Luxury Websites: If You Don’t Have E-Commerce, Why Not?

Friday, October 28, 2011 by Morgan Woodruff
Many luxury brands have been slow to cultivate their online presence, and even slower to integrate e-commerce capabilities. They seemed to think that the mass appeal and convenience of online shopping would dilute the value and prestige of their brands or that consumers would not be willing to pay big-ticket prices via the Web. This has been proven wrong, as research shows that wealthy people shop online more frequently and spend more per transaction. As of late, many luxury retailers have come around to see the value of the Internet for driving sales, and, even more, the value in allowing customers to transact on an e-commerce site.

According to a recent study by PM Digital, 81% of the luxury websites surveyed now have e-commerce, and the sites with e-commerce get 98% of the traffic that goes to these luxury sites. About a third of this traffic comes from search engines, and there is very little cross traffic, since luxury shoppers are very loyal to their brands. Surprisingly, only a very small amount of luxury brands’ traffic (0.29%) comes from luxury daily deals sites, like Gilt Groupe, ideeli and RueLaLa.

What Makes Luxury E-Commerce Successful?

When selling big-ticket luxury items online, however, it’s not as simple as using a plug-and-play e-commerce solution. Luxury brand customers expect a high-end boutique experience whether in-person or online. Here are some aspects to consider when selling luxury via e-commerce:

  • You need to provide rich product descriptions. The more expensive an item is, the more information the consumer will want you to provide.
  • Offer exceptional customer service, getting as close to what you offer in-store with a personal shopper. On the Web, that translates to online chat.
  • The entire online shopping experience should be like going into one of your boutiques. Craft a strong welcome message on your home page. And then as customers drill down into products, allow them to zoom in on the images or even watch product videos – the goal is for them to handle the product, virtually.
Related posts: Copyright 2010, Official Blog of Blueport Commerce

Big-Ticket E-Commerce Should Be Ready for the Holidays

Friday, October 14, 2011 by Betsy Miller
There was a time when some big-ticket retailers didn’t think they could cash in on the holiday shopping season, let alone such e-commerce-fueled events as Cyber Monday. But then again, there was also a time when no one expected anyone to buy anything online and computers filled entire rooms.

Whether it’s a push from e-commerce or the trend that holiday shopping starts earlier and earlier, we’ve found that big-ticket merchants, like furniture stores, which had traditionally been slow over the holidays, have been able to share in some of the Black Friday and Cyber Monday cheer.

At first, we would ask our clients what their plans were for these major dates on retail calendars, and they would often tell us they had nothing special planned. But slowly, we helped them to turn these potentially down days into big sellers with special events. For example, one of our clients began with a special Thanksgiving Day offer. It wouldn’t compete with stores, so what would be the worst that could happen? And it worked!

From exclusive email offers to Black Friday doorbusters and Christmas Day specials, our retail clients have been able to boost their fourth quarter sales. One client now mirrors the types of deals you see in retailers across the country with 12 days of deals leading up to Christmas; the big difference is our retailer is selling bigger ticket items like furniture and appliances as well as some electronics – and all three categories perform well.

So whether your big-ticket business can benefit from consumers being poised to spend over the holidays or you can take advantage of shoppers looking for great deals and not just gifts, holiday-timed offers can be a gift to your bottom line.

Related posts:

Copyright 2010, Official Blog of Blueport Commerce

The Economy May Be Looking Down, But E-Commerce Sales Keep Looking Up

Friday, August 19, 2011 by Betsy Miller
According to comScore’s State of the US Online Retail Economy in Q2 2011, despite an increased consumer perception that the economy is getting worse, Q2 e-commerce spending was up 14% YOY. Here are some interesting findings from the recent report:

Online Shopping

E-commerce sales growth is growing at double the rate of total retail sales growth, indicating that consumers are shifting from shopping in-store to buying online. The number of online shoppers increased 16% YOY for Q2 – there are now 170 million people shopping online.

Big-ticket items like furniture, appliances and equipment have shown moderate growth of 5% to 9% YOY for Q2.

Cutting Back on Spending


Because of their economic concerns, consumers are looking to save. They are now switching brands, shopping only when items are on sale, looking for deals online and going to different retailers in order to spend less.

Get Smart About Smartphones

The number of consumers using their smartphones to browse retail content in some form is now at 78 million. 22% of smartphone owners say they have made purchases via their smartphones, 50% have used their phones to find nearby stores and 40% have used their smartphones while in a store. The top reasons for using the smartphone in-store? To compare prices or to compare an item to other items not available in the store. 36% of consumers who abandon in-store purchases after using their smartphones end up buying online instead.

