Archive for the 'contextual commerce' tag

Welcome to 2010! I want to kick off this year with a column about selling online, but selling someplace else other than your own website. This is something that you can engage in even if you’re not directly engaged in full-blown e-commerce on your dealership’s primary website.

What I’m talking about is taking advantage of things like e-commerce applications on social networking sites like Facebook and other “widgets” that you can embed in blogs or forums.

The first example I’ll point out is a company called Payvment [http://www.payvment.com/] that has a nifty little storefront application for Facebook.

In order for this to work you’ll need to have a Facebook fan page set up for your dealership. You simply install the application on your page, set up the look at feel of the storefront using the tools that Payvement gives you, enter in some information about your shop, and then start loading products. (Obviously there’s more detailed steps involved and Payvment’s site provides all the details).

I’d recommend experimenting at first and a load a small selection (around 10) of products that are impulse buy, gift, general interest type of products. You’ll want to keep in mind that Facebook is not really a shopping destination, and typically you’ll want to focus on the interaction and social networking aspect of Facebook and keep the sales pitches to a minimum. But since it is a fan page, I see it as a great way to sell things like t-shirts, hats, and other items branded with your shop’s logo, or the brands that you carry.

Considering that Payvement is totally free to use right now, there’s really no reason to not give it a try and see if there’s a sensible way for you to fit it into the overall online activities.

One dealership that has begun experimenting with Payvment is Ducati Seattle [http://tinyurl.com/ykppl42]. What’s interesting about the fact that they have this e-commerce application running on Facebook is that they don’t even have any e-commerce on their primary dealership website!

Ducati Seattle’s Cindy Wallace is in charge of the Facebook storefront as well as their eBay store where they focus on selling crash damage take-offs, excess & obsolete, etc. Cindy told me that based on a combination of factors (strong local community support & involvement in the shop, etc.) Ducati Seattle has made the decision to not have a full-blown e-commerce operation. “People prefer to come into the shop to buy things where they can actually see them and to see other people there as well.”

But that doesn’t mean that they are not active online in other ways. Based on leadership by Ducati Seattle’s owner David Roosevelt they have made a decision to be very involved in social media like Facebook. Considering that they have over 1,200 fans on their Facebook page it makes sense that they are giving the Payvement application a test ride.

Another Facebook application for selling products from within your Facebook page is Nimbit MyStore for Facebook [http://tinyurl.com/yzvdzxh]. Nimbit seems to be going more for the rock band trying to sell merchandise angle (so they offer features like the ability to sell tickets or downloadable music), but I don’t see why you couldn’t use it to sell merchandise for your shop. Nimbit has several offerings that range from free to about twenty bucks a month.

Moving away from Facebook, I want to point out that there’s a growing number of widgets that allow you to place shopping experiences on more content-centered (as opposed to shopping-centered) websites and pages. A widget is a small bit of code that you embed in a webpage that provides a little area or box where something shows up that gives people information (weather, race results, etc.) or in our case a product display with the ability to buy it right there.

These widgets allow what I call contextual commerce. Where you can offer products that go along with the content the visitor is reading about. Writing a post in your blog about how to bleed the brakes? Why not have a widget in the side bar selling brake fluid, brake bleeders, pads, etc?

There’s quite a few people playing in this widget area out there. Here’s a few leads to get you started: BlinkCart [http://www.blinkcart.com/], Shopit [http://www.shopit.com/], CartFly [http://www.cartfly.com/], and Amazon [https://widgets.amazon.com/] even has widgets that let you sell products they offer (or that you have loaded as an Amazon merchant) on your site.

Check out Widgetbox (a clearinghouse of all things widget) as well and check out the ecommerce tag http://www.widgetbox.com/tag/ecommerce. Finally, of course, you can always Google “e-commerce widgets” to track down more of the latest and greatest as developers keep the wheels of progress humming along.

Having a storefront on Facebook or an e-commmerce widget on your blog is most likely not going to be a silver bullet in terms of generating a huge amount of extra revenue. A lot of this has to do with the fact that most people out there are not in the shopping mood when they are on a social site like Facebook. However, having a good selection of impulse purchase products and gifty items makes a lot of sense. It gives you a chance to have a few more hooks in the water in terms of selling things and it keeps you abreast of what’s going on in the world of e-commerce technology and off-site merchandising.

