I plan on using ETOYS again this year. Some news:
Online Retailers Want To Do Better
AP Online, Tuesday, September 21, 1999 at 00:06
By RACHEL BECK
AP Business Writer
NEW YORK (AP) - If online retailers made a to-do list for this
holiday season, their top priority would likely be: Keep shoppers
smiling.
Internet shopping took off last Christmas at an unexpectedly
rapid pace, but there were lots of glitches - from late deliveries
to shoddy customer service - that left consumers frustrated,
irritated and disappointed.
Now, as merchants big and small head into their busiest time of
the year, they are hoping history won't repeat itself, especially
since many spent the bulk of this year focused on improving the
customer experience on their sites. ``They can't afford any
mistakes if they plan to stay in the game,' said David Baltaxe, an
analyst of Internet commerce at Current Analysis, a research firm
in Sterling, Va.
Last year was an incredible holiday season for online merchants,
with sales soaring well above predictions. The Web-retailing frenzy
continued all this year, with millions of shoppers and thousands of
businesses jumping into the fast-expanding online marketplace.
The sales growth is expected to accelerate this Christmas.
Online research firm Jupiter Communications was set to announce
Tuesday that Internet sales this holiday season will reach an
estimated $6 billion, almost double what they were a year ago.
But analysts say it's going to take a lot more this year for
merchants to woo shoppers to their sites. The newness of the
Internet can't alone drive sales anymore; shoppers want a
hassle-free experience.
``It's great because there are so many sites out there offering
so many options, some I could never find in stores,' said Jamie
Moody, a 27-year-old from Dallas who plans to do about 25 percent
of her holiday shopping online. ``But if I have any doubts about a
site, I will not order from them.'
Indeed, a recent study by online market research firm
Bizrate.com found that Internet shoppers who have delivery troubles
were 73 percent less likely to shop again from that merchant.
To ensure that last year's troubles won't haunt them again,
online merchants have retooled their businesses.
They've made technology upgrades to help prevent sites from
shutting down or slowing to a crawl due to heavy demand. They've
also added new automated capabilities, such as constant updates on
their sites of whether products are in stock or not.
Many built new and bigger warehouses, so they can stock more
goods and get them to the customers faster. Amazon.com this year
alone is adding three million square feet of warehouse space.
``Last year, we weren't able to scale to the level of volume we
had. We couldn't guarantee that people could get their gifts by
Christmas,' said David Lord, chief executive of toysmart.com, an
online toy retailer that completely overhauled its business model
since last Christmas.
``We knew we had to make big changes this year to prevent the
same things from happening,' he said. ``The customer isn't going
to give us a second chance again.'
Other merchants, including Wal-Mart and eToys, turned to outside
companies to help store and ship their goods. In fact, demand is so
high for these experienced facilitators, such as Fingerhut, that
some are turning away new business.
As for basic customer service, many sites improved the ways that
shoppers can reach the company if they have any question, now
offering assistance through toll-free numbers, e-mail or live
online chat.
``Just like in a traditional store, you should be able to turn
around and ask a salesperson a question,' said Bill Bass, the head
of e-commerce at Lands' End, which just launched a live chat system
on its site. ``And it shouldn't be hard to find that person
online.'
Although it's only September, the Christmas rush on the Internet
is expected to begin earlier than in traditional stores.
``I am going to start soon so I'm sure I have everything in time
for Christmas,' said Janet Westergaard, a mother of three from Los
Angeles who plans on doing 95 percent of her holiday shopping
online.
But everyone agrees there are no guarantees that it will be a
glitch-less holiday season.
``The dot-com's have spent millions this year to market and
advertise their companies and get people to notice them,' said the
Internet analyst Baltaxe. ``Now it's time to prove themselves and
some probably won't be able to.' |
