Compete – eCommerce is NOT a Level Playing Field
The internet has effectively lowered the barriers to entry for
both mass and niche retail. Shopper bots and search
aggregators are effectively removing price from online purchasing
decisions. So how do companies like Diapers.com and Gilt Groupe achieve
year over year revenue growth higher than 50 percent* while some
other more recognized consumer brands are experiencing declining
web sales? A popular brand is paramount, but it isn't
enough. Good prices and product assortments aren't
enough. A cool, fun website isn't enough. And,
excellent customer service is required just to play. To compete and
succeed in eCommerce you need all of these elements and you need
more:
- Real-time Inventory Availability
- Multiple Front-end Platforms (including mobile)
- Free Shipping
- Same Day Order Processing
- Free / No Hassle Returns
- Value-added Services
- Cost Effective Fulfillment
- A Tax Strategy
The best run eCommerce companies know that their back-end
operational areas are just as important as their front-end web
presence and marketing initiatives. In fact, the
best-of-the-best know that the less glamorous side of their
business needs to be a core competency. They also understand that
flexible and portable operations can be an advantage when dealing
with the evolving taxation landscape.
In 2005 Diapers.com (Internet Retailer No. 72) was a
start-up that finished its first year with sales of $2.5
million. But in 2009 Diapers.com…grew sales 104.5% to $182
million from $89 million in 2008…The company attributed its growing
sales to an increasing base of …shoppers and fast fulfillment that
includes free overnight shipping to two-thirds of the U.S. and
two-day delivery to the rest of the country. "We make lives a
little easier for new parents," says Diapers.com co-founder and CEO
Marc Lore. "That means carrying everything they could
possibly need or want, getting it to them
faster than anyone else, charging low prices and delivering the
best customer service."* Diapers.com relies on Kiva Mobile-Robotic
fulfillment solutions to pick, pack and ship customer orders at all
of their distribution centers, and in 2010 they grew revenue
by another incredible 60%.
Whether you are an eCommerce pure play, multi-channel retail
enterprise, traditional catalog or consumer brand manufacturer,
selling online is just the first step. Processing orders and
delivering on the tangible aspects of the customer experience are
the secret keys to retaining customers and competing online.
Kiva Systems builds solutions that deliver a competitive advantage
for eCommerce players.
To learn more about how Kiva Systems can enhance your
ability to compete, grow and win in the eCommerce space contact
us.
*Source: Internet Retailer Top 500 Guide, 2010 Edition