Monthly Archives: March 2014

Rakuten buys mobile messaging company Viber for $900 million

Shrikar Khare Posted On - March 26, 2014

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Rakuten is a big e-Commerce company in Japan with global ambitions. As per it’s claims it happens to be the world’s third largest e-commerce marketplace, next after Alibaba and eBay. Recently it has expanded its digital strategy and paid $900 million in cash to acquire Viber, a global messaging company.

The Significance

By taking over Viber, a Cyprus-based voice-call application company Rakuten has paced into the world of global messaging for the first time. It is vitally important for Rakuten, not only for it is a totally new area for them but also for the reason that it will empower them with the technology which will make the customers able to make Internet calls on a range of devices such as smartphones.

In the modern and changing atmosphere of today’s world people constantly tend to shift from traditional communications platforms to comparatively a newer technology which is mobile applications. Viber, has an important standing in this regard. It is the most popular mobile communications services all over the world. Everyday it’s number of users are still increasing in a rapid rate which already has a record of 300 million registered users.  Hence it is considered to be the right choice for Rakuten which will perhaps successfully complements Rakuten’s strategy in the digital space. Rakuten, no doubt is aiming to become the world’s top most Internet services company in a near future. This acquisition will help Rakuten to penetrate new markets with multiple digital content opportunities, in addition to its exiting e-commerce and financial services platforms.

International aspect

It has added a new feather on Rakuten’s hat as it enables the company to mark their footprint in the international market. Henceforth it will be positioned on the same rank of Viber which used to operate in almost 200 countries, and was crowned the only messaging player with a globally significant presence besides WhatsApp.  The rest of the companies though big in size, are not global players, they only act regionally, such as Japan’s popular Line or Korea’s KakaoTalk.

Rakuten, widely known as a huge e-commerce business, has been formulating its strategies to target diversification in various levels. It has already purchased e-book reader Kobo and invested in Pinterest including Wuaki. tv. And very recently they have also purchased Viki, the premium video service.  There are other areas also where Rakuten has engraved it presence. The company owns an Internet bank, a travel service and even a baseball team.  Now, Viber being a voice oriented organization is also focusing on claiming the Internet communications business from Microsoft-owned Skype.

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Fashion data tool Editd proves crucial for Asos to push revenues up 37%

Daniel Posted On - March 26, 2014

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Recently online fashion retailer Asos has claimed, by using Editd’s dashboard they have raised their profit line by 37% in the last quarter of 2013. As per their comment, the data insights helped them to speculate and fix up the pricing’s which have boosted the sales turnover.

How it worked

Editd, is a London startup which is specialized to sum up and analyze fashion trend and Retail information from retail sites, industry mood boards, social media and blogs. It has proved itself to be so effective that Asos has signed up for 200 of its fashion buyers to receive access to their site.

Not only that, Asos has also agreed to literally double its subscription to the service of data insight following an 18-month experiment.  Asos did not forget to reveal that Editd’s information on pricing worked as the main tool to drive revenues and a 33% increase in sales.

Geoff Watts’ opinion

The Guardian has reported that Editd’s chief executive Geoff Watts has described the startup’s real value as its contribution in helping buyers make right decisions on the information provided through the data. He also added that basic retail operations consist of buying and selling. So if the right product is available at right price it definitely hits the sales goal. Therefore Editd no doubt is playing a great role for the retailers by helping them to make the right decision depending on the data analysis. He also said though Asos is not the largest

Maria Hollins’ observation 

An accessible front-end allows buyers to compare the brands that are performing well as well as look at price-points for specific trends. Asos’ retail director Maria Hollins, also highlighted this point by emphasizing on making the right decisions faster than their competitors. She said Asos, aiming to be first for fashion means it always needs to be competitive and with right assortments. Hollins further said. That they are using Editd on a every day basis while formulating critical buying and trading strategies.

The benefits

This service helps the fashion buyers to decide depending on a number of data points, including making a thorough analysis by price points or brands. It also makes the customers aware about the latest trends in real-time, with additional support to the buyers by enabling them to receive alerts.

The real-time analysis is effective to understand the ever-changing demand of the market. And thus companies can reduce wastage by making less mistakes in pricing and assortment.  It is extremely important in maintaining continuous growth and development of business within the country and also in terms of overseas expansion.

