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Web retailers return to gimmicks Remember those offers of free shipping and deep discounts
that lured shoppers to the web during the dot-com boom? Well, they are
back. And while it is good news for consumers, it is a risky move for
e-retailers that may have just gotten their business into the black. Promotions like these nearly killed web merchants in the
late ’90s as shoppers came, but didn’t stay long, looking for
the next e-retailer with a better deal. So why are some online merchants
ignoring those lessons? “We have a lean organization and can make a profit
this way,” said Scott Blum, founder and chief executive of Buy.com.
In June, Buy.com announced free shipping and all books at 10 percent less
than competitor Amazon.com. Other web merchants have stepped up their promotions as
well, including Barnes&Noble.com, BestBuy.com and Amazon.com. Peter Stanger, vice president and director at the Boston
Consulting Group, told the Associated Press: “discounting alone doesn’t
improve customer loyalty.” It appears however, that in the “slash and burn” dot-com industry, a bird in the hand is worth two in the bush. |
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Name: Steve and Marcy Aller Business: Parent/Teacher Tech Center, Inc. Web Address: www.parentteachertech.com Website design: Sherry Trout - NeuTech Online products: Classroom decorations, visual learning materials, books and more. Years on the Web: 2 Sales on the Web: “Our web sales are a small percentage overall, right now. But we know they will increase. We have put our print catalog on the web, and that has been really effective.” Advantage to Web retailing: “In this market, you need an online presence to remain competitive. Our website has allowed us to offer more merchandise than our store can hold. We may not have room for some new product in the back room, but if it is on our website, as soon as a customer shows interest, I can order it in. Because of our site, we are now drawing in customers both online and through our door from a hundred-mile radius in-state, and we are seeing online sales to places as far as Arizona, Boston, Canada and even Thailand.” Site promotion: “We give away pencils, pens and other items with the web address on them. Virtually everything that says our store name on it also displays our web site URL. Letting people know your site is out there is key.” Web retailing tip: “If you are going to have a website, promote it, keep it maintained and ensure that all features on it are fully functional. Also, be patient. Your sales won’t boom overnight, but the web is becoming a major selling tool. Retail leaders of the future will be online.” Comments: “As a retailer, service is key. We believe that offering items for sale on a website as well as in your store is just a modern added branch of customer service.” |