Social Media Matters

Overall, retailers not taking full advantage of the opportunity social media presents. For example, retail ads only make up 15.4% of the display ads on social networking sites.

If you are looking to expand your social media presence, comScore offers insight on Facebook: Once consumers like a page, they are very unlikely to return to that page. Facebook users spend the majority of their time on the newsfeed, so what and how you post will account for much of their interactions with your brand. Fans and their Facebook friends who are exposed to your brand on Facebook via advertising and status posts have a much higher brand engagement, which includes visiting your e-commerce website.

Related posts:Copyright 2010, Official Blog of Blueport Commerce

Can Groupon Work for Big-Ticket Items?

Friday, July 29, 2011 by Betsy Miller
Earlier this month, when Groupon’s first big-ticket deal for $199 for $500 toward a new car at a Detroit area dealership failed, it didn’t only make for amusing headlines (“Groupon Hits the Skids,” for example). It also got people asking whether the daily deal model can work for big-ticket items.

As a company that provides the technology and services to help its clients localize big-ticket retail online, Blueport Commerce takes the stance that daily deals can work for big-ticket items if executed correctly. The Groupon car deal was not.

Why Conventional Daily Deals Work

Daily deals are so popular, because they are great deals. Groupon’s subscribers expect a significant discount on the goods or service being sold. Half off a dinner? Wonderful, and I’ve been meaning to try new places!

So far, successful daily deals have been somewhat simple and often for items subscribers were likely to spend money on anyway. Salon services at 70% off? Well, I do need a haircut anyway.

Lastly, the offer is usually concrete. I will pay X and get Y. Any variables in what I spend beyond what I paid for the Groupon are easily in my control.

So What Was Wrong with the Automotive Offer?

The offer was to buy $500 that could then be used toward a new car. A quick look at the dealer’s website has cars starting around $16,000. So someone who bought the deal is only getting at most a few percent off his final purchase. 

Among the things that makes daily deals so successful is the easy spontaneity of it all. You only have a short amount of time to choose this deal, and then it’s gone. But it takes people some time to research a purchase like a car.

A recent article from The Atlantic, points out that one issue with this deal is that car price is negotiable. The piece quotes Ben Edelman, an associate professor at Harvard Business School as telling Reuters: “This voucher is for a very small portion of the cost of a car or lease, so it’s basically an agreement to buy or lease a car from LaFontaine. That’s poor negotiating because the dealer could take advantage f that by offering the same car for more money. They (Groupon) need to fix that before this part of the model can take off.”

The Big-Ticket Daily Deal Challenge

Many folks are saying that daily deals won’t work for big-ticket items. Perhaps these are the same people who years ago told us that consumers would not buy furniture online. But people do buy furniture and other big-ticket items online, so eventually daily deals in this arena could take off.

Our client The RoomPlace actually did a successful daily deal with LivingSocial not too long ago. The offer was $150 worth of furniture for $75. This worked because even though the offer was for big-ticket items like furniture, consumers could choose from a large price range and could choose whether they purchase something solely for the face value of the deal or use it toward a larger purchase.

Big-ticket retailers can look to daily deal sites, or create their own, in order to drum up business. For great results, they need to turn their big-ticket deal into something that is concrete for users. Here are a few things to keep in mind:

  • Be sure that a consumer could leave your store or website with an item or service for the value of the deal.
  • Consider offering a specific item at a steep discount rather than following the voucher model.
  • Once the consumer cashes in on the deal, be sure you do what you can to keep in touch, such as offering an at-register email sign-up or customer survey.
Related posts:
Copyright 2010, Official Blog of Blueport Commerce

3 Reasons Why Quality Content Could Be Your Key to E-Commerce Success

Wednesday, May 11, 2011 by Betsy Miller
Back in the early days of the web, when many of us pioneered this business, there was the notion of sticky content. Sticky content was all about putting content on your website to encourage visitors to linger and come back to your site. This was back when business plans were thin, eyeballs were all the rage and no one talked about conversions. But then the dotcom bubble burst, and content creation was deemed an unnecessary task as website teams trimmed down and struggled to keep their Internet businesses afloat.

Fast-forward to now: Content has made a comeback. Google, blogs and social sharing have made offering unique, quality content in some form to your customers a must for any website and a competitive advantage for e-commerce sites. Here are 3 of the top reasons why.

