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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