How Does Your Ecommerce Shopping Software Manage Stock-Outs?

Thursday, April 14, 2011 by Morgan Woodruff
New research from Oregon State University finds that, in addition to lost revenue, online stock-outs can also cause long-term brand damage due to customer dissatisfaction, a decrease in return visits and negative word-of-mouth.

Consumers' negative reactions were all linked to how B2C ecommerce websites manage stock-outs. Online retailers that do not notify customers until checkout that an item is out of stock are rated significantly worse than stores that let their customers know about avaialbility earlier in the shopping process.

Blueport's B2C Ecommerce Solution for Managing Stock Online

We designed Blueport Commerce's ecommerce shopping software to help big-ticket retailers mitigate this negative reaction to stock-outs. We integrate directly into a store’s inventory system and display updated, real-time product availability information. And we've designed our clients' websites to display important availability information for the consumer right on the product page based on stock, incoming purchase orders or inter-store transfers. Consumers know the local in-store availability and delivery dates before they add an item to their shopping carts.

Customer satisfaction can make or break your business. You need to leverage the right ecommerce CRM software to help keep your customers on your website -- after all, your competitors are only a click away.

Copyright 2010, Official Blog of Blueport Commerce

E-commerce 2.0 – The Next Wave

Tuesday, March 22, 2011 by Morgan Woodruff
Excerpts from Lazard Capital Markets  Tech and Media Conference
March, 13, 2011; Boston, MA

Blueport Commerce executives recently participated in a panel presentation titled “E-Commerce 2.0: The Next Wave” at Lazard Capital Markets Annual Technology & Media Conference. Held in Boston, on March 14 and 15. This conference brought together industry executives in a fireside chat format, with presentations from more than 50 leading technology, media and Internet companies. 

Drawing on his deep expertise developing online strategies for leading big-ticket retailers, President and Chief Executive Officer Carl Prindle, discussed the next e-commerce frontier and what brands need to do to capitalize on its growth.  Below are some key excerpts from his presentation:


Colin Sebastian – Lazard Capital Markets:  Carl, please take a minute to introduce Blueport.

Blueport is the only managed e-commerce provider focused on localized, big ticket commerce.

Think of us as GSI Commerce (GSIC) for players that need to involve local stores in their online efforts and whose products don’t fit in a UPS box.

Our clients range from a $250M furniture chain in Chicago, a $1B appliance, electronics and furniture superstore chain in Canada, a $4B flooring retailer with 1,100 independent dealers, to Sears (SHLD).

We provide each with a managed e-commerce solution – a localized, cross-channel commerce platform and the managed services to make their unique businesses work online.

CS: The pace of innovation in e-commerce is accelerating.  This is also driving another step forward in the shift of commerce and advertising from offline to online channels.  Given this overall trend, in your own businesses and markets, can you specify what are the 2 or 3 most important drivers of growth today?

Well, this session is definitely aptly named.  We’re at an inflection point – the start of a second wave of e-commerce.

The first wave of ecommerce was characterized by the Amazon model – online shopping for relatively simple, understood products shipped via UPS. 

There’s very little local store involvement in this model.  Customers buy things on their lunch break, and a guy in a brown shirt delivers it. 

A massive eco-system has grown supporting this model in last 15 years – advertising, merchandising, technology and so on. And, it works great – we see 45% penetration in some categories like PCs.

But, the e-com 1.0 model is bounded in a couple of ways.  One boundary is size – this model probably only works for less than half of all retail, less if you include services. 

The other boundary is profitability – e-com 1.0 was first because it’s easier.  Because it’s easy, it’s prone to commoditization, price pressure…it’s an efficient market, with all of the margin pressure that it entails.

What we’re seeing now is a second wave that pushes past these boundaries, engages the rest of the retail economy, and can be more profitable.

What’s driving it? Consumers looking to apply the habits learned via the Amazon model to new areas.  Companies that that have for a long time been on the sidelines because they DIDN’T fit that model – are now heading to the internet to meet them. 

The energy, the growth, is in the technology connecting the two – whether it is mobile, social, coupon sites, etc. – new technologies are giving new players access to new customers.

And Blueport is providing the multi-channel solutions for these new players to do something meaningful with that traffic.

CS:  You mention mobile. How big a factor is mobile becoming, for example as a percentage of your own transactions or volume, or as a lead generation tool?


Mobile is a huge factor, but different depending on whether you are an e-com 1 or e-com 2 player.

For e-com 1 players, mobile’s increased convenience is arguably driving new volume.  It’s also increasing price transparency, which accelerates the commoditization of some of these categories.

For an e-com 2 player, it’s a huge factor in a different way:  local.  Where e-com 1 was national, e-com 2 is local – local businesses, local services, huge retail chains were their offering is fundamentally local.