#1 Your Customers

Remember: E-commerce site content takes the place of welcoming sales associates at a brick-and-mortar store. From calls to action to your About Us page, what is the impression you want to make? Also, e-commerce retailers ask their customers to buy items with limited senses. Well-crafted product descriptions can fill the void for customers who wonder what an item really feels like in person. Buying guides and other advice can lead customers through the process of purchasing online and specifically via your website.

Tip: As an e-commerce website, you are a content publisher. Define your target audience and who you are as a retailer. Be sure your content’s voice and tone live up to and reinforce the promises you want to make. Style guides are not just for logos and fonts.

#2 Your Brand


The content you publish on your e-commerce site is an extension of your business. It allows you to give your company a voice and to set yourself up as an advocate, trendsetter, thought leader, or whatever best sets your specific e-commerce business apart. And thanks to social sites, if the web content you create is engaging, sharing it is easier than ever. Good, interesting content can spread like wildfire – are you creating any? If you deliver content that is truly helpful and unique, your customers will blog about it, share it on Facebook, Tweet it and more. Quality content allows others to be your brand ambassadors.

Tip: You can start getting the word out yourself! Share your site’s content via a corporate blog, Twitter account, StumbleUpon, etc.

#3 Search Engine Optimization


Anyone who knows their SEO stuff will tell you: When it comes to search engine optimization, nothing beats fresh, original content. While link baiting and creating directory pages on your own site will help with your organic search rankings, it should supplement your real content offering. Just look at how well blog posts rank on Google. By nature, well-written content is full of keywords, whether on a product page or in an article related to the types of product you sell online. A fresh content offering gives spiders something new to crawl, and nothing beats a quality offering to encourage people to read and link to what you’ve written. And with Google Panda, being sure your product descriptions are truly unique will only benefit your e-commerce store.

Tip: A corporate blog is a great way for an e-commerce site to get into the content arena. You don’t have to worry about integrating a content management system into your platform, and you can use a blog to introduce new products, offer tips and share relevant news about your online retail business.

Related posts:
Copyright 2010, Official Blog of Blueport Commerce

The (Unexpected) Ecommerce Advantage

Friday, December 3, 2010 by Morgan Woodruff
Oftentimes, the big-ticket retailers we speak with think their business is too complex to go online.  Those readers familiar with Blueport know that we specialize in meeting the unique, localized needs of these types of companies.  Doesn’t fit in a UPS box? Perfect! That’s our specialty.

And that’s why we thought the findings of a recent study from ShopVisible and JC Williams Group was worth sharing.  The study discusses the challenges that retailers are currently facing to provide excellent online customer experiences. After conducting interviews with executives at leading retailers and consumer product manufacturers who had undergone an e-commerce platform change or were currently in the midst of an enterprise-wide system change, the report found that those companies who are just getting started in ecommerce have an advantage over those who have had an ecommerce site for years.

Why?  The answer is simple.  While retail executives are aware of current trends such as social and mobile commerce, they are having trouble innovating based on old legacy systems. The report concluded that “brands that perhaps have not previously had direct-to-consumer interactions with customers have an advantage of coming into ecommerce with a clean slate.”

Ecommerce is no longer a luxury – it is a necessity and key initiative for many brands today. So if you think you’re late to the ecommerce game, think again.  You may be just in time to deliver the right kind of experience that your customer is looking for!




Copyright 2010, Official Blog of Blueport Commerce



Google Shopping Goes Local

Friday, November 19, 2010 by Carl Prindle
This week Google launched several new features to Google Shopping, most notably localized product search – which we first discussed here back in March. 

Google users will now see two new links accompanying product search results, including the location of local retail stores and an indication if a product is in stock, in limited quantities or out of stock in their area.  A click on an individual product will also return a list of nearby stores that carry that product with an embedded Google Map for obtaining directions. 

70 large retailers are on board for the initial launch, including Macy's, Pottery Barn, and Best Buy.  Google has also struck deals with retail industry software giants JDA, Epicor, and Oracle to integrate the Google Shopping upload process into the inventory management systems of those retailers.

Google understands that most consumers (especially those looking to make big ticket purchases that require consideration and research) go online to compare specs, prices and features before heading to their local store for in-person research and to buy.  This local, cross-channel, big ticket experience is, without question, the next wave of online commerce.

