Multichannel Retailers Continue to Battle Fraud
The good news is that retailers are continuing to get a better grasp on how best to mitigate fraud resulting from their ecommerce site, even during high volume periods like this past holiday shopping season.
CyberSource estimates that online fraud cost retailers an estimated $2.7 billion in 2010, down from $3.3 billion in 2009. This is due to retailers becoming more aggressive about rejecting suspicious orders. According to CyberSource, North American online retailers rejected 2.7% of orders in 2010, up from 2.4% in 2009.
While the threat of fraud will obviously never go away, retailers should continue to invest in solutions to help them manage the risk. At Blueport Commerce, we have developed extensive fraud intercept solutions embedded into our platform. A collaborated effort of our technology and staff monitor each order that comes in through our clients’ ecommerce stores, intercepting fraudulent orders before they are even processed.
Copyright 2010, Official Blog of Blueport Commerce
2011: The Year of Mobile Commerce
The latest forecasts come from Forrester, which has just released a list of mobile predictions for 2011. Forrester analyst Melissa Parrish says the mobile marketing category is poised for major investments, though challenges such as consumer privacy still remain. According to Parrish, 34% of online retail marketers had or were planning to have a mobile presence in 2010, while consumers continued to adopt smartphones as their primary mobile device. Both of these trends help set the stage for mobile’s advancement in 2011. Parrish does caution that multichannel retailers will need to rethink their mobile strategies and steer their focus away from apps towards more integrated mobile experiences for their customers.
Copyright 2010, Official Blog of Blueport Commerce
The Next Big Thing in Big-Ticket Ecommerce
Some of the biggest names in art and technology are betting on it: chief executive Eric Schmidt, Twitter chairman and co-founder Jack Dorsey and Russian mega-collector Dasha Zhukova are investing in Art.sy, a new service set to launch this spring. The site is designed to help collectors find art based on their personal preferences and past buying history, much the way the music site Pandora guides music lovers to new bands.
Read more about how collecting art is the next big thing in selling big-ticket items online in the Wall Street Journal's "Clicking on a Masterpiece."
Copyright 2010, Official Blog of Blueport Commerce
The Big Online Opportunity for Big Ticket Retailers This Holiday Season
And this holiday season, they are also increasingly using digital channels to research and buy big ticket retail items like never before.
A great example is this week’s truly ‘big ticket’ sale from luxury flash-sale online retailer Gilt Groupe. The members-only site made waves by offering three 2011 Volkswagen Jettas for $5,995 (that is a significant $10,000 off the $15,995 retail price of the car). Over the course of the three-day sale, one car was sold at noon ET every morning. Access to the sale on the first day was limited to Gilt’s mobile applications on iPhone, iPod touch, iPad and Android devices and was opened to both online and mobile customers on the following two days.
The idea of purchasing a car online or through their phone may still seem daunting to some, but the success of the Gilt promotion is a powerful proof point of the seismic shift occurring in how consumers shop and the increasing comfort they have with the online channel.
I’m interested in hearing from you about some other memorable promotions and offers you have come across this holiday season from the big-ticket retail category?
Copyright 2010, Official Blog of Blueport Commerce
The (Unexpected) Ecommerce Advantage
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
There is no denying it, mobile commerce is on the rise
Copyright 2010, Official Blog of Blueport Commerce
Understanding the Google-Groupon Rumors
To read the full article: http://techcrunch.com/2010/11/30/why-google-groupon/
Copyright 2010, Official Blog of Blueport Commerce
What You Should Know About Ecommerce Hosting
When it comes to evaluating your ecommerce hosting site options, you have a lot to consider. And perhaps the most important question to answer is whether you should host your own website or work with a hosting provider. This article from Practical eCommerce goes into the specifics of whether or not you should host your own site, and it makes good points supporting the merits of both options.
When examining ecommerce hosting sites, the point is that you always want your website to be running -- efficiently, quickly and securely. Maintaining your own server in-house can be more inexpensive and gives your business the control to make sure your site is performing as you and your customers demand it to be. On the flip side, using a hosting provider gives you access to people who specialize in servers, so if a problem arises, it will likely be able to be fixed more quickly.
More to Know About Ecommerce Hosting Sites
If you decide to go with a hosting provider, you should be aware of these options so you can decide which would make the most sense for your ecommerce business:
- Shared hosting: This is when your website gets space on a physical server, sharing it with other websites. Keep in mind that with this hosting solution, problems on another site that lives on the server can affect your site.
- Virtual dedicated hosting: This option still has your website living on a server with other sites, but it acts as if it is on its own standalone hardware. If one of the other websites on the server crashes, your site would not be affected.
- Dedicated hosting: Dedicated hosting would give your website and any of its subdomains its own server. Reasons to go with this option would be if you have a highly trafficked site or if your website offers audio and video downloads, which can require a lot of bandwidth.