Take appliances as an example – I don’t think we’ll see refrigerators transacted via phone any time soon, but mobile can drive customers to local stores, critical for retailers trying to gain a slice of precious weekend “in-store” shopping minutes.

The game changer that starts to blend the two is the tablet…increased use of big screen browsing plus local is intriguing.

CS: There is a fairly rapid increase in merchant and enterprise use of Facebook, not only as a tool to reach out and communicate with consumers, but also to drive transactions.  Similar to the mobile question, how quickly is social becoming a meaningful part of real lead generation and driving online sales?

Well, Facebook, at its most powerful, is a personal network of friends.  A company interrupting that conversation can be pretty cringe worthy.  A company trying to be your friend doesn’t really work.

At the same time, along with apps, Facebook has become the “other” Internet, and retailers have to be there. 

We’ve seen it work in three ways:
  1. Brand Building: in high engagement categories, brands can interact with their customers on topics they are passionate about.
  2. Deals: Facebook can replace email as a way to distribute deals.
  3. As a Platform: we look at Facebook as an emerging platform/operating system that can host online stores with built in traffic.
CS:  Blueport appears to be in a sweet-spot helping merchants in challenging product categories figure out their e-commerce strategies.  Can you talk about the multi-channel environment, how the pace of that shift online may be changing?

It’s a phenomenal time to be where we are.  As we’ve talked about, there’s a seismic change from e-com 1 to e-com 2, and we’re in the middle of it.

You asked about the multi-channel environment.  The term multi-channel has been around a while, but its meaning is changing. 

In e-com 1, multichannel meant exactly/only that – more than one channel.  Retailers in categories that work well via direct ship built drop ship e-com systems, often entirely separate from their store business.

In e-com 2 today, we see true multi-channel, or cross-channel commerce (or just “commerce”).  Retailers are using the internet to drive their core business, not build a separate one.

Companies that were on the sidelines are now investing in solutions that reflect their businesses.  They look to online to drive customers to local stores, sell their local inventory and services, reflect their local pricing and local deals – to drive their core business.

A client, CarpetOne, is one of my favorite examples of this.  They are a $4B flooring retailer in 1,100 local markets.  They didn’t want to be Lumber Liquidators and drop-ship cheap boxes of hardwood.  They wanted to drive their core business – local installation of quality flooring. We enable that – their site reflects each market’s local product, pricing – pictures of owner’s dog, whatever makes that local market work.  It’s a seamless online experience that connects online to local store.

Sears (SHLD) – is a company taking another innovative approach.  They are reentering the furniture category via a unique cross-channel strategy.  They’re putting small footprint galleries in their stores, that drives traffic to a dedicated furniture website that we run for them, http://sears.furniture.com.  The site taps into local inventory, and Sears customers can get a sofa delivered tomorrow for $79.  Blueport powers the whole thing.

So, we’re seeing massive change in these categories, the evolution of true cross-channel categories, and it has accelerated dramatically in last 18 month. 

CS:  What are the key attributes that a bricks-and-mortar retailer or supplier of goods look for in an e-commerce vendor?

When looking at vendors, look at what experience they have in YOUR vertical.  Are you looking for an e-com 1 solution, or e-com 2?  Do you want a direct ship, separate enterprise, or do you want your local markets involved? 

Make sure the vendor has experience in your markets and your vision of what you want ecommerce to do for your core business. 

You can make some disastrous mistakes trying to sell appliances or furniture like you do shoes & apparel.

CS:  What would it cost a retailer or brand to build and maintain a state of the art e-commerce site from scratch, versus using a service provider such as Blueport?

Here again, it depends on what you’re selling. 

If you’re looking for an e-com 1 solution – you can put up a Yahoo! store up for next to nothing.  My 10 year old has one.

For e-com 2 – it’s more complex, requiring far more integration with your local stores’ existing systems and operations.  There’s no Yahoo! store or ready-made platform for that (but Blueport is close).

If you try to build an e-com 2 solution yourself, you have to look at three costs:  the cost to build it, the cost to run it, and the opportunity cost of screwing it up. 

We have a current client who first tried to build it themselves.  They spent $3M, and it never got off the ground.  It was two years of lost opportunity. 

With Blueport, they pay a monthly platform fee and a revenue share.  We’ve done major redesigns of their sites three times in the last two years, and added countless new features.  And they pay only their share of the overall platform and hosting costs.

We also help run the business for them from a marketing, merchandising and services perspective.  This is paid through the revenue share, so they get a turnkey, expert staff on a pay for performance basis.

This story has repeated itself a number of times – people trying it themselves, then deciding to work with us.  At the other end of our contracts, we’ve never lost a renewal, so people see the value of what we do (and would prefer not to have to do it themselves).