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Wayfair launches a loyalty program for architects and decorators

Daniel Posted On - March 24, 2014

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Do you want to avoid making mistakes with your online shop? By overlooking few simple but important issues we often make Shopping errors that badly affect business online. A careful dealing and a little intelligent planning may easily help you to overcome the common pitfalls which will also play a great role in achieving your goal to get your shop shining. Some common mistakes and there remedies are listed below.

Lack of enough listing

This is one of the most common mistakes for the beginners. .

Quite often shoppers complain that they are not being able to sell anything. Most of the times it happens as they only display a list of few items in their shop. When people visit they consider the shop more like a hobby than a business as they find only a few items are listed there.  Therefore it is vitally important to make a full list of all the products and services.

 Flashy, cluttered, or hazy photos

Good photos play a great role in advertising your products. Be careful about the quality of the photographs you display on the site. People will only click through your ad if they get attracted to your products by viewing the photographs which are appealing.  No one will be otherwise interested to spend time on products which has flashy, cluttered and hazy photos.

No existence of an ‘About Page’

Usually buyers want to know about the background and the related facts about a company before they decide to buy a product or service. So if there is no page containing your details covering your mission, vision activities and achievements it will be difficult for you to establish your brand. And naturally it may also hamper your sale.

Dearth of Policies

It is extremely important to chalk out detailed policies both from the point of view of you as well as your customers. In case any issue crops up while dealing with a customer, you can always resolve it with the help of a well defined policy. Customers also feel more relaxed about their purchasing decision if they are well aware about the business policies.

Description that fails to provide requisite details

To convince your customer that your products are the best buys for them, you need to provide all the details about your products and services. If you fail to provide all the required information, most naturally people will not choose your products which will be a big loss for you.

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The e-retailers must watch out for more consumers spending more online in 2014

Shrikar Khare Posted On - March 24, 2014

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Online retailing is facing a booming market these days. The year 2013 was no doubt a great year for online retail sector. And it is anticipated that 2014 will bring higher sales turn over as more and more consumers are shifting online. And this will be a continuously growing trend of every modern society. The e Retailers need to be ready for cope with the rising trend. Certain points are to be kept in mind while chalking out strategies to meet the huge need of the online customers. And as there will be more consumers spending online it is also important for the retailers to understand how to get the best result by implementing the following measures.

Best practices to boost your ecommerce businessProduct photographs

Companies that focus on appealing images of their products and services get an extra mileage. The right images of a retailer’s offerings help to drive customers and also motivate them to buy. So it is essential to capture good and exclusive photos to compete online.

  • Merchandising matters

Merchandizing different products and services along with the particular categories available on your website can be good innovations which will be helpful for the overall experience with your company online. It is better to classify all your products and services in categories based on nature of the products.

  • Easy navigation facility

Make sure that your website is designed in such a way so that the customers find it to be easy to navigate. All the product information should be easily available so that the customers do not face any difficulty in finding the details about a particular product.

  • Pay attention on SEO 

The process of driving more traffic to your website from the search engines is extremely important for e-retailing. People find the right information they are looking for on the web through the searching which leads to effective business.

  • Use pay per click

Pay per click advertising is almost similar to SEO except it is paid ads in the search engines as opposed to organic listings. Pay per click advertising is present at the top of the search results for different groups of keywords that advertisers specify at the beginning of a campaign. A proper balancing between your SEO and PPC activities will help you to get the most visibility and best value for your efforts.

  • Social Media Marketing

Social media plays an important role in drawing attention of an audience by sharing quality content and incorporating interactive conversations.

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Wayfair’s growth spurs talk of a possible IPO

Shrikar Khare Posted On - March 24, 2014

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There is a high chance that Wayfair LLC, the house wares and home furnishings web merchant may decide to go public with a record of E-Commerce sales that grew by about 50% in the year 2013. Webfair has achieved a faster growth rate in web sales than Williams Sonoma, the leader in home furnishings category.

Some Wall Street bankers have highlighted their anticipation that Wayfair, being the No. 52 in the 2013 Internet Retailer Top 500 Guide, perhaps will announce their strategy to go public within next 18 months or latest by the first quarter of 2015. One Wall Street investment banker who covers online retailing commented that he is being able to assess Wayfair timing an initial public offering for 2015 which can also be as soon as next March.

