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|Client:||Sxeco - Designer, manufacturer, distributor of hip cool clothes|
|Goal:||Make more money for Sxeco by producing more sales, reducing selling fees, reducing hosting costs, reducing general overhead, and reducing labor costs.|
|Solution:||A selling plan using eBay, a brand new e-commerce web site and shutting down Yahoo! Store. The plan was to use eBay to generate new sales. The new site was to lower selling costs and create a brand awareness and to develop trust. See a picture of the old site here and the new site we developed here. Shutting down Yahoo! Store was to save money since the store has high overhead and selling costs.|
|Problem:|| Old site was busy, confusing, no theme to tie in the various selling channels. Old site had no e-commerce which required customers to go to Yahoo! Store. Customers had little confidence in the old site. Yahoo! Store was over $50/month plus selling fees and hard to maintain. eBay charges a listing fee, final value fee and PayPal charges 2.5% to process the payment. eBay also creates high labor costs due to the way it handles payments.|
|Results: ||Larger orders materialized in less than 1 hour after posting. Costs were reduced to only 2.5% of sales. Sxeco's expectations were exceeded the very first day on delivery! They're happy and so are we!|
|Details: ||Sxeco sells cool and hip designs. eBay is the most cost effective way to get the word out to millions of buyers. People initially buy due to the low cost of the items and the cool designs. After the sale we wanted to make it easy for the customers to return and buy more designs with higher profit. |
The sales generated the first few days are over 50% larger, due to less confusion and clutter. Customers feel confidant doing business since we tied the eBay user feedback ratings ensuring customers this is a reputable business. Using PayPal also ensured confidence since most eBay users are also PayPal users. Browsers turn into customers because pages load fast, are clean, neat and items are easy to find: it's easy to spot something cool to buy. Payment is convenient and flexible allowing all major credit cards or PayPal accounts to be used. Customers buy more items because again, the pages are fast, items are easy to see and it's quick to see the many designs. Less labor is required to fulfill orders because customer input is verified, payment is immediate and emails are generated with all the information in one place. Inventory is simple due to XML text file. The new site costs only $10.00/month to run and we closed Yahoo! Stores for a major savings.
The experience: design, responsiveness, colors, layout, sound, secure shopping cart. We were thinking about the customer's experience when they arrive at the web site. The items are prominently displayed all the time, ensuring the customer sees something interesting that's for sale. There is little to distract the customer from buying. Customers will naturally click on the items for sale to see a bigger picture. At this point, we add a sound track that explains the item in an exciting way. The page features the item for sale with a small amount of text. Ultimately the image is what sells the item to the customer, not a ton of information and distractions.
The whole look of the site ties into the eBay store so customers feel confidant when they buy from eBay and then go to the Sxeco store, it is the same business.
Since a big part of the customer experience is responsiveness. We chose to host this site on a fast web server with a high speed connection to the internet. Studies show time and again that customers leave a site that isn't responsive. Sxeco is shutting down the Yahoo! Store to save $50/month or $600/year plus the sales commissions. More sales will be generated from this new site, reducing the eBay listing fees and final value fees. The savings alone will pay for the new site in less than three years. We expect the new site to be paid for in 6 months due to the cost savings, repeat orders and larger orders. The plan is to continue to use eBay and the new site. eBay will introduce and attract new customers to the Sxeco line. The main site will expand the offerings and provide repeat business. Satisfied customers will tell their friends and they will go to the main site to buy.
One of the problems with using eBay is that after the auction ends, people don't pay right away or at all. This creates more labor costs following up on the post sale. The new web site eliminates this waste since people shop, buy and pay all at once. The savings are significant.
|Services used:|| Consulting, Marketing strategy created, SEO, e-commerce, graphic design, creative layout, technical design, programming, semi dedicated hosting|
|Features:||Cool graphic design, fast page loads, style sheets, tell friend, search engine optimized, easy to expand inventory with XML, low cost.|
|Future:|| There is a plan to continue to tune the site to attract more customers by using more search engine optimization and keywords. Also a comprehensive affiliate program is in the design stage to allow Sxeco's brand to get exposure on other web sites. The technology used makes it easy for others to add Sxeco inventory to their sites easily. This will help other's make money from the Sxeco brand, plus sell more of Sxeco's products. This will create a chain reaction and build a large demand which will in turn create more demand. Customers who opt in to see new designs will get the chance to see new designs immediately and offers to buy them immediately from the email will be available. The idea is to sell and not miss any selling opportunities.|