But, say you’re a big ticket retailer not named Pottery Barn. 

You probably aren’t running your inventory on Oracle or JDA.  Most likely, you probably haven’t been able to make local inventory information available on your own website, much less Google’s.  So how can you take advantage of this explosive trend?  

This is where we come in.  Blueport has been building localized e-commerce systems for big-ticket retailers for over a decade.  Leveraging our localized platform, your Blueport website perfectly reflects your local store offerings, regardless of what systems you are running in your stores. 

With that infrastructure in place, it’s simple to take advantage of the latest in localized online advertising – like Google’s new local product search.  Better yet, when consumers come to your Blueport site, you’ll have enabled the type of seamless, local, cross-channel shopping experience that makes Google Local a powerful idea.



Copyright 2010, Official Blog of Blueport Commerce

Bringing Your Retail Strategy Online

Tuesday, October 12, 2010 by Morgan Woodruff

Back around 2001, it was common for retailers with brick-and-mortar stores to bring their retail model online. The point was to have the website work just like the store. The whole endeavor was based on bringing in a new revenue stream for the retailer with little actual thought given to the medium and how consumers’ expectations and needs might be different. Very few thought about an online retail strategy.

Defining Your Retail Strategy Today

Now that it’s 2010, we can look back at those sites that have done ecommerce right (Amazon.com, of course) and remember those sites that did it wrong (may they rest in peace). But even with this knowledge, you still see new ecommerce sites popping up with little regard to ecommerce’s nuances and unique demands.

There is hope for companies that are interested in adding an online dimension to their businesses but do not have the ecommerce expertise in-house. Just take a look at Blueport Commerce’s solutions. We can help you with every facet of your retail strategy -- from online merchandising to email marketing and security considerations -- especially if you are working with the additional challenges of big-ticket, considered purchases.

Learn more about the advantages of partnering with Blueport Commerce to address your retail strategy needs today.

 

What do women want? (When it comes to online shopping that is)

Wednesday, August 11, 2010 by Betsy Miller
What women want may be one of the universe’s most complex questions, but what women look for in their ecommerce shopping experiences (and thus how multichannel marketers should woo them) can often be just as challenging to answer.  Though fashion and beauty retailers may spend millions on researching the buying habits of their female consumers, those in other categories, like, say, furniture, flooring or appliances, may not always have that same insight. But with women controlling $4.3 trillion, or 73% of U.S. household spending, understanding the elusive female consumer is just as critical for big ticket retail.

Here are some interesting findings from a recent AOL Research whitepaper:
  • 40% of women shop online during work hours
  •  Overall, women tend to shop between 15 and 30 minutes a day while at work. Moms, though, tend to shop for longer periods of time at work as they have less downtime at home
  • Women ages 18-34 conduct about half of their online shopping during work hours, and most do so in order to save time
  • Need is the main driver for women's online purchases. However, boredom and a compelling call-to-action can inspire younger women to shop
  • 60% of women respond to email offers, making it the most influential driver of purchase - in fact, 3 out of 4 women subscribe to email alerts
The key takeaways here for big-ticket retailers looking to amplify their ecommerce store and reap ecommerce advantages? Provide online shopping experiences that are convenient for your consumers, allowing them to find the products they are looking for quickly and easily.  Focus on creating compelling and creative online shopping offers to entice your female consumers and help rein in a pending sale.


Copyright 2010, Official Blog of Blueport Commerce



Oh Canada!
Ecommerce Expansion North of the Border

Friday, August 6, 2010 by Morgan Woodruff
Ecommerce has not quite reached a tipping point in Canada as it has here in the U.S.  But new research shows the category is poised for growth, and has also revealed some interesting insight about the Canadian online shopper that any retailer considering ecommerce expansion north of the border should consider.

According to The NDP Group, Canadians 18-24 are dominating the online shopping space and will be the key drivers of online purchasing as their income increases over the next decade.

The study found that nearly half of Canadian online shoppers go directly to retailer/manufacturer ecommerce sites, avoiding search engines. 75% of Canadian online shoppers feel free shipping would encourage them to shop online, even if delivery time took longer, and nearly half said they would like to see a wide variety of shipping and cost options.  In addition, 90% of those surveyed said they would be less likely to purchase online if they had to pay to return an item.

