and other incentives from the e-commerce merchant.

New and "old" online shoppers will become more enamored with online and mobile shopping and continue to use these channels/avenues to buy products than ever before, even after the US economy rebounds. 

This, in turn, will result in driving more online sales into the future and help to exceed Wall Street expectations of 13-15% year-over-year growth in online and mobile shopping.  I am still targeting 20% - 25% year-to-year growth into 2015.

We will see!

-- Chip Arndt

Vox From Marketing Vox:

"One-third (33 percent) of online US adults are more likely to shop online, rather than at a store, because of high gas prices, according to a Harris Interactive study conducted for iCongo - writes MarketingCharts.

Some highlights from the study:

Incentives

Consumers give various other reasons they would be more likely to shop online as opposed to a physical store:

  • 57 percent cite free shipping.
  • 55 percent cite lower prices.
  • 61 percent cite the ability to shop at any time.

If a store were..."

Please <<<CLICK HERE>>> to read full article from Marketing Vox.

April 07, 2008

Comparison Shopping Engines Continue to Satisfy Customer Demand: HealthPricer Leading the Way

This morning I read with some joy that comparison shopping engines continue to figure out better methods to work for, and with, online consumers through better site navigation.  The article I read was about a niche comparison shopping engine called HealthPricer, which many of you may know about already.

<<<CLICK HERE>>> for that article, written by Kristina Knight at BizReport, which is excellent and short and to-the-point.

Healthpricer Basically, HealthPricer is improving how customers can find products using their shopping portal by creating a more robust search feature that matches "general search terms" with products as opposed to just hoping that consumers type in the product name correctly.

I indentified this as an issue in a prior blog on how comparison shopping engines will compete with general search engines as Google, MSN Search, and Yahoo! Search to show their value add to online consumers in order to gain loyal customers and differentiate themselves from just "general search engines."  I am happy that HealthPricer.com is leading the way by implementing more intuitive search methods. 

Comparison shopping engines can be valuable to the consumer, as these marketing channels focus on products rather than just listing "any information" related to a product.  But in order to continue to keep and grow market share -- and move customers to use their portals to find products rather than just looking for a product on Google, MSN or Yahoo! general search engines -- the comparison shopping engines have to be fun and easy to work with to help find the products customers want with "very few" clicks, albeit the CSEs have to think more like an online shopper.

I like what HealthPricer.com has done.  Check their site out. I typed in the word "diabetic" and loved their sub menu that came up to help me find what type of "diabetic" product I was looking for within the general category of "diabetic health needs".

I think if the comparison shopping engines ("CSEs") keep on improving how they interact with their potential customers, to make it easier and fun to find the products they are looking for, they will maintain their value-add in the marketplace to consumers and continue to be a good place for online merchants to market their products into the future. 

It is a crowded CSE landscape out their but as I have always said: "Why not list your product catalog on sites that may have customers you are unable to reach through other marketing strategies?"

I went to some other CSEs and did some similar searches as I did on HealthPricer.com, but none were as intuitive as HealthPricers' new methods.  You can bet that other CSEs will follow.

When they do, CSEs should continue to attract online consumers to their site and build marketshare, as it will always be more comprehensive and easy to navigate and find the best products you want from a site focused just on products rather than a general search on Google, or the other general search engines.

Healthpricer_2 Oh, and if you sell medical related products, HealthPricer is a nice CSE to consider listing your product catalog.  Check them out at HealthPricer.com, and if you need any help, let me know!

-- Chip

 

March 04, 2008

E-Commerce Celebrates 25th Birthday: Sort of...Don't You Love History?

Isn't it fun to learn a little bit of history while you are visiting www.eTaildTail.com?

I am not sure of all of the facts, but the read below is worth it and as they say: "....baby we have come a long way!!!" -- regardless odf the exact date of the start of e-commerce.

Enjoy this very fun read and thank you Alex Randall and Cameron Hall -- I think that is who to thank! LOL

-- Chip

Ecommerce_general_logo "Clearly, e-commerce has gone from kind of a glimmer in someone's eye to arguably one of the most important and powerful developments, I'd say, in modern-day commerce," remarked Standard & Poor's analyst Scott Kessler. "It has become not just popular or pervasive, but also critical for both companies and consumers as they look for goods online and, in many cases, are often selling goods online."

Online Pioneer Marks Silver Anniversary of E-Commerce

By Jim Offner
E-Commerce Times <<<CLICK HERE>>> for full article

"It may not have been noticed in the whirlwind of online transactions on Web sites like eBay (Nasdaq: EBAY)  or Amazon (Nasdaq: AMZN) , but e-commerce turned 25 on Tuesday.

On March 4, 1983, the husband-wife team of Alex Randall and Cameron Hall quietly launched a business revolution that was then the stuff of dreams, when their year-old company, Boston Computer Exchange, sold a computer "on line" to a buyer in South America.

Randall and Hall had started their company as a clearinghouse for buying and selling computers at a time when PCs like the Apple 2, Tandy, IBM PC and Sinclair were first becoming available.

"Almost nobody outside of universities had computers," Randall told the E-Commerce Times. "But we could see it coming. It's like Bill Gates' story of having a computer in every home: We recognized that eventually you'd be able to trade all kinds of things this way."

Ecommerce_thinking_2  The Long View

It required a long-range vision, Randall said.