As you delve deeper into considering Internet hosting providers, you will also want to know about their contingency plans should anything go wrong, as well as how their customer and technical support works.
Blueport Commerce hosts the entire technology platform for its ecommerce clients, including server hardware, maintenance, expansion, upgrades and secure, PCI compliance, leavgiving our customers valuable peace of mind. You can learn more on our Hardware & Secure Hosting solutions page.
Does Your Business Need a Franchise Commerce Solution for the Web?
Ecommerce is an excellent way to bring a new stream of sales revenue to your retail business as well as to gain awareness for your brand. However, if your retail business is composed of franchises, you face a number of unique challenges. That means you need a unique franchise commerce solution for operating on the Web.
The International Franchise Association outlined a number of issues franchise companies may face as they consider ecommerce. Among them:
- Who establishes pricing and the terms of purchase with the customer?
- What are both the franchise company and the franchisee each responsible for when fulfilling orders? Customer support?
- Who gets credit -- and revenue -- from the sale?
- Who is responsible for billings and collections?
And because of these concerns, the International Franchise Association suggests that franchise companies looking to try ecommerce “consider adopting ecommerce models that…actively involve franchisees.”
Our Franchise Commerce Solution
Blueport Commerce embraces franchises. In a previous blog post -- “Ecommerce for franchise retail: Can it be done?” -- we discussed how our ecommerce solution specifically works for the franchise model. We are able to help you centralize much of the heavy lifting around merchandising, catalog, marketing and technology with the parent brand, while each independent franchise dealer retains local control of the online store content, pricing, marketing and fulfillment.
More than 900 independently owned and operated dealers use Blueport Commerce to offer their local customers a best in class franchise retail experience online. Find out why.
How Sears Is Growing Socially
The goal is to improve the shopping experience for the customer, but the result is also a deeper relationship between the retailer and its shoppers, and consequently greater brand loyalty. These tools enable Sears to communicate more often and in-real time with its customers, be it responding to their questions or walking them through a sale on the site. In the big ticket retail category, where making a customer feel comfortable with clicking to purchase is imperative, this type of one-on-one and immediate interaction can be invaluable. Effectively, it’s the in-store shopping experience transported into the digital space.
Many retailers are exploring these types of functionalities on their sites, but I think the potential is particularly interesting for big ticket retailers whose customers are often looking for as much product information as possible during their online shopping experience. I'm interested in hearing how other folks out there are looking to incorporate social commerce into their online retail sites. How are these types of tools affecting your customers' experiences or your organization's multichannel communication?
Copyright 2010, Official Blog of Blueport Commerce
Bringing Your Retail Strategy Online
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.
Local Inventory Search: The Search Engine Technology Is Not There Yet
What is the big win in a consumer being able to find a product at local stores that has always been easy to find? Sure, it’s fun to be able to do a local inventory search right from your smartphone. It’s also a lot of fun to update your Twitter and Facebook accounts on-the-go as well.
But this StorefrontBacktalk article points out that the true value of local inventory search is really yet to come, and that most of what could be found is already findable via numerous search engines’ regular search platforms.
“If the consumer already knows the manufacturer’s name -- or a specific model and make -- the manufacturer’s site is generally quite helpful,” reads the piece. “Certainly if the store is already known, that store’s site can deliver those answers. The value -- and extreme value it is -- comes from an engine finding products that simply cannot be found otherwise.”
So if you're a retailer selling unique products or hard-to-find items, running the gamut from private-label furniture to antique radios, local inventory search won’t necessarily help consumers find you. And for the folks looking to buy your product, local inventory search will be that more frustrating.
When Local Inventory Search Works
Here's what does work: at Blueport Commerce, we’ve been providing our customers with fast, accurate local inventory search as part of our core localization strategy since 2001. In our case it works, as the search is specific to the customer's location and is tied right into the retailer's inventory systems. For the customer, and the retailer, that's a very big win indeed.
Learn more about our ecommerce solutions.
Commercial vs. Open-Source Ecommerce Shopping Software
Beyond the hardware for your ecommerce site, you need to make some decisions about your ecommerce shopping software. Here are some things to keep in mind as you conduct your ecommerce software comparison.
There has been a flurry of open-source ecommerce shopping software options, but does that make them the right option for your business? While open-source options initially appear to be more cost-efficient, they are pretty barebones. Often a technical background and/or programming knowledge is needed for customizing the software to meet your business’s needs.
In contrast, hosted ecommerce shopping software often comes with a complete package that includes a number of options so you wouldn’t have to worry about them. These include technical support, security updates, hosting, automatic upgrades and more. So when choosing which software option is best for you, you should investigate the technical resources you have or are willing to bring on, as well as what you want your company to focus on.
For our customers, Blueport Commerce handles all the details of hardware and software hosting, upgrades and security. We worry about keeping your ecommerce shopping software up and running, so our retailers can stay tuned in to their key business.
