IP: Shopping on the web, two days seems like an eternity

[Dave Farber <farber@cis.upenn.edu>]

>
>Web Informant #179, 6 December 1999:
>Shopping on the web, two days seems like an eternity
>
>The popular press has been full of stories about how lots of
>holiday shopping is migrating to eCommerce, and how the malls
>aren't as crowded as last year. Maybe so, but given the
>frustrating online shopping experiences that long-time reader
>and friend Paul Hoffman (phoffman@proper.com) and I have had
>lately, we are both ready to head back in our cars to the
>nearest mall.
>
>Both of us foresee many companies reworking their web
>strategies soon. Many of them have blown it big time this
>year and have possibly alienated current customers forever.
>The big issue has to do with customer service, and setting
>appropriate expectations.
>
>Like most of you, Paul and I buy a lot computer software and
>hardware. This segment of the retail market is extremely well
>served by web sites that will sell you almost any product at
>a discount. With Paul, his normal mode of operation is to do
>research on the web about the products he is about to buy,
>then call one of the two "dead tree" catalog companies who he
>has had the most luck with. Paul uses MicroWarehouse and
>PCConnection. MicroWarehouse often has slightly lower prices
>but is harder to get returned merchandize. PCConnection
>doesn't have as many items, and more that are usually out of
>stock, but are much friendlier and the phone representatives
>know more. Both of them have web storefronts, but both have
>problems providing information about what items are in stock
>via the web ­- it is much easier to just call in your order.
>
>Paul decided for his latest purchases to shop from some other
>merchants than his usual suppliers. Big mistake. For the
>first purchase (a 4-port keyboard/monitor switch box), he
>tried Amazon.com's zShops. These are storefronts that Amazon
>hosts for independent small businesses, a step up from their
>auction service. The search took him immediately to a store
>with the product he wanted, and they had it in stock and at a
>price lower than either of his normal catalogs. A few clicks
>later and he placed his order.
>
>Then Amazon emailed the order to the merchant, and he didn't
>hear from anyone for a few days. It took the merchant another
>day to ship it. Yes, it arrived in pristine shape, and yes,
>he did save money. But his expectations ordering from the
>zShop and the reality of waiting a few days soured him on
>both that store and on zShops.
>
>Paul went to Egghead for his next order, a hard-to-find piece
>of software. They had the product in stock, and at a good
>discount. He placed the order without too much trouble. Then
>a few hours later he gets email from Egghead that says, in
>part "Egghead.com will email you with specific shipping and
>carrier information once your order has been completely
>processed." OK, that could be acceptable, except that it took
>them a full two days to "completely process" his order. So
>now another store goes on his "never again" list.
>
>The last item was a set of CDs for my daughter. I had a $10
>off coupon at BarnesandNoble.com, so off I went to place my
>order. When I didn't get any email confirming my purchase
>within 24 hours, I called their customer support phone line,
>only to find out that the store was experiencing problems.
>Quickly, I cancelled my order (which I couldn't do over the
>phone and had to do via email) and placed the same order with
>Amazon. Amazon promptly sent me email confirmations within
>minutes, and the actual items arrived within a few days.
>
>These examples show a big problem that retailers will start
>to experience more and more. They think that they can attract
>customers with low prices, items in stock, and a nice-looking
>web site. That's probably true; it worked with Paul and I.
>But poor service is likely to keep people away forever after
>their first purchase.
>
>Many of these companies (who must know how bad their service
>is) think that they'll be blessed with sales. They look at
>stores like OfficeMax or Staples who move into an area and
>steal sales from the local office supply stores even though
>most of these giant chains typically have much worse service
>than the small stores they replace. The difference on the
>web, however, is that dozens of big stores can open up in the
>same space almost overnight. In the real world, changing
>stores means walking (or more likely driving) to a different
>location. On the web, all it takes is one click.
>
>If you are operating a web storefront, make sure you manage
>your customers' expectations appropriately. If you are going
>to take days to process an order, say so. If you are going to
>hedge your bets and display a catalog with many out-of-stock
>items because you don't have any real-time inventory systems
>in place, say so. If your systems are down or slow or not
>operating properly, warn your customers at the front door,
>not after they have spend time trying to buy something.
>
>Happy holidays, one and all.
>
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>Entire contents copyright 1999 by David Strom, Inc.
>
>David Strom, david@strom.com, +1 (516) 944-3407
>
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