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
Welcome to the Blueport Big-Ticket Blog
Thursday, February 25, 2010 by
Carl Prindle
What's the Next Big Area of E-commerce Growth?
Thursday, February 25, 2010 by
Carl Prindle
In big-ticket categories like furniture, appliances, flooring, big screen TVs and building supplies, consumers are increasingly researching and purchasing online, having gained confidence in the online channel through years of buying more commoditized items.
In the last two years, big-ticket retailers have mobilized to meet this demand, for the first time effectively offering these goods online through sophisticated multi-channel and e-commerce efforts, embracing the unique requirements of these complex transactions.
This convergence represents a new wave of e-commerce growth: big-ticket items.
Despite the bleak retail outlook, big-ticket e-commerce experienced a robust 52% e-commerce growth in the latter part of 2008. And, it is projected to be the largest, fastest growing segment of e-commerce in the next five years (source: Forrester Research).
Will a Multi Channel Retail Strategy Hurt In-Store Sales?
Thursday, February 25, 2010 by
Carl Prindle
If you're in charge of store operations, you may not know what to think about ecommerce integration, or how to present it to your commissioned sales team.
You may ask yourself, ‘Won't my sales staff lose customers to the web?’
This is a common concern, and one that sales managers should address with their teams prior to implementing a multi channel e-commerce strategy. The reality is that for many retail categories, especially big-ticket, the greatest benefits of going online happen in stores. This may sound counterintuitive, but because big-ticket retail is fundamentally local and stores play a critical role. E-commerce stores become a powerful tool to help stores compete in their local markets rather than a national channel that bypasses them.
Online efforts serve to drive store traffic, generate leads and consummate online transactions — cost effectively and measurably. Many retailers have found that this to be true. Specifically, for every online order, 5 or 6 directly trackable orders are placed in stores by people who first registered online. And these are only the customers who provided us with their names online — the real impact in your stores will actually be an order of magnitude larger.
With a managed ecommerce solution, your stores gain customers of the best kind — educated consumers who have found exactly what they want online, and simply want to see the item in person in your stores and complete the transaction with a live person.
Going Beyond Your Standard Ecommerce Platform: A Big-Ticket Retailer's Wishlist
Thursday, February 25, 2010 by
Carl Prindle
Unlike most retailers looking to sell their products online, big-ticket retailers need an ecommerce platform that is specifically designed to address the "big-ticket" barriers that have prevented them from going online.
Unlike their mass merchandise counterparts, big-ticket retailers need a platform that will help them overcome challenges such as:
These retailers need a system that goes beyond just a standard ecommerce platform. They need a business solution that integrates their ecommerce store into a seamless multi-channel strategy offering.
Key ecommerce platform requirements for big-ticket retailers include:
Unlike their mass merchandise counterparts, big-ticket retailers need a platform that will help them overcome challenges such as:
- Merchandising products that are challenging to sell online because they are expensive, unbranded, not well understood or highly customizable
- Managing shipping requirements and costs for products that have complex delivery requirements that can't be met by standard parcel services
- Integrating franchise or co-op models where brand, product offering and distribution is controlled locally by independent dealers
- Greater emphasis on cross-channel shopping
These retailers need a system that goes beyond just a standard ecommerce platform. They need a business solution that integrates their ecommerce store into a seamless multi-channel strategy offering.
Key ecommerce platform requirements for big-ticket retailers include:
- Localization
- Custom System Integration
- Online Merchandising
- Online Marketing
- E-Commerce
- Order Tracking
- Franchise/Co-op Extranet
- Store Intranet
- CRM & Email Marketing
- Inventory Management
Multi-Channel Localization for Big-Ticket Retailers
Wednesday, February 24, 2010 by
Morgan Woodruff
According to Forrester, online research will influence $1 trillion in offline sales by 2012, making it imperative that retailers understand the full impact that their online presence—as well as those of their competitors—may have on consumer in-store behavior.
Big-ticket purchases in particular require more research and consideration due to higher price points and their high degree of personalization. Furniture, mattresses, appliances, flooring and home décor are all examples of products that consumers are spending a significant amount of time researching online prior to purchase, underpinning the importance of multi-channel localization for these retailers.
What should retailers be doing to better understand and meet the needs of consumers while they are in this ‘pre-shopping’ mindset? Whether the ultimate purchase is made online or at a local store, a retailer needs to take the necessary steps to ensure they are embracing multi-channel localization and providing a seamless multi-channel customer experience that ultimately makes a sale. When executed as part of a complete multi-channel localization strategy, e-commerce sites can become a critical tool to help stores compete both locally and chain-wide.
During their ‘pre-shopping’ phase, a consumer may start their research online then visit their local store, then perhaps go back online. Because the typical decision cycle for big-ticket items is much longer than for other purchases, this cycle may be repeated several times. For the consumer there is little difference between online and offline store formats - they expect to see the same offering in-store that they do online. For example, if you advertise a television at $699 online, but the price is marked $799 in-store or is not available at a location near the customer, they quickly become frustrated and may click (or walk) to your competition. You should always assume that customers have done their research online before ever stepping foot in your store, especially for big-ticket items.
To make this process seamless, a critical starting point is ensuring multi-channel localization - that merchandise selection and pricing is consistent between local stores and online.
The first step to multi-channel localization for a retailer is localizing the merchandise experience online - by recognizing a user’s IP address or simply asking them to choose their location, product selection and pricing can be customized to each user’s specific geographic region.
