Everybody has favorite Web sites to love and hate. Here's our crack at the best and worst on the e-comm front.
By MARK GIBBS
Network World, 02/22/99
Picks
Person most responsible for spearheading a company's e-comm efforts
Sandra Morris, director of Internet marketing and e-commerce, Intel
Intel has gone from having a strictly informational home page, when it fired up its Web site in 1994, to generating e-commerce revenue of $1 billion per month today. Driving the transformation is Sandra Morris, a 14-year company veteran whose latest success comes from her online endeavors. Watch what Intel does under Morris' guidance - she has the vision and the power to redefine e-commerce.
Site most responsible for changing an industry
Amazon.com
Amazon.com, seller of books and music over the Internet, opened its virtual doors in July 1995 with the idea of using the World Wide Web as its storefront. But it wasn't until the company went public in May 1997 that Amazon.com surprised traditional booksellers (primarily book superstore, Barnes & Noble) with its e-commerce punch. Today, Amazon.com has 4.5 million active customers, many of whom experienced e-commerce for the first time through the site. Amazon.com's market grasp is firm and its technology impressive, with sophisticated personalization, account management and customer service features. Book selling and buying will never be the same.
Site that has spawned the best new business opportunity
eBay
Founded in 1995 specifically for online sales, eBay has developed an auction format on the Web that has attracted more than one million registered users. The company lists more than one million items for sale and adds upwards of 150,000 new items, in more than 1,000 categories, daily. The categories include every kind of collectible. The company runs a novel business that's growing at a phenomenal rate. When it comes down to business, eBay is doing all the right things with e-commerce.Where else could you spend $15,000 on a rare porcelain Coca-Cola sign from the 1800s?
E-comm site that best targets an international clientele
DoubleClick
DoubleClick sells online advertising space worldwide. In December 1998, DoubleClick served up more than five billion ads across 6,400 sites. And on top of that, DoubleClick has completely internationalized its Web site, which supports 13 languages. DoubleClick is one of the few companies that recognizes the need to customize for local markets and that this localization is crucial to international business. Last year, 14% of its revenue came from international operations. That segment is showing a 64% growth rate this year. If you think you're in a global market and you've not done what DoubleClick has, go back to the drawing board.
(In the pursuit of full disclosure, please note that Network World Fusion is a DoubleClick customer.)
Company that came by its e-comm success accidentally
Federal Express
Federal Express, the doyen of the shipping industry, today has a firm grasp of the benefits of e-commerce. Back in the early '90s, the company was providing its customers with custom package tracking and shipping software. In 1994, FedEx stuck an experimental toe into the fast-flowing stream of the Internet and launched its Web site, with only a basic package tracking facility. Customers were delighted and within a few months, FedEx was phasing out the custom software and gaining a significant edge over its biggest rival, United Parcel Service. FedEx's e-commerce strategy is now focused, efficient and effective, despite a somewhat accidental start.
Most unusual wares sold via an e-comm site
The American Headhunter
In the annals of strange products available on the Internet, mounted skeletons at The American Headhunter are right up there competing for first place. A monkey skeleton for $1,000 seems a steal if you like that sort of thing, while $300 for a rat skeleton seems a trifle steep.
Pans
Company that should most obviously be conducting business online but isn't yet
Merrill Lynch
In the frequently asked questions list at Merrill Lynch Online, you'll find the question "Can I trade electronically with Merrill Lynch Online?" To which the answer is: "Electronic trading is not part of the Merrill Lynch Online service at this time. Your Financial Consultant remains at the heart of your relationship with Merrill Lynch, and all transactions must continue to go through him or her." Considering the success of E*trade and Charles Schwab online, it is hard to understand why Merrill Lynch can't see the writing on the wall. Can you say "shrinking market share"?
Company that offers most unusual incentive for using its e-comm site
Internet Entertainment Group
Of all the marketing strategies that we would never have thought of - let alone believed would work - giving away pornographic pictures while users get stock quotes is one of them. That said, SexQuotes, a Web site owned by the notorious Internet Entertainment Group, does just that, showing just how wrong we can be. Please, no jokes about keeping abreast of the marketplace.
Most overhyped e-comm site
K-Tel
K-Tel markets and distributes consumer products through retail stores and by direct response marketing. K-Tel's products include albums, compact discs, cassettes, housewares, automotive accessories and other devices. On April 9, 1998, the company announced the launch of its K-Tel Express Web site. Wham! Its stock rocketed to $79 within a couple of weeks in spite of the fact that analysts described the company as "illiquid." But despite the stock's stellar performance, the company's chairman held more than 70% of it. Fact is, there's not much there - the financials aren't too impressive, and the company is under investigation for misrepresenting earnings. As an example of the overvaluation that even a weak e-commerce plan can engender, the K-Tel case stands out.
Most overrated e-comm site
Any portal site claiming to provide e-comm services
If there's one thing that has received more than enough attention in the past few months, it's the portal business. There are so many portals to choose from, and while they have their benefits, they are a flash in the marketing pan. We thought about building our own and calling it YABP.com (Yet Another Boring Portal), but we lost interest. We think these sites have a limited high-profile life span and will fall from hot to cool in a year's time.
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