Ixtens Blog

If Your Brand is More Class than Crass--Are Filters the Answer?

Posted on: Tue, February 21, 2012 @ 6:59pm by: Lindsay Dunn

Last week saw millions of shoppers turning to the web to purchase Valentine’s Day gifts for their significant others, with total spending exceeding $17 billion. It’s no surprise that Valentine’s Day gifts range from innocent teddy bears to salacious lace teddies, but what surprised many shoppers was an offering from Sears. The retailer, known for its integrity and tact, accidentally allowed one of its suppliers to post a scandalous image of a lingerie set. The incident has fueled a debate over content control and raised the question—how could this have been prevented?

Content-control software, or censorware, is nothing new. For years, families, schools and even workplaces have used the technology to prevent viewing of certain sites based on keywords. Now there are even PHP classes that scan images for nudity. This technology may become more relevant to online retailers if they undertake marketplaces utilizing third-party suppliers. Retailers can articulate to suppliers what type of content is allowed, but as the Sears debacle proves, accidents happen and filters seem like the solution.

But are they effective? According to a recent survey of filters by the Department of Justice, not really. Content-control software, whether text or image based, generally has one of two flawed outcomes—underblocking or overblocking. While it seems prudent to err on the side of caution, overblocking still poses a problem for merchants who would then need to either check and edit the content themselves or contact the supplier. If there was nothing inappropriate about the content to begin with, this just wastes time and human resources.

As it stands today, most sites that include supplier provided content employ people to manually check that content. However, as retailers, brands, and publishers make the transition to marketplaces, the demand for reliable content-control filters will grow.

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Can a liberal returns policy increase sales?

Posted on: Tue, February 14, 2012 @ 4:53pm by: Mikhail Ledvich

Online revenue, as well as the number of online stores, is increasing exponentially every year. Retailers are eager to ride this growth wave and find ways to keep customers coming back. It may seem counterintuitive, but a generous returns policy may be just the ticket. You may be able to increase sales and customer loyalty by redefining how you approach returns.

The returns policy may influence a buyer’s decision to purchase from your site or another, so it’s important to be upfront about what your policy is. A few factors to keep in mind:

Incorrect product data Make sure all the product descriptions are correct and track returns on a per-item basis. Perhaps a wrong description or misleading image are causing people to buy the item but then return it once it's received.

Expectations Publish your returns policy so it is easy to find. It needs to be clear and explicit so buyers know exactly what it is.

Return or Refund It may make more sense to simply refund the buyer than have them send the product back. Make sure you understand your margins, and if the item can be resold, so you can determine the best practice for each item.

Shipping Who pays for shipping? You may decide to cover the cost entirely, as Zappos.com has, deduct a portion from the return or have the buyer wholly responsible. Keep in mind though, if a buyer knows they’ll foot the bill to return, they may be less likely to make the purchase in the first place.

Notifications Throughout the returns process, keep the buyer informed via email. Issue Return Merchandise Authorizations (RMAs) and notify them when the product is received and when the money is refunded.

Your returns policy may make the difference between whether a buyer purchases from your site or your competitor's site. A liberal policy not only attracts customers but keeps them coming back and buying more.

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Can eCommerce Save the Daily Deal Sites?

Posted on: Mon, February 6, 2012 @ 2:37pm by: Paul Kogan

The last few months have seen a lot of coverage about the problems in the daily deals space. Even as user rates hit new highs, the cost of user acquisition has grown and the value to merchants is increasingly uncertain.

Customers, bombarded by emails, can afford to be increasingly selective about the deals they buy. This prevents them from becoming repeat customers or buying products and services at full price. Merchants also lose money on most daily deals, compounding their problem. As a result, fewer and fewer merchants are willing to offer these bargains.

So what’s the way forward?

Here’s a three-part strategy:

Retain and carefully manage users - at last count, Groupon had over 150 million and Living Social had 60 million
Add additional sources of revenue - diversify revenue streams while the core coupon business remains challenged
Improve scalability – as the effort required to recruit merchants increases, find a single reservoir of product that can satisfy users across geographies

An eCommerce marketplace is the most direct way to execute on this strategy. Daily Deal sites can stand out by placing a greater emphasis on curation and selection, catering to local tastes and selling products that are complementary to their daily deal service offers. Selling products is also a way to keep users coming back when the deal of the day does not hold their attention.

Groupon Goods is a good start but comes up short of a full marketplace. The selection is too limited to entice buyers to make related purchases. Daily Deal sites need to consider a full marketplace to serve their users and regain the road to growth.

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Top 5 Considerations Before Launching a Marketplace

Posted on: Thu, February 2, 2012 @ 6:06pm by: Alisa DellaRocco

Thinking about expanding the product breadth and depth in your eCommerce store by launching an online marketplace? We've pulled together a list of the top five things you should take into consideration before making this important and exciting move.