Blueport Commerce helped one of Canada’s most successful superstores, Leon’s Furniture, launch their Canadian ecommerce store, so we have a first hand understanding of the nuances and ecommerce challenges in the Canadian online shopping market. Although it’s still early, studies like this point to the fact that Canadian consumers, just like their counterparts in the US, feel increasingly comfortable shopping online.  And the critical factor to reaping ecommerce advantages, as with any ecommerce and multichannel retail effort, will be to provide consumers with a multichannel shopping experience that is convenient, flexible and tailored to their preferences. 



Copyright 2010, Official Blog of Blueport Commerce


Online Shoppers Optimistic about Economy; Big-ticket Spending Begins

Thursday, June 17, 2010 by Carl Prindle
Last week, I wrote about the rise in consumers’ intent to purchase big-ticket items (see: Intent to Purchase Big-Ticket Rising - Ready to Catch the Wave?).  This week, Pricegrabber issued a new report stating that 52% of the online consumers think the recession will end by January 2012.  The part of this survey that really caught my eye is that 56% of respondents said they have already bought a big-ticket item this year (and this survey was conducted as early as February!).  Encouraging news for big-ticket retailers - particularly those in the home improvement category, as 16% plan to buy home improvement items.


So what does this mean for big-ticket retailers looking to reap the advantages of e-commerce?  Look at the consumers surveyed – online shoppers.  Whether these consumers ultimately purchase their big-ticket items online or in-store is up for debate, but I’m willing to bet that before they make any plans, they will be visiting your website during the research phase.  Are you – and your website – ready?



Copyright 2010, Official Blog of Blueport Commerce




Ecommerce Software Packages: Which one is right for me?

Wednesday, April 7, 2010 by Morgan Woodruff
Any retailer setting up an ecommerce store or considering replatforming their current offering, knows the choices in ecommerce shopping software are endless.  The landscape is wide, with numerous vendors offering ecommerce software packages.

The big-ticket retailer often finds their ecommerce shopping software choices to be even more complex.   This is because their needs are inherently different.  They go beyond setting up a basic online shop, to require more sophisticated merchandising capabilities and fulfillment, and an ability to understand their unique business models. Performing an ecommerce software comparison seems an impossible task.

So where do you start in your decision making process? Here are two initial points to consider:

1. Start by evaluating your current ecommerce shopping software or the retail systems you use to run your business.  Many big-ticket retailers find their systems are not ecommerce ready, and that they may pose a barrier to going online.  Make sure the ecommerce software packages you are considering are able to seamlessly integrate with your current systems.  At its best, your online ecommerce solution should be able to extract the data found in your current systems, augment for e-commerce, then return completed ecommerce transactions to you that are indistinguishable from orders placed in your stores.

2. Make your ecommerce store an extension of your bricks and mortar store, not an island in itself.  Look for an ecommerce software package that treats your SKUs, prices and your product information exactly like store orders from a fulfillment and service perspective.  This is a fundamental difference between ecommerce shopping software for mass merchants, and that which is geared towards big-ticket retailers.  The result is less work, higher customer satisfaction and a reduced need to develop separate staff or procedures for online sales. E-commerce becomes another store, seamlessly integrated with your strategy, operations and reporting.

Finding an ecommerce service provider that meets these inital criteria is the first step in setting up your ecommerce store and capitalizing on the advantages of e-commerce.



Finding the Path to Easy Ecommerce

Wednesday, March 31, 2010 by Morgan Woodruff
Implementing an ecommerce strategy opens possibilities for your business — increased sales online and in stores, more efficient marketing, and direct one-to-one communication with your customers to name a few.

Whether this is the first time you are selling online or you are coming back to give it a second try, Blueport Commerce walks you through this transformation step-by-step to make ecommerce easy.

With more than a decade of experience in helping big-ticket retail make the leap into e-commerce, we not only understand your business and your market, but we also understand the hurdles you will face along the way. Our managed ecommerce solutions help retailers drive their multichannel strategy and make the transition to ecommerce easy, worry-free and profitable.

Ecommerce will impact every aspect of your organization, each in different ways. From IT, to merchandising, to operations and even right down to your in-store staff:

Merchandising: Meticulously presenting your product to its best advantage, we introduce your customers to the breadth of your merchandise without their having to leave home.

Marketing: We understand the complexities of big-ticket retail marketing and will work to make e-commerce an integral, invaluable component of your marketing strategy.

Operations: We share retailers' passion for efficiency and service — in fact, we believe that e-commerce can't succeed in a category like big-ticket without it. We cut our teeth in furniture — arguably the most challenging of fulfillment problems. Our platform and processes are designed to make shipping a sofa — or your product — as easy as calling UPS.

