Mulpuru points to Federated Department Stores as a company that has prioritized online shopping as a major initiative on an executive level, which panelists say is the first step in becoming a leading Internet retailer. "The big thing that they retailer has to do is say 'This is important to us,'" says Pat Connelly, executive vice president and chief marketing officer of Williams-Sonoma.
Panelists agreed that one of the best ways for a retailer to make inroads online is by acquiring search terms that search engines like Google and Yahoo sell as advertisements. Those terms are valuable ways of driving traffic to retail sites, speakers say.
Meanwhile, it is becoming increasingly important to customers that online brick-and-mortar retailers allow purchasers to return their Internet-bought items in stores. They also want to be able to order products online when it might be out of stock in a store, says Rob Schmults, vice president of sporting goods business management at GSR Commerce. "The customers are taking retailers to the next place, not the other way around," he says.
On the other hand, one customer favorite online, free shipping, should be used judiciously, says Connelly, and retailers need to be careful that they're not taking losses on items as a result of the service. "You always have to weigh the cost of the promotion versus the return," he says.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.