eTail-dTail | March 9, 2006




	March 9, 2006

	The Online Marketplace Revolution: Reach Millions of New Customers The online marketplace is large and only getting bigger. Billions of dollars of transactions are happening every year. Miami, FL (March 9, 2006) – Similar to the introduction of shopping malls across the United States over twenty years ago, which allowed shoppers to come into contact with thousands of merchants and products easily, we have seen this same phenomenon happen on-line. The main difference, however, is that this revolution in retail shopping is much larger. How much larger? Let’s just say that today anyone with an internet connection and a credit card has access to over a million storefronts and tens of millions of products with a few clicks of a button. And now for some hard statistics: Online Revenues across all shopping destination sites for year end (USA only): 2000: $27.3 billion 2003: $68.4 billion 2005: $109.4 billion 300% growth from 2000….and…. Online Shoppers for the year end (USA only): 2000: 48 million 2003: 90 million 2005: 120 million 150% growth from 2000. The revolution is a win-win-win-win for everyone and a true testament to capitalism at its best. Why? Shoppers have access to standard everyday products and unique products they never knew about, seamlessly. Merchants (on-line storefronts) have access to millions of customers, which can increase sales volume. Manufacturers (the maker of the products) have a much broader marketplace for their products. And, thousands of new jobs are generated by companies helping make the on-line retail world robust and efficient. So where do you want to be as a Merchant in 2006? The answer may seem obvious yet many Merchants, that are a logical fit to be an on-line merchant, are not selling their products online. MerchantAdvantage offers the following information to help Merchants better understand the basics of the online marketplace and how it works. Some Merchants may already know much of the following information, but at MerchantAdvantage we have found that, due to the growth and daily changes in on-line retailing, most Merchants only are aware of a few aspects of on-line retailing and that they can always benefit from having a thorough understanding of the options open to them. What are Shopping Destination Sites? MerchantAdvantage categorizes the on-line retail world into 4 major categories: Marketplace Sites: CNet Shopping, Amazon, MSN Shopping, Monstermarketplace and others, Shopping Comparison Sites: Yahoo! Shopping, Froogle, Shopping.com, Bizrate, Shopzilla, Nextag, Smarter.com, Become.com, and many, many others!!! Affiliate Sites: Commission Junction, Linkshare, and others. Merchant Storefronts: Merchants’ website/storefront, Yahoo hosted storefronts, and Prostores hosted storefronts. But the lines between the aforementioned categories are becoming increasingly blurred, as many sites overlap in their services and ultimately everyone wants the shopper to do the same thing: BUY SOMETHING! So stay tuned to our future newsletters for helpful updates on this changing marketplace. Why Should a Small-Mid Size Business Care About Shopping Destination Sites? A whole new world of customers all over the world is open to them. Shopping destination sites can make selling easy for small business owners. A company with little to no brand name can generate many new sales and leads. A company with little to no brand name can build a brand name, and "Product search is an equalizer because it allows small-mid-sized retailers to use a multi-channel strategy and expand into a much larger presence," says Rob Solomon, senior vice president of Yahoo! Shopping. "So if you're a niche electronic shop, it gives you similar exposure to what Best Buy or Circuit City can get. A consumer can type in 'plasma TV' and the small and mid-sized owners can present products in the exact same way the big guys are doing it." How It All Works and Immediately Benefits My Company! Below is an overview of the basics of how a shopper finds your on-line storefront and the possible costs associated with getting to that customer: Finding Your Storefront = Product Search Every merchant wants an on-line shopper to find their storefront and then buy products only from them. The reality is that it is: Difficult for a shopper to find a storefront without a known brand, There are many storefronts to buy a product or similar product, and Shoppers often rely on search engine functions to find storefronts to buy products. The good news is that because of the internet the available marketplace and number of potential customers to a merchant is boundless. You are not confined by your store location and anyone online can find you. Due to the confluence of the above three points, it is often time consuming, confusing, and intimidating to get their storefront online, decide on the right technology to implement their online strategy, and get noticed by the shopper. To help with these issues, the on-line shopping world has evolved to where most destination shopping sites have product search directories to help shoppers find products and to help merchants get noticed. Simply stated, these “online catalogs” allow shoppers to simultaneously search multiple merchant offerings for a specific product instead of searching merchants’ sites one at a time. For example, a shopper who searches a comparison-shopping site for a specific toaster or DVD player model will type in the search box “toaster” possibly with a model number or “DVD Player.” A page, or most often