Big-ticket purchases in particular require more research and consideration due to higher price points and their high degree of personalization. Furniture, mattresses, appliances, flooring and home décor are all examples of products that consumers are spending a significant amount of time researching online prior to purchase, underpinning the importance of multi-channel localization for these retailers.
What should retailers be doing to better understand and meet the needs of consumers while they are in this ‘pre-shopping’ mindset? Whether the ultimate purchase is made online or at a local store, a retailer needs to take the necessary steps to ensure they are embracing multi-channel localization and providing a seamless multi-channel customer experience that ultimately makes a sale. When executed as part of a complete multi-channel localization strategy, e-commerce sites can become a critical tool to help stores compete both locally and chain-wide.
During their ‘pre-shopping’ phase, a consumer may start their research online then visit their local store, then perhaps go back online. Because the typical decision cycle for big-ticket items is much longer than for other purchases, this cycle may be repeated several times. For the consumer there is little difference between online and offline store formats - they expect to see the same offering in-store that they do online. For example, if you advertise a television at $699 online, but the price is marked $799 in-store or is not available at a location near the customer, they quickly become frustrated and may click (or walk) to your competition. You should always assume that customers have done their research online before ever stepping foot in your store, especially for big-ticket items.
To make this process seamless, a critical starting point is ensuring multi-channel localization - that merchandise selection and pricing is consistent between local stores and online.
The first step to multi-channel localization for a retailer is localizing the merchandise experience online - by recognizing a user’s IP address or simply asking them to choose their location, product selection and pricing can be customized to each user’s specific geographic region.
Multi Channel Marketing for the Big-Ticket Retailer
Friday, February 19, 2010 by
Betsy Miller
A coordinated and integrated multi channel marketing strategy is an integral component of driving sales of big-ticket items both online and in-store.
As part of their multi channel marketing strategy, big ticket retailers should start by integrating their e-commerce store with the local marketing and promotional programs in place in their stores.
A key aspect of multi channel marketing is aligning your e-commerce site with your promotional calendars and displaying online and in-store events, promotions, sales, coupons and finance offers – right down to each individual store. Try to repurpose promotional materials throughout your multi channel marketing efforts. For example, use print material artwork on your site, extending the value of materials created for in-store customers, across your entire multi channel marketing campaign.
Below are some points to consider when developing a dynamic multi channel marketing strategy for big-ticket retailers:
As part of their multi channel marketing strategy, big ticket retailers should start by integrating their e-commerce store with the local marketing and promotional programs in place in their stores.
A key aspect of multi channel marketing is aligning your e-commerce site with your promotional calendars and displaying online and in-store events, promotions, sales, coupons and finance offers – right down to each individual store. Try to repurpose promotional materials throughout your multi channel marketing efforts. For example, use print material artwork on your site, extending the value of materials created for in-store customers, across your entire multi channel marketing campaign.
Below are some points to consider when developing a dynamic multi channel marketing strategy for big-ticket retailers:
- Multi channel Sales – Allow customers to view branded sales events, including promotional pricing and event materials that coordinate with TV, print and store visuals.
- Dynamic Fliers – Feature your print fliers and catalogs online, with complete multi channel marketing integration.
- Multi channel Coupons – Allow customers to use coupons to receive discounts, bonus items, free shipping or other custom offers online.
- Financing – Allow customers to finance their orders with the same deferred payments offered in stores.
- Custom Pages – Provide your customers with pages promoting retailer store events and allow them to enter in-store contests online.
A Multi Channel Strategy Is Key for Big-Ticket Retail Online
Friday, February 19, 2010 by
Betsy Miller
A comprehensive multi channel strategy is essential to selling big-ticket items online. With the multiple touch points that occur in a big-ticket purchase experience, multi channel integration is the most important area of alignment.
To be successful online, retailers MUST integrate their e-commerce store with their physical store network as part of a multi channel strategy that harnesses the resources and strengths of your existing infrastructure.
A true multi channel strategy will integrate the local marketing and promotional programs in place in your stores. Launch your e-commerce operation as a synchronized, multi channel selling effort, ideally with the head of e-commerce having a seat at the management table. This structure allows e-commerce to become what it should be in big-ticket categories – a force multiplier for chain-wide initiatives – and optimizes online results.
Integrate existing people and their retail expertise wherever possible. Use the same information and procedures as the rest of the chain, simplifying coordination. Once you’ve identified existing assets, then (and only then) evaluate and augment these assets, adding resources only as needed to fill e-commerce-specific gaps. Multichannel communication is the key to success here, and ideally your ecommerce website software should support these efforts.
Finally, align your e-commerce site with your promotional calendars and display online and in-store events, promotions, sales, coupons and finance offers – right down to each individual store.
To be successful online, retailers MUST integrate their e-commerce store with their physical store network as part of a multi channel strategy that harnesses the resources and strengths of your existing infrastructure.
A true multi channel strategy will integrate the local marketing and promotional programs in place in your stores. Launch your e-commerce operation as a synchronized, multi channel selling effort, ideally with the head of e-commerce having a seat at the management table. This structure allows e-commerce to become what it should be in big-ticket categories – a force multiplier for chain-wide initiatives – and optimizes online results.
Integrate existing people and their retail expertise wherever possible. Use the same information and procedures as the rest of the chain, simplifying coordination. Once you’ve identified existing assets, then (and only then) evaluate and augment these assets, adding resources only as needed to fill e-commerce-specific gaps. Multichannel communication is the key to success here, and ideally your ecommerce website software should support these efforts.
Finally, align your e-commerce site with your promotional calendars and display online and in-store events, promotions, sales, coupons and finance offers – right down to each individual store.
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