Consolidation seems to be the word of the day.
This week’s news of eBay’s purchase of GSI Commerce was the latest in a steady stream of consolidation and acquisitions in the e-commerce retail industry that I am very excited to see. No doubt, the result of this trend has been a tremendous validation across all sectors of retail and e-commerce technology and a boon to all players in this space.
For example, we are seeing a growth amongst enterprise class retail POS solutions such as those run by Oracle, stemming largely from this summer’s ATG purchase. We are also seeing a growing focus on big-ticket retail workforce-warehouse solutions such as those designed by RedPrairie. Their acquisition by Escalate Retail recently only strengthened this trend. Last year’s IBM/Sterling Commerce buyout was also a pivotal turn for the industry, strengthening Big Blue’s position and helping them close the gap on multi channel SaaS offerings. The effects on other platform players like Blueport Commerce, as well as on tertiary vendors and tech providers (the likes of Akamai Technologies) that serve these companies has also been extremely positive from a growth standpoint.
I think the most important thing to note is that the consumer was not left out of these recent shopping sprees from billion dollar publicly traded companies. In fact, this week’s eBay’s acquisition of GSI Commerce proves even a tried and true marketplace leader does not know all and needs to redefine its strategy to meet changing consumer needs. The result of many of these acquisitions is actually a better offering for clients and a better way for them to manage their business.
The next twelve months in our industry will be interesting to say the least.
Copyright 2010, Official Blog of Blueport Commerce
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:
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
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:
- Brand Building: in high engagement categories, brands can interact with their customers on topics they are passionate about.
- Deals: Facebook can replace email as a way to distribute deals.
- As a Platform: we look at Facebook as an emerging platform/operating system that can host online stores with built in traffic.
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
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
Copyright 2010, Official Blog of Blueport Commerce
At Blueport, we pride ourselves on being different from other e-commerce companies. We’re more than simply a back-end system that retailers can plug into. We believe that technology and integration only opens your online store. Expertise in managing that store is what drives results.
Blueport's e-commerce services team ensures you get the benefit of our ten years of experience in big-ticket retail when marketing, merchandising and operating your online store. We know the unique aspects of these considered purchases, from imaging to marketing to customer support, and we'll work with you to develop those programs for your e-commerce efforts.
Our mission is to help you capture the e-commerce opportunity as part of an integrated multi-channel strategy. At Blueport Commerce, we're a turnkey solution specialized for big ticket that ensures your 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 service packages, Blueport Commerce can port your unique business to a ready and willing online marketplace.
We like to think we’re the complete e-commerce package. Let's talk.
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
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
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.
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
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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