Its Valentine’s day - a day for rest for those in ecommerce, and other musings from the first day of eTail 2007
By Raghu Kakarala on Wednesday, February 14th, 2007I am attending the eTail 2007 conference this week. The first session of the day just wrapped and as I take a chance to go to the Starbucks in the lobby and hop online I have a chance to see the battle weary but happy faces of the ecommerce merchants around me. It’s Valentine’s day and for several of these merchants its the first chance to rest after the back to back to back holiday build up from Thanksgiving, to Christmas through today. Talking this morning with Mrs. Fields Cookies I see first hand the work that ecommerce merchants put in to fulfill their customers requests. Their busiest days were over this past weekend, both Friday and Monday in particular. Last minute shopping has always been popular, toss in shipping constraints and the fact most people shop on workdays from the office computer and an internet retailer can generally map out their busy days in advance. The cookie impresarios at Mrs. Fields mentioned that they see their peak volume generally between 11am and 2pm. The times around lunch makes the cookie hearts grow fonder it seems. Valentines day represents their second busiest time of year and today they can finally sit back and see how their cookies translated into dough.
As per the conference itself: The kickoff speech to this year’s conference was particularly relevent. I say that partly because it was a great presentation and partly because it echoed a recent post in our blog. Chris Anderson, the Editor in Chief of Wired Magazine explained that niches are the new mainstream and that retailers needed to adjust. I couldn’t agree more. Richer and more engaging content presented in new and compelling formats is vital for ecommerce merchants who want to seperate from the pack and get results. Stephanie Acker-Moy from Hewlett Packard followed that speech up with one about using content development to enhance the brand experience. By blending rich content and feeds together to present customers with fresh and compelling content a retailer, or any website for that matter, can stay relevent while also being able manage the new level of content effectively.
One overriding subtheme to this event, echoed in several conversations I had with other merchants is that the operational requirements of ecommerce are still overwhelming. There is the feeling that the day to day issues of updating content, dealing with logistical issues, taxes, returns, inventory, merchandising etc has sapped a lot of the creativity and joy from the long time ecommerce vendors. This has perhaps been the reason that ecommerce sites have mostly evolved to look the same, with little innovation the past few years. Its lulls like these - where innovation gets curtailed to deal with operational issues - that present opportunities and rewards to those who do something different. I think the ecommerce space has been in their current innovation lull for too long. I have some sense of where things are going next. For that you will have to wait for my eTail wrapup post but I would like to hear your thoughts on whether there has been a lull in innovation in ecommerce and what will shake things up in the coming year.







Hi Raghu. Glad to hear you made it out of Socon and on to eTail. Despite there being a lull, there are still far, far, far too many etailers that can’t do the job effectively.
I’m not sure moving to a new innovation will improve that - if their operations are flawed, selling in new ways doesn’t improve that.
But if there is to be more innovation to continue moving the envelope, I think the natural progression is still towards mobile.
But again, I think most companies would be wise to focus on getting all aspects of their ebusiness up to par before they spend any resources getting into additional frontiers that will potentially only provide incremental increases for them, regardless of what those new frontiers are.
Glad to hear eTail is a good event so far. I agree with TS in that most ecommerce vendors need to focus on the basics and that will lead to a hugely improved user experience across the board.
But if I had to pick one aspect of change for ecommerce it would be adding the social aspect to it. I had breakfast with a friend this morning that pointed out that people still prefer shopping with friends and that the web does a very poor job of facilitating that experience. Look for the big winners in 2007 to be the companies that find a way to incorporate interaction between shoppers, both online to online as well as online to offline.
I guess the prime example of that would be using virtual worlds (Second Life)… “Meet us in SL to preview the spring collection”.
(I’ve never logged into SL, so for all I know, the retailers may be doing this now.)