If you give this a try, please let me know how it works for you!

Tags:Column, contextual commerce, DealerNews, dealerships, E-Commerce, ecommerce, internet, marketing, Merchandising, motorcycle, powersports, selling-online, social marketing, social media, social-networking

I just read a blurb about a company called Cartfly in the E-Commerce Times. After checking it out it seems that a concept that failed the first time around may have another chance at life.
It’s fascinating that the old adage that everything old is new again, even if in the internet age that progression happens more quickly, is as alive as ever!

It seems to me that what Cartfly is doing is in many ways very similar to the concept that was attempted by a company that I worked at as a sales engineer/evangelist during the dot-com boom/bust period. That company was called CrossCommerce [RIP] and their idea was to take e-commerce out of the walls of a typical “store” and instead embed buying opportunities within content-rich sites.

The concept was called “contextual commerce.” There were all kinds of studies that showed that the conversion rates were much higher for products that were displayed inline with interesting content. For example, if you ran a site about snowboarding and had a story about a recent trip, you could display small product display “shelves” in the story that would allow people to buy the products you were talking about right then and there.

It was a compelling idea, especially at the time, because for the most part there was nowhere near the opportunity to monetize a content rich site other than banner ads. It was before Google’s AdSense had established the strangle-hold on the ad world. This was back in the day of roll-your-own banner advertising, or relying on folks like DoubleClick.

One of the hugely significant things about CrossCommerce that was different was that a large portion of CrossCommerce’s operations was taken up with developing the business relationships with the OEM’s and distributors of literally millions of products. From the old stand-bys like CD and Videos to golf and sporting equipment.

It was literally a one stop shop for content producers. Once you had an account with CrossCommerce (which was free as CrossCommerce made money off a vig/transaction charge) you would go to your CrossCommerce site, choose the products you wanted to sell from the massive catalog, create the little shelf, copy the javascript code that was generated and put that code in your content where you wanted to the products to appear.

In my opinion, it was bloody brilliant (which is why I worked there and stayed around too long even after the writing was on the wall, the rats were leaving the ship, etc. etc.)! It was one of the few ideas to come out during the dot-bomb time that was actually a really, really sound idea. And it worked! CrossCommerce was even developing methods that would scan the page that held the shelf and based on that content analysis automatically generate appropriate products. AdSense, but with products instead of ads. And again it actually worked!

Now why in the world would such a brilliant idea, that was backed up with an actual working execution, built on an insanely robust and expensive technology platform, with strong implementation with product suppliers (which even handled the drop-shipping and logistics!), and financed to the tune of like $60MM+ fail?

Well, for one thing this all happened around 2000. The dot-com bubble was bursting so there was a general downward momentum. What was amazing to witness first-hand as I was on the front lines in sales was the number of these content sites that had zero plans on how to make money and as far as I could tell didn’t care if they ever made money! It was pure insanity and obviously most of them died unquiet deaths.

Next, this was before blogs and other sources of easily-generated content. It was still the days of build your own websites or large, expensive content management solutions. So there were nowhere near the number of sites looking to make money with a completly turn-key, self administered e-commerce solution. And it also did not have the amazing phenominom of the social-networking tidal wave going for it either.

Then the complete and total mis-management of just about every possible opportunity that came up didn’t help either. Ego and hubris don’t work well during crisis times. I won’t go into that in any more detail because it was the same story pretty much as every other dot-bomb during that period of time that was run by people with more money that sense. That and people that were promoted from being receptionists in a prior job to a VP of such-and-such. that never helps either.

So anyway, I hope that Cartfly can make a go of it. I believed then, and I still do, that the idea of embedding buying opportunities within content makes an amazing amount of sense. And now that you have the opportunity to leverage the relationships created via all the social-networking platforms, I can see why Cartfly is feeling like they’re onto something big!

Tags:cartfly, contextual commerce, social-networking