Ecommerce Consulting.com | Experts in Online Retail

Time to Drop the “E” in E-commerce? A Practical (and possibly selfish) Perspective

Sally McKenzie — Wed, 30 Jun 2010 13:56:45 -0400

At a conference I attended a long time ago (probably at least a decade ago) I remember an industry analyst (don't remember who) saying something along the lines of "we'll know that e-commerce has arrived when we no longer have to put the "e" in front of it."

Well, maybe we've arrived. Over the last month there have been some declarations and murmurings that it's time to drop the "e". Forrester's Brian Walker suggested it at the Internet Retailer Conference, and a few blogs have since echoed the same.

E-commerce is undeniably a part of everyday consumer life. Much as we predicted years ago, consumers have woven the web into a shopping process that now spans channels, devices and touch points. The internet influences nearly half of all retail sales. Regardless of where the transaction occurs, the web is a vital part of the discovery, research, consideration and decision process. That's of course the argument for dropping the "e". Customers don't think of e-commerce sites as a "channel" anymore than they think of their phones or retails stores that way. So why should we?

The answer to that question (and ultimately the answer to whether or not it is indeed time to go "e"-less) lies within the perspectives and practices of the retailers and the companies that support them.

For enterprise/advanced online retailers and suppliers, dropping the "e" not only makes sense, it symbolically removes obstacles and enables bigger thinking. An enterprise level platform provider today may provide e-commerce infrastructure, but must also provide mobile, multi-channel and social commerce services in order to meet the needs of its retail customers. The entire retail commerce ecosystem is involved. Advanced retailers planning the present and future needs of their business must look at online selling in relation to all other touch points and channels. For these companies the "e" can represent a restrictive silo, limiting strategic progress.

But, what about those retailers and service partners that are successful, but not yet quite so advanced? Here's my take.

Over the last 15 years, e-commerce has become a specialized discipline, or rather, a set of specialized disciplines. While customers, thankfully, shop our websites like it was second nature, it takes channel knowledgeable people on the back side to do it well.

Think about the disciplines necessary to do e-commerce well: e-commerce merchandising, e-commerce interaction and visual design, site analytics and optimization, online marketing. If someone is a great search engine marketer, do we say they are a great marketer? Sure, we could, but calling them a great search engine marketer helps us to define their specialty.

For many companies who are either in the early stages of online selling or who to whom digital DNA is not a given, the "e" is necessary, as it provides a foundational symbol for a specialized core competency.

Just in the last month of my work I have encountered the following situations that illustrate this point:

A mature multi-channel retailer with heavy catalog DNA and without seasoned online leadership finds that they need to build e-commerce expertise in order to fully realize the online and multi-channel potential.
A regional brick and mortar retailer taking their business online for the first time must create new positions and processes to accommodate e-commerce
A brand manufacturer in the midst of an extensive re-design of the e-commerce site, previously 100% outsourced, is now taking steps to own and manage their online presence internally

These guys shouldn't drop the "e". In fact, I could argue that they need to get some "e" in a big way. In a few years, as their "e" competencies mature and develop, they will likely see the benefits to dropping the "e", at least in some aspects of their business and infrastructure. But for now, the "e" serves a valuable purpose. It delineates commitment to learning and growing the channel.

Are you ready to go "e" free? Take an honest assessment of where you are in your online competency:

Do you have knowledgeable online specialists who are experts in their disciplines?
Is the online channel at the table for all company strategic discussions and is it a part of all/most major company initiatives?
Are the other channels at the table for strategic discussions about the online channel? Is there a cross/multi-channel component to all /most web initiatives?
Do your operations and IT teams support and build solutions that encompass multiple channels and touch points as a matter of course?
Is being digitally savvy a characteristic of most employees in your company, regardless of what department they work in?

If you've answered "yes" to all or most of these questions, you've already dropped the "e", at least figuratively.

If you answered "no", the e-commerce team is likely the digital center of gravity in your organization, or it might be just getting up and running. You probably need that "e", at least for a while.

So, is it time to drop the "e"? Maybe yes. Strategically. Where it makes sense.

For some, holding on for a while is a smart move.