1.) Company Goals

Are you looking to lower your inventory investment?
Do you need more inventory on your existing product lines?
Do you want to expand your product assortment or test a new market?
Are you looking to conserve cash?
Do you need new connections and/or volume to secure more favorable pricing?
Would you like to expand your site's screen real estate so you can sell advertising on those pages?

2.) Products and Margins

Margins can range from as low as 5% on electronics to 50% on apparel. Strong knowledge of your target market will help you identify the most appropriate product categories.

3.) Suppliers

If you prefer a limited number of suppliers, target distributors that have a large product assortment. Alternatively, source multiple etailers or contact manufacturers directly. Remember, however, that whomever you select must be able to drop ship to customers and handle returns. As you manage your marketplace and continue to grow, monitor each supplier’s performance. A bad customer experience (e.g. late shipments, policy of no returns, etc.) could affect your brand because your marketplace was the point of purchase.

4.) Technical Resources and Head Count

Create a user-friendly interface for your suppliers. You may need to increase head count to support IT, account management and customer service/returns, depending on your current structure. If you aren’t currently selling from your site, you will need to also need to build out an eCommerce front-end and ensure a safe and fraud-free checkout.

5.) Taxes and Terms

Define who will be the merchant of record and negotiate the terms, including commissions, with each supplier. Research sales tax collection requirements.

This list is by no means exhaustive but will hopefully get you started in the right direction.

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How eCommerce has Changed Pricing

Posted on: Tue, January 31, 2012 @ 2:59pm by: R.Teichman

Pricing, or more specifically automated pricing, has the propensity to drive prices lower and lower. It doesn’t take a degree in marketing or years of retail experience to know that price sells products. Price is not, however, the only determining factor in a buying decision but it is the top factor. If other factors don’t add up to overpower price, price alone will determine a sale, often resulting in low profits for all sellers.

A seller should not just abandon all hope and sell on price alone. Some of those other factors can add up and cause a consumer to accept a higher charge for a product than a competitor’s. Service level, quality, comfort and convenience can combine to induce a consumer to spend more. Impulse consumers will pay more to get the product sooner; consumers unsure of the purchase will pay more for a better return policy; and uninformed consumers will pay more for help in selecting a product. Also, from a McKinsey analysis, geography should be considered, as there is an opportunity to sell items at higher prices in different regions of a country—a broad concept that really requires its own post. In short, consumers with different priorities will be willing to pay different amounts for the exact same product based on the ancillary services provided by the seller.

Historically a seller would price their products based on:

Knowledge of their customers
The value of the services they provide
Their local competition

With eCommerce this has changed. Sellers now have access to a much larger customer base, the value of their services is hard to quantify and the local competition is now global. Pricing-based search engines drove customers to the lowest cost seller. Sellers compensated by implementing automated pricing systems to match the lowest price out there. In doing so prices have been driven down relentlessly—just look at margins on consumer electronics, which have led the eCommerce revolution. Quality, service and other factors have been forced out of the price calculation. Automated systems scan the web, find the lowest price and then lower the seller’s price to match while hopefully preserving some profit margin.

A better automated system needs to be found. Sellers should not just compare prices as this discounts the value of their services. When comparing prices sellers need to factor in the value of services offered by their competitors. They also need to factor in what their customers are looking for. The trick of course is how to factor in all this using automated techniques.

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NRF Roundup

Posted on: Fri, January 20, 2012 @ 5:14pm by: Lindsay Dunn

This week was NRF’s 101st Annual Convention & Expo, and while most attendees walked away from the 150000 sq. foot expo hall with free bags, candy, cappuccinos and a hoard of product information, they also walked away with something a little more important—confidence. The event proved that retail is back!

When the economy tanked, retail in particular was hit hard but it’s now leading the charge to recovery—while the US economy grew in 2011 by approximately 2%, the retail sector grew by over 4%. A large slice of that growth is due to the rapid expansion of eCommerce, as more and more consumers are turning to the web to research products and prices, a trend made even easier thanks to smartphones and apps. In 2010, online retail sales grew by 12.6% and, according to Forrester’s report “US Online Retail Forecast, 2010 To 2015,” are expected to top $278 billion by 2015. A major factor for eCommerce is the increasing number of first-time online buyers; approximately 30% of the overall growth in 2010 was a result of 5.5 million customers shopping online for the first time.

If you missed NRF this year, or are wondering how your eCommerce company can get a slice of the $278 billion pie, check out the NRF recap and video highlights. See you next year!

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More Evidence: Why Product Content (Really, Really) Matters

Posted on: Mon, November 28, 2011 @ 1:07pm by: D. Verbrigghe

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5 Tips to Sell More on Marketplaces this Holiday Season

Posted on: Thu, November 17, 2011 @ 2:27pm by: M. Peremyslova

As Black Friday approaches, you’ll need to do more than update your wish list to ensure your products sell like Tickle Me Elmo. In this post we’ll address product listing best practices for marketplace sellers.

