Manufacturing eCommerce

eCommerce - Shopping Cart Abandonment

By Jack Burnett

Why do shoppers decide not to buy from you during your check-out process on your eCommerce website?  According to a May 2010 Forrester Research study, respondents cited these top 5 reasons:

1. Shipping and handling costs (44%)
2. Not ready to purchase the product (41%)
3. Wanted to compare prices on other sites (27%)
4. Item was priced too high (25%)
5. Wanted to save products in my cart for later consideration (24%)

Notice that website design or performance did not make the list.  People shopping online are just like people shopping at the store.  They are there to compare products and prices.

The one big difference between the web and brick 'n mortar stores is shipping costs.  People know how much money they spend in gas and car repairs to shop at stores.  On the web, shoppers are suspicious that a manufacturer or distributor tries to increase profits with their shipping costs.  At TwinEngines, we suggest offering free shipping when possible and using conditional promotions that lowers shipping based on quantity or total cost of products. 

All eCommerce software has coupons and promotions built in, but there are times when we need to customize the software to meet a company's unique offerings.  That is one of the reasons it makes more sense to use open source eCommerce software or purchase eCommerce platforms that allow you to customize the source code.

TwinEngines works with both types depending upon the size of the small or mid-market manufacturing company and the sophisttication required on the eCommerce website. TwinEngines also focuses on lean operations starting with lean web for eCommerce.   

It is important that the web eCommerce data seamlessly integrates with your financial or ERP system and your fulfillment process.  This is another reason when being able to customize the eCommerce software makes sense - giving you the flexibility and agility to synchronize information across your organization for efficient, lean operations.

Get your Manufacturing Website and SEO Ready for Bing

By Jack Burnett

Yahoo! is scheduled to start serving organic search results from the Microsoft Bing search engine in August, with their paid search ads migrating to Microsoft's adCenter soon after.  For manufacturing eCommerce websites, this is going to bring about significant change in the search engine market.

The Bing/Yahoo partnership could easily take about 30% of Google's search market, so here's a few search engine optimization tips for companies with eCommerce websites to take a look at:

  • Microsoft adCenter - it has better e-commerce demographics and a significantly better conversion rate than Google AdWords. Expect adCenter to be really cooking for the 2010 holiday shopping season, or in the beginning of 2011 at the latest.
  • Web Sitemap - Some suggest that Bing searches rely more on sitemaps than Google.  Your sitemap should kept up to date with the latest information about your business anyway, but especially now considering the talk about the Bing algorithm and sitemaps.
  • Bing Webmaster tools - You can see the crawling data and other site status, as well as the domain score, page scores and the estimated number of indexed pages. The tool creates a list of inbound links and outbound link URLs.

As always, I recommend a lean web continual improvement program that focuses on the manufacturing website content and page meta information.  An effective web Kaizen loop with web analytics from both Google Analytics and Bing can easily be implented to keep your website up to date and providing the best value to your customers.

 

Passing a PCI Compliance Security Audit

By Michael Losapio

As part of the process to be PCI compliant, one of our eBusiness customers recently underwent a security scan by their processor's PCI audit vendor. The results of the initial scan of their eCommerce website were less than I'd expected - a failure. Failure?!? How? Why?

1. "The remote service accepts connections encrypted using SSL 2.0."
2. "Possible cross site scripting"

#1 was simple enough to resolve... make a quick registry change, reboot the server, and you're done (see here for Micrsoft's instructions). Why did we need to do this - SSL 2.0 is open to "man in the middle" attacks where someone could potentially intercept the data transmission and essentially control the transmission, unbeknownst to those at either end of the data transmission.

For any eBusiness using a SSL Certificate on their eCommerce website, and thinking they are providing safe commerce to their customers - beware, you may be vulnerable.

#2, in my opinion, was crap. Here's the situation - we have a textbox on the webpage that takes user input and appends it to the querystring while redirecting to the search results page. This search results page takes the search criteria from the querystring and passes it to a stored procedure that scrubs it for SQL injection and returns the results. One additional thing the page does is display the search criteria in a label. Sounds pretty straight forward, right? Apparently since we weren't scrubbing the search criteria before displaying it on the page, we were "vulnerable" to cross-site scripting.