"In 1983, the only people who had computers were bleeding-edge aficionados," he recalled. "The only thing we could trade was computer equipment. There was no market for fresh fruit delivered to your door. The only people out there were computer users and people looking to buy computers."

Randall said he and Hall developed a marketplace where computer users could upgrade from old units.

The two started at a meeting of the Boston Computer Society with trading cards and conducted hundreds of transactions over the phone. They began to dominate trading in used computers as a paper and pencil company, Randall said.

They then bought a 300 BPS modem -- a system so slow, Randall said, that the user could read text faster than it came to the screen), bought a new database system called "Alpha 2" and struck an agreement with the owners of Videotext -- which would later become Delphi (NYSE: DPH)  -- for an online bulletin board system running software that allowed users to dial into the system over a phone line.

By partnering with Delphi and using its own dual floppy disk drive computer, BCE could post its database of products on a public access system.

On March 4, 1983, Randall and Hall got a call from a buyer in Santiago, Chile, and they subsequently made their first "on line" transaction.

Ecommerce_business_logo_fun "He was looking at the database online," Randall said. "He saw something that would be good to own. He phoned me he wanted to buy the system."

The caller purchased an IBM PC for $7,000, Randall said.

Randall and Hall later wrote an instruction book for creating a freestanding computer trading enterprise in any city.

The couple sold BCE in 1990 and moved to the Virgin Islands in the mid-1990s. He became a professor of communications at the University of the Virgin Islands.

Hall died of cancer in 1998.

"Cameron was a brilliant economist," Randall said. "She was very smart about money, and how marketplaces worked in the abstract."

Date Debate

Birthday_air_balloon_2 The actual birthdate of e-commerce is not undisputed.

When told that e-commerce had just turned 25, Gordon Haff, principal IT advisor for Illuminata, paused.

"My initial reaction is that it's an interesting date to pick but also somewhat an arbitrary one," he told the E-Commerce Times. "People have ordered stuff, if you would, via e-mail, certainly long before 25 years ago."

However, the genesis of e-commerce, as the world has come to know it, probably is a lot more recent than 1983, Haff added.

"I wouldn't say 'e-commerce,' if you think about it, really was anything approaching mass market until the Web era," he said. "I'd say we really had mass market closer to 10 years than 25. But, sure, you can find early examples."

Those early examples were important, Randall insisted.

"Our original concept was to build databases that could be infinitely expanded for any product," he explained. "It's utterly incredible. We were uploading data at 350 bits per second then, and now we have people buying things from eBay and Amazon on a click of a mouse without even thinking. It's astonishing how far we've gone."

Gartner analyst Avivah Litan shared that enthusiasm.

"I was thinking yesterday about an interview I had with Bill Gates before Windows came out," she told the E-Commerce Times. "I asked him what was in the future, and he said, 'graphics.' Back in the beginning, the interfaces were kind of kludgy, awkward, kind of heavy and hard to use."

For Better or Worse

As much as e-commerce has matured, it's still mostly potential, Litan noted.

"It's still only around 10 percent or less of all sales in the U.S.," she pointed out. "At some point, it will probably get 20 to 25 percent. But at this point, more people use it to window shop than actually make a purchase." ... more

<<<CLICK HERE>>> to finish article, only a few more paragraphs, promise, and no obligations to read onward, PROMISE!!!

February 27, 2008

Revealing Personal Information Still Inhibits Online Shopping

Some good insights about online shoppers behaviours and where we are heading with online shopping into the future.

A good (and quick) read from our friends of eTaildTail over at MediaPost Publications.

- Chip

Revealing Personal Information Still Inhibits Online Shopping

by Jack Loechner, <<<CLICK HERE>>> for full article, which has some excellent statistical analysis for all online merchants. It is easy and good reading.

"According to a Pew Internet Project survey, released in February, 2008, most online Americans view online shopping as a way to save time and a convenient way to buy products. At the same time, most internet users express discomfort over sending personal or credit card information over the internet.

  • 78% of online Americans agree that shopping online is convenient.
  • 68% of online Americans say they think online shopping saves them time.
  • 75% of Internet users agree with the statement that they do not like sending personal or credit card information over the internet.

John B. Horrigan, Associate Director of the Pew Internet Project and author of the report, says "These inconsistent notions about the online shopping environment show that... people's confidence in the security of online shopping remains as an issue... "

More specifically, the report says:...."

<<<CLICK HERE>>> for full article, which has some excellent statistical analysis for all online merchants. It is easy and good reading.

Revealing Personal Information Still Inhibits Online Shopping

February 18, 2008

Age Influences Values, Worries in Online Shopping: Pew Report

Once again I let the experts speak to online shopping.  I thought this was an interesting report for the eTaildTail community in regards to the behaviour pattern on those under 30 years old.

You can always find links to news stories like these on the right hand side of this blog daily, but sometimes I like to highlight the more relevant ones in a full blog entry.

-- Chip

<<<CLICK HERE>>> for full article or read below, from the PEW Report

Promo_newssite_logo "When it comes to buying products and providing credit-card data over the Internet, the kids are all right, but Nana and Grampy just feel a little weird.

New results culled from the Pew Internet & American Life Project’s, published Tuesday, find that a majority of Web users under 30 find the Internet to be the best place to find good deals on merchandise or to locate hard-to-find items."