Finance: Incremental e-commerce growth sounds good, but what will it cost? What are the risks? Our business model is designed to answer these questions, making e-commerce a positive ROI effort almost immediately.

Store: We understand that the biggest impact of ecommerce is in your stores and we have implemented technology and services to send you as many educated, easy-to-close customers as possible making e-commerce easy and a positive ROI effort almost immediately.

IT: In our ten years of experience in working with retail chains to deploy e-commerce systems, we've seen it all. We'll work with your existing infrastructure and processes and translate them into an effective e-commerce strategy.

Our goal? Use our infrastructure and experience to take what you've built online, as efficiently and robustly as possible


Big Ticket vs. Small Ticket:
Why disaggregating e-commerce matters.

Friday, March 5, 2010 by Carl Prindle

There’s no shortage of e-commerce conventional wisdom - sweeping pronouncements that online is growing at a certain rate. That one tactic works, another doesn’t.   That a multi-channel strategy is increasingly important. 

I love such analysis and opinion – back in the day, as a consultant at McKinsey, I performed and provided my fair share.    However, I will point out the need to dig deeper. What is loosely called “e-commerce” is dramatically different in its application depending on what you are selling. 

A few things to keep in mind as you digest the latest e-commerce wisdom or evaluate a vendor:
 

E-commerce expertise correlates with where money has been made to date, not where it will be made.

Well known e-commerce experts, agencies and technology companies become so because they’ve been doing it for a while and have been well paid for their work. As such, their experience tends to be in those categories that went online early and successfully, yielding enthusiastic clients and customers who could pay.

There’s nothing wrong with that, as long as you are also in those categories. If not, think about whether what you are being told makes sense for your business.

One example: It’s been said that 65% of e-commerce keyword searches include a manufacture name and/or model number. Most online agencies build keyword strategies around that fact. And, it works well in those categories that have dominated e-commerce in the past.

But, say you’re a furniture retailer. 

Most of your prospective customers have no idea who manufactured the sofa they already own, much less the one they are thinking about buying.   Model number? Forget it. Conventional wisdom is out the window - how will your agency react to not being able to rely a favorite approach?
 

Beware sweeping pronouncements and general statistics. Dig for what’s happening in your market.

I’m an e-com stat addict. There are outstanding analysts out there providing the pulse of e-commerce on a regular and accurate basis. That said, it’s important to pull apart e-commerce statistics and trends to find those that apply to what you do. 

Some recent examples:

E-Commerce Growth Statistics

Pundits seem to be in general agreement that in 2009, e-commerce grew or shrank by single digit percentage points. In the face of brick and mortar declines, this is touted as strength – ecommerce holding its own despite significant economic headwinds.

All true – but there’s more to the story. Big ticket online took off in 2009. 

Big ticket (think things that cost more and can’t ship via UPS…consumer durables like furniture, appliances, flooring) is 45% of the US Retail Economy, $550B in annual retail sales.  It’s never done much online – until now.

Consumers are online and big ticket retailers are now meeting them there. Forrester reports customers feeling comfortable buying furniture and appliances online just in the last 18 months. Big ticket players Blueport works with are seeing monstrous comp increases for online sales and even bigger benefits in stores. 

If you happen to be in big ticket markets, this is an opportunity you can’t miss…but easily could, if you just look at broader online growth stats.

E-Commerce by Channel Statistics

Similarly, stats show roughly 45% of e-commerce transacted by Web-only players and catalogers (i.e. pure plays), 15% by manufacturers, and 40% by retailers.

Beneath this stat is a dramatic big ticket vs. small ticket schism in who is winning in e-commerce. 

For traditional (small ticket) e-commerce, pure plays have tremendous cost advantages. With no store costs, they can price low. Their products are well known, approaching commodity status, and the shipping is fast, cheap and risk free. In categories from books to shoes, pure plays are cleaning up.

Not so in big ticket. Here, consumers know less about the product. They want to touch and feel in a store. They look for trusted brands – not only for the product, but for the retailer who can deliver and service it. And, they are highly focused on delivery times and costs. Here, retail chains, with trusted brands, local stores and fast, cheap local delivery have the upper hand. 

Combine these advantages with the growth noted above, and it’s a good time to be going online if you’re a big ticker player. And, if you’re a retailer in these categories, there’s certainly more than 40% of the online marketplace available to you.