Then there's the selfish side of me. As someone who uses ecommerceconsulting.com as her blog, I'm a bit attached to the "e", at least for the time being.

Want your E-commerce Project to Move Faster? Try Slowing Down: New Data Supports the Tortoise and Hare.

Sally McKenzie — Sat, 01 May 2010 19:05:09 -0400

By most people's definition, I'm a fast mover. I learn fast. I speak fast. I walk fast (I'm only about 5'2 so I have to in order to keep up with everyone else), and I get things done fast. One of the reasons I've stayed in the digital world and embraced e-commerce as a career is that it's an industry that likes to move as fast as I do.

Why then, do I become so frustrated when I hear clients say "we've got to move fast on this; I expect to get a new site up in XX days", or when the first question they ask is "so, how fast will this get done?" I like to work quickly. I respect speed, as a general rule. But, I detest poor execution. My frustration typically surfaces when the client is moving too quickly to execute well. In other words, they are jumping recklessly into execution before they have given the necessary strategic issues the time, thought and discussion that they deserve.

Having spent plenty of time in the "real world" running e-commerce businesses, I have seen my fair share of short deadlines and jammed project queues. I've also seen plenty of big hairy complex projects breeze through execution on time, on budget and error free, despite tight deadlines. I can cite example after example where taking time to define strategy or delaying production to deal with an unexpected strategic issue has sped projects along, and probably even saved them from total failure.

At last, I now have some data to back up my experience and beliefs.

A recent article in the Harvard Business Review, "Need Speed? Slow Down", got me so excited that I actually left my tea water boiling on the stove and almost ignited my home (seriously). In a study of 343 businesses (conducted with the Economist Intelligence Unit), here's what they found:

Companies with the "go go go" approach had lower sales and lower profits than those that paused at key moments to be sure they were on track.
Firms that took the slower approach improved their top and bottom lines, averaging 40% higher sales and 25% higher operating profits over a 3 year period.

Not convinced? Here's what I consider to be the true enlightenment of the article: not all speed is the same. HBR explains that there are two types of speed, and companies often confuse or intermingle the two.

First, there is operational speed, which is increasing the pace of production. Then, there is strategic speed, which is reducing the time it takes to deliver value. The key here is that strategically fast companies, as odd as it may sound, take their time. They take the time up front to be sure they have alignment, definition and commitment to success. They take the time to review how the work is going along the way, and they take the time to capture and communicate lessons learned.

My personal take, based on experience, is that operational speed without strategic speed is a no-win proposition, or a least a short lived one. You can pile on more resources, remove production bottlenecks and horsewhip everyone to go faster faster faster. But, if the strategic alignment, reflection on progress and post-game recapping isn't taking place, the operational gears will grind to a halt. Decisions won't get made at critical times. Team members will become demoralized and confused. Quality will suffer. Customers will leave (or never show up).

If you are lusting after speed, ask yourself which kind of speed and why. To deliver value? To reduce operational time/cost? Or to quiet down an impatient CEO or board member? First step: be honest about what's driving the need for speed. Second step: if strategic speed is what you want (and it probably is), slow down. Put some time in getting aligned and reviewing progress. You'll probably deliver a lot faster and make your customers (and that impatient CEO or board member) a lot happier.

See you at the finish line. I'll be the one in the hard green shell.

Social Rocks the Online World for Local Business - Seattle Event 4/22

Sally McKenzie — Thu, 01 Apr 2010 12:00:37 -0400

I'll just say it. I am bullish on social marketing. I haven't written much about it thus far, largely because so many other people are writing so much. There are days, frankly, when I've downloaded my eighth white paper and clicked through my sixty third tweet of the day about how to, why to or what to do regarding social platforms that I just want to say "enough already". But I love it all, and, while it's overwhelming at times, it's good, healthy and encouraging that we're all talking about this as it becomes an essential part of our businesses. Reminds me a bit of a disruptive force called e-commerce that came along about a decade and a half ago. It had dust spinning throughout retail corporate America, and permanently changed the face of how we do business.