Age Influences Values, Worries in Online Shopping: Pew Report

According to the “Online Shopping: Internet” report, 83% of respondents 18-29 agreed that online shopping is convenient and 70% saying it saved them time. Sixty-two percent of the age group said they could find bargains on the Internet. Eighty-four percent in that age group said they valued e-commerce as a way to locate difficult purchases, while about the same proportion said they valued the ability to see an item before buying it.

Shoppers 30-49 found e-commerce to be equally convenient (82%) and even more of a time-saver (73%) but less of a money-saver, with only 52% said it helped them find bargains. The 50-64 survey population found Web shopping to be somewhat less time-efficient (67%), less convenient than their younger counterparts (77%) and much less effective at digging up deals (38%).

Worries about providing credit-card information and other personal data also increase with age, the Pew report finds. While 71% of the 18-29 group said it dislikes providing personal information online, that figure rises to 74% for those 30-49 and to 79% for users 50-64. For Internet users 65 or older, the Web-wary contingent grows to 82%.

And the older the respondents, the more complex they found buying items online. While 24% of those 18-29 and 30-49 agreed that Internet shopping is complicated, 30% of those 50-64 said the same, as did 34% of Web users 65 or over.

“Improving online users’ comfort levels with sending personal or credit card information over the Internet would have the biggest payoff for expanding online shopping,” the Pew report concludes. If respondents who worry about sending personal data over the Web were to have those fears allayed, the proportion of Internet users who shopped online would increase to 73% from the current 66%.

Overall, Pew found that 43% of Internet users report frustration at the lack of Web information about goods and services they want to buy. On the other hand, 30% said they have felt overwhelmed by the amount of information turned up during their online shopping or research. And 32% said some of that information turned up in their investigations or transactions simply has confused them.

The Pew online shopping report is based on telephone surveys with 2,400 U.S. adults conducted between Aug. 4 and Sept. 5, 2007."

<<<CLICK HERE>>> for full article or read below, from the PEW Report

February 15, 2008

Internet Shopping is The Future: So Says Study of Under 30 Year Olds

eTaildTaiI friends, I like to go into this weekend with a short and sweet article that includes some interesting statistics. Namely, and I quote:

"...62 percent of Web users under age 30 consider the Internet to best place to find good deals..."

So for all of you online merchants out there wondering if online shopping is here to stay.

It is....and

It is growing...and

You can make money and higher ROI implementing intelligent e-commerce and mobile commerce strategies and bsiness tools.  e-mail me if you want some ideas at chip@etaildtail.com

Have a wonderful weekend and remember....Valentine's Day should continue throughout the weekend...so treat her/him special...she/he is probably expecting it! :-)

-- Chip

Seattle_times_logo As reported in the Seattle Times

Study: Generation Gap With Net Shopping

By ANICK JESDANUN, AP Internet Writer

<<<CLICK HERE>>> for full story.

"Convenience and bargain-hunting tend to drive younger Americans to online shopping, while all adults share concerns about security and other drawbacks, a new study finds.

According to a study released Wednesday by the Pew Internet and American Life Project, 62 percent of Web users under age 30 consider the Internet to best place to find good deals, while only 32 percent of users age 65 and older do.

Likewise, younger Internet users are far more likely to find online shopping convenient.

John Horrigan, the study's author, attributed the generational gap to the force of habits.

"Older Americans have for a long time been doing shopping the old-fashioned way," Horrigan said. "They've adopted subtle patterns of shopping that are sensible to them and therefore fairly convenient for them. Younger folks never had to learn those tricks like getting to the mall early to avoid crowds or knowing when the sales are."

The generational gap is less pronounced when it comes to giving credit and other personal information online. Seventy-one percent of younger users do not like doing so, almost as high as the 82 percent of older users.

And older users were only slightly more likely _ 34 percent vs. 24 percent _ to find online shopping complicated.

The telephone-based study of 1,684 Internet users, conducted Aug. 3 to Sept. 5, has a margin of sampling error of plus or minus 3 percentage points"

<<<CLICK HERE>>> for full story.

February 13, 2008

85% Of World's Online Population Shopped On The Web

I always depend on those smarter than me to educate us all on the trends in online shopping. While the USA is behind the rest of much of the world in some categories of online shopping behaviour, we are not too far behind.

My gut tells me that online shopping is getting better, is more fun, and people are more comfortable with online transactions and getting their products shipped to them. 

So I still recommend using shopping comparison sites, making your online site more robust and exploring mobile commerce, which is the next wave of shopping and reinforces your brand and can drives new customers to your online storefront.

Still skeptical...read onward!

-- Chip

For more on this report <<<CLICK HERE>>>

According to the latest Nielsen Global Online Survey on internet shopping habits, more than 85% of the world's online population has used the internet to make a purchase, increasing the market for online shopping by 40% in the past two years.

Bruce Paul, VP, Customized Research, Nielsen US, said "When The Nielsen Company conducted its first global survey into internet shopping trends two years ago, approximately 10% of the world's population (627 million) had shopped online. Within two years, this number has increased by approximately 40% to 875 million."

Globally, more than half of internet users have made at least one purchase online in the past month, according to Nielsen.

