Posts Tagged ‘etailing’

How Mountain Rose Herbs Maintains a Healthy Online Business: Case Study (Pt. Two)

Tuesday, May 11th, 2010

MountainRoseHerbsLogo-4inch
Back for Part Two of our interview with Nate York, IT Manager for Mountain Rose Herbs. Nate talks to us about the technical issues, challenges and decisions he makes to keep the site running problem free. He also discusses how Mountain Rose Herbs uses Twitter, Facebook and YouTube to spark community participation in the company’s operations, and ecommerce site search to provide site visitors with information on the right product at the right time.

Let’s talk technology and the nut and bolts of operating your website. You’re on the Miva platform? What do you see as the pros and cons of it?
We were already established on the Miva platform (hosted with Cyberhost) before I arrived. It is secure and works 24/7. Even though we’re on an older version, it works well and I’ve had a good experience. Although some things are not as customizable, we’re not looking to upgrade MIVA. We’re developing a custom shopping cart, though, because we want some additional flexibility and customizable functionality. MountainRoseHerbs.com-Website
What about processing and payments?
We don’t do any card processing online. It is all offline and non-real-time. Part of the reason is security. Part of the reason is that we’re not a widget company that ships boxed inventoried products the same day. Rather than dealing with backorders, we find it better to process the order as it it is filled. The benefits of doing offline processing definitely outweigh the benefits of doing it online. We deal with fewer refunds and backorders.

How do you handle international customers? Any special fraud programs in place?
We do address verification, and direct contact and confirmation with international customers. Because each order is hand processed we can spot inaccuracies and potential fraud threats. Any orders over $300 require a special form we send after the order has been placed.

You have a corporate policy against shipping to Mexico, Russia and all of Africa. Why?
There is just too much fraud that takes places as a result of doing business with these countries to make it worthwhile.

Let’s talk customer acquisition. It looks like word of mouth is important? Event marketing, I assume is big, too.
Both are really important. We do word of mouth and event marketing across the country. We don’t host events ourselves. Instead, we get involved with green living events around the country, such as The Green Festival in San Francisco, Green America and numerous other conferences. I love trade shows and I’m trying to find an herbal IT conference that I can attend. Haven’t found one yet, unfortunately.

Let’s talk SEO.
We do all of our SEO in house. We use Google Analytics and Google Base for our shopping feeds. Also, we cover our keywords, meta-data, headers, alt tags etc… everything indexable to keep us in the search light.

We use Nextopia’s technology in a several different ways. We use the EcommISearch module for our site search and the new Out of Stock Alerts module which enables customers to add their email on a per-SKU basis. When we receive new product and update our inventory and shopping cart, the system automatically sends out an email. It is a great way to drive sales.

Selecting Nextopia for our site search has been one of the best decisions we made. I love Nextopia. I really do. I’ve really enjoyed working with the engineers tremendously. When I’ve needed applications developed, they’ve gone above and beyond the call of duty several times. Probably the main reason our relationship works is that they’re the right size of company for us. I know I can talk to Chris Bannister (my Nextopia account rep) and get stuff done. I work with other vendors and don’t get anywhere near the same level of personalized attention. With other vendors, I’m not just not as important. With Nextopia, I am really, really important.

The Right Amount of Cardamon at Just the Right Time

The Right Amount of Cardamon at Just the Right Time

Let’s talk Social Marketing. You’re tied into Twitter, Facebook, MySpace and You Tube. What does social marketing do for you?
Keeping in touch with the herbal community is critical for us. Social marketing gives us a face, so we’re not an anonymous wall. It allows customers to talk to us as well as interact. As we both participate in this discussion and observe it, we find out what our customers want.

Mountain Rose Herbs launched a user generated video contest in October 2009. Customers were asked to showcase their love of herbs, teas, spices, oils, and all things botanical.
The creator of the winning video received $1,000 and featured placement through the company’s social media accounts.
The idea came from internal discussions. The promotional video introducing the contest really captures who we are as a company. We wanted the video to encourage customer participation, we hired a local guy named Norm Scott, who did a terrific job. The entries were great. It is really fun to see how we touch people’s lives and play a part in their practice of an organic herbal lifestyle. (The delightful winning entry came from Catherine Wing and Bill Buckendorf who created a rapping rodent, Chives the Mouse).