I'll say one more thing. I have enormous respect and admiration for small local businesses. While most of my clients are larger online and multi-channel retailers, I've had the pleasure of working with many small businesses to shape their online strategies.

On April 22 in Seattle, I'll be speaking to an audience of local businesses about the convergence of social, mobile and local innovations and the subsequent disruption to what we've known as marketing on the internet. This phenomenon, cleverly named the "Splinternet" by social marketing icons Charlene Li and Josh Bernoff (of Groundswell fame) has big implications for companies of all sizes; some are thrilling, some are a bit frightening. I am a bit uneasy. On the one hand, I am bubbling over with enthusiasm about the subject matter and the litany of examples I have to share. On the other hand, I am concerned about how the audience will react. Small business owners have limited time, human resources and money. They spend their days running their businesses and taking care of customers. Marketing is usually not a dedicated function, if it's a function at all. Many local business owners are not "digital natives", and may find these new marketing methods intimidating and impersonal.

As I've prepared for the event and looked at the advice that's out there for small businesses, it looks daunting. Now, in addition to maintaining an informative and engaging website, they need to cultivate an online presence in so many other ways. Got a Facebook page? How are you using it, building a fan base and engaging fans with your brand? Are you Tweeting? Are you optimizing your social media participation for SEO? Got a blog? How about a LinkedIn profile? And don't for get your Google Place Page. It might become as important as your website itself. Be sure to keep that updated. Are you listed on all of the major directory sites? Do you have a mobile version of your site? An app? The Splinternet isn't just a jigsaw puzzle for big companies, it applies to small companies too, in spades.

It's no wonder that the myriad of choices and pressure to participate has many local businesses frustrated and overwhelmed. The statistics tell the story. The recently released "State of Small Business Report" from Network Solutions and the University Of Maryland Business School reveals that just 24% of small businesses have adopted social media. While that's double from the prior year's 12% showing, it's a small number. Of those small business that are using social platforms, 50% reported that participation takes more time than expected.

So, what's my advice?

Shameless plug, but if you're in Seattle on April 22, come to the event, sponsored by the terrific team at AlphaGraphics Seattle. It will be a great opportunity to learn, discuss and (if you want to) vent about how the world of local business marketing is being rocked. You can register here.

See you on there! (And if you can't make it, we'll be sure to do a follow up post and/or webinar).

A Lesson from Dad: Why Your E-commerce Platform Search Isn't Just About Software

Sally McKenzie — Thu, 18 Feb 2010 20:30:40 -0500

When I was a kid, I used to love to listen to my father talk about politics. He was opinionated and unfalteringly convinced that his point of view was not only right, but shared by "all" Americans (at least the smart ones). Today, I don't always agree with my dad's political views (and I'm pretty smart), but there's something I remember him saying during an election that I very much agree with, and have found to apply in many areas of my life, especially e-commerce: "Issues change."

During the heat of an election long before I was old enough to vote, my father was frustrated by the fact that a single issue was swaying the voters to choose one candidate over another. "Hell," he said, slapping his newspaper down like a flyswatter, "this guy is going to be in office for at least four years, maybe eight, and we're acting like there's only one problem that matters. This issue will hardly be on the radar 6 months from now and we'll wake up and realize we've got the wrong guy!"

The bigger point, of course is that that hot issues come and go. When you make an important decision about someone, you need to take the long view and ask "is this the kind of person who I feel confident about, who has the kind of character, experience and perspective necessary to do a good job beyond the immediate issues at hand?" The issues are a factor of course, but voting on those alone is short sighted.

So, what does this have to do with e-commerce? Plenty, especially if you're thinking about a platform search. Recently, in the middle of a very complex e-commerce solution search, a client and I were evaluating the options. I asked the team for feedback on what they'd seen so far. One team member immediately said, "I am not sure about company ABC. I liked them, but the platform didn't offer a couple of features out of the box like company XYZ's did." So I asked:

Which company had done the most research on your business? Answer: company ABC

Which company asked you the most questions during the call? Answer: company ABC

Which of the two companies would you prefer to do business with if the features were the same? Answer: company ABC

Which company would you choose? Certainly there are so many other things to consider. Track record, price, speed to market, installed client base, the list goes on. But, at the end of the day, it can be easy to get side tracked by a slick e-commerce feature, just like it can be easy to let the issue of the moment be the focus of your political decisions.