The Importance of Cross-Channel Commerce

There’s significant recent buzz about “multi-channel” or “cross-channel” commerce as the next big thing. We couldn’t agree more – with emphasis on the “big”.

For small ticket items, I don’t think cross channel is that important. Anyone think that opening Zappos bricks and mortar stores is on any of the whiteboards at Amazon?

Conversely, in big ticket, cross channel is critical. The key differentiating factors in big ticket online are store based. Big ticket online and offline channels must be synchronized, as consumers move between them constantly. 

This is why we’ve architected our platform to be localized. Big ticket commerce comes down to the local relationship between a consumer, a store, and the inventory in her area. If you’re in big ticket and you’re not reflecting this reality online, you’re missing the point.
 

Balance online conventional wisdom against what you know about your customers. 

Ultimately, e-commerce comes down to a combination of persuading and enabling consumers to buy, using the internet.

Here again, how your consumers do this may not be the same as in “traditional” e-commerce categories.

To grossly over simplify traditional e-commerce shopping, it comes down to finding a product and deciding you like it. After that, the assumption is that UPS takes it from there - you will have your product cheaply, quickly, and some nice brown-shirted gentleman will take it back if things go awry.

As such, most e-commerce wisdom is focused on search and merchandising, helping consumers to find and buy (maybe getting a deal).

These areas are critical (and unique) in big ticket as well, but there’s more to the story – specifically, the part of the story that UPS takes care of in traditional, small ticket e-commerce.

With a sofa or a fridge, more goes into the shopping process than features and price. Customers want to touch and feel in a store. They may want to speak to an expert. They want to know how fast they can get something, and that delivery is as cheap as it can be. They may want financing options. They want to be sure the product can be serviced, and that, worst case it can be returned.

If these are questions your consumer is likely to ask, be sure to push beyond UPS-based ecom conventional wisdom. If you’re a retailer, you’ve got some of the best possible answers to these questions – be sure your online presence takes full advantage (see localization above).

*             *             *

As consumers look to buy more products online, and e-commerce pushes beyond the simple, UPSable products that were the first wave of e-commerce, the importance of disaggregating e-commerce increases. The opportunities online have changed. E-commerce conventional wisdom soon will too.


Copyright 2010, Official Blog of Blueport Commerce


Channel Surfing: Engaging the Online Customer

Friday, March 5, 2010 by Carl Prindle
Old habits die hard, but not when it comes to how we shop.

Several years ago the idea of purchasing a piece of furniture online made many shoppers nervous.  Today, shoppers make these types of purchases effortlessly cutting across multiple channels to do their research, familiarize themselves with the product and finally to buy.

A recent survey from PriceGrabber.com pointed to a growing trend that we here at Blueport have seen coming for some time now:

  • 80 percent of online consumers indicated they will likely research their next kitchen appliance online, and 30 percent said they will likely make their purchase online as well
  • 77 percent of online consumers will likely research online their next laundry home appliance and 26 percent will likely purchase that appliance online
  • Overall, 65 percent of consumers will research big-ticket home furniture purchases online as well

A typical shopper may start off researching and comparing prices at a retailer's ecommerce store. They may then visit a local store to get more information and finally may go back to the ecommerce store to make the purchase.   Their decision process may involve any number of physical visits or online clicks.  To the consumer, there is no difference between the online and physical stores – they expect to get the same type of information, to see the same products and to have the same level of service no matter their preferred shopping channel.

It’s important to note that this behavior is particularly important in big-ticket retail.  For smaller ticket items, an isolated online channel can thrive (anyone expect Amazon to open stores?)  In big ticket on the other hand, stores play a critical role and cross-channel sales represent the primary online opportunity.

Yet, too often I see a disconnect from this reality in the approaches of retailers, especially larger retail chains.  Many still view (and operate) their physical stores as separate from their ecommerce offering and vice versa.  A few years ago, some chains thought their ecommerce offering might undercut bricks and mortar sales. Today it's clear that the opposite is true - that the two channels drive each other’s sales.  We also recognize that a multi channel offering is a significant competitive advantage, and that an integrated multi channel strategy is at the heart of this approach. 

Just like today’s consumer, retailers must consider their online and bricks and mortar channels one unified offering, and they must synchronize pricing, promotions, product offerings, delivery options and branding across channels. This cohesive, integrated, multi channel approach will undoubtedly be a recurring theme in our discussions as it’s central to the work we do with many of our clients.