13 Ways to Compare Ecommerce Website Software Providers
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
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.
The Next Frontier for E-Commerce
According to the report, nearly 73% of the 87 online retailers surveyed are already sending merchandise abroad from their home country's distribution center, with an additional 17% having an established foreign warehouse in place. Retailers who ship abroad see about 5% of their revenue generated from foreign orders.
However the big hurdle still remains in establishing and testing e-commerce logistics or e-commerce payment solutions to service these international customers. For example, when it comes to processing international returns, 37% of retailers currently require customers who want to return an item use a returns center in the retailer's country of origin, while 12% have an international returns center located in their own country to handle foreign returns.
Beyond just international e-commerce expansion, the report also offered a picture of some of the gains online retailers are beginning to see resulting from online retail site improvements, especially as the industry gears up for the critical holiday shopping period: 54% of online retailers say they've increased conversion rates over 2009 levels, 27% have seen gains in units per transaction, 47% say the value of average orders has gone up, and 31% say they've seen a decline in shopping cart abandonment rates, a key measure of customer satisfaction.
I’d love to hear whether these gains are in line with what you are seeing across your e-commerce sites?
Copyright 2010, Official Blog of Blueport Commerce
RoomStore's Ned Crosby Discusses New Ecommerce Site
The new ecommerce store delivers a much more interactive online shopping experience, designed to mimic how customers may look at or touch pieces of furniture in-store and envision them in their homes. Consumers can browse products based on collections and room styles, shop images, read consumer reviews and even chat live with RoomStore staff.
Multichannel Merchant senior writer Tim Parry recently interviewed Ned Crosby, RoomStore's chief merchandising and marketing officer about the redesign and why he chose Blueport.
Check out the great article here.
Copyright 2010, Official Blog of Blueport Commerce
Creating an Immersive Online Shopping Experience
For example, a recent Huffington Post review of mydeco offers a phenomenal example. Using a highly visual format, shoppers can discover products through images of rooms, mood and idea boards, and 3D mockups. Users can shop the room images or design their own 3D room to envision themselves living in the newly decorated space. All these tools are designed to help the consumer not just shop for furniture online, but get design ideas, feel inspired and most importantly – visualize how these items would look in their homes so that they want to purchase them through the ecommerce store. Let’s also not forget the fun factor -- rather than a daunting exercise, purchasing a sofa from this site is a fun, exciting, high-sensory experience.
Developing such a rich site experience may not be an immediate option for every big-ticket retailer. But understanding the importance of feeding your customers' senses through rich imagery, elaborate product descriptions and innovative technology to make the shopping experience more immersive and exciting is something any retailer can take cues from.
Copyright 2010, Official Blog of Blueport Commerce
Forrester's Brian Walker Outlines the Fundamental Shifts Taking Place in E-Commerce Technology
Some key takeaways from the report:
- As the influence of the online retail channel on consumers continues to grow, retailers will need to shift spending to this channel -- or risk losing sales.
- Consumers' interactions with retailers will move beyond just the website to include mobile phones, iPads and other innovations. According to Walker, many of these innovations will be built on proprietary technology requiring that retailers "develop systems that can easily integrate and support these existingm -- and emerging -- customer experiences in order to compete and capitalize on changing customer expectations."
- Consistency of information, policies and fulfillment across channels will be a must for retailers as they expand their touchpoints with consumers
How is your e-commerce strategy changing in light of this shift?
Copyright 2010, Official Blog of Blueport Commerce
RoomStore Re-launches Its B2C E-Commerce Site with Blueport Commerce
We’re thrilled to share with you the new site for RoomStore, a long-time customer and one of the largest furniture retailers in the country with more than $325 million a year in sales. We launched the first RoomStore site more than five years ago and, since then, we’ve continued to evaluate and make changes to the site on a regular basis.
But with this major re-launch, we have leveraged our unique B2B e-commerce solutions to improve the online customer experience to drive cross-channel sales. Among the new features:
- Precision Localization: The site automatically adjusts based on a user’s location, dynamically providing inventory, pricing, promotions, delivery details and more create a seamless cross-channel shopping experience.
- Live Chat/Click-to-Call: Shoppers can now choose how they want to communicate with customer service representatives -- via online chat or phone. Dynamic icons reflect real-time availability of customer service reps including when they’re able to chat, connect via phone or request a call-back.
- Collaboration Bar: Social media and other enhancements are available via a single tool on product pages, giving customers the additional resources they need for big-ticket purchases, like sharing an item with a friend, live chat or printing a store-ready page.
- Shoppable Images: Interactive information tags are displayed on room settings, allowing shoppers to get information on the items in the room and add them directly to their shopping carts from the image. This feature allows customers to be as few clicks from purchasing the items they want as possible.
That is just a taste of what the new RoomStore.com offers. To learn about all of the innovative features, check out the press release.
Copyright 2010, Official Blog of Blueport Commerce