I do not agree - the definition (thanks Wikipedia!) of cross-site scripting is "a type of computer security vulnerability typically found in web applications which enable malicious attackers to inject client-side script into web pages viewed by other users." The key here is "other users." Sure, the page ran whatever script was entered into the Search textbox, but it would've only been for that user session... these results would not appear for others. Congratulations, Mr. Hacker! You just fell victim to your own script! So I sucked up my pride and added code to scrub the search criteria before passing it to the next page - you win this round, PCI Compliance...

So after implementing both "fixes," the eCommerce website passed and is now PCI Compliant. I'm sad, though, that I can no longer search for <script>You're an awesome guy!</script> and have the browser give me a little pat on the back for doing a good job.

eCommerce - Measure Your Conversion Rate

By Jack Burnett

The conversion rate may be the most important web metric in an eCommerce website. A good conversion rate is important because conversions lead to sales, and sales leads to profits.

The definition of conversion rate is:

Conversion rate (measured in %) = Number of Sales / Number of unique visitors

Customers ask me what is a good conversion rate.  The answer is simple - your conversion rate should be high enough for you to be profitable. It may only be 1% or 3%, or you may need a 15% conversion rate to be profitable.

For an ecommerce site, you can mesaure your monthly conversion rate manually.

  1. Find the total number of unique visitors to your website in a month no matter how they find your site (direct and referrals)
  2. Calculate the total number of sales in a month.

At TwinEngines, we use MediaChase as our eCommerce technology platform, and we implement Google Analytics  to track website performance. Our customers log into their eCommerce management website and find the total number of sales.  They get their total number of visitors from the Google Analytics dashboard.

I recommend measuring your conversion rate over a calendar year to get a complete understanding.  You'll be able to break the year down into seasonal periods and around other outside events that influence your sales.

Here is a link to an article on an automatic way to measure conversion rates - using Google Analyics.

Manufacturing eCommerce Resources

By Jack Burnett

At TwinEngines, I use several manufacturing eCommerce resources for information on implementing manufacturing eCommerce websites and dealer and wholesaler web portals.  My goal is helping manufacturers and companies participating in the manufacturing value chain be more competitive with an effective web presence built on lean principles.

In my experiences helping small and mid-market companies increase sales with manufacturing eCommerce websites, I have compiled a list of resouces and websites that provide valuable insights and information.  I hope you find this information helpful and if you have another resource, please add it to the list. 

Manufacturing eCommerce Website Top Ten Tips

By Jack Burnett

I help manufacturers extend their sales to the web, and I help companies participating in the manufacturing value chain to establish eCommerce with consumers (B2C) and with other businesses (B2B).  One of the most important keys to success for a manufacturing eCommerce website is the technology platform that has the the functionality, flexibility and scalability to grow with your business. B2B and B2C eCommerce websites require the latest technology features for companies to provide a positive shopping experience that leads visitors from a web search to a purchase.  One that also gives you the tools to fulfill orders and collect payments easily.

TwinEngines uses tools such as MediaChase eCommerce framework, NopCommerce and ZNode to provide the functionality required in an eBusiness.  Our developers can configure and customize the source code quickly and cost-effectively for each product catalog and eCommerce store.  This includes the back-office administration website to manage the web pages and SEO content, the product catalog, orders, shipping, credit card payments and customers.  In fact, the entire eCommerce business can be managed with the MediaChase platform.

Here are my top ten tips for manufacturers considering an Internet sales channel for products, parts and accessories:

  1. Don't over-commit to maintaining all the content and SEO on your eCommerce site. Realize that if you can spend your time more effectively running and promoting the business, then it makes sense to turn to your web development partner to help you manage content and SEO.
  2. Use a professional to create the product photos or obtain them from the OEM, if applicable. The photographer should create photo versions for both traditional marketing materials and the web. 
  3. Associate the parts and accessories with the finished goods to make it easy to find replacement parts and encourage additional items to purchase.  Displaying a CAD drawing with an exploded parts view makes it easier for visitors to make a purchase.
  4. Describe your products so shoppers can't resist buying them. Talk about the benefits, and consider a copywriter to make your products irresistible.
  5. Your website home page should communicate clearly so your customers understand instantly what are your products and the benefits of buying from your company.  Include links directly to the product catalog and featured products that can be added to the shopping cart.
  6. Devote resources to search engine marketing from the beginning.  When you are building the website, that's the time to begin planning keywords, content and link building.  If people cannot find you when they search, then you will not sell your products to them.
  7. The look and feel of the website and the ease people can navigate to find the information they need to make a purchase is very important.  If people feel that they cannot trust you due to a cheap looking website with broken links, then they will find your competitor to make a purchase.
  8. Allow customers, dealers and wholesalers to create an account where they can update personal information, track orders and warranties.  Also allow customers to place orders without requiring them to set up an account; setting up an account to place an order will drive some customers away.
  9. Communicate shipping costs and methods for an order early in the check out process.
  10. Include manuals and brochure documentation easily accessible for each product or product family.

