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Finance
Amazon’s Loss Leader Strategy Results in No Profits
October 10, 2013 • Marcia Kaplan
For the first time in many years Amazon posted a loss in two of the last four quarters. The second quarter loss occurred despite a revenue increase of 22 percent ...
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Business
U.S. Proposes ADA Compliance for Public Websites
September 24, 2013 • Marcia Kaplan
When Congress enacted the Americans with Disabilities Act (ADA) in 1990, the public Internet did not exist. Over the past 23 years, making the Internet accessible to those with disabilities ...
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Local Business
Reverse Showrooming: Pinterest Helps Brick-and-mortar Retailers
September 12, 2013 • Marcia Kaplan
When consumers began using the sophisticated features of their smartphones to do price comparisons and make online purchases while browsing the aisles of stores, panic set in among brick-and-mortar retailers.
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Cross-border Selling
Cross Border Ecommerce Booming
August 13, 2013 • Marcia Kaplan
As populous countries such as Brazil, China, and India develop increasingly acquisitive middle classes, opportunities for online sales to these countries are growing. Except for small mom and pop outlets, the brick and mortar retail sectors are poorly developed outside of major cities. ...
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Fraud Prevention
Cyber Security for Ecommerce
July 15, 2013 • Marcia Kaplan
Anyone using the Internet should be aware of security issues. But companies that engage in financial transactions and collect customer data need to be especially careful. While much of the emphasis for ecommerce merchants is the protection of credit card information, in the age of big d...
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Business
Teenage Online Shopping Trends
June 20, 2013 • Marcia Kaplan
Teenagers spend a lot of money. The 35.6 million teens in the United States are accomplished multi-channel shoppers and notoriously fickle, so marketing to them is a challenge. Luckily, this age group is a favorite subject of consumer researchers and a good deal of recent data exists to...
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Email Marketing
Email Still Effective Marketing Tool?
June 5, 2013 • Marcia Kaplan
At a time when social media seems to be the only thing people talk about, email is still an effective ecommerce marketing tool. But merchants will have to alter how they use it if they wish to keep up with changes in how people access email messages. Are People Still Reading Email? Th...
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Business
Ecommerce Trends Point to Bright Future
May 8, 2013 • Marcia Kaplan
Over the past five years, ecommerce has grown at a pace at least twice as fast as total retail sales and that trend will continue over the next five years, according to published reports. In 2012, ecommerce had a healthy 14.8 percent growth rate over 2011, easily eclipsing the total ret...
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Finance
5 Reasons for an Ecommerce Business Plan
April 10, 2013 • Marcia Kaplan
Does an ecommerce company need a business plan? Yes, almost any business can benefit from developing a business plan. While many companies prepare a plan solely to secure outside funding, a business plan can also help you focus on what you want your business to be in the future and pro...
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Finance
SWOT Analysis for Ecommerce Companies
April 3, 2013 • Marcia Kaplan
A SWOT analysis — Strengths, Weaknesses, Opportunities, Threats — is something many MBA students learn. Unfortunately, businesses frequently treat SWOT like geometry: one of those things you learn but never use again.
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Analytics & Data
4 Ways Big Data Can Help Ecommerce Merchants
March 12, 2013 • Marcia Kaplan
In "Understanding Big Data For Ecommerce," I provided a general overview of how online merchants can use Big Data. In this article I will describe in more detail how Big Data — i.e., large amounts of seemingly random data from many sources — can be used to create competitive advantages....
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Finance
Internet Sales Tax: States Take the Lead
February 13, 2013 • Marcia Kaplan
The days of sales-tax-free online purchasing are coming to an end for many consumers. 2012 was a year of inaction on the federal level because the Marketplace Fairness Act that would have required sales tax collection by Internet merchants on a national level never came to a vote. Howev...
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Social Media
Selling on Facebook Easier for Smaller Merchants
February 8, 2013 • Marcia Kaplan
The merits of selling goods on Facebook are a topic of much debate. Several large retailers, including GameStop, Gap, jcpenney, and Nordstrom, experienced disappointing results and shut down their Facebook stores within months. But according to Sucharita Mulpuru, retail analyst at For...
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Finance
Equity Crowdfunding Stalls
January 25, 2013 • Marcia Kaplan
When President Obama signed the Jumpstart Our Business Startups Act in April 2012, the clock started ticking on a 270-day period for the Securities and Exchange Commission to write the regulations that would govern crowdfunding. That 270 period is over and no regulations exist. SEC Chai...
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Analytics & Data
Understanding Big Data For Ecommerce
January 14, 2013 • Marcia Kaplan
The term "Big Data" was the Internet buzzword of 2012. The use of Big Data promises to become more prevalent in 2013, as merchants large and small who use Big Data analytics can gain a significant competitive advantage. What is Big Data? Webopedia defines it as "a massive volume of bo...
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Finance
Analyzing Black Friday, Cyber Monday, and Overall Retail Sales
December 3, 2012 • Marcia Kaplan
Cyber Monday online sales reached $1.47 billion, up 17 percent over last year, representing the heaviest online spending day in history, according to digital tracking firm comScore, which also reported that Black Friday sales reached $1.04 billion, besting last year's amount by 28 perce...