Tip #1: List what you really want to sell. To sell on one of the large marketplaces, such as Amazon, eBay, Buy.com, etc., make sure your product attributes match the language of the marketplace. If your attributes are not clear, you might find your 10-pack of socks gets matched with a 5-pack. (See below where the set of pens specifies a 12-count of pens for $13).

Tip #2: Don’t overlook the UPC. Identifying a standard UPC enables better Amazon, eBay and Buy.com matching. In fact most Amazon categories require UPC selection and Buy.com won’t let you add a new product without it. Further more many mobile devices now feature UPC scanners and your listing will only be visible to mobile devices owners if your products are UPC-tagged.

Tip #3: Work on your product classification and keywords. Accurate product classification and liberal use of keywords will make your products easier for shoppers to find. This is really not as difficult as it might seem. Amazon classification tends to be simpler (e.g. the Item Classification Guide has been merged with Browse Tree Guide) and you don’t have to struggle with Product Types, Item Types and other classification attributes, selected browse node can cascade these attributes’ values automatically.

Tip #4: Go multi-category. Once you’ve mastered the product listing basics, you’ll want to show the results of your labor to as many buyers as you can. Do not hesitate to list your product under multiple categories. Remember shopping for a new belt in a physical retail store and finding it in Accessories department, in the Dresses department and again near the cashier? You appreciate the convenience and so will your customers. Use tags, keywords and even different catalog IDs to list the same product several times. But remember: since this is physically same product, don’t forget to take care of inventory re-balancing. You can set automatic inventory re-balancing based on order velocity. So, for example, if you find that shoppers tend to buy more belts from the Accessories department, just take some of the belts from Dresses and move them to Accessories. As seen below on Amazon, this seller has listed their wall charger under both "Cell Phones & Accessories" as well as "MP3 Players & Accessories".

Tip #5: Give your customers delivery ETAs. Finally, you’ll want to set your customers’ expectations properly. You’ve listed awesome product, the buyer found it easily and now you want let him know when it will arrive. Seasonal shoppers, in particular, want to know whether a product will arrive before the holiday. This means you’ll want to adjust your default Fulfillment Latency Parameters (for Amazon) and Dispatch Time Max (for eBay) to accommodate for the extra time required to ship during the holiday season. Set reasonable expectations and delight your customers.

With these five product listing tips, you should be all set for the holiday season.

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Why Product Content (Really, Really) Matters

Posted on: Thu, October 20, 2011 @ 11:01am by: M. Ledvich

Internet retailers face distinctly unique challenges as compared to their brick-and-mortar brothers. Online customers can't try on a featured shirt or a sit on a photo of a couch. While a picture is worth a thousand words, trying on a pair of shoes is worth a thousand pictures.

Many online merchants spend heavily on marketing, traffic acquisition and eCommerce platforms, but then rely on bland descriptions, bad photos and incomplete product specs to convert the visitors to buyers. No wonder visitors browse around but never make a purchase!

eCommerce retailers need a laserlike focus on acquiring the best content -- descriptions, photos, videos, etc. -- to promote their products.

There are a number of ways to source product content if you are not getting it from your suppliers:

Check with the manufacturer's marketing and publicity departments as they are typically more then happy to provide information about their products
Consider a data-enrichment solution. There are paid and free services that will provide you with rich data, including: Etilize, Cnet Product Services, ItemMaster and others
Ask your consumers for photos and descriptions
Enrich product data with your own content (think of the witty, folksy - engaging! - descriptions written by Woot and Groupon)

The benefits to great product content are clear:

Greater consumer confidence that the product will meet expectations
Improved site search, including the ability to offer user-friendly guided search that allows searchers to narrow down by price, size, color, etc.
More SEO fodder for the search engines

Ultimately, clear and engaging product content drives sales. So don't sabotage your eCommerce store by not having great product content; it is an investment worth making.

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Fashion Brands Engaged in Digital “Arms Race”

Posted on: Thu, October 13, 2011 @ 12:49pm by: D. Verbrigghe

L2, the NYC-based think tank for digital innovation, has just released its annual Digital IQ Index®, ranking the digital competence of 49 fashion brands across four dimensions: Site, Digital Marketing, Social Media, and Mobile. Who came out on top? Burberry, Kate Spade, Coach and Gucci.

So Where’s the Opportunity?

A (shocking) near 20 percent of the brands in the study still do not sell online. What are these brands missing out on? According to L2’s findings:

Sales! Of the brands that are not selling online, nearly one third do not even offer links to third-party online retailers
Visitors, engaging with the brand online:
- eCommerce-enabled brands average 19 percent more visits per user
- Brands utilizing product social sharing received twice as many visitors

Read The Full Report

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