May 16, 2013
According to CRN, “Growth Concerns Dog Amazon” and it may affect its clients across the board. The company’s stock sank 6% in recent markets and it only reinforces concerns for the company’s continued expansion. In the United States, Amazon is the largest Internet retailer, has seen slower revenue this quarter and it is not taking off in other countries. Amazon looks all right in its long-term plans, however. It continues to expand its digital products as well as SaaS capabilities that project well.
Amazon continues to steal business from physical retailers, even though they have found ways to reclaim some of the market. Amazon stock is trading quite high, but third-party (3P) sellers are generating profit:
“First-quarter 3P unit growth was 33 percent, down from a 40 percent growth rate in the first quarter of 2012, according to Ken Sena, an analyst at Evercare Partners…. In a 3P transaction, Amazon books commissions from third-party sales on its marketplace as revenue. That revenue is almost all profit, so as the 3P business has grown, Amazon’s gross profit margins have expanded.”
Amazon has spread itself thickly across many markets, so it might be seeing slow growth at the moment but it will pick up again. The company has stability, but in order to reclaim the lost profit they may look at raising fees. Tack on a few extra dollars, who will notice?
Whitney Grace, May 16, 2013
April 29, 2013
Cignex Datamatics is launching an open source marketplace infrastructure on top of the popular Liferay open source portal. The aim is to fill another gap in the growing open source worldwide network of services. IT News Online covers the story in the article, “CIGNEX Datamatics Launches Mercado – A Lightweight Marketplace Application.”
The article begins:
“Based on Liferay, popular Open Source portal platform, Mercado allows organizations to build marketplace within enterprise portals, extranets, and intranets. The product addresses the existing gap within the market of having a user centric collaborative space for sharing software products, reports, videos, photos, code snippets etc. . . . The company expects these lightweight products to add value to the enterprise allowing them to realize user adoption with little or no customizations.”
It is interesting to see all of the small lightweight products that are popping up and adding value to the enterprise. Open source initially made a large dent in enterprise services through the large pieces like storage and search. Open source then found its place as the go-to for unstructured data or Big Data. However, solutions like LucidWorks are trying to cover all the bases, offering a broad framework that can suit a variety of enterprises with as few addition add-ons needed as possible. Customers appreciate the strong track record, satisfying user experience, and scalability.
Emily Rae Aldridge, April 29, 2013
April 15, 2013
You’ve probably heard the theory that the world is cyclical. What happens once is bound to happen again and so on. However, we didn’t expect online retail to follow this path so quickly. We discovered more from a recent SLI Systems story, “Online Retail Goes…Brick and Mortar?”
According to the story:
“According to the New York Times, companies like Etsy, eBay, Piperlime and Bonobos, which have typically had an online-only presence, are now testing small showrooms in large cities across the country. These smaller stores, with smaller square footage than standard “big box” retailers, allow these online retailers to customers interact with products physically before they buy. These stores are not meant to house all products, but rather serve as a showroom for new or popular items. Because they carry limited stock, they are able to afford more expensive, high-visibility locations in major cities.”
Surprisingly, this isn’t the only instance of an online stalwart entering the physical world. eBay, the online auction behemoth, is also tinkering with the idea according to Internet Retailer. Is this the end of online commerce? Of course not. But what we are excited about is how some real world experience will shape the way online businesses interact with customers. Ideally, this will be a blend of shopping experiences.
Patrick Roland, April 15, 2013
April 6, 2013
One of my two or three readers sent me a link to a LinkedIn post in the Information Access and Search Professionals section of the job hunting and consultant networking service. LinkedIn owns Slideshare (a hosting service for those who are comfortable communicating with presentations) and Pulse (an information aggregation service which plays the role of a selective dissemination of information service via a jazzy interface).
The posting which the reader wanted me to read was “How Natural Language Processing Will Change E Commerce Search Forever.” Now that is a bold statement. Most of the search systems we have tested feature facets, prediction, personalization, hit boosting for specials and deals, and near real time inventory updating.
The company posting the information put a version of the LinkedIn information on the Web at Inbenta.
The point of the information is to suggest that Inbenta can deliver more functionality which is backed by what is called “search to buy conversions.” In today’s economy, that’s catnip to many ecommerce site owners who—I presume—use Endeca, Exalead, SLI, and EasyAsk, among others.
I am okay with a vendor like Inbenta or any of the analytics hustlers asserting that one type of cheese is better than another. In France alone, there are more than 200 varieties and each has a “best”. When it comes to search, there is no easy way to do a tasting unless I can get my hands on the fungible Chevrotin.
Search, like cheese, has to be experienced, not talked about. A happy nibble to Alpes gourmet at http://www.alpesgourmet.com/fromage-savoie-vercors/1008.php
In the case of this Inbenta demonstration, I am enjoined to look at two sets of results from a the Grainger.com site. The problem is I cannot read the screenshots. I am not able to determine if the present Grainer.com site is the one used for the “before” and “after” examples.
Next I am asked to look at queries from PCMall.com. Again, I could not read the screenshots. The write up says:
Again, the actual details of the search results are not important; just pay attention that both are very different. But in both cases, wasn’t what we searched basically the same thing? Why are the results so different?
