4.1     INTRODUCTION

e-Marketplaces Although the term was originally used as a generic description for any kind of marketplace that exists online, e-marketplaces were originally normally associated with B2B trading in specific markets - hence I cover them in chapter 5.5. However, it is now becoming common practice to refer to websites such as eBay, Amazon, Overstock.com and Buy.com as e-marketplaces, albeit sometimes with the prefix 'B2C'. This is also relevent in this chapter where I suggest that such sites are a good outlet for online sellers of niche products.

The importance of such B2C e-marketplaces is emphasized by research from ChannelAdvisor* who found that when online consumers are browsing for product ideas almost half [45%] begin their search on a 'marketplace' - with search engines being second start-point at 41%. Note that I would point out that if customers know what they want, they would be more likely to put the product/brand into a search engine rather than trawling an e-marketplace for ideas. *ChannelAdvisor (2009) Savvy Consumers Using a Wider Set of Online Destinations to Find the Best Deals ChannelAdvisor.co.uk.

Here is a clip from the BBC's 'click' programme - Online shops look to prosper - I have included in the intro as it addresses several subjects in this chapter, including; online security, eyetracking, Ocado and fulfilment. The concept of the 'virtual shop' has been around for a decade or more - but none of the prototypes has moved into mainstream use.

Don't forget there are also website development sections on my own website in tips, hints and advice and interesting articles.

*pg 125* The long tail of online business: Read my review.

In the text I say that 'though not as popular in the UK, in America a number of high street brands use eBay (or similar) auctions to sell off goods that might be end-of-range, unpopular sizes or colours or simply over-stocks' - also worth mentioning is that in Europe, auctions sites are used by travel companies to dispose of unsold holidays - and at the time of writing (Feb 09) eBay is experimenting with software (in Germany) that allows users to build their own holiday from ads on the site (eg flight, hotel, car hire) before bidding on the bundle.

Whilst the likes of eBay is one option for niche sellers, there are other specialist sites that act as distributors for goods - not on the high street is one.

Don't forget there are also website development sections on my own website in tips, hints and advice and interesting articles.

*pg 127* e-tail - or e-commerce? See my comments on the subject - e-commerce, e-business, e-marketing, internet marketing - what are they?

Wikipedia's definition of the 80/20 rule.

Becoming more common on clothes websites are virtual models - where the user can see the clothes displayed on a 'model' that has the same proportions as themselves. An example is H & M - where you can even upload photos so the model has your face!

More from ChannelAdisor, this time - online features that enhance the shopping experience.

*pg 132* Walking the walk on in-site search: Whilst research suggest that customers that favour in in-site search engines and those who do not use them is evenly split, my argument for not doing so [or at least considering the issue carefully installing one] dates back to my time in retail. Didn't you even wonder why the most frequently purchased goods [milk, bread] are always at the back of the supermarket? Yes, you have to walk past - and be tempted by - all those other products on the way in and back to the checkout. It is the same principle for using a good navigation system on your website. However, if you do decide to have a an in-site search facility, this article - Using Site Search to Read Your Customers' Minds - tells you about an additional benefit to the shop's owners.

There is nothing really new in Top 10 Things Customers Expect from Your Online Store but it is a good guide to the basic issues [did I cover all of these in the book?].

A PayPal survey found that the high shipping fees are the number one reason for users abandoning a shopping cart before completing a purchase.

Here's some good tips on what not to do in your website's checkout process - Losing Customers At The Register: 12 Checkout Blunders

In the text I mention that you can attempt to recover 'lost' customers when they abandon a shopping cart - well here is an article that creates some debate on the subject, see - Can Bad Assumptions Lead to 'Gorilla Marketing'?.

Here's a couple more articles on abandoned shopping carts. The first - The Sad Tale of Abandoned Shopping Carts - is about why purchases are not completed, and this one - 87% of shoppers abandon shopping baskets, but 75% plan to return - looks at what happens after a basket is abandoned.

A subject I didn't devote enough space to in the book is that of methods of payment for online purchases other than by credit card. Types of Alternative Payments should go some way to making up for the omission.