What Niraj Shah said

However Niraj Shah, the CEO of Wayfair has said the organization has no such definite timeline. He also added that Wayfair might consider a public offering “when it makes the most sense.” He further explained by saying, Wayfair would use any proceeds from any initial public stock whoever offers to make more acquisitions and continue to build up more consumer awareness of the Wayfair brand worldwide and also would be ready to pay off private investors. Shah also said Wayfair for the first time topped $900 million as its sales grew by about 50% in 2013 but did not reveal final numbers for a few weeks.

Michael Fleisher joined as the CFO

In last October Wayfair, has hired Michael Fleisher as their chief financial officer. He has a background of dealing with big company finance and public company accounting. He worked as vice chairman, strategy and operations, for Warner Music Group. And while working as the CEO with consultancy Gartner Inc he led its IPO. This particular incident has also influenced the Wall Street Banker to make an assessment about a possible IPO. This investment banker put a stress on this issue and remarked that hiring a CFO with experience in dealing Wall Street is a big indicator of Wayfair’s plans to go public.

A challenge for Williams-Sonoma

An analysis of data from Internet Retailer’s Top500Guide.com. reveals, irrespective of  Wayfair’s decision to go public or chalking out strategies to grow in other ways, it will definitely going to be a challenge for Williams-Sonoma Inc., the top ranked merchant in the Top 500 house wares and home furnishings category. Williams-Sonoma, is holding the No. 22 position in the 2013 Internet Retailer Top 500 Guide, for the last three years and also is recognized for controlling  about 30% of web sales in the category.

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Improved product photography is the key for success for ecommerce merchants

Daniel Posted On - March 20, 2014

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It is said that online customers engage in the e-buying process when they are completely convinced. The high-resolution pictures uploaded on an e-commerce site and being showcased from different angles in tune with the needs of the customers can lead to higher conversions for the web merchants. In this age of digitization, visual impact that the product category of an online seller makes goes a long way in winning the trust of the consumers, making them to seal a business deal.

After having walked in this direction, Parts Town, the ecommerce site has been able to boost its sales figure. The site was launched for the first time five years back. Since then the site coupled with a new mobile-optimized version has supported the company to grow by double digits each year to reach more than $75 million in sales. Emanuela Delgado, Vice President of marketing and innovation has credited the e-commerce and mobile technology to a large extent for the galloping growth of the company. She said major percentage of Parts Town’s total transactions is conducted online, which is increasing on a daily basis.

Previously, the e-commerce site of Parts Town, used to largely depend on its customer service representatives while dealing with an online customer regarding identifying the right products.  It was a great challenge to deal with the customers online as product images were not available on numerous occasions. Parts Town has totally overcome this difficulty by incorporating from Snap36, a provider of photographic technology and services that can produce 360-degree and 3-D images of products. Now shoppers can easily access 25,000 images of various products and see image variations like 360-degree spinning, zooming with great pixel quality and viewing various angles including minute details to become satisfied before they are buying a Bunn coffee-brewing funnel machine or a Vulcan Hart gas cooking range.

Let your eye-grabbing products go social and viral

When you want your products to create an online buzz in the social media networking channels, ensure you use the best photo technology. Let your products hog the limelight with a higher visual quotient, then it augments your desire for higher sales and conversion. Your online gateway can not only pull quality traffic, have higher conversions, but also make your sales graph shoot up.

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Amazon products Ads can be one of the best retail channels in 2014

Daniel Posted On - March 20, 2014

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Amazon is the most sought-after advertising channel all over the world. Amazon products Ads can provide a great advantage for the retailers to build their brand exposure in 2014. If you have not yet taken a positive decision about Amazon Product Ads, this is the high time to take a prompt action.

Amazon Product Ads are advertisements on the Amazon marketplace that enable retailers to drive shoppers directly to their e-commerce site on a cost-per-click (CPC) basis. Product Ads link shoppers directly to the seller’s site, to facilitate the transaction. These ads give you the opportunity to offer a great online shopping experience to the consumers.

