iVillage and e-Commerce Solutions Enhance On-Line Marketplace - Brief Article

Information Superhighways Newsletter, Nov, 2000

iVillage Inc. and e-Commerce Solutions (ESC) announced a strategic partnership.

ESC and iVillage together will manage a new performance-based e-commerce application that will enable iVillage to proactively monitor sales for its commerce partners. In addition, ECS will handle a portion of the e-commerce operations for the iVillage Web site, allowing iVillage continued concentration on its core media competencies, while remaining active on an e-commerce platform.

Through this agreement, ECS will co-manage the Shopping Central section of the iVillage Web site. ECS will provide expanded inventory for the site, which will feature more than 60 leading Internet retailers. Specific financial terms of the agreement were not disclosed.

"This is a win-win deal for iVillage and its members," said Doug McCormick, CEO of iVillage. "We can offer thousands of goods from hundreds of sources while holding no physical inventories. Shopping is a source that iVillagers have come to expect and this provides us with an excellent service and an additional revenue stream."

"Our experience with e-commerce will enable us to develop a unique shopping experience for visitors of iVillage.com," said George Russell, president and CEO of e-Commerce Solutions. "iVillage is the leading destination for serving women on-line and we recognize that its members have come to expect only the best. Our retailer screening, proprietary, cuffing-edge technology and design expertise will allow us to live up to the iVillage standard."

iVillage may also benefit through new revenue-generating sponsorship agreements with category-leading companies. Participating companies will handle their own inventory, fulfillment, and back office functions.

ECS will gain access to retailers that had previously partnered with iVillage but might not have a relationship with ECS, who will offer them a fee and revenue share marketing program.