The final step of launching an SEO strategy is deciding how to measure its success. While using a web analytics tool is most helpful, there are also basic SEO analytics that can be used. Regardless, just like learning SEO, deploying your SEO strategy takes patience and constant attention.
Our safari into the SEO jungle is coming […]
Original post by Matt
The final step of launching an SEO strategy is deciding how to measure its success. While using a web analytics tool is most helpful, there are also basic SEO analytics that can be used. Regardless, just like learning SEO, deploying your SEO strategy takes patience and constant attention.
Our safari into the SEO jungle is coming […]
Original post by Matt
In keeping with holiday traditions Shop.Org published the results of their holiday shopping survey. This year, many retailers and industry experts were hedging their bets that the slow economy would necessitate that retailers use extensive promotional offers to bring in customers and drive sales. What they found, however, was that savings didn’t top the […]
Original post by Kate Pierce
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Original post by Stacey Higginbotham
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Original post by Jennifer Martinez
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Original post by Blake Snow
According to eMarketer recent studies show that more than 40% of children aged 6-11 have visited a website they saw in a commercial after being given the simple instructions, “Please visit our website for more information.” Of those young viewers, 26.5% were between the ages of six and seven, 33.3% were between the ages of […]
Original post by Kate
According to eMarketer recent studies show that more than 40% of children aged 6-11 have visited a website they saw in a commercial after being given the simple instructions, “Please visit our website for more information.†Of those young viewers, 26.5% were between the ages of six and seven, 33.3% were between the ages of […]
Original post by Kate
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Original post by Om Malik
The US Supreme Court ruling in Leegin Creative Leather Products Inc. vs. PSKS Inc. (pdf) in June, 2007 made it legal for a manufacturer to set and enforce MAP (Minimum Advertised Price) for resellers of its product, and pull the line or sue retailers who violate.
Correction:The Supreme Court ruling found that minimum pricing policies are legal and do not represent a violation of U.S. antitrust statutes.
There are many reasons why manufacturers may impose such pricing policies:
MAP doesn’t necessarily apply forever, especially for seasonal products or categories like consumer electronics where new models are constantly hitting the market. But under a MAP policy, a product must be sold at a MSRP (Manufacturer’s Suggested Retail Price) until the manufacturer permits a markdown.
Some retailers will benefit from the level-playing field (smaller retailers, those with higher operational costs or lower efficiency and retailers with a reputation for excellent customer service), and enjoy extra margin to boot. Though certain industries will suffer, especially in this economy, as sales velocity doesn’t occur until the price moves South. For example, HomeCenter.com reports certain price-sensitive product lines sell $150,000 per month when discounted vs. $10,000 when sold at MAP.
Another downside is inventory costs. If in this economy, people are hanging on to their older model consumer electronics rather than buying the latest models, that inventory is going to back up. Without the ability to markdown, the retailer must deal with the stale stock. The manufacturer has received its money, but also loses as it won’t be refilling inventory for resellers.
And as with any rule, MAP is bound to be broken. Online retailers are already using “click to see price” in pop-up windows, “add to cart to see price” and “email for quote” tactics. Retailers who take the high road and adhere to MAP pricing often find themselves forced to lower prices to compete, or honoring price-matches once discounters run out of product.
Technically, concealing price from product pages is akin to a brick-and-mortar store showing one sticker price, and a salesperson verbally offering a price break to a customer in-store. It’s not an advertised price, nor a displayed price. But that raises the question — if it’s not advertised in email, PPC, shopping engine or other promotional material — is showing a sub-MAP price on a product page really “advertising”?
Retailers who walk this thin line must be careful not to let these prices slip through data feeds and into shopping engines, search engines or any other promotion. Even with diligence, it’s easy to get caught breaking MAP. Spy firms like NetEnforcers Inc charge upwards of $100,000 per month to mystery shop online retailers on behalf of manufacturers and have already caught many in the act. Offenders are notified by NetEnforcers to correct pricing which is typically restored within a few hours. If the seller is not a licensed dealer, the seller may be slapped with copyright infringement.
Most manufacturers don’t balk when retailers offer free shipping, gift with purchase, gift cards with purchase or a % off an additional, non-MAP protected item when promoting a MAP item. So long as the dollar value of the product is not reduced, everything’s cool. Offering coupon codes is another way to reduce the price without reducing the price, but be very careful that you don’t advertise the coupon to be applied to the MAP product (that would be advertising). To be safe, if you’re offering a coupon code, always mention which items are excluded from the promotion. For example, Austad’s has a special landing page that lists all the excluded brands and a brief explanation at the bottom:
Email offer:
Landing page also shows the same image as above (to re-assure customer is in the right place) and includes this at the bottom:
Obviously consumers don’t like paying more for products, especially in this economy where people expect everything to be on sale. (On the flip-side, if consumers stop buying non-essentials, however discounted, they actually come out ahead).
Consumers skilled at online comparison shopping might be frustrated to find no price breaks (with the exceptions of retailers who break MAP or on factory refurbished products), or may hunt out free shipping offers and other incentives. Comparison engines that display the total cost including taxes and shipping will aid these customers, as will those that provide seller ratings to help them decide who to ultimately buy from.
Internet Retailer raised the question “will consumers continue to shop the Web if they can’t get better deals online than in store?” and cite research by Forrester, the e-tailing group and Carnegie-Mellon University:
“I don’t see it leading to a mass exodus from the Internet, because lower price isn’t the dominant reason people get value from the Internet,” says Carnegie-Mellon professor Michael Smith. “But taking away the little guys’ pricing advantage will strengthen the hand of the large players.”
In this economy, manufacturers of premium brands and non-essential products (purchases which can be deferred without severe loss of standard of living) likely have to give a little, and remove restrictions earlier. So the whole MAP thing might not be as much of a headache for retailers after all.
Selecting the Right Ecommerce Software in Six Weeks or Less
When: January 21st, 2009 @ 9am PT/12pm ET
Panelists:
Bill Mirabito, Founder and Principal Analyst, B2C Partners
Jason Billingsley, VP Innovation, Elastic Path Software
Register to Attend…
Original post by Linda Bustos
Here are some holiday data feed management tips courtesy of the team at online retail merchandising technology provider, Mercent. This post is the fruit of a Twitter connection with Rick Galan, Strategic Marketing Manager of Mercent and ecommerce blogger. You can follow Rick on Twitter @rickgalan, or follow Jason Billingsley and me at @jbillingsley and @roxyyo respectively.
Thanks again to Mercent for sharing these tips. If you’re interested in learning more about shopping engine strategies, check out the Mercent blog.
Dangerous Marketing Ahead: How to Break Bad Habits and Survive a Deep Recession December 10th, 2008 @ 9am PT/12pm ET
Panelists: Jeff Molander, CEO, Molander & Associates, Inc.
Jason Billingsley, VP Innovation, Elastic Path Software
Jonathan Salem Baskin, Entrepreneur, Consultant and Author of the controversial new book, "Branding Only Works on Cattle"
Register to Attend…
Original post by Linda Bustos
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Original post by Robert Scoble
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Original post by Om Malik
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Original post by Om Malik
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Original post by Robert Scoble
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