How to start

Setting up an Amazon Product Ads account is similar to opening an account on Amazon Marketplace. The retailers are to submit their detailed product information along with some basic seller information like product type, category, product title, a unique SKU for each product, a URL for the associated product page on your website and an image. It is also mandatory to add a product price and the delivery charges to be paid by the customer.

Other information to include

The retailers are supposed to include few more details to make their products attractive which can draw the attention of the consumers. It should carry all the features including the key advantages. Amazon Product Ads is unique in this respect which allows the retailers to include all these details without charging any thing.  This influences the customers to make effective buying decisions, which drives the traffic clicking through to your website. Therefore if you are a retailer opting for Amazon product ads for the first time or an existing advertiser wants to get a higher benefit from your existing Amazon ad account, you need to pay serious attention towards the quality of the information you provide about your products. This will surely affect your ROI and it will also help Amazon to best target your ads.

Take help of keywords

To best utilize Amazon product ads you can also add up to five keywords for each product you advertise. While selecting the key words try to research well and try to match with the same terms that are popular on your own web store or in your paid search campaigns, so that it works most effectively.

Cost Benefits

Amazon Product Ads provides you a special facility to set a daily budget and cap your spending which is not available with many other CPC advertising programs. This particular feature helps you to avoid traffic spikes than can drain a monthly budget within a short period of time.

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Takeaways for the e-retailers from the holiday season

Daniel Posted On - March 15, 2014

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The year 2013 in general was a great year for the online retail sector. The Holiday season in this year, despite its bumps and challenges, looked quite bright with a record of hitting a satisfactory sales target. NoMoreRack.com, a 3-year-old discount e-retailer has showcased a record December sales of $75 million which has helped the retailer tally $349 million in sales for 2013 compared to $100 million in 2012. Mobile sales also have a record of sharp rising from 15% of total sales in 2012 to 30% in 2013.

What is expected in Holiday 2014?

While formulating their business strategies for the 2014 holidays, online retailers can be fully assured that, there will be the same continued trend of shoppers shifting more of their holiday spending to the web. A research record of comScore shows, online consumers in USA spent at least $46.545 billion in online shopping during the holiday season of 2013, which is 10.1% higher from $42.286 billion in 2012. Considering the mobile sales into account, comScore has estimated the online shopping increase is about 12% compared to last holiday season. It is really a boosting figure for the online marketers because the shopping season in 2013 was shorter than 2012. According to ShopperTrak, which monitors traffic and sales at major malls and retail chains, there was a 2.7% growth for bricks-and-mortar retailers in November and December.

Few hard facts

There was a great rush in online shopping just before Christmas 2013. The huge number of sales orders coupled with bad weather caused a serious problem in many online retailing businesses. Many customers had to face a great inconvenience as the purchases did not reach their destinations on or before 25th December. There were more problems regarding retailers’ lack of coordination while managing internal processing and sometimes due to their failure to upgrade the shipping options. But what ever might be the reasons behind the total impact was a frenzied finale to the shopping season.

Steps to be taken

The past holiday shopping season has provided enough scope for the Retailers to learn.  Quite often marketing drives till the last edge doesn’t work very satisfactorily. Shoppers may not take their decision so quickly. Therefore is extremely important for a e-retailer to chalk out the entire marketing plan much before hand the holiday season. Moreover, as online gift buying is virtually grabbing the market share from stores and mobile commerce, capturing one-fifth of web sales, holiday marketing programs need special attention to be successful with the takeaways during the festive time.

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6 Secrets for Successful Selling on Amazon

Daniel Posted On - March 15, 2014

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Amazon has the top ranking as one of the most powerful tool in the ecommerce business all over the world. Retailers across the globe largely depend on Amazon for selling products and increased profit to reach international markets. As per record, Marketplace sellers on Amazon sold more than a billion units worldwide, which cumulatively worth as high as tens of billions of dollars. In fact, every retailer can achieve a strong sales target on Amazon if the there is a perfect focus coupled with 200% effort. You need to be proactive instead of simply listing the products on Amazon. A constant updating is required about the ever changing and complex marketing trends and requirements in order to be established and succeed as an Amazon retailer.

Seven guiding secrets are discussed bellow for Successful Selling on Amazon.