a few pages, appear that show pictures, prices, and links to more information from all of the participating retailers who carry that particular product. The KEY FACTOR for Merchants to know is that only product offerings that are within that particular company’s search directory will be shown. Therefore, if the Merchant does not have a relationship with that shopping destination company your product catalog will never be seen. The Benefits of Product Search Marketing The average on line Merchant has a finite market because of their limited brand awareness. To help increase brand awareness and thus exposure to Merchants products, Industry experts all agree that online product search functions indeed opens up many new sales channels and customers. The product search function of shopping destination sites allows Merchants to make products available across the world and brings the shopper in touch with Merchants that they did not know exist. Bottom line, with a few clicks of a button a shopper determined to find the “right” product will find the Merchant = the Merchant’s potential customer base expands geometrically. Other benefits, which have been identified by the Yahoo! Shopping research department, include: Customers are buyers, not browsers. "People are getting more specific [with their search terms] and if they know they want an MP3 player, they're typing in 'iPod mini pink.' Those people are more highly qualified than a random shopper who walks though the door, and that greatly improves the conversion rate [from browser to buyer].” You only pay if it works. "The most exciting thing is that it is purely performance-based. With traditional advertising such as print or radio, you pay for space or air time, and there's no guarantee that your ad will bring in customers or increase sales.” You may pay for a click to your storefront but once you do you have a potential customer at your doorstep, which increases the opportunity dramatically to sell a product and then have an opportunity to up sell other products while a shopper is on your Merchant site. Minimal-click shopping. Because a customer's results from a general search page contains only the product they are looking for, it often takes only a few clicks to make a purchase. Merchant ratings. As the search functions evolve at most shopping comparison sites, merchants are given the added benefit of being rated by prior shoppers who have had a good experience with an online merchant. They can find out whether your storefront was easy to use, professional, unique, and provided fast delivery. This pier recommendation cycle translates into brand awareness and reinforcement, which is critical to retaining clients and acquiring new clients. Product ratings. If a buyer liked their purchase and found value in the product they bought, product search features often highlight that fact and make it easier for new customers to make an informed decision making returns less likely and the building of your brand in the marketplace. MerchantAdvantage Wrap Up: The online marketplace is large and only getting bigger. Billions of dollars of transactions are happening every year. Online shopping is here to stay and it is time for all merchants to take advantage of the opportunities for more sales, more customers, more profitability, and greater brand recognition on the internet. About MerchantAdvantage, LLC MerchantAdvantage (www.merchantadvanatge.com) is a Software Design & Development Company whose team has been working together for over eight years. The company was established in 2005 with the sole purpose of providing the online retailer the ability to take a systematic controlled and proactive approach to online product marketing. MerchantAdvantage’s applications are designed to thoroughly connect the online retailer to their marketplace partners in a seamless motion of communication. MerchantAdvantage is changing the macrocosm of e-commerce by staying ahead of the curve in providing business solutions to the growing on-line retail marketplace. MerchantAdvantage, the premier software for on-line retailers looking for an efficient and effective method of online product marketing, order and customer service handling, introduces Channel Management. Channel Management helps online retailers save time and money while maximizing their return on investment and marketing budgets by allowing them to easily connect with shopping comparison sites. MerchantAdvantage is for online retailers wishing to better manage their online marketing efforts and increase their sales volume. PAGE TOP


				“Setting Up My Storefront Efficiently & Strategically: Expand Your Research & Save Money too!”

				“MerchantAdvantage is here to be your partner in growing your business in the ever growing and more complex world of online shopping. We are here because you are online.” Michael Lambert, CEO

				For information on how MerchantAdvantage may help your business grow please contact us: Chip Arndt Executive Vice President Business Development and Strategy 305.895.9466 x113 chip@merchantadvantage.com



				Channel Management Exists to Increase Your Return by: Giving the ability to test and find the most profitable channel on a product by product basis. Promoting the best performing products on one or multiple shopping destinations with one package. Increasing IT productivity and boost profitability using one system for any number of marketplaces. We are the ONLY tool that reduces clicks on non-performing products while increasing clicks on performing products. More>>>