Among internet users, the highest percentage shopping online is in South Korea, where 99% of those with internet access have used it to shop, and 79% of these internet users have shopped in the past month. Other prolific shoppers are in the last month are:

  • the UK 76%
  • Switzerland 67%
  • the US 57%

Internet Users Who Have Ever Purchased Online

Location

% of Internet Users

Europe

93%

the UK

97

Germany

97

North America

92

the US

94

AsiaPacific

84

Japan

97

Latin America

79

EEMA

67

Global Total

86

Source: ?The Nielsen Company, 2007/Marketing Charts, January 2008

Globally, says the report, the most popular purchased items over the internet are books,clothing/accessories/shoes, videos/DVDs/games, airline tickets, and electronic equipment.

  • Among Germany's internet users, 55% said they bought books, 42% had bought clothes/accessories/shoes and one in four had purchased music/videos/DVD's in the previous three months.
  • During the same period, among internet users in the UK, 45% bought books online, followed by videos/DVDs/games (44%), clothing/accessories/shoes (38%), music (37%) and one in four internet shoppers also purchased and airline tickets/reservations online.
  • Among US internet users, in the previous month 41% had bought clothing/shoes/accessories, 38% bought books and one in three internet shoppers bought videos/DVDs/games.

Popular Online Purchases (Global Average, % of Online Purchasers in Past Three Months)

Purchase

% of Online Purchasers

Books

41%

Clothing, Accessories, Shoes

36

Video, DVD, Games

24

Airline ticket, reservations

24

Electronic equipment

23

Music

19

Cosmetics, nutrition supplies

19

Tours, hotel reservations

16

Event tickets

15

Computer software

14

Groceries

14

Toys, dolls

9

Sporting goods

8

Automobiles & parts

4

Sports memorabilia

3

Other

20

Source: ?The Nielsen Company, 2007/Marketing Charts, January 2008

According to Nielsen, online shoppers tend to stick to the shopping sites they are familiar with, with 60% saying they buy mostly from the same site.

"This shows the importance of capturing the tens of millions of new online shoppers as they make their first purchases on the internet. If shopping sites can capture them early, and create a positive shopping experience, they will likely capture their loyalty and their money," said Paul.

In selecting sites on which to shop, according to the study, one-third used a search engine or just surfed around to find the best online store. One in four relied on personal recommendations.

Shopping Site Selection Method (Global Average, % of Online Purchasers in Past Three Months)

Selection Method

% of Online Purchasers

Regular purchase site

60%

Surfing

33

Search engine

31

Special offer

30

Recommendation

23

Shopping comparison

23

Regular offline store

20

Online review

18

Online advertising

14

TV, print or other advertising

11

Other

6

Source: ?The Nielsen Company, 2007/Marketing Charts, January 2008

Jonathan Carson, President, International, Nielsen Online concludes that "The explosion in Consumer Generated Media over the last year means that this reliance on word of mouth, over other forms of referral, looks set to increase."

For more on this report <<<CLICK HERE>>>

February 04, 2008

Google Says Mobile Advertising is The Future

So what do you do when Google says that it believes mobile advertising is the future?  (see below article for reference to Google and their plans for mobile advertising)

1. Do nothing.

or

2. Take notice and prepare your online storefront for the advent of mobile shopping.

It is really that simple.

I know that Google "believing in/betting on" online mobile advertising does not immediately translate into more people shopping online, as the first large wave of mobile advertising will focus on sports events, ticket sales for various events, and brand advertising for banks and larger companies that have an established brand, but this news does bode well for the growth of all related mobile services, including mobile shopping.

My belief is that as Google, and the 20-35 year old generation, become even more reliant on the their "little mobile" devices to do everything from make phone calls, text messaging, watch video, listen to music, find directions, look at pictures, and scour the internet, so too will they become more comfortable with shopping and then buying products online.

I personally never thought I would be buying products via my cell phone just 3 years ago, but frankly, after setting up an account once with a mobile technology service, I have bought over $500 worth of gift items and sent them to friends the past two months.

It happened one day when I was reminded that I needed to be at the aiport two hours in advance of my flight to guarantee that I would make it through security and check my bags going to London.

Lo and behold, I made it through security in 30 minutes and had 1.5 hrs. to kill before my flight departed.  I thought about a friend, who did something very nice for me earlier that day, and I bought her a gourmet food item via my blackberry, then, I sent my sister some flowers to cheer her up, and, finally, I searched for the best price for a new HD TV to watch the superbowl (no I did not buy the TV, but it was fun and easy to hunt around and compare prices = comparison shopping).

The point being is that those who say that mobile shopping is not a big deal are missing the boat.  Setting up an online, mobile storefront is easy and inexpensive. It gives you reach and and in less than 3 months you can get real time results of whether it works for your company. 

So, my advice....get a mobile storefront today and get in the game...Google is!

-- Chip

PS For great mobile shopping companies to set up an account check out:

mPoria.com and  mShopper.com, MerchantAdvantage supports both with a click of a button!

Mporiacom_logo_2 Mshopper_logo_2

From Sky News, UK <<<CLICK HERE>>> for full article

"A huge revolution in location-based advertising is soon to take place, according to the chief exec of Google.

Speaking at the World Economic Forum in the Swiss resort of Davos, Eric Schmidt said that mobile users could be affected by the soon-to-be truly mobile internet.