1. Be aware about Amazon’s Rules & Guidelines

It is extremely important for a retailer to know Amazon’s rules which is available in the Help section. Lack of awareness regarding this regulations otherwise might lead you to a ban which is not desirable. Working by following the rules also project your professionalism.

2. Aim to Become an Amazon Featured Merchant

Becoming a featured merchant should be the ultimate target for any retailer which can be achieved within a couple of months. You need to be a good seller with good feedback, the right type of seller account, and product sales. A featured merchant on Amazon has the chance of getting “Buy Box” on Amazon which provides you with the default sales.

3. Select Right Products 

You need to select suitable products for your business. The sizes of the products and the available space of go down is important to consider in this regard. you need to go for those products that you can easily manage.

4. Flexibility matters with your Pricing Strategy and Promotions

Just to be competitive in the market do not slash down your product price to a very low rate. You also need to earn profit and obviously a sales rank. If you have a considerable volume of sales you can earn a lot by raising a little price.

5. Take Advantage of Amazon’s Marketing Opportunities

Amazon constantly tries to help you by making various implementations so that your products get noticed. They always introduce new tools for that which constantly changes as per their success rate You will have to utilize them while they’re there.

6. Make use of Seller Central Reports

Amazon’s Seller Central offers great tools and reports. It is important to use them to assess your performance metrics. From this you can easily chalk out if people are taking advantage of th promotions you have created or not. You will also come to realize the reasons for refunds and returns, and many other aspects.

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Overstock is the First in the US to Accept Digital Currency bitcoin

Steve Burns Posted On - March 11, 2014

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Very recently Overstock has announced they are going to offer their shoppers a new payment option by which henceforth they will be able to pay for their purchases with bitcoin the virtual currency. Eventually they are the first U.S. e-retailer taking a step like that.

Overstock.com chairman and CEO Patrick M. Byrne said Overstock is excited to mark its name as the first major online shopping retailer to accept bitcoin, the digital currency which will be an important part of the future. In this new system the customers can shop the Overstock.com website for any of the over 1 million products available, including furniture, rugs, electronics and jewelry by using bitcoin. Though the other payment choices like Visa, MasterCard and PayPal will also be there along with Bitcoin.

Features

According to the Top 500 Guide Overstock already accepts payments via eBay Inc.’s PayPal and Bill Me Later, Google Wallet and Amazon Checkout, , along with major credit and debit cards. Now on, bitcoin also will be included as a payment option to U.S. customers only. They also have a plan to make it internationally acceptable mode of payment in the future.

Coinbase.com, a bitcoin wallet and payments company based in San Francisco, is given the charge to process the retailer’s bitcoin payments and handle the currency’s conversion into U.S. dollars. Coin base claimed bitcoin will be suitable for online transactions without any transaction fees at the same time it will be effective for international customers also.

How it will work

Bitcoin the digital currency is claimed to be an extremely modern concept which will virtually bring a revolution in the mode of transaction and payment. It will be the worlds most widely used cryptocurrency.  Individuals and businesses both will enjoy the advantage of exchanging it online. The dollar value of bitcoin may fluctuate on daily basis. So far the creators of the Bitcoin system have not come up publicly, though they have published papers explaining details about how the currency can be created with an idea that the total number of Bitcoins in circulation will always be in a limit of 21 million.

Possibility

Overstock.com is extremely hopeful about the future bitcoin. They have an initial assessment that about 2% of its web sales will be done through bitcoin. They have also announced that within the first 24 hours of accepting the digital currency; they have got a remarkable feedback of shoppers placing 840 orders using it. This is equal to $130,000 in revenue. Overstock is also quite hopeful that other online companies will have to follow them soon.

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Facebook secures a Leading Position in Social Logins on Retail Sites

Steve Burns Posted On - March 11, 2014

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Social logins have great commercial importance also other than social aspects. They offer a consumer a universal login that increases the liklihood he will sign into an e-commerce site.

It makes the entry to an e-commerce site, or other password-protected property, much easier with an existing credential instead of establishing a new registration and setting a new password. Facebook, Orkut, LinkedIn, Google+ all have contributions into this at various levels.