Looked at your Twitter feed. Seems to be a combination of news tweets and coupon offers?
The key is having someone on your staff who has the time to keep on top of it. I’m definitely not that guy. Our marketing department handles it. Overall, Twitter helps keep our name present in any discussions relating to the herbal industry. From my perspective as a Mountain Rose employee and as a musician, I think it is a really good tool.

Where do you go to learn more about ecommerce innovations? What are some of the resources?
We work with a database programmer, Will Emmerson. He does a lot of our custom backend development for our ERP system. For example, he wrote the back end between Miva and our system. I work with him collaboratively. I’ll take an idea for a program or problem we need to solve. We’ll talk about options and possible solutions and then develop whatever we think is the best fix. Between Shawn, Will and I, we follow advances in technology and reason about how it could fit into our shop.

For a new retailer just starting out, what are a couple of things you would recommend they do?
First, I’d invest in IT and use it. Don’t go cheap and scrimp unnecessarily. Allocate whatever is necessary (time and/or money) to do a good job. It really can help you grow efficiently.

Finally, what is one thing that people probably don’t know about Mountain Rose Herbs?
Our corporate IT policy dictates that everything we buy is EPEAT Certified Gold. Everything we buy for our staff of 80 plus people, from desktops and monitors, to networking equipment, needs to meet this standard.

(Ed Note: EPEAT is a system that helps purchasers evaluate, compare and select electronic products based on their environmental attributes.)

Thanks Nate for your time. If you want to hear Nate’s other love, visit his band’s website. He manages it, of course.

How Mountain Rose Herbs Maintains a Healthy Online Business: Case Study (Pt. 1)

Friday, April 30th, 2010

MountainRoseHerbsLogo-4inch
Nextopia customer Mountain Rose Herbs has been helping its customers maintain year-round health since 1987. Today, we’re talking to company jack of all trades Nate York. Nate is not only the company’s IT Manager, overseeing the website, fulfillment and order processing capabilities, online scripting, IT security, and network management, he’s also a member of an eight member reggae dance band called The T Club that is a popular attraction throughout Oregon. Here is Part One of our interview.

Can you give us quick summary of your company, operations and markets.
Mountain Rose Herbs was founded in 1987. We’re located in Eugene, OR, and sell a wide range of natural botanical products, including organic herbs, spices, teas, and oils. We carry approximately 2,000 product SKUs. We have a head office in Eugene and operate several warehouses around the city. We do some manufacturing to produce our own finished products. Our business, however, is primary selling bulk ingredients to people who want to make their own herbal or aromatherapy products. You can order 4 oz or 200 lbs of nettles from us.

MountainRoseHerbs.com-Nettles

MountainRoseHerbs.com-Nettles

Our customer base is people into organic agriculture, herbs, aromatherapy, herbal and alternative healing, sustainable business practices, and botany. They take what they source from us and make their own products for retail and personal use.

Which products are your favorites?
I use a lot of the products we sell, especially the herbal teas. Once you start working around herbalists, you quickly learn that there are lots and lots of cool products and uses for them. For example, I’ve got a friend who burned himself while camping. He didn’t have health insurance so I spoke with some of the herbalists at work about a solution. They gave me a recipe for a salve which helped him completely recover without any scarring.

If you weren’t running the back end of an ecommerce outfit, what would you be doing?
Playing music or working in IT. I love music and I love IT!

Does your business have seasonality?
Getting involved with herbs and the products we sell is a lifestyle. We’re pretty steady all year long, although we do see some fourth quarter spikes from people who do bulk orders to make products for one-of-a-kind holiday sales and fairs, or who are planning to give them as Christmas gifts.

How has your customer base been affected by the economic downturn?
As I said, we sell to people who are enthusiastic about the herbal lifestyle. Buying from us forms part of their healthcare. When the economy is tough and health care increasingly expensive, people take more responsibility for their own health.

What do you do to stand out to in the marketplace?
We have an awesome marketing department that is very in tune with the movement. They focus on the fact that we are a company worth supporting, we value our employees, our loose culture and, of course, our high quality.

Thanks for your time, Nate. We’ll be back in a couple of days with part two.

Internet Retailer Reports ToolFetch Sales Jump 20% After Implementing Nextopia

Wednesday, March 24th, 2010

ToolFetch.com-LogoThanks to Internet Retailer for highlighting ToolFetch’s experience (“Toolfetch customers retrieve products faster with a new site search system“) with our ecommerce site search technology.