There will be another e-commerce feature that you want next month, and several more the year after that. And, not all of them will be necessary or even appropriate for your business. Unless you have a large and highly competent IT team in house (in which case you probably really do want just e-commerce software), you are choosing an e-commerce solution provider who will be your partner in building a successful business, and the decision will likely be one you live with for many years. Don't let the feature of the moment become the focus of your decision. Features change. Just like issues change. Thanks, Dad.

It's 2010. Do You Know Where Your E-Commerce Strategy Is? 7 Signs You Need to Find It.

Sally McKenzie — Fri, 22 Jan 2010 13:14:44 -0500

Happy New Year, a few weeks in. Despite one of the most challenging years for retail in recent memory, those of us in e-commerce had, by most reports a positive 2009. Cash strapped consumers turned to our channel for research, relevance and convenience like never before, using new devices and tools to access our brands. Most of the colleagues I speak to are teetering on that pivot point between energized and exhausted.

Even if (or perhaps especially if) your 2009 was successful, chances are your business has changed, and the role of e-commerce in your organization has changed. When you were in the heat of the moment reacting to the recession, the sand was shifting beneath your feet. You were doing what needed to be done, hardly coming up for air. Now that it's January and you can actually take a breath, you're probably finding that some of the reactionary activity of last year has become commonplace, and it 's probably time to hit "refresh" on your strategic plan (oh, and if you never HAD a strategic plan to begin with, chances are you need one now more than ever).

If you find your e-commerce business facing two or more of the following, it's time for a strategy check in:

1) Your competitive landscape has shifted. The recession has brought exciting innovations to e-commerce (see social and mobile points below), but it's also brought the demise and consolidation of many retailers. Some that were big (think Amazon) have gotten even bigger and expanded into new categories. Do you have an updated, clear picture of what you're up against, where you stand and who you're trying to beat?

2) You reduced the size of your team. A lot of pruning took place in 2009, through attrition and layoffs. Many times, the team gets smaller but the amount of work stays the same (or even grows). If you haven't re-examined priorities, roles and processes in light of your new resource structure, chances are you're not operating as efficiently as you could be.

3) You delayed or initiated a site redesign or re-platforming effort (or think you need to). With demands on e-commerce sites increasing at a rapid rate, record numbers of retailers are looking to upgrade or replace their site experience and infrastructure. As a result, the e-commerce platform landscape is more crowded, confusing and complex than ever before. Do you have a solid understanding of what you need to innovate at the pace your company and customer expect? Have you re-calibrated what your site experience needs to deliver to more savvy, discriminating consumer?

4) The multi-channel initiatives in your company are increasing in number and importance. If 2009 found you shifting gears to drive in-store sales in addition to online transactions, it's time to re-evaluate and clearly re-state the purpose of the online channel in your organization. Is it about driving direct sales? Building integrated experiences across channels? Somewhere in between? Does everyone know and agree to the success measures for the e-commerce?

5) Mobile is moving from R&D to bread and butter. If you launched a mobile commerce site, app, or mobile marketing initiative in 2009, it's probably time to determine mobile's strategic role in your business and how you'll fund and resource this exciting new digital touch point. Likewise, if your company yet to make a mobile move, it's time to plan when that needs to happen and what that should look like (hint: sooner would be good).

6) Social marketing and social commerce are moving to the center of the marketing plate. Ok, you've experimented and hopefully had enough success to say this is no longer a novelty. The conversation with your customer is only going to continue to ramp up from here. Do you have the resources to listen, converse, measure and maximize the power of the dialogue?

7) You're going (or thinking about going) global. With U.S. e-commerce maturing, many reatilers are looking for growth in new places and finding that it really is a whole new world out there, with plenty of challenges. Do you have a roadmap (when, how) for entering new markets or better serving those that you cover?

Chances are your e-commerce business has become more sophisticated and complicated than it used to be. That's to be expected given what it needs to deliver.