Part of the story is that the categories we’re in are a good fit for outsourcing.  They are challenging, don’t match the internal expertise of the players in them, and ultimately, they’re not like PC’s or software, where online is 45%-65% or more of volume. Stores are still key, so our clients get to focus on that part of their business, while we port and drive that business online.

CS:  Can you talk about the competitive nature of your business, who do you see as the most successful competitors and what are trends in pricing for these e-commerce services?

Sure, we segment the market on two dimensions. 

One dimension is e-com 1 versus e-com 2.  Is the customer in a market that will be a simple drop ship model, or do they need a cross-channel solution involving local stores?

The other dimension is platform versus managed solution.  Does the customer just want a technology solution, or are they looking for a partner to help them manage their online business?

On the e-com 1 side of the market, e-com 1 platforms are increasingly commoditized and under a lot of price pressure.  It’s a pure customer acquisition game.  Yahoo stores again.

For e-com 1 managed solutions, GSI Commerce (GSIC) is dominant with a huge lead in infrastructure and increasingly in services, where they’ve made some great strategic acquisitions.  While Amazon (AMZN) keeps looking at this space, GSI is the clear leader.

On the e-com 2 side of the market, e-com 2 platforms are mainly custom builds from players like IBM, and ATG (ORCL).  These are big dollar projects with two commas in the total cost, and they leave the customer to manage the solution - there’s no marketing, management, etc. And, they don’t have a ton of experience in these e-com 2 categories.

For e-com 2 managed solutions, where Blueport plays, we’ve yet to run up against a true competitor. 

I guess we really have two competitors: a customer doing nothing, which is less and less of a factor, and a customer trying to do it themselves, which with our case studies, is an easier and easier argument to overcome.  In a lot of cases, people are coming to us now who tried themselves, and now want out.

We expect competition to evolve, but we have a technology platform and service staff with a lot of specific functionality and experience in these markets, which makes it easy to talk to prospective clients, most of whom have been on the sidelines waiting for a provider that understands their business.

CS: That’s time – thanks to everyone for their participation.

Copyright 2010, Official Blog of Blueport Commerce

RedPrairie Acquires Escalate Retail

Wednesday, February 2, 2011 by Morgan Woodruff
We have seen a wave of retail and ecommerce acquisitions lately, and the latest comes from cross channel vendor Escalate Retail.  The company announced today that it has been acquired by Red Prairie, a vendor providing workforce, warehouse and transportation management software solutions.  The acquisition is touted by both companies as a move to provide retailers with collective functionality that enhances multi-channel retailing with order capture, POS, store kiosk, call center operations, and more.  In essence, it will give Red Prairie the opportunity to extend their supply chain capabilities into the retail space.  Read more about the deal here




Copyright 2010, Official Blog of Blueport Commerce


13 Ways to Compare Ecommerce Website Software Providers

Wednesday, October 6, 2010 by Morgan Woodruff

If you are looking to add an ecommerce component to your business, you need to conduct an ecommerce software comparison. With so many ecommerce software providers out there, this may seem like a daunting task.

Mighty Merchant offers 13 techniques for evaluating which companies might be right for you and your unique business needs. Here is a quick look to help you get started with your ecommerce website software comparison:

1. Look at and use real websites powered by the ecommerce software you are considering.
2. Note the visual design of these sites, including whether they all use the same template or if there is customization.
3. Does adding items to cart require creating an account?
4. Check the sites’ Google PageRank.
5. Look for the sites using major search engines.
6. Evaluate which features come with the base package and which are add-ons.
7. Carefully examine what is included in the setup costs.
8. What merchandising tools are available?
9. What are the administration tools like?
10. How easy or hard is it to add additional pages and make site changes?
11. Is this solution hosted by the provider, or do you need to manage that?
12. Get references on the ecommerce website software provider.
13. Call the provider to gauge customer service and support.

At Blueport Commerce, we create ecommerce website software solutions that specifically meet the unique needs of big-ticket retailers. You can learn more about our solutions here.


 

Ecommerce and the Dangers of Downtime -- Especially with Holidays Approaching

Monday, October 4, 2010 by Morgan Woodruff

Downtime is never good for a website, and for an online retailer it's seriously detrimental. Time is money, and your customers depend on being able to access your site whenever might be convenient for them.

And with the holidays approaching, the impact of downtime dramatically increases. One large warehouse retailer recently experienced three hours of downtime during a Labor Day sale.

So what can you do to prevent a disaster on one of your busiest days?

Talk to your hosted ecommerce software provider now. Do not wait until there is an issue to see how they respond. Your hosted ecommerce software provider should have a contingency plan should anything go wrong. Become familiar with how it would work, who you would need to contact and what the escalation process would be.

Blueport Commerce's hosted ecommerce software solution ensures uptime even during the busiest shopping seasons. We provide around-the-clock support, giving peace of mind to our retailers and their IT staff, and letting them focus on their sales, not damage control.