Outbound logistics : Aldi and DHL join up to deliver home shopping solution, and home delivery network (HDNL) and payment collection service PayPoint announce a joint venture.

Mini-stat - Delivery failure is a is a significant issue, says research.

Here's some interesting research on delivery provision from UK e-tailers - e-Commerce retail delivery report 2010.

For an example of good practice after the order is placed, take a look at this example from Tesco Direct.

For a good background to how comparison sites fit into retail marketing - in this instance, insurance - read this interview

Anyone who doubts the influence of comparison sites should take a look at this - comparison sites now drive 10% of online sales.

As well as my own views on the subject (see online retailing), new statistics on the use of online shopping crop up all the time, here are a few: A survey that shows that online shopping is stabilising at 5% rather than growing at 50%. An article about offline shopping and online purchase, including some age-related demographics - and online reaches 17% of retail sales, nearing its tipping point.

Jan 2009 - and two-thirds of SME retailers still lack ecommerce.

In the text I hi-light Argos as effective practitioners of multi-channel retailing - and they continue to be innovative in the practice, see Argos customers can now find clearance bargains by postcode and Argos releases Check & Reserve iPhone app.

There are a lot of stats of this kind around and they all say much the same thing, but this research is from the UK - Out-of-touch retailers throw away high-street sales.

The essence of multi-channel retailing is that each element must complement - not conflict with - each other. This research shows that in a bricks-and-clicks environment, the bricks element has a significant impact on online sales. See Stores are still the key driver of customer satisfaction in multi-channel retailing. And don't forget that the web should be made available in-store - for both customers and staff - see Multichannel Retailers Bring Web into Store - this is offered as a solution to the problem of losing customers when physical stores are out of stock, see Consumers continue to lack loyalty when multi-channel shopping.

Mini-stat - retail buyer behaviour.

Mini-stat - Although I could have included these stats from ATG in the buyer behaviour section, they are specific to retailing.

Although I disagree with the title of this article [I think it is about retailing, not marketing] its contents are interesting - see: Could Your Multichannel Marketing Do More?.

Comet's content manager, Robbie Tutt - in an interview with e-consultancy (in August 2008) - suggests around half of the electrical retailer's online customers electing to take the 'collect in store' option. The Q&A interview can be found here.

September 2009 saw:
* Halfords announce that their 'Reserve and Collect' service had more than one million customers in its first year of operation, more ...
* Argos's 'Check & Reserve' service grow by 50% in the summer quarter, with online accounting for 28% of total sales in the same period more...

The concept of order-online-pickup-in-store is gathering pace. Apparently, a majority of online consumers rate this service as important - but they rate being able to buy online and return offline even more essential, see - Examining In-Store Pickup Options.

Sears were the original distance-sellers, now they are planning order online - and collect at the drive-through.

Too many people make the mistake of thinking that integrated retailing is all about online purchasing - but they are wrong. The retail website provides far more to the potential customer than just being a buying-channel, and the multi-channel retailer has to use that site as more than a selling point. For some stats on why folk visit retail websites, take a look at Lower satisfaction further down the purchase funnel.

Bringing together academic vigour and commercial common sense is tricky - and rare, but this article - the Multichannel Swap Shop manages to do so. It should be compulsory reading for any manager involved in any multichannel operation - not least that it takes the customers' perspective - its sub-title sums it up: Exploring the Behaviour of the Multitasking, Multicultural, Multichannel Customer.

Towards the end of the section I mention 'channel conflict'. A common problem [and it was before the Internet came along] is manufacturers trying to maintain brand value by keeping retail prices high for 'premium' products. For example, Levis famously blocked supplies of their 501 jeans to Tesco to prevent the grocery retailer cutting the selling price and so damaging the brand - and sales in authorized stores. This article is the online equivalent, but for 'discount retailer' read 'online auction site', see Net prices ‘fixed’, warns eBay.

*pg 150* Catalogue retailer transfers experience online: the title of this article says it all - Multichannel accounts for 43% of Argos sales.