E-Tailers Finesse Sites As Apparel Profits Hold Promise - online shopping increasing - Statistical Data Included

DSN Retailing Today, Dec 11, 2000 by Emily Scardino

Other sites like Bluefly.com, an on-line pure-player, are expanding their distribution centers to make sure orders are delivered on time. Wal-Mart is currently building its own fulfillment center for most of its distribution in Carrolton, Ga., which will be fully operational around August 2001, according to Wal-Mart spokeswoman Cynthia Lin. Meanwhile, they have partnered with Fingerhut for apparel distribution. Even after Wal-Mart's own center is complete, it will continue to utilize third party fulfillment centers "when it provides value to our customers."

Besides attempting to rectify the customer service issue of delivery, companies are also improving communications, giving sites the human touch. BlueLight.com and Lands' End offer 1-(800) numbers with 24-hour live customer service. BlueLight.com has also added on-line tracking and e-mail confirmations for shipping and returns. Bluefly.com sends e-mails when credit cards are charged, and even lets customers know they've received a credit for a return.

"Customer service is more important than ever on line, and it is our intent to continue to lead e-commerce innovation and offer consumers the most compelling and engaging on-line shopping experience possible," says Karen Johnson, IS specialist for Landsend.com.

Poor fit is the No. 1 reason for returns to catalogs like Lands' End, and the same problem likewise plagues on-line sites. To rectify the situation Landsend.com uses ImageTwin's body scanning technology to create 3-D versions of its "My Virtual Model" feature, for ultra-precise fit. The Gap similarly partnered with EZsize for its sites.

Functional features will undoubtedly help retail Internet efforts, and so will familiarity.

Names like Ames or Wal-Mart inspire confidence in on-line shoppers. So does convenience. That consumers know they can return items purchased on line at an offline store, rather than dealing with shipping, is another bonus for bricks-and-mortar e-tailers that could drive up sales and drive out pure-players.

"We have Kmart's purchasing power and brand name, something pure-players can't bring to bat," notes BlueLight.com's Karraker. "We can drive prices lower by adding orders on top of merchandise we're already shipping to one of our stores; we know our site isn't going away."

But huge marketing budgets have. Sites have changed marketing methods to save capital. TV ads fore-tailing sites are way down, according to Gomez, with about 70 percent of the sites opting for less-expensive print ads instead.

The Web continues to serve as a marketing tool for retailers with real store presence. It is being utilized to broaden their reach. BlueLight.com is aimed at younger, more fashion-conscious consumers than are typical of those who most often frequent Kmart. This may be helpful as the retailer repositions itself between brown-bag Wal-Mart and chic-but-not-as-cheap Target. Lands' End is also targeting a younger demographic on line than it does for its catalog.

That said, "Our core shopper is still mom and the Kmart shopper, with an emphasis on value, but we're trying to build BlueLight.com to elevate and expand the Kmart brand as well," adds Karraker.