 

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.



B2C E-Commerce Development: Why Retailers Should Not Take this On In-House

Friday, March 19, 2010 by Betsy Miller
Whenever I speak with a big-ticket B2C retailer about expanding their store online, a recurrent question inevitably arises: "Why not handle e-commerce development in-house?"

Many of these retailers have been considering the online marketplace for some time and are wondering how they can participate without overburdening their current staff and technology.  Their big-ticket businesses are complex and a standard platform won't accomodate them, and the addition burden of taking on B2C e-commerce development in-house is a daunting and resource-intensive task that many retailers just can't handle.  In developing their multi-channel strategy, using a hosted ecommerce software solution starts to look like the best option.

At Blueport Commerce we have one focus — helping customers exactly like these retailers.  We focus on what makes their business unique, so they can focus on what matters most — growing their new ecommerce online store.

Whether they have products that are unbranded, have a higher price point or are highly customizable, Blueport Commerce helps retailers connect with buyers worldwide. Complex delivery requirements a problem? We can help and ensure that a retailer's customers receive the white glove treatment they deserve, and more importantly, expect.

We match e-commerce development and services to address every retailer's unique business needs, not squeeze them into a commodity-focused, inflexible platform that doesn't address the intricacies of their business. 

At Blueport Commerce, we're a turnkey solution specialized for big ticket that ensures the transition to e-commerce is easy, worry-free and profitable. By combining the industry's most advanced technology platform for localized, big-ticket retail, dedicated integration services and personalized B2C e-commerece development, Blueport Commerce can port every retailer's unique business to a ready and willing online marketplace

Operations is where the rubber hits the road.

Monday, March 8, 2010 by Morgan Woodruff
Do you have Operations QUESTIONS?

We know that operations is where the rubber hits the road. Fulfillment and customer service are your passion, and unlike some retailers, you don't have the luxury of just dropping a product in a UPS box. We suspect marketing and merchandising efforts, like ecommerce, often mean headaches for you.

That's why we're different than any other ecommerce software solution. Blueport Commerce's Custom System Integration is designed to make e-commerce a closed loop that begins and ends with your existing systems. Our platform extracts your SKUs from your system, and returns orders to your system in a format identical to an order written in your stores. We've done this with any number of systems, from home grown to major commercial packages, with the end result being ecommerce orders that are no different to fulfill than store orders.

We share your passion for efficiency and service — in fact, we believe that ecommerce can't succeed in a category like yours 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.

A Multichannel Retailer's Review of Outsourced E-Commerce Solutions

Friday, March 5, 2010 by Morgan Woodruff
We were recently in the final year of a five-year contract with one of our existing e-commerce clients. We assumed that (like any company that's smart about its technology), they were in discussions with  other major vendors in the multichannel retail software space - Oracle, Escalate, GSI Commerce, ATG and the like. But at Blueport we knew the client had one overarching need: to simply find the best B2C ecommerce platform for large order value (AoV) purchases. That's what we call Big Ticket retail - and it's our sweet spot. How does the story end? Yes, they re-upped the contract: http://www.blueport.com/news-events/.

We earned their renewal because we are confident that our e-commerce solution is the only one that meets the needs of big-ticket multichannel retailers. Blueport Commerce has the technology, knowledge and expertise to capture the strategic opportunity for your business online.

We know the complexities of big-ticket retail and we have the answers to make it work for you. We know how this transformation impacts each aspect of your business and we'll guide your team through the process step by step.

The number of B2C e-commerce applications starting to play in the big ticket retail category continues to grow. But, since your goods are larger dollar value purchases, they are typically more complex to move around the country and generally don't fit in the standard e-commerce package or platform built for commodity items. The Blueport Commerce solution was built for retailers like you, and that's why it works.

We've made other folks lives easy — let us do the same for you.


Copyright 2010, Official Blog of Blueport Commerce


Overcoming Ecommerce Challenges

Thursday, February 25, 2010 by Carl Prindle

Many retailers face challenges when developing or purchasing online ecommerce software solutions. Such challenges include:

  • Products that are challenging to sell online because they are expensive, unbranded, not well understood or highly customizable
  • Products that have complex delivery requirements that can't be met by standard parcel services
  • Franchise or co-op models where brand, product offering and distribution is controlled locally by independent dealers

If you face these challenges, it’s important to look for an ecommerce solution provider that specializes in your area of business. When selecting an ecommerce software provider, ask how they can address your specific challenges.

Also, be sure that the vendor you select combines its ecommerce technology platform with relevant experience and real advice, consultation and support.  This will help you enable a seamless ecommerce business solution and a true multichannel strategy which will in turn allow you to better focus on your core business, drive results and create e-commerce growth. Contact us to see how we’ve solved your challenges for the largest of big-ticket retailers.