The same approach was used to demonstrate that Amazon’s ecommerce search is doing some interesting things. Amazon is working on search at this time, and I think the company realizes that its system for ecommerce and for the hosted service leaves something out of the cookie recipe.
My view is that if a vendor wants to call attention to differences, perhaps these simple guidelines would eliminate the confusion and frustration I experience when I try to figure out what is going on, what is good and bad, and how the outputs differ:
First, provide a link to each of the systems so I can run the queries and look at the results myself. I did not buy into the Watson Jeopardy promotion because in television, magic takes place in some editing studios. Screenshots which I cannot read nor replicate open the door to similar suspicions.
Second, to communicate the “fix” I need more than an empty data table. A list of options does not help me. We continue to struggle with systems which describe a “to be” future yet cannot deliver a “here and now” result. I have a long and winding call with an analytics vendor in Nashville, Tennessee which follows a similar, abstract path in explaining what the company’s technology does. If one cannot show functionality, I don’t have time to listen to science fiction.
Third, the listing of high profile sites is useful for search engine optimization, but not for making crystal clear the whys and wherefores of a content processing system. Specific information is needed, please.
To wrap up, let me quote from the Inbenta essay:
By applying these techniques on e-commerce website search, we have accomplished the following results in the first few weeks.
- Increase in conversion ratio: +1.73%
- Increase average purchase value: +11%
Okay, interesting numbers. What is the factual foundation of them? What method was used to calculate the deltas? What was the historical base of the specific sites in the sample?
In a world in which vendors and their pet consultants jump forward with predictions, assertions, and announcements of breakthroughs—some simple facts can be quite helpful. I am okay with self promotion but when asking me to see comparisons, I have to be able to run the queries myself. Without that important step, I am skeptical just as I was with the sci-fi fancies of the folks who put marketing before substance.
Stephen E Arnold, April 6, 2013
Sponsored by Augmentext
March 21, 2013
Online shopping is designed to be a pleasant experience for shoppers and LEDHut wants to make sure that its customers get the most from their online shopping experience. According to the Econsultancy Digital Marketing Excellence article “LEDHut Brightens the Online Shopping Experience with Site Search from SLI Systems” LEDHut is switching to SLI’s Learning Search. They were previously using the open-source Magento e-commerce platform.
LEDHut wanted a site search that not only improved relevancy but also helped visitors learn more about LED technology and the lighting products that are readily available. More importantly Learning Search gives LEDHut the ability to provide more relevant and tailored results to their shoppers. Not only does the solution take into account misspellings but they also offer product suggestions and the users has done a few keystrokes. LEDHut is looking forward to adding a SLI powered mobile site. Keith Scott, Marketing Director of LEDHut made the following statement:
“The LED lighting industry is still in its infancy in the UK and Europe, which means our customers need to be presented with relevant items that match their searches. Now, instead of being overwhelmed by too many results, SLI’s Learning Search delivers precise results that are easier and faster for shoppers to browse through – which also helps them increase their knowledge of LED options to fit their home and lifestyle.”
Shaun Ryan CEO of SLI systems stated a very important fact.
“Fine-tuned, relevant results that are generated from the past behaviour of other visitors encouraging shoppers to browse and glean information about product choices – which in turn increases conversions.”
Online shopping should be a user-friendly and customer oriented experience so LEDHut definitely with the help of SLI Learning Search definitely has the right idea in mind.
April Holmes, March 21, 2012
March 14, 2013
Amazon seems to be at the top of its game. From the latest electronics, clothing and even school supplies they seem to have their hand in everything and be doing very well. However, not everyone is a fan of the online giant. According to the Paid Content article “Indie Bookstore Sue Amazon, Nig-6 Publishers for Using DRM to Create Monopoly on eBooks” three independent bookstores are suing Amazon and the big-six partners based on their DRM (digital rights management). The three independent bookstores involved are Manhattan-based Posman Books, Book House of Stuyvesant Plaza and Fiction Addiction of Greenville, South Carolina.
“The indies, represented by Los Angeles antitrust firm Blecher & Collins, say publisher contracts calling for the use of this DRM, which like most forms of DRM prohibits readers from copying eBooks or reading them on non-authorized devices, restrain eBook sales and that Amazon “has unlawfully monopolized or attempted to monopolize the market for eBooks in the United States.”
According to market estimates Amazon currently is the dominant leader in the eBook market with over 60 percent of uses using Amazon’s Kindle e-readers. Other well-known companies such as Barnes and Noble and even the mighty Apple are involved in the e-book market but represent only a small amount and don’t add up to much competition. The big-six publishers have contracts with Amazon that allow Amazon’s DRM eBooks but do not have any contracts or deals set up with independent bookstores. The plaintiffs are seeking an injunction that prohibits Amazon and the big six from publishing or selling eBooks that are app specific DRMs and to allow independent brick and mortar bookstores to directly sell open source eBooks published by the big six. It’s easy to see that though the big six are mentioned that the plaintiffs are clearly taking the fight straight to the front door of Amazon. Looks like digital content is alive and the battle lines have been drawn.