"It's the recreation of the Internet, it's the recreation of the PC (personal computer) story and it is before us - and it is very likely it will happen in the next year", he told assembled journalists.

At the moment, reports Reuters, analysts have been cautious about the future of mobile advertising, or advertising that targets where the phone users is, and consultancy Forrester predicting revenues of under $1 billion by 2012.

But, according to Schmidt, this is a massive underestimation.

He explained that Google wants to be a key player in this market by bidding for airwaves to launch an open US wireless network, which would see it competiting against established telecommunications players.

Analysts immediately responded by stating their concerns that Google would be over stretching itself as it would be a very expensive move tbut Schmidt dismissed this saying that location-based advertising - which could, for example, direct hungry travelers to nearby restaurants - would be "a very, very good business".

January 30, 2008

Online Shopping Expectations Rise for 2008 and Will Lead to Higher Sales

I think the below comments from Kristina Knight, at Biz Report, summarize nicely what online merchants can garner in, and expect from, 2008 from online sales, if they listen to their customers and focus on making their websites the best shopping experience it can be.

You all have heard it before, I am sure, but please don't take this lightly.  Please note the last paragraph of the below report from Kristina.

If you spend a weekend strategizing and researching websites that do very well, because they are designed "flawlessly", and then create a design plan to ensure that customers have a wonderful shopping experience at your site, you will reap many rewards, namely sales and loyal customers in 2008.

-- Chip

Logo_biz_report "Having the right product at the right price isn't enough in today's online shopping realm. Ecommerce sites need much more according to a recent Allurent, Inc. survey. More than two-thirds of consumers surveyed said their online shopping expectations have risen since the 2006 holiday shopping season."

by Kristina Knight, Biz Report <<<CLICK HERE>>> for full article

80% of those surveyed said they would not return to an etailing hub after one bad experience!

The changes in technology are driving consumer expectations, according to the survey. Consumers noted that with increased technology and the ease of using technology they also want online shopping to become more advanced. Users want more than simple store-fronts and would like to see highly-advertised sites with more than just product explanations.

Bad online experiences are also beginning to bleed over into in-store purchases. More than 40% of those surveyed said that a bad online shopping experience would impact future in-store purchases. 60% said a bad shopping experience changes their view of the brand as a whole.

Along with this information, consumers said they expect to increase their online shopping during the 2008 holiday season. More than 65% of consumers said they would shop online more during the '08 holiday shopping season than they did during 2007.

<<<CLICK HERE>>> for full article

January 07, 2008

Sling Media To Bring TV To BlackBerry Smartphones: Listen Up...Shopping Online Benefits Big Time!

So for all of those "doubters" who don't believe that the mobile indsutry is doing eveything they can to make mobile devices the "one-stop" destination for eveything, see below.

We all might not be ready for talking, listening to music, reading emails, texting, shopping, watching video clips, and now watching full streaming TV to your mobile devices....but I am already doing and did 25% of my Holiday shopping on my mobile device while on the road!

So what does this mean for small to mid sized online merchants? 

Get/send your product catalog to mobile shopping sites now to increase sales and branding, just my advice!  And if you want to know how it all works check out:

Isave_logo iSave.com

Mporia_logo

mPoria.com

and

Mshopper_logo_2  mShopper.com 

and ask how they can help you...call them all and compare.

-- Chip

<<CLICK HERE for full News Brief>>

"Sling Media To Bring TV To BlackBerry Smartphones

Monday, Jan 7, 2008 11:00 AM ET

GADGET FREAKS NO LONGER HAVE to tear themselves away from their BlackBerries to watch TV on their Slingboxes. Sling Media said it will extend the mobile version of its service that lets users watch their home TV on an Internet-connected computer to BlackBerry smartphones later this year. The announcement was made in conjunction with the start of the International Consumer Electronics show kicking off today (editor note: Mon. Jan.7). The SlingPlayer Mobile software already runs on mobile platforms including Windows Mobile and the Palm and Symbian operating systems. The mobile software costs Slingbox customers a one-time charge of $29.99. Sling Media was acquired last year by EchoStar Communications.

--Mark Walsh"

December 18, 2007

Is the Proliferation of Shopping Destination/Comparison Sites Good For the Marketplace?

The latest annoucement from my friends at ShopBig.com/myTriggers.com, which I posted below in its entirety, got me thinking about if the ecommerce and mcommerce marketplace can support hundreds of shopping comparison sites and shopping destination sites, i.e., are there enough online shoppers to support the business models of all of these shopping destination sites and can online merchants make money managing so many online shopping sites and return on investment using these sites?

For the online consumer choice is good, but I doubt that many consumers go to more than 3-4 online shopping destination sites to find their products.  Most online shoppers are brand loyal and, after hunting around 3-4 sites for the best price, they usually setttle on a shopping destination site they trust and, most of the time, gives them the best price.  And, if we use alexa ratings as our guide, only about 15 of the online shopping sites break into the top 50,000 of most visited sites on the internet.  But so what?  Is bigger always better? No way!

The reason I say "so what/no way" is because there are many smaller online shopping sites that are excellent sites and make some merchants a good return on investment.  While some shopping destination sites may be smaller, and provide less click throughs to online merchants, they often have a very loyal audience and provide what every merchant really wants, namely, sales, a higher click-to-purchase ratio and clients to market to into the future. 