TwinEngines is an Atlanta manufacturing technology company that has extensive experience in building and designing eCommerce websites for companies participating in the manufacturing value chain.  We are experts in integrating your eCommerce website to your financial and fulfillment sysytems.  We can improve your Search Engine Optimization, and help you implement Google Search technology and search at your site.

eBusiness Value Chains: eCommerce Website Products

By Jack Burnett

At TwinEngines, we optimize manufacturing value chains.  Sometimes that is your supply chain or value added activities to fulfill orders from sales, through product configuration, manufacturing and logistics.  Sometimes, the value chain includes accepting orders in your eCommerce website, picking and fulfilling the order, and managing shipments and payments.

So, let's talk about presenting products that are available for purchase online 24/7 in the eCommerce website - the value-added activities including inventory tracking, product marketing and sales order processing. Presumably, inventory is maintained somewhere.  For smaller businesses, inventory tracking may be in a Microsoft Excel spreadsheet; For mid-market companies inventory is found in a back-office system, ERP, financial or inventory systems.  Each individual item is represented in these systems, with a quantity-in stock data attribute.  There are also other attribues, like Reserved Minimum Quantity and Reorder Quantity.

The items (or Skus) in the back-office system are usually grouped together at the product level for display on the website.  This allows an online shopper to search for a product quickly, and then select the particular item based on size, color, brand, etc. For example, you are shopping at the Mercier Orchards online apple store for blackberry jam.  You find the jams product, and then you then select the flavor and the size of the jar.  For the online shopper there is the one jams product presented in the Jams, Jellies, and Preserves category in the product catalog.  In the ERP system however, there is a jam item for every combination of flavor and jar size.  So it is important to manage at the item level back-office systems, and ideal to manage at the product level on the website.

Let's just say the manufacturing business has an ERP system like Microsoft Dynamics, where items, inventory and sales orders are all managed. When there are many products online and even more items in the ERP system, it makes a lot of sense to integrate the eCommerce website with the ERP system's sales order processing and item detail modules.  With integration, each web order is automatically sent to the ERP system.  When the web orders are fulfilled, inventory is automtatically depleted, and inventory counts are transmitted to the website at some frequency (perhaps daily or hourly).  We use eConnect for Microsoft Dynamics, and similar products for other financial and ERP systems.

So now the question is, what do you do when you run out of an item in inventory?  Without getting into backorders, here are the options:
1. Show the product and allow the shopper to select the item.
2. Show the product, but don't allow the shopper to see any items that are out of stock.
3. Show the product and item, but don't allow the shopper to select the item.

I don't recommend option 1, unless you are 100% sure you can fulfill the order meeting your guarantees to your shoppers. When to capture the charge is a topic for another day.  Let's just assume you send an order confirmtation email to the shopper and authorize a hold on the shopper's credit card for the total purchase amount.  When you realize you cannot fulfill the order, you have to tell that shopper and void the authorization.  Chances are you lose that customer forever.

The second option is the other extreme I don't recommend.  If a shopper doesn't see that Mercier Orchards carries his favorite blackberry jam at all, chances are he is lost forever.  The only time this option may be satisfactory, is when you are closing a product line and when it's gone, it's gone for good.

I think the best option is displaying the item, but not allowing a shopper to add it to the eCommerce shopping cart.  Even better, the shopper sees a message indicating the item is currently out of stock with a phone number/email address to get more information.  The eBusiness gets a call from the shopper, and has the opportunity to cross-sell or get the customer's contact information to alert them when the item is back in stock.

Integrating the eCommerce website to the back-office systems is a key piece to optimizing the value chain for a manufacturing eBusiness.  Deciding how to display products and availablity for online purchase 24/7 is also a key business issue.  When presenting products online, there is a lot of prepatory work involved to group individual items (Skus) into product groups.  A product image, description and name has to be created for the eCommerce website, and managed with the website content management system.