Creating (or updating) a strategic plan for the online channel doesn't have to be (and really shouldn't be) a monumental effort. After all, you have REAL work to do, and things in e-commerce change rapidly. But, taking some dedicated time to get everyone informed and on the same page on what's important in the new reality, where your resources will go, and how you'll measure success will allow you to execute better, have more focus, and, yes, react more nimbly to new challenges (even recessions) when they occur.

Attention E-commerce Marketers: Your Brand is Showing (everywhere)

Sally McKenzie — Thu, 07 Jan 2010 19:58:52 -0500

With more than 14 years worth of spending a lot of time on e-commerce sites under my belt, online store surprises can be hard to come by. Rare as it is, I love it when I see something so well done that I smile at the screen, remember the moment and want to tell people about it.

The delicate balance between appropriately conveying the emotive aspect of the brand and efficiently driving transactions is one that e-commerce teams have struggled with since the early days of the channel. (see my previous poston this topic) With robust features and functionality now commonplace in most online stores and best practices in transactional ease will known, online brand differentiation in e-commerce is as challenging as ever.

But sometimes, the essence and personality of your brand can come through in the most unexpected of places on your site. When that happens, it's not only a pleasant surprise for your customer; you leave an indelible, emotional mark on their site experience. Just what a brand is supposed to do. It's not just about the imagery on your home page, the tone and language of your product descriptions or the helpful tone of your service information. Yes, you need all of that. But how about some of the hidden or forgotten corners of your site? It's really these places where you can take an otherwise ho-hum (or even frustrating) experience and turn it into a positive emotional connection. A few of my recent favorites are below.

On the new Columbia Sportswear e-commerce site (launched in the Fall of '09), the company's beloved spokeswoman, Ma Boyle is with you all the way. Even when you get a 404 error (I love this).

When I bought holiday cards from JibJab (everyone's favorite site for elfing yourself into all kinds of humorous situations), I got this thank-you screen after signing up. I now not only know the people behind the company, but I feel like I have a cheering section behind me, celebrating my new membership and sharing an inside joke.

We all love Woot! not just for the screaming deal of the day, but sometimes just as much for the irreverent humor that goes into the site's content. Woot! leaves no page unturned (or shall I say un-clicked?)... Take a look at the customer service FAQ page. This page is either dry as dirt or excruciatingly courteous on most e-commerce sites. Woot! actually makes theirs fun to read and uses the page to hammer home their personality, which is good considering the brutally bare bones service policies.

And then there's Moosejaw, long a leader in cutting edge, youth oriented marketing. Note the clever language enticing me to create an account -everyone will like me more! Now there's a reason!

The moral of the story: leave no page un-clicked. Some of those necessary, straightforward pages outside of the ever precious purchase path can be hidden gems of opportunity where your brand personality can shine through.

The Mom & Pop Store: A Book Review, a Personal Perspective, and 5 Lessons for E-Commerce

Sally McKenzie — Mon, 09 Nov 2009 13:23:17 -0500

I'm just back from a 2 week vacation where finally, for the first time in nearly a year, I had time to read books. While I promised myself ahead of time that those books would not be related to e-commerce or retail, one of them was, and I am thankful that I allowed myself to break the "no working on vacation" rule.

Robert Spector's book " The Mom & Pop Store: How the Unsung Heroes of the American Economy Are Surviving and Thriving" is well worth reading by anyone in e-commerce, retail, marketing or customer care. While the book centers on the challenges and triumphs of small local brick and mortar businesses, there are lessons to be gleaned for anyone who interacts with customers in any channel (especially e-commerce, where personal connections with customers are unfortunately rare).

Drawing from his own personal experience working in his family's "Mom & Pop" meat business, Spector explores the history and perspectives of dozens of small merchants from grocers to jewelers to booksellers to restaurateurs. They range from century old legacy family businesses to 1st generation entrepreneurial ventures.

These business owners are passionate, innovative, resilient, service oriented and deeply involved in their communities. No strangers to change, many of them are operating successful e-commerce stores in addition to their core brick and mortar businesses.