Look at GolfPricer.com (golf equipment) whose alexa rating is over 6 million, or ToolCrib.com (tools) or ShopandPrice (computers and accessories) both of which are over 700,000 -- does this mean that an online merchant should not feed their product catalog data to these sites, are they bad online shopping sites?  I think not.

Not every online shopping destination site wants, or needs to be, JellyFish.com, Shopzilla, Yahoo! Shopping, Pronto.com, PriceGrabber or Shopping.com.  Some online sites are happy with their business model and making a nice return on their business model and have figured out a way to make money while also helping the online consumer and online merchant to both win!   

I have had some clients decide not to work with the big online shopping sites precisely because the click to purchase ratio is not great and smaller sites perform better for them.

The answer to working with any shopping destination site lies simply in managing your return on investment.  This means managing:

  • time to set up, optimize and manage data product feeds
  • money spent on working with a shopping destination site, and
  • man hours to ensure that you are using shopping destination sites properly, ergo, analyzing ROI

Many "experts" will tell you to only work with the large shopping destination sites. They often say this because these are the sites they are working with and know how to manage. I say test and try several shopping destination sites -- big and small. And find the ones that work best for you.  Some shopping destination sites that really work may be big, some may be small, and many you have never heard of, yet!

I have over 20 clients that send their product feed to over 60 sites each and they seem to be doing quite well.  They must know something!

What Does the Future Hold? How Many More Online Shopping Sites Will We Have?

While I am personally still bewildered by the many new shopping destination sites that keep popping up each month, including high end niche sites as Ideeli.com (a private members only shopping site), ViaLuxe.com (launched by former Yahoo! Executives) and ShoppingVale.com -- let's have some fun with them all -- why not try them, especially if you have the time to manage them and let you analytic tool provide you accurate information on how they are performing for you?

While I personally love the upward trends in the growth of online and mobile commerce and the many new online shopping sites available to consumers -- as it gives the consumer choice and more ways for online merchants to reach customers who are loyal to a certain shopping destination site -- I still can't understand what "really" differentiates each shopping destination site from the other and how they will continue to drive quality, "buying" consumers to their sites, as new sites and choices emerge. 

I like the fact that there are some interesting new business models to attract consumers, as "couparison shopping sites" (as myCoupons.com or CouponMountain.com) and review sites (as Buzzillions.com and PowerReviews.com), but there has to be some shake out soon -- can the market support over 200 shopping destinations sites?   

[Yes, folks, I have 216 shopping destination sites to date on my whiteboard, covering the USA, Canada and Europe]

They are all very similar and very few of their site navigation features are really that impressive for me to be able to fall in love with one shopping destination site over the other -- and please note that, when one shopping destination site offers color matching the rest follow, when one offers reviews the rest follow, when one offers better visual imagery the rest follow, when one offers "green shopping choices" the rest follow -- you get the point = so don't be "wowed" by innovation alone.

Who Cares? The More The Merrier.

Is there really anything radically different that one shopping site will introduce that the others cannot copy within 2-3 months?   Probably not.

Is there any reason why we should not be welcoming new shopping destination sites that might target a niche consumer audience? I can't find one.

The real shopping destination site winners will continue to be the ones that build the most trusted brand and loyal customer base through ongoing innovation, advertising, prices, and superior customer service. 

The reason I say this is because new shopping destination site features are just too easy to replicate.  While innovation is critical, just relying just on new site innovations cannot be relied upon to keep a shopping destination site ahead of the game! 

But in the meantime, the more online shopping destination sites that pop up, and are LEGITIMATE, and provide accurate data on how they are performing, the better.  And the over all winner is......YOU, the online merchant.

The Real Winner is The Online Merchant

I love choice, as it gives the small to mid sized online business more access to potential customers.

So the really good news for online merchants is that if a certain shopping destination site is not bringing you customers and performing the way you expected, there are always others you can try, and I guarantee that there are many online shopping destination sites and shopping comparison engines that are smaller, which will perform just as well as the larger ones...promise!

-- Chip

December 14, 2007

Retail Industry Groups Square Off in Internet Sales Tax Debate

Okay this post may be boring to some, but it is very important for all online retailers, small to large, to have as sense of the timing of how online ecommerce taxation will happen, if it happens (it will), and how it might affect your online business and profits!

Congress is involved -- so the good news is that all of this will probably take years.  :-)

The bad news is that it will happen and more taxes will be taken from each online sale.

In my opinion, it is just a matter of when Congress is able to sort out all of the various taxes online merchants will have to pay and to which jurisdictions they have to pay them (state, local, federal...etc..).

The key thoughts I gleaned from this post are as follows:

"Current law only requires sellers to charge sales tax for customers located in states where the seller maintains a store or other physical presence. Although current law also requires the customers to pay their own “use” tax if the seller doesn’t collect a sales tax, there has been no effective means of enforcing use taxes, according to tax experts.

The Direct Marketing Association contends that the proposed law would make it difficult for direct merchants to compete. “Expanded and overlapping state tax jurisdictions would seriously jeopardize the continued growth of electronic commerce in the United States, and it would impede the access of small and medium-sized companies to a nationwide market,” George Isaacson, tax counsel for the DMA, told the Congressional panel. Isaacson noted that the legislation fails to reduce the more than 7,500 tax rates across the U.S., that it doesn’t reduce the “burden” of tax collection, tax remittance and tax audits facing interstate marketers, and that it fails to guarantee fairness in the compensation of sellers for the costs of tax collection and remittance."

