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Retooling for E-tailing

Big Cheese's picture
Author: Big Cheese, Technology News Bytes
Published: Wednesday, Feb 11, 2009

Retailers love the reach. Consumers love the convenience. For those who engage in e-commerce, it’s a win-win situation.

Most us of have done it and one time or another. Maybe we’re looking for an obscure item, have no time to go shopping or nowhere in Hawaii stocks what we need. We’re talking about shopping online, or participating in e-commerce. No driving to the store or mall (which saves gas), no competing for a parking space, no lugging packages back to the car. Shopping online is easy.

E-commerce sales are growing every year. The State of Retailing Online 2008 report from Forrester Research Organization and Shop.org reports that online sales will surge from $175 billion to $204 billion dollars alone this year. That about a 16% increase, despite the report also stating that 61% of online shoppers surveyed believe that the economy won’t get better, and that it even might get worse. But the optimism comes from the 85% of those same shoppers that say they’ll spend the same or even more online next year. What were the top categories for online purchases? Apparel, followed by accessories and footwear. Then it’s automobiles, auto parts, home furnishings, computer hardware and software, and consumer electronics.

Most people are familiar with big-name e-retailers like Amazon.com or Overstock.com. But many local retailers can be also found online. One such company is Ben Franklin Stores, owned by Maui Varieties Limited.

Customers there can shop the conventional way by going to the store and attending in-store craft demonstrations. There also employees assist customers by finding what they need, especially helpful if the customer is undertaking a new craft. Chief Operating Officer Milton Fujii says, “We try to be creative or provide creative ideas for our customer, because if they walk into the store looking at just the product, they may not necessarily know how to use it.”

Online shoppers, however, are looking for something specific. They know what they want when they search the web, and quickly find it or a useful substitute. They are missing out on the information and service that customers get in person. That’s where Ben Franklin is using its sophisticated website to promote ideas and utilize the merchandise. “We’re trying to see if we can create the need online,” Fujii says, “so someone interested in craft items would be able to see and get ideas on how to utilize the merchandise.”

Ben Franklin’s website therefore features clips of their local cable show “Joy of Crafting,” which features demonstrations of various crafts, and features the items used. Online items change frequently, as not all of the thousands of items in the store appear on the website. Fujii says Ben Franklin Stores is doing well in its online sales, and he is optimistic about the future. He estimates that “In five years, it [e-commerce sales] would be an integral part of our total volume.”

Another company utilizing online tools is Discount Electronics in Kaimuki. With consumer electronics a big online draw, it’s no surprise that Discount Electronics has a working website. In fact, Account Manager John Gillian says, “from a time standpoint, we’ve kind of had [the website] pretty much as long as the company’s been in place.”