This book resonated for a personal reason. While I was away, I periodically checked the news. The headlines of the recession continued. Last week's big news was the unemployment rate, now topping 10%. The last time that happened was in the early 1980's, which coincided with my graduation from college. Broke and discouraged by the lack of "real" jobs for new college graduates, I took a part time retail job in what could easily be described as a "Mom & Pop" store. Without expecting to, I became a merchant. I checked in the new merchandise. I decorated the store windows. I helped customers (many I knew by name) and rang up sales. And most surprisingly, despite the low wage, sore feet and weekend hours, I loved it. That "Mom & Pop" experience was the foundation of my retail (and later e-commerce) career, and it taught me life long lessons about customers, communities and the importance of humility, whether you're selling in a store or selling online.

As I read Robert Spector's book, I realized how much these successful Mom & Pop stores have in common with one another, and how much the e-commerce community can learn from the guiding principles of successful Mom & Pops. Here are my 5 favorites:

1) The store is uniquely yours: I've written in the past about the importance of a compelling and unique value proposition. Mom & Pops continually face stiff competition from national big box stores and e-commerce giants that under cut them on price and over do them on selection. The smart Mom & Pops have done their homework and found their niche; the thing that they can offer that no one else can. Read the story of a small urban grocer who had the nerve to get rid of Coke and Pepsi in order to carry an exhaustive selection of old fashioned bottled soda pops. He's no longer slugging it out on price with big grocery chains, he's the long-tail merchant of soda pop and his customers love it. Read about a tiny ice cream shop in Philly that still sells ice cream from a 5 generations old family recipe that defies the science of frozen desserts and keeps customers coming back for more. And read about the small hardware store in Washington, D.C. that's just blocks away from a Home Depot and takes care of customers with a well edited assortment and over the top service. Whether it's a unique product, a unique experience or a level of service that can't be matched, these retailers (like good e-commerce merchants) have something special that is theirs alone.

2) It's personal: E-commerce sites take pride in offering algorithmically driven personalized product recommendations. Great, but is there a human touch to the site, to the service? Read about the jeweler who visits a long time customer in the hospital. Her terminal illness has caused her fingers to swell, so he gently cuts the ring off of her finger and has it re-sized so that she can wear it during her final days. Read about the florist who reaches out to customers who have lost a loved one with a bouquet and a hand written note after the funeral and visitations are over. On a brighter note, I recall buying swimwear from Landsend.com last year and receiving a friendly phone call the day after the package arrived to see if I needed to exchange a size. Sure, e-commerce thrives on automation, but a true human touch at the right time is something your customers won't forget.

3) It's the community, stupid: In the world of e-commerce, social networking and community are things we treat as somewhat novel and new. Ask any successful Mom & Pop store and they'll tell you that the community is the essential foundation of their business and always has been. Your reputation is all you've got. Of course people talk about you. When people shop, they connect with others, keep on top of community news and gossip and exchange information about who's got great products, who's having a sale, who sold them lousy meat last week. Mom & Pops donate to local causes, sponsor Little League teams, hang banners out to congratulate high school graduates, take up collections for a local business or family in need. They do it not as a means of promotion, but as a way of life. They know that the community will be what pulls them through their own tough times. Read Spector's example of a florist who lost everything in a fire and was back in business within 6 hours, thanks to the outpouring of support from the community (including supplies and resources from competing florists!). Read the example of the grocery owner who was shot in a robbery. The people of the community, including other local businesses, took up collections for the injured man and helped the family get back on their feet.

4) Invent, then re-invent. Staying in business is about change. Read about the ethnic grocer who introduces new items as the neighborhood shifts from European immigrants to Hispanic immigrants. Read about a long standing neighborhood bakery that now focuses on weekend business and smaller cakes and bread loaves for smaller families. Read about an upscale London butcher who now carries premium quality seasonal game since his neighborhood has become increasingly affluent. Your audience might change, their needs and tastes might change, but you can still be meaningful. You have to be.