I’m interested in hearing your perspective on the changing consumer, how do you think this new ‘channel surfing’ shopping behavior can best be leveraged by retail chains?

Copyright 2010, Official Blog of Blueport Commerce


The Next "BIG" Wave of Ecommerce: Big-Ticket Retail

Thursday, March 4, 2010 by Carl Prindle
The products that fueled first generation e-commerce—books, software and music to name a few—are all simple to understand items that can be easily shipped to consumers.   Today, we are at the tipping point of a second wave of online growth, as consumers push beyond these simple transactions to research and purchase more complex products online.  This second wave of growth will be driven by big ticket retail, and it represents a seismic opportunity for those big ticket retail chains that are prepared to catch it.

But, profiting from big ticket e-commerce growth presents a new set of challenges for retailers.  That these categories are some of the last to move online is not coincidental - big-ticket products like home furnishings and appliances are inherently challenging to sell online and many retailers in these markets have faced barriers to bringing their offerings online in the past.

Consumers must be made comfortable transacting “big-ticket” purchases.  Their decision process is much longer.  Shoppers may not know brand or model numbers for these items (know the manufacturer brand of the last sofa you bought?), making it imperative that product information presented online be compelling in its own right.  Shoppers are likely to want to see products in a store or consult with a sales representative, meaning store, online, phone, chat and email experiences must be seamless.   And, if all this is done perfectly and a consumer makes a purchase, these products often have complex shipping and installation requirements that can quickly become a nightmare for any retailer. 

Nonetheless, retail chains, with their local presence, trusted brands and quick, inexpensive delivery have significant advantages pursuing this new e-commerce opportunity.   While pure-play internet companies will likely continue to dominate small ticket markets online, retail chains can win in big ticket – which represents a whopping 45% of US retail.

Customers are looking for big ticket online – certainly to research products and, increasingly, to buy them.  Retailers can profit by meeting them there.

Copyright 2010, Official Blog of Blueport Commerce



Welcome to the Blueport Big-Ticket Blog

Thursday, February 25, 2010 by Carl Prindle
On behalf of the Blueport Commerce team, I am delighted to announce the launch of our Big-Ticket blog.

Seeing as this is our first blog entry, it’s fitting to look back at Blueport’s evolution and our track record of ecommerce ‘firsts’.  I led the creation of Blueport Commerce with the management team at Furniture.com, which started as one of the first web portals selling furniture and evolved to become the furniture industry's leading ecommerce solution.

Seeing first hand our clients' success online, we firmly believe that big-ticket ecommerce represents the next wave in ecommerce and that we are in a unique position to apply our decade of knowledge, technology and expertise to helping retailers in other markets take advantage of these opportunities. In addition to furniture, we now work with multi channel retailers and manufacturers in other burgeoning online markets such as appliances, flooring, lighting and carpet, to name a few. 

Just as we recognized the opportunity for an ecommerce solution for retailers with complex ecommerce needs, we now see the need for a thought-provoking and insightful discussion on this next wave of ecommerce.  The goal of this blog is to provide a resource for multi channel retailers in this category and to offer a forum for those interested in learning more about this space. 

Our discussions will focus on current industry issues and trends with a strong emphasis on innovation and looking towards ‘what’s next’ for big-ticket online.  Most importantly, we look forward to your feedback, comments and contributions – the two way dialogue that leads to new ideas and solutions. 

Copyright 2010, Official Blog of Blueport Commerce

Local E-commerce Websites at Lighting One

Sunday, February 21, 2010 by Betsy Miller

Lighting One’s business doesn’t fit the standard e-commerce model. 

As the nation’s largest independent group of specialty lighting stores with more than 140 showrooms, Lighting One faced the unique challenge of maintaining the company’s brand identity while empowering the individual showrooms with the ability to manage their unique local markets. Lighting One partnered with Blueport Commerce to take advantage of our powerful and proven e-commerce platform that enables each store to modify branding, pricing and selection in their local markets on the fly.

Through our unique franchise module, we developed fully-integrated e-commerce websites for each independent location, including store–specific URLs and site content, custom pricing and promotions, and order management.  

This integrated system enables every Lighting One store to maintain its unique local identity, while taking advantage of the massive scale of the Lighting One cooperative. For example, Brose Electric Shop, a Michigan-based Lighting One dealer, never had an e-commerce website of its own and began generating revenue almost immediately upon going live on the new Lighting One site powered by Blueport Commerce.