An Internet Retailer Top 500 retailer, ToolFetch replaced its Google Mini site search engine earlier this year with Nextopia’s eComm|Search and the results have been anything but…mini. ToolFetch CEO and co-founder Andrew Brown reports that since integrating our technology, his company’s sales have jumped approximately 20%. Customers are returning to the site more often and purchasing a broader range of products.

The article does a great job of detailing how eComm|Search helps site visitors find what they need, and why it delivers such a huge ROI to online retailers. Worth reading, of course!

Five Questions with Maria Sutorik, Vice President, Bronner’s

Wednesday, March 10th, 2010

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Maria Sutorik, Vice President, Bronner’s, answers five of the toughest questions we could think of asking her. If you’d like to learn more about how Bronner’s, the World’s Largest Christmas Store thrives online, read our extensive interview with Maria. (Part 1 and Part 2)

1. What are the three most important metrics that you track?

I think the most important are:
  • Site traffic
  • Conversions
  • Sales

2. For a new retailer just starting out, what are three things you would recommend they do?

I recommend that a new retailer spend a lot of time learning. Use industry resources like the National Retailer Federation and Shop.org. Read Internet Retailer magazine and attend the conference. Education is critical. Next, spend a lot of time talking and listening to others as part of an on-going market survey process. Talk to both external and internal audiences. Finally, surround yourself with reliable partners and experts. The bottom line is that you can’t be an expert in everything. You simply won’t be able to find the time to learn about everything that will ultimately impact your business. The solution is to find individuals and firms that know their respective markets. Find a good banker, a reliable search agency, a web developer you can trust.

3. Benefitting from hindsight, what are some things that you did that you wished you hadn’t?

I think we went too long trying to manage our own email list. We thought we could continue to handle it ourselves, even as it grew ever bigger. Not only did we slow our server performance and cause headaches for everyone who was using our network, but the system fell far short of the reporting and metrics we needed to determine whether we were actually doing the right things. Now, we use a third-party email service provider and life (and reporting) is much better. We do all our creative in house but we really benefit from better campaigns.

4. What single thing that you’ve done has had the greatest impact on your business?

I would say it goes all the way back to my Dad listening to his customers. We wouldn’t even have a Christmas business if he hadn’t talked to some merchants who were in Frankenmuth in 1951 searching for Christmas decorations for their city lampposts. To meet their needs, he designed and produced some Christmas panels. Over the next couple of years, he gradually built up a sideline, producing and installing decorations and displays for communities, shopping centers and stores. The first retail store opened in 1954 because the wives of the merchants who came to my Dad’s small wholesale shop started asking about how they could find items for their own homes. That is how the retail sales got started. By 1977, our retail operations had grown to the point that my Dad purchased 45 acres on the edge of town. Our current store covers an area equal to five and a half football fields. We’re huge believers in the Golden Rule: we treat customers as we would want to be treated. We read all comment cards and we take action whenever necessary.

5. The proverbial magic wand…If you could wave one and invent some technology that would make your days easier, what would it do?

I would love integration, one system that would help me avoid having to look in multiple places for information and then try to piece everything together. This wonderful system would integrate website analytics, sales data, ROI performance and shopping feeds so I could
staff properly and really maximize efficiency.

Thanks Maria for your time. Good luck finding an integration wand.

Three Questions with Ken Kikkawa, founder of eHobbies.com

Friday, January 29th, 2010

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As a follow-up to our two-part interview with Ken Kikkawa, president of eHobbies.com, we gave him three really tough and provocative questions that only an experienced entrepreneur, steeled in the fiery cauldrons of online retailing, could answer. He answered them almost too easily:

How do you define merchandising in an online environment?

Presenting products to customers in a way that would entice them to buy.
What are the three most important metrics that you track?

A. Overall company sales.

B. Site visitors.

C. Site conversions (percentage of site visitors to purchasers).

For a new retailer starting out, what are three things you would recommend they do?

A. Don’t over-invest in inventory.

B. Develop a business plan and stick to it.

C. Focus on the customer and customer service.

How eHobbies.com Thrives Against National Chain Stores

Monday, December 14th, 2009

 eHobbies-Logo

 In between driving holiday sales and driving his family to nearby Disneyland, eHobbies.com, President Ken Kikkawa talked to us about how he provides hobby enthusiasts with more than 60,000 SKUs in a wide range of hobby and specialty toy categories.