5) Overcome adversity. Big adversity: Not every business survives recessions, fires, floods, death and destruction, but those that do teach us valuable lessons. Read the chapter about Hurricane Katrina and the passionate bookstore owner who managed to get the store re-opened within 6 weeks after the disaster (it took Barnes & Noble 6 months to re-open). Read about the beloved New Jersey deli that burned to the ground, only to re-open 9 months later to lines of customers wrapped around the block. Many of the businesses in this book have been around for nearly a century and have endured much more than the e-commerce industry's "bubble" or the current recession. They've taken the long view and weathered the inevitable hard times with dignity and perseverance.

Of course, I highly recommend reading "The Mom & Pop Store" in a beach chair with the sun on your back and a drink in your hand. If that's not in the cards, I still recommend that you read it. Every e-commerce leader has an inner-merchant, and this book should help you get in touch with yours.

For the record, the rest of the books I read on vacation don't have anything to do with e-commerce or retail. Unless of course you have a lot of nasty office politics to deal with, in which case I recommend Roderick Graham's "The Life of Mary: Queen of Scots: An Accidental Tragedy". Nothing quite like imprisonment, poisonings and be-headings to help you keep things in perspective.

Webinar Replay - More for Manufacturers. What is the Meaning of Your E-commerce Life?

Sally McKenzie — Wed, 02 Sep 2009 14:15:54 -0400

If you missed last week's webinar with Elastic Path, From Manufacturer to Retailer: Expanding Your Brand Through E-commerce, you can view a recording of the webinar here

You can also check out my guest blog post on getelastic.com highlighting a portion of the webinar: Getting Your Product Content Ready for the Consumer

Still hungry?

A critical decision manufacturers face when establishing their e-commerce presence is "What is the meaning of life?", or more practically, "What is our site's role in e-commerce?" The obvious answers of "we want to sell more product" and "we want to build our brand" immediately surface, but the subtleties of how you choose to do that can be much more interesting and complex.

While manufacturer websites are cited as one of the first places shoppers go to get product information (source: Forrester Research), these sites, while growing, aren't getting a lion's share of the online sales. See the below chart from e-Marketer:

It may be that the commerce capabilities on these sites are limited. It may be that consumers simply want to research on manufacturer sites, then go to the retailer (bricks or online) to buy.

Whatever the case, manufacturers can win by determining where they can add value to the shopping experience and how they can best facilitate the transaction, even if it's on a retail partner's site instead of their own.

Here are a few note able examples from the webinar showing distinct approaches to handling the transaction:

First, online powerhouse Nike. Great site, well executed shopping process with extensive imagery and product information. This is all about Nike capturing the transaction and customer relationship themselves, and they do it well. Note that access to retail partners is hardly noticeable at the bottom of the page and the store locator is utilitarian at best, no indication of whether or not those stores even carry the product I'm looking at.

Contrast the approach above with Patagonia, who offers a choice of seamless options to purchase, either on their own site, or at a retail partner. They let me know that the item I'm looking at is available from a variety of partners, and take me right to the appropriate product page, with identical product descriptions to assure me that I am indeed getting the item I want.

Callaway Golf offers a good shopping and transactive experience, but then passes the order to a nearby retail partner for fulfillment - a nice way of servicing the customer and adding value for retail partners:

Samsung does the ultimate in combining great decision tools for both product selection and retail selection. The shopping tool helps me choose the dimensions, price and specifications of my TV. Then, I can see what retailers have the item in stock and even do a price comparison.

Whether it's one of the above or somewhere in between, the options for taking or transferring the transaction should be carefully considered, factoring in:

Your brand's pervasiveness online and offline - how easy is it for customers to buy your product somewhere else?
The size/scale and capabilities of your retail partners
Your relationship with your retail partners
Your own capacity/infrastructure for handling fulfillment, service and direct customer relationships
Your brand and business objectives: is it about building a direct customer relationship? Or helping your retail partners sell more of your product? Or both?

Above all, think creatively: where can you add unique value in the customers research and purchase process? And, where can you bring value to your retail partners?

Webinar: From Manufacturer to Retailer: Expanding Your Brand Online

Sally McKenzie — Mon, 24 Aug 2009 00:07:33 -0400

Just a quick note that I'll be doing a webinar on Tuesday, August 25 at 9am Pacific, noon Eastern with the great people at Elastic Path. We'll be covering the unique opportunties and challenges manufacturers face when they venture into e-commerce, and the 5 things critical to manufacturer e-commerce success.