April Holmes, March 14, 2013
February 25, 2013
Canadian start-up Flow, is teaming up with Hakia to provide semantic search capabilities within a closed platform and take online shopping into a new realm in terms of product specificity and search capability.
Until now e-commerce sites have followed roughly the same pattern; Ebay and Amazon, both powerhouses in the online shopping experience introduced a platform for “every product” and have made a lot of money in the last decade.
The article from Silicon Angle, “Flow Adds Semantic Search from Hakia to Revolutionize E-Commerce,” lays out how Flow and Hakia are creating a different way to search for the products you are looking for, without having to wade through all the extraneous mumbo jumbo. This new partnership hopes to do is to create a social flow and eliminate the sixth degree of separation.
“eCommerce as we know it is pretty entrenched, but social commerce is slowly emerging to challenge the status quo. It’s a concept that’s evolved from what are probably the two biggest phenomena on the web – online shopping and social media. And it’s a natural evolution too, as it only makes sense for marketers to connect with their customers to better understand their needs and position themselves as the ones to provide it.”
Facebook is probably the biggest example of the social marketplace at the moment. Facebook isn’t a shopping powerhouse because it has no search structure. Utilizing semantic search is going to create a kind of exclusive marketplace that hopes to promote less cutthroat competition; since users will be finding exact matches for their searches there’s no competition for most hits in order to remain at the top.
But can the Flow/Hakia partnership really pull through with those kinds of promises? It seems like a pretty tall order to fill. Functionality and no middlemen sound like a dream come true to eCommerce consumers, but the proof is in the pudding.
Leslie Radcliff, February 25, 2013
February 11, 2013
As the world’s largest online marketplace, offering millions of products from wholesalers and individual entrepreneurs one would think that Amazon has made its own bed and no one would be able to mess up the starch cotton sheets. Wired says otherwise in“Google’s Plan To Snatch Shopping From Amazon Is Working.” Last fall Google transitioned to all-paid product listing display ads in search results, which is making more than a couple bucks role in. Advertisers spent 600% more on Google product listings, says Marin Software, and advertisers will skip to whatever tune Google plays.
Advertisers do not seem that upset about it, because when they pay their products get shown more. Google has drawn the usual criticism, because the search results would be biased. The response is that users click on these ads, because Google is simply putting more effort into them. It is a common concept, put more work into something and it shows.
“What does any of this have to do with Amazon? Lawson and Marin Software CEO Chris Lien say that online shoppers today tend to start in one of two places for product information: Google or Amazon. In effect, Amazon has become a “commerce search engine,” which cuts into Google’s core function. To compete, Google wants to give shoppers every reason not to go straight to Amazon by becoming as reliable a destination not just to learn about products, but to buy them.”
Google wants to nab sales from window-shopping to check out, leaving the shipping and inventory to individual sellers. It provides direct competition to Amazon with their warehouses. The fight is on, but no one is KO yet.
Whitney Grace, February 11, 2013
February 2, 2013
When it comes to purchasing a book, most people visit Amazon for its deep discounts and fast shipping. A smaller player in the game is the Hamilton Book Company. This book company specializes in bargain books on a range of subjects from fiction, crafts, military history, cookbooks, arts/entertainment, and science/nature. There are DVDs to browse through, though the selection is limited to the less than popular DVDs you find in a Wal-Mart $5.00 bin. The same can be said for the CDs, which are categorized by theme rather than artist. Browsers can search through seventy-five different categories.
You probably will not find any of the current bestsellers at Hamilton Book Company. Most of the contemporary literature has been resigned to the books popular or were mentioned around ten years ago; although there are some exceptions if you dig through the search results. The best things about the Hamilton Book Company are its prices, but its weakest are the selection and the Web site itself. While using the Web site, one has to navigate through the subjects before even finding any of the products. The biggest fault is that when one clicks on a topic heading on main page, a PDF downloads rather than taking the user to a different part of the Web site.
The final verdict is a basic Web site for cheap and basic books.
Whitney Grace, February 02, 2013
December 19, 2012
Explore Consulting recently published, “EasyAsk Partners with Explore Consulting to Help Fusion Beads – a NetSuite e-Commerce Site- to Improve Search and Navigation,” a news release announcing a new partnership offering e-retail customers an improved shopping experience.
According to the article, EasyAsk, a provider of natural language solutions technology, and Explore Consulting have partnered to deliver natural language e-commerce solutions to retailers using the NetSuite e-commerce platform. This platform ensures that all page content is search friendly and maintains centralized data.
The article states:
“After selecting NetSuite as a new e-commerce platform, Fusion Beads turned to Explore Consulting and EasyAsk because they wanted to make it easier for their customers to navigate the wide range of products offered through their website – more than 50,000 items. Not only does Fusion Beads offer a lot of products, but they also catalog a tremendous amount of product and project data to ensure their customers are getting what they need. With the EasyAsk solution, Fusion Beads can now configure down to the item level the product attributes that should be used for search and navigation from over 600 custom item fields they currently use.”
This new partnership allows Fusion Beads and other companies the ability to maintain website information automatically with improved search and navigation.
Jasmine Ashton, December 19, 2012