Facebook: The Leader

When considered from the social log-in trend, Facebook is still maintaining its top rank for the 9th consecutive quarter though it has faced a slight loss in recent future. Like all other verticals as entertainment, gaming and media Facebook is no doubt ranking on top in retail and consumer brands also. A majority of shoppers consisting 48% prefer to login to retail sites through Facebook identity.

Janrain, a provider of social media login technology with hundreds of retail clients, has observed 62% of shoppers who use an established login to sign into one of Janrain’s retail clients’ web sites in the fourth quarter eventually entered in their Facebook credentials.

Detail Study

Janrain’s technology has the system which allows the consumers to sign into their e-retailer sites by using the existing user name and password combinations of their user accounts on various social networking sites such as Twitter, Facebook or Google Plus. Hence they could easily track that the 62% of shoppers who use an established login to sign into one of Janrain’s retail clients’ web sites in the fourth quarter eventually entered in their Facebook credentials.

This definitely shows an upward curve comparing to61% in the third quarter and 55% in the fourth quarter of 2012,

From this study Janrain has come to a conclusion that the percentage of consumers signing into their retail web sites with their Facebook credentials always has a steady growth in number. This is also an important point to note that since 2010 Janrain has the same track record which again indicates Facebook continuously bagging the highest percentage in this regard. Shareaholic also in their sharing trend analysis report in June 2012 has expressed the same feature which shows Facebook holding the top sharing platform.

Mobile apps favors Facebook

In mobile application logins, Facebook again is on top. In popularity it secures 52% leaving the next competitor Google behind at 27%, followed by Twitter (13%) and Yahoo (7%). But some users prefer Twitter as their portable identity of choice on mobile apps. In terms of growth, Facebook’s share grew 3% points to a majority, while Google also grew 2% points.

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Barnes and Noble need to gear up more for Nook sales

Steve Burns Posted On - March 11, 2014

Largest book retailer in the US
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Barnes and Noble need to gear up more for Nook sales. Recently Barnes & Noble Inc., has faced a thrash in business particularly for its Nook division. Current retailer reports reflect, the company is facing a considerable loss in Nook sales. The business return on Nook devices, accessories and digital content were $125 million, down 60.5% year over year for the nine weeks ended Dec. 28. This was more than expected based on the chain’s reported decline in e-commerce and bookstore sales which jointly amounted to $1.1 billion in the same period, down by 6.6% compared to the year before. At this juncture unless it can take a plan a new strategy to revamp the nook sales it might become difficult for them to sustain the nook segment for long.

Detail study

CEO Mr. Michael P. Huseby analyzed this declination in sales revenue of the Nook segment by coming to a conclusion that last year the company introduced two new tablet products, while no new tablets were introduced in the current year which might have badly affected the business return. He also emphasized that the company evolved a policy like this as it wanted to sell existing high-quality devices instead of launching new items.

Barnes & Noble is no doubt making a huge loss as its digital content sales were $36.5 million in the nine weeks over the holidays, a decline of 27.3% year over year indicating to fewer device sales and lower average selling prices. The record reveals it sold $88.7 million in Nook tablets, e-readers and accessories over the period, a decline of 66.7% from the same period in 2012.

Competitors gain

While, Barnes & Noble is facing such a steep market situation especially for its Nook sales many other organizations like Apple Inc and Amazon has reportedly done huge sales during the holidays in 2013. This definitely aggravated the sore spot for Barnes & Noble this year.

New Initiatives

B & N has announced and extended father’s Day discounts to an unlimited period of time. It has also incorporated ‘Best Prices Ever’ on NOOK® HD and NOOK® HD+ also by saying they are thrilled this will deliver a great value to make reading more affordable.  They also claimed it will help customers to get induced in summer reading. The price of NOOK HD starts at only $129 and NOOK HD+ starts at just $149 with a savings up to $120 on NOOK HD tablets, with over 700,000 android apps and games on Google play™, millions of songs, movies, TV shows and more.

Way outs

As there was a gradual decrease in Nook sales since November in February, the retailer planned to spinout the Nook division into a new subsidiary which some how did not click. As a next step a new strategy has been announced in June describing about change in the manufacturing process of its color tablets by outsourcing.

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Taking a Look at Rise of Google’s Product Listing Ads

Steve Burns Posted On - March 11, 2014

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Google’s Product Listing Ads format has gained