One-Source Outsource

Retailers and manufacturers looking to launch or re-launch an e-commerce site are often faced with a daunting decision: hire a staff that has experience in creating and operating an online sales operation, or contract with a handful of companies to handle the various functions on an outsourced basis.

San Rafael, Calif.-based KN Ltd., manufacturer of KN Karen Neuburger products, decided to take a completely different approach when it transitioned from a brochure-ware site to a full-function retail site.

Rather than manage a multitude of different vendors and technology companies, KN found one that could create and operate the site and perform all the various functions required of e-commerce, including fulfillment, customer service, product photography, marketing and search-engine optimization.

KN manufactures “cozy cottage” lifestyle home products and apparel that it sells through 3,000 retail stores. Until last year, its website primarily provided support to those retailers and directed consumers to them. Then it hired Kari Zanotto, an experienced online retailer, to oversee development of its direct sales operation.

An early version of the site had limited functionality and no way to track and follow up on orders. “We were running on three different systems,” says Zanotto, director of online service and customer experience. “If we could not find an order on one system, we had to check all three.”

The firm knew it needed to re-launch the site with more functionality and improved operational efficiency, but hiring an in-house team was not an option and “there were not many providers that could give us all the services we needed in terms of platform, fulfillment and customer care,” Zanotto says.

Then KN found Los Angeles-based Onestop Internet. “We looked at the various websites they developed and they didn’t look like a template had been used,” Zanotto says. Onestop’s clients’ sites “all looked unique and there was a heavy emphasis on the brand. Onestop seems to get the idea that the brand is very important to retailers and manufacturers.”

KN’s new site went live in November. “I was so scared because it is really challenging to re-launch a site and there is a lot that can go wrong,” Zanotto says. “But this re-launch went smoothly.” Partnering with Onestop also has allowed KN to sell internationally.

The next challenge for KN Ltd. is to work with Onestop on developing an affiliate program. And the company wants to add more functionality now that it has the basic services under control.

Getting the basic functions in order is just the first phase of Onestop’s services, according to John Tomich, a partner in the company. After the site is up and running smoothly, Onestop begins the second phase, which is to increase the sales conversion rates. “If you can immediately plug into phase 2 and not have to worry about phase 1, you can really begin to see substantial volume early,” Tomich says.

Conversion rates
Being successful with the second phase requires a commitment to increasing sales conversions. “Most companies concentrate on unique visitors, but we feel the best way to increase sales is to increase conversions,” Tomich says, “and we work with our companies on such things as search-engine optimization.”

As part of that service, Onestop works to get KN’s listing placed as high as possible on major search engines by providing assistance in writing product descriptions that are most likely to grab the attention of search engines scouring for products that meet customers’ needs.

Onestop also provides the analytics to track customer behavior so that KN knows what its customers are looking for and what it will take to get them to convert to a sale.

Another simple way to increase conversions, Tomich says, is to add additional payment options. Onestop’s retail customers have seen an average sales conversion increase of 10 percent after adding Bill Me Later and PayPal, he says. Other advanced features that One¬stop offers include customer power reviews and user surveys, through which retailers can gain instantaneous feedback.

“Getting real-time results about what your customers think helps conversion rates,” Tomich says. “If you change the color palette on one of your web pages, for example, and you start getting negative reviews, you can [change] it right back immediately.”

Onestop’s compensation arrangement is somewhat unique. Rather than charge an upfront fee and an additional flat monthly fee as most service providers do, Onestop collects a share of the revenue that the retailer generates.

“This is an additional incentive for us to help the retailer be a success,” Tomich says. “If a site does poorly, we don’t make any money. And retailers can lock in their cost margins.”