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Design & Development
Mobile Devices Capture Increasing Share of Holiday Shopping
November 29, 2012 • Marcia Kaplan
While overall online commerce showed impressive gains over last year's Black Friday/Cyber Monday holiday, the real standout this year was mobile commerce. Compared with the same period in 2011, mobile grabbed a much larger share of both shopping and actual purchases. According to IBM’...
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Finance
Third-Quarter Ecommerce Results Bode Well for the 2012 Holiday Season
November 15, 2012 • Marcia Kaplan
The growth in online purchasing continues. In a survey of 1,989 online consumers conducted during the last week of October, digital-tracking firm comScore found that In Q3 2012, online sales grew 15 percent over the same period last year, compared with a two percent year-over-year growt...
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Conversion
Marketing to the Online Hispanic Consumer
October 11, 2012 • Marcia Kaplan
Can you afford to ignore 33.5 million U.S. Internet users? Probably not. It might be a bit more difficult to market to the Hispanic population but it's certainly worthwhile. Hispanics have substantial purchasing power and they shop online. Over 50 million people in the U.S. are of Hispa...
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Conversion
Understanding Affluent Male Online Shopping Behavior
September 13, 2012 • Marcia Kaplan
When ecommerce was in its infancy, consumers used the Internet to purchase basic items such as books and CDs that usually didn't involve size, quality, color, or style issues. Shoppers knew what they were getting and choices were based almost solely on price. Slowly, the array of goods ...
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Finance
Ecommerce Shines in the Second Quarter of 2012
August 23, 2012 • Marcia Kaplan
The first half of 2012 continued the 2011 fourth quarter trend of strong ecommerce growth. In Q2, online retail grew nearly four times the rate of total consumer spending in the U.S., according to ecommerce research firm comScore. The Census Bureau reports that U.S. ecommerce sales in Q...
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Finance
Ecommerce Acquisitions, Mergers, and Partnerships — What You Need to Know
August 8, 2012 • Marcia Kaplan
In the late 1990s, ecommerce vendors looked to brick and mortar retailers for marketing tips and best practices. Now, as more people shop online and abandon brick and mortar stores, retail chains are turning to online merchants for advice. That's because web-only sellers have shown th...
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Local Business
Showrooming Challenges Brick-and-Mortar Retailers
July 25, 2012 • Marcia Kaplan
Last December, at the height of the Christmas shopping season, Amazon aggressively promoted its price-checking mobile phone application by giving shoppers five percent off items on Amazon that they scanned while in brick-and-mortar stores. The application, which compares store prices wi...
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Amazon & Marketplaces
ShopRunner May Help Merchants Compete with Amazon Prime
July 13, 2012 • Marcia Kaplan
For consumers, the cost of shipping has been one of the major drawbacks of ecommerce. During the last holiday season, free shipping made a comeback as merchants tried to ensure that consumers would buy online. So popular was the promotion many merchants continue to offer it. Now, with t...
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Finance
Investment in Ecommerce Firms Robust
June 14, 2012 • Marcia Kaplan
While the poor showing of Facebook in its initial public offering last month has immobilized the market for Internet companies wanting to sell stock to the public, the overall investment climate remains strong. Merger and acquisitions activity in the ecommerce arena has remained robust ...
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Conversion
Online Apparel Sales Explode
May 10, 2012 • Marcia Kaplan
Books, music, software, and consumer electronics have been the mainstay of ecommerce transactions since online sales began. Apparel is now the fastest-growing segment — by growth percentage — in ecommerce thanks to the greater sophistication of shopping tools, free shipping, and more fl...
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Finance
Going Public? How to Decide Which Exchange to List On
April 20, 2012 • Marcia Kaplan
Thinking about taking your company public? After you get through all the paperwork you will have to decide at which stock exchange you want to list your company. Each publicly traded company may trade shares on only one domestic stock exchange. Substantive differences exist among the ex...
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Finance
Equity Crowdfunding Is Now Legal in U.S.
April 10, 2012 • Marcia Kaplan
Last week President Obama signed the Jumpstart Our Business Startups Act (JOBS Act) that includes revisions to the 1930s era financial regulations that limited equity funding for start-up businesses. Equity crowdfunding is now legal in the U.S. The final bill is more restrictive than ...
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Finance
Kabbage, A Funding Source for Ecommerce Merchants
March 15, 2012 • Marcia Kaplan
When we first first wrote about Kabbage just over a year ago, it was a fledgling endeavor with only eBay merchants as customers. But Kabbage now serves merchants who use Yahoo! stores, Etsy, Amazon, and Shopify, as well as eBay. In July Kabbage will be launching in the U.K., its first ...
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Social Media
How Does Facebook Make Money?
February 10, 2012 • Marcia Kaplan
Facebook has finally filed its long anticipated SEC S-1 registration to take the company public. The filing is straightforward, lacking any surprises or innovative accounting techniques that other recent registration statements have offered. Nevertheless, the investment community and th...