Welcome | Sign In
ECommerceTimes.com
News

E-BUSINESS SPECIAL REPORT
The Reinvention of E-Commerce

Print Version
E-Mail Article
Reprints
The Reinvention of E-Commerce

Often, design teams and outside experts know what to do but are ordered to do the wrong thing by people who sign the checks, Forrester analyst Harley Manning said.


In some ways, brick-and-mortar companies have it easy. They can study the successes and failures of firms that came before them. When contemplating a new venture, they can leisurely peer at the practices of giant corporations and thriving mom-and-pop operations to decide which strategy to employ.

In the past, brick-and-clicks and pure-plays have not had that luxury. But as the ins and outs of e-commerce have become better known, many companies have begun to change their practices. And rather than jumping into Web waters teeming with competitors, a significant percentage of businesses have chosen to focus on differentiating themselves and targeting consumers in smarter ways.

Turning a Corner

"In general, companies have moved away from an online strategy that was in many cases uneconomic and opportunistic to a business model that is economically sustainable," Boston Consulting Group analyst Simon Stephenson told the E-Commerce Times.

Changes can be seen across the Web as companies focus on giving customers more of what they want -- content -- and fewer bells and whistles. For example, many automakers have retooled their sites significantly to reflect customers' needs. If site visitors want to know the available colors for a car, they will likely find those colors very easily on a manufacturer's site.

Sellers in other sectors -- such as financial services firms, booksellers and clothing retailers -- also have beefed up content and improved site navigation. In almost all sectors, the use of new technology to showcase products rather than design capabilities has helped e-commerce move beyond its beginnings.

"Lands' End is very out there with adopting new technology," Forrester analyst Harley Manning told the E-Commerce Times. "They use things like a virtual model to draw people to the site."

Bumps in the Road

Of course, there might still be a long way to go until e-commerce evolves to the point of being truly useful to consumers. Site design, in particular, still seems to be a sticking point for some companies.

"On average, sites aren't improving," Manning noted. "But some of the leaders have really begun to crack the code and have started to open a wide gap between themselves and their followers."

Companies that yearn to follow the leaders do not lack knowledge about usability and customer Increase Customer Sales with Email Marketing -- Free Trial from VerticalResponse needs, Manning said. Rather, they often suffer from poor internal coordination. "Very often, design teams and outside experts know what to do," he said. "But they're ordered to do the wrong thing by people who sign the checks."

Businesses that pull ahead almost always have an executive champion who is willing to fight for continuous site improvement and customer-focused design, Manning noted.

Future So Bright

For companies trying to reinvent themselves through e-commerce, there could be a shiny vista ahead. Stephenson said there has been a striking improvement in profitability for online retailers in particular.

"This is driven in large part by massive improvements in marketing efficiency," he said. "They've moved away from broad marketing Download Free eBook - The Edge of Success: 9 Building Blocks to Double Your Sales channels to more targeted efforts."

A good example of this effort is the leading booksellers, Manning said. "Take a retailer like Barnes & Noble (NYSE: BKS). They know how customers browse for books, how they shop for that particular product. So they've changed their site based on that understanding."

Emulating effective strategies will likely be a popular course of action as companies mine their knowledge of proven online techniques and attempt to apply that wisdom to the Web. And as those who sign the checks begin to understand what must be done, perhaps even e-commerce followers can catch up to the leaders.


Print Version E-Mail Article Reprints More by Elizabeth Millard


Talkback: Join the Discussion.
Re: The Reinvention of E-Commerce
azell
Posted 2002-08-29
Where the web has failed in the design of sites somewhat parallels the problems faced in ...
Re: The Reinvention of E-Commerce
Klaus
Posted 2003-02-28
azell - your point reminds me of the approach to software design that was championed in ...
Re: The Reinvention of E-Commerce
MikeJacobs
Posted 2002-08-31
I agree with the thought that having competency in code and graphics does not meet all of the ...
Re: The Reinvention of E-Commerce
davidport
Posted 2002-08-30
Alan Zell said: A web site is a store. That's all it is. ...WRONG! A web site is NOT a store ...
Re: The Reinvention of E-Commerce
aalvarad
Posted 2002-08-29
As the internet use increases, companies must find an economically sustainable business model ...

More by Elizabeth Millard

Ken Xie of Fortinet on Fighting Content Threats
November 25, 2004
"Integrating independent security systems together and keeping them all up-to-date and able to coordinate their actions in the face of a fast-moving attack is a daunting if not intractable task," Fortinet CEO Ken Xie told ECT News. "To deal with today's and tomorrow's blended threats requires a more integrated, holistic approach to security."
Microsoft Files More Lawsuits over Spam
September 24, 2004
Going after spammers rather than focusing merely on developing antispam technology is an important step, John Movina, spokesperson for the Coalition Against Unsolicited Commercial Email, said. He told The E-Commerce Times that the United States has weaker criminal laws against spam than other countries, so it's vital to find other means to stop spammers.
French Firms Aim To Beef Up Linux Security
September 24, 2004
The consortium plans to make bringing Linux up to the Evaluation Assurance Level 5 (EAL5), which is part of an internationally recognized security certification called Common Criteria, its first effort. EAL5 satisfies major security requirements in commercial as well as defense and government applications.
Don't miss a story -- sign up for our FREE e-mail newsletters and view the latest headlines at a glance.
Tech News Flash [ View Sample ]
E-Commerce Minute [ View Sample ]
ECT News Network Weekly Newsletter [ View Sample ]
Shortcuts
ECT News Network Information
Reader Services
Corporate
ECT News Network