10 Reasons Why Some Manufacturers Still Ponder Selling Online

Sally McKenzie — Thu, 25 Jun 2009 14:09:34 -0400

Earlier this month, I read a blog post from E-consultancy titled "Why Not Selling Online Can Damage Your Brand". The piece covers many of the key reasons why e-commerce has become a must have for brands, and why not selling online can be more than a missed opportunity; it can actually damage the brand.

As a long time veteran and advocate of e-commerce, I agree with all of the points in the article. Yet, having worked with some notable manufacturer brands who have yet to take the plunge into online selling, I can offer that for many of these companies, the decision to sell online is not the "no brainer" that it might appear.

Manufacturers who sell online don't just need to become web merchants, they need to become retailers, and that presents some interesting and often sticky strategic issues.

Lack of in-house retail or e-commerce talent. This means that manufacturers may not know what questions to ask or understand the complexity of what they are getting into. It also means that there may not be a logical choice for a leader of the strategy, planning and execution of an e-commerce initiative.
Concern about disruption to retail relationships. This typically tops the list of issues, as manufacturers attempt to walk the delicate line between building their brand through direct to consumer sales and cannibalizing their retail partners. Every manufacturer selling online has faced it, and there are many flavors of potential answers to striking the balance.
Product offering and pricing decisions can be mired with complexity. Manufacturers' product lines many not be "retail ready", meaning they have been assorted for the retail buyer, not the consumer. Thus, there are key decisions to be made around the online offer. The whole assortment? An edited version? Exclusive products? Clearance items? New test products? And then there's pricing. There's a need to offer the consumer a competitive value, yet the need to be sensitive to retail partner margins and not undercut.
Product information and assets are not e-commerce ready. Manufacturers have a unique opportunity to showcase their products online, and consumers will likely have an expectation that the best and most extensive product information will come from the manufacturer's website. Yet, many manufacturers find that their product images and copy are geared towards product spec manuals for retail buyers vs. online shoppers. Re-purposing and enhancing product assets for the web can be a significant undertaking.
Fulfillment is not set up for single piece consumer orders. Separate processes and systems may need to be set up to effectively manage consumer shipments and returns. Ditto for new packaging. Outsourcing many need to be investigated and considered. Similarly, managing inventory for e-commerce can be complex if the manufacturer's systems are not set up to buy and reserve inventory for the online store, or allow for easy access to overstocks.
Customer service takes on a whole new role. As with fulfillment, discreet processes, systems and people will be needed for e-commerce. Whether or not to turn service over to an outsource partner can be a critical strategic decision. Build the team and infrastructure and reap the benefits of direct communication with your customers? Or hire experts with the people and systems in place to get you up and running quickly?
Marketing activities have been focused on B2B relationships and broad consumer branding. Digital direct response marketing may not be part of the company's DNA, so understanding search marketing, email, affiliate relationships, retail promotions, social media and the whole balance between traffic and conversion becomes a new skill set need.
E-commerce ecosystem components need attention. While the search for an e-commerce platform will likely be part of the manufacturer's path to online selling, equally important is the suite of supporting systems (many of them possibly in "legacy" condition) that will need upgrading or readying for integration. Order management, CRM, warehouse systems, the list goes on.
Resources, Resources, Resources (People, Money, Time). All of the above is a lot of work, and everyone has day jobs. Not to mention, this sounds like it could be a significant investment. Maybe we're just too slammed to deal with this now?
Lack of a deliberate process to work through #s 1-9. It's easy to get confused and overwhelmed by the decisions and intimidated by the potential costs, especially when you're busy running your core business. A host of manufacturers have made the transition to direct online selling successfully and profitably. If you have not yet taken the plunge, it's probably high time that you start the investigation process to wrestle these issues to the ground. None of them are insurmountable, but they do require some disciplined thought and decision making. Get some help from a knowledgeable, experienced expert to help you identify the issues and opportunties, and engage in a process to work through the answers. Your brand deserves it, and your prospective consumer customers are asking for it.