Please read below for entire article.

-- Chip

<<<CLICK HERE>>> for full article

Retail Industry Groups Square Off in Internet Sales Tax Debate

"At a Congressional hearing last week, retail industry groups representing store-based and direct retailers presented opposing views on whether Congress should move ahead with a proposed law that would mandate collection of sales tax on goods sold online and in catalogs.

“We are here to ask you to level the playing field between sellers that collect sales tax and those who cannot be required to collect the tax because they do business in the community on a virtual rather than physical basis,” said Wayne Zakrzewski, vice president and associate general counsel-tax, for J.C. Penney Co. Inc., No. 12 in the Internet Retailer Top 500 Guide. “Many of our competitors do not collect, which gives them a competitive advantage. This is not because they are innovative or provide incremental value to the consumer, but because the states do not have the ability to require collection of a tax that is due from the consumer.”

Zakrzewski spoke on behalf of the National Retail Federation, which represents large retail chains as well as other types of merchants. But while the NRF argues that a mandated sales tax on direct merchants would be more fair, the Direct Marketing Association, which represents web and catalog merchants, contends that the system as proposed would “seriously jeopardize” the continued growth of e-commerce in the U.S. because of the costs involved in collecting and remitting sale tax across more than 7,500 tax jurisdictions.

The hearing covered the Sales Tax Fairness and Simplification Act (H.R. 3396) introduced in August by Rep. William Delahunt (D, MA). The proposed law recognizes the Streamlined Sales and Use Tax Agreement, commonly referred to as SST, as an effective means of providing for interstate collection and remittance of sales tax. If the legislation is enacted into law, states that abide by the SST’s system of defining, collecting and remitting sales tax could mandate that sellers from other states process sales taxes for all customers within the SST member states. As of next month, the SST will have 17 states as full members, plus another five that support the SST but have yet to implement its policies.

Current law only requires sellers to charge sales tax for customers located in states where the seller maintains a store or other physical presence. Although current law also requires the customers to pay their own “use” tax if the seller doesn’t collect a sales tax, there has been no effective means of enforcing use taxes, according to tax experts.

The Direct Marketing Association contends that the proposed law would make it difficult for direct merchants to compete. “Expanded and overlapping state tax jurisdictions would seriously jeopardize the continued growth of electronic commerce in the United States, and it would impede the access of small and medium-sized companies to a nationwide market,” George Isaacson, tax counsel for the DMA, told the Congressional panel. Isaacson noted that the legislation fails to reduce the more than 7,500 tax rates across the U.S., that it doesn’t reduce the “burden” of tax collection, tax remittance and tax audits facing interstate marketers, and that it fails to guarantee fairness in the compensation of sellers for the costs of tax collection and remittance.

Barbara Tulipane, president and CEO of the Electronic Retailing Association, which represents primarily TV-based merchants, made a similar argument in a statement last week. “Small business expansion, fostered by Internet marketplaces like eBay as well as e-retailers throughout the country, is a major job creator helping to keep the U.S. economy moving forward,” Tulipane adds. “Making electronic retailers responsible for computing, collecting and remitting tax for thousands of taxing jurisdictions with different rates and coverage is unfair and will significantly harm the growth of e-commerce.

But J.C. Penney’s Zakrzewski contends that Delahunt’s bill provides for a “significant reduction in the burden imposed by the states sales tax system” in participating states. In a statement, the NRF added that the Streamlined Sales and Use Tax Agreement “provides uniform definitions, a taxability matrix showing what items are subject to tax,” and that the sales tax plan provides for assistance from software companies that specialize in collecting and remitting sales tax across multiple jurisdictions.

He added, “Passage of H.R. 3396 into law would be the appropriate next step to a modern, fair and responsive sales tax system across all participating states and sellers.”

Delahunt’s bill is similar to one introduced in the U.S. Senate by Michael Enzi (R, WY). Neither bill, however, is expected to pass in the current Congress, which extends through next year, says Daniel Schibley, a state tax analyst with CCH Inc., a Riverwoods, IL-based publisher of tax and legal information. “I don’t think these bills have any chance of passing in the current session of Congress,” he says. “The idea behind introducing them is to keep the issue alive while building support for legislation.”

December 06, 2007

High-End CE Sales Online, Part 2: New Shopping Tools and Trends For Online Merchants

It is fun to work with industry experts.  Here are some experts from an article released at E-Commmerce Times today, that might help small to midsized online retailers for 2008.

-- Chip

For full article <<<CLICK HERE>>>

E-Commerce Times, by Andrew Burger

"The best way for the consumer to determine the best deals is to use review sites and then shop around. While my merchants might not like to hear me say 'click away' to compare pricing, that is part of the fun and games of online shopping," said Chip Arndt, executive vice president and cofounder of MerchantAdvantage.

"Though opinions are mixed, industry experts and economists expect a reasonably good holiday retail sales season this year despite an economy struggling with higher oil and import prices, decreasing home values and the after-effects of mortgage market problems. Online holiday sales, in particular, should do pretty well, though the outlook is more clouded for sales of high-end consumer electronics products, as Part 1 of this series discusses.