A Nextopia customer since January 2009, Ken discusses his favorite metrics, how he succeeds against national toy chains, why he likes the Yahoo! Stores platform, and the challenges of seasonal retailing.

You sell hobbies and specialty toys that are purchased by a wide demographic range. In addition to B2C customers, you also sell to institutional organizations such as camps, schools and the Boy Scouts. How do you address their different purchasing needs?

It is a challenge we’re just starting to figure it out. Each organization is different. Firstly, in terms of awareness, most of these organizations find us through online search or word-of-mouth referrals. We haven’t done any real specific marketing other than add a couple of pages to our website.

The second big area is in payment type. Most of these organizations do not pay up front with a credit card, and the preferred method and terms differ widely. For example, schools usually need to pay via purchase order. Because we need to make it easy for them to order from us, we’ve modified our payment and financial policies (including adding different payment options in our shopping cart).

A third area is in our product selection, where we offer a wide range of categories that reflect the different age levels, for example, that you find in scouting. A big category for us is model rockets. For the youngest scouts, say in first grade, we’ll provide pre-assembled kits that are simpler than what older boys in grades 4/5 want. Offering a wide range of products allows us to meet whatever level of product sophistication a scout troop needs.

Are there any challenges in selling toys online that you think affect your company more than other retailing categories? I’m thinking here of the annual media “hot toy” frenzy, with the Tickle Me Elmo craze of 1996 coming to mind.

We try not to play in the hot toy arena. It is very competitive (product availability, pricing, etc.) and you are up against the large/national mass merchants and toy chain stores. They can get behind certain products with huge advertising budgets, leaving a very tough grind for independent retailers. Instead, we play more in the specialty arena, with a product line comprised of more timeless categories like car model kits.

rccarYou said in your September 2009 Practical Ecommerce column that your priorities before the holiday season became too hectic “were optimizing SEO & PPC programs, site enhancements (updates to the item pages including video demos and product delivery estimator) and a quick and easy way for customers to get real-time order updates without logging in to their account.” How easy it is for a Yahoo Store to incorporate the customization that this obviously requires?

Customizing a Yahoo! Store is not easy—and I speak from many years of experience—but the tools are there for developers to work around. (We rely heavily on our developer network to do it). Over the years, Yahoo! has rolled out additional enhancements that are beneficial for merchants. The options to customize the shopping cart have been a very good upgrade and it is now totally customizable. We moved to Yahoo! in 2001, left in 2005, and returned late in 2006. We just found that for a retailer of our size, it provided a really robust platform that we could depend on.

In the same column, you describe yourself as a merchant at heart, having worked as an assistant buyer for May Company department stores in the 1980s. You mention working on the floor during November and December and getting a chance to get customers reactions to merchandise on the spot. How is this different from the online environment?

I used to be a buyer in the pillows and bedding categories. There are very specific fill weights and densities that help people sleep comfortably, depending on their sleeping positions. When you are physically standing on the store floor, it is easy to impart this knowledge to shoppers and either help them find what they’re looking for or what you know will really help them.

You can’t really replicate this interaction online but there are tools that can help you. I really like to help customers on the phone and find out exactly what they need. Email support is another good opportunity. I like to peruse our customer support email boxes. I look at what they are asking for and what we are saying. While it obviously helps close more sales, it also helps me exert some quality control over our sales conversations, ensuring that we’re converting as many prospects as possible into happy customers.

How can online retailers recreate some of the key elements of in-person retailing in a virtual store?

You need to create a conversation channel with the prospect. We use email, telesales, and live chat. We’ve used the latter for two years and I frequently review the logs in the same way that I look through email threads. We have also started to take the best questions from our customers and turn them into a hobby FAQ.

How does site search fit into your merchandising strategies?

About 25% of our visitors go straight to the search box so it is a really important piece of technology. I particularly like Nextopia’s redirection functionality, which enables us to direct shoppers to specific landing pages based on their search terms. For example, here is what a shopper will see when searching for “slot cars” on our site.

Thanks for your time Ken. Give Mickey a big hug from the engineering team at Nextopia.