"Even though there is talk of recession, the GDP (gross domestic product) for third quarter 2007 in the U.S.A. was up over 3.5 percent, which was unexpected. This growth, in light of high oil prices, a housing credit crunch and a decrease in housing starts and sales was driven by consumer spending," noted Chip Arndt, executive vice president and cofounder of MerchantAdvantage.

"It is my belief that as the Fed eases interest rates for the last quarter of 2007, we will see that this GDP growth will remain constant with consumer spending leading the drive as the marketplace comes to terms with housing and credit crunch issues. Furthermore, as online shopping and search sites such as eBay, Amazon, Ask.com, Google, Travelocity, Expedia, Orbitz and others increase their off-line spending in traditional forms of media as television, print, billboard, radio and the like to drive consumers online to find products, travel deals and services, this will have a positive residual affect for all online merchants selling products this holiday season," he added.

Going Into the Holiday Season

Shoppers intended to buy less in the way of consumer electronics this year as compared with last year, according to year-to-year third quarter research on consumer electronics purchase intentions conducted by Parks Associates .

"Based on these results, I think that we -- along with folks in the economist community -- have some trepidation in looking at the holiday season given the credit crunch, home values declining and news about weakness in the economy," Kurt Scherf, Parks Associates' vice president and principal analyst, told the E-Commerce Times.

"I think it is going to be easier for consumers to consider upgrades of products they already own -- particularly computers, digital cameras, video camcorders, and music players, as opposed to thinking about a totally new product purchase. After all, the price for the portable devices continues to fall, and you can buy a significant upgrade to cameras -- improved megapixels, etc. -- for not a whole lot more, or even less, than what people spent on the original product. PC sales should be solid, either because people are finally going to upgrade to a Vista system, or because XP systems will be very cost-effective as upgrades," he noted.

'Tech for Tots' and Other Themes

There are several "themes" that consumer electronics manufacturers are looking towards to make for a happy, healthy holiday sales season. The digital home office and entertainment center are two; the introduction of new iPhones, iPods, smartphones and other handheld  devices makes portability a third...

<<<CLICK HERE>>> to read entire article

Ma_stacked_tag ...Based on online sales data from MerchantAdvantage's "electronic centric" products category, Arndt believes that holiday consumer electronic sales will grow 10 percent year-to-year and come in line with the Consumer Electronics Association's forecast of US$22 billion.

"To complement these positive trends, more online consumers are comfortable with shopping online and as they want to save a few 'gas' dollars and as online merchants offer shipping discounts, I predict these two factors will help push online sales past the year-over-year growth of 10 percent, comfortably. Also, while new to the U.S. consumer, the advent of mobile shopping sites -- mPoria, which deals with most major carriers; iSave.com, powering iPhones; and mShopper, powering Sprint -- should help add to the online shopping holiday push."

"The best way for the consumer to determine the best deals is to use review sites and then 'shop' around. While my merchants might not like to hear me say 'click away' to compare pricing, that is part of the fun and games of online shopping. People learn by exploring and the shopping comparison sites are great places to start and also review sites as Powerreviews.com or Buzzillions.com," Arndt commented.

For e-tailers, particularly smaller online merchants who may not be able to match the cutthroat price discounting that typically occurs during the holidays, creative pricing strategies and delivering excellent customer service are keys to attracting and holding on to good customers and differentiating themselves from the pack, according to Arndt.

"The big boys and girls deluge the marketplace with ad words and advertising, and then usually the lowest pricing as they are volume players. One client I can't name who does very, very, very well actually keeps their margins high by providing the best, and I mean best, customer service," Arndt elaborated.

"This starts with being advertised everywhere and then when you call in from their Web site or e-mail them, the customer simply is treated so well that you want to buy your products from them. I call it the 'Disney or Neiman Marcus effect.' When everyone in your organization understands that at anytime that they speak to anyone, I mean anyone, outside of the company that that person is a potential customer," he added."

<<<CLICK HERE>>> to read entire article

December 04, 2007

Guranteed Top Listings on Yahoo!, Google, and MSN Search from PriceForSure: Great deal!

I thought this was a nice offer from etaildtail's friend over at PriceFor$ure.com; it shows how services for online merchants are evolving everyday -- and helps the online merchant save time and money.

And we like that = innovation means better online marketing to the customer = more online shopping.

-- Chip

From PriceFor$ure.com Holiday Special for Online Merchants

Priceforsure_logo "As an Authorized Reseller for Google, Yahoo!, MSN, and their affiliates, we now  provide companies worldwide with top placement in the 1st , 2nd or 3rd sponsored positions, generating the targeted traffic that translates to real, bottom-line results for a fixed rate per month. The fixed placements are guaranteed throughout the whole month or the amount will be refunded. Cost per Phrase varies.

  • Guaranteed Sponsored Placement in one of the top three positions:
  • Positioning in 1st , 2nd or 3rd Sponsored Placements 24/7
  • 12 Month Rate Guarantee
  • Month-to-Month Contract - 3 month minimum
  • First Right for Placement Renewal
  • Custom Descriptions - With the ability to change these
  • Unlimited Clicks
  • No Need for Costly & Complex Management
  • Positioning where the vast majority of Clicks Occur
  • Monthly Billing
  • Ability to upgrade package at any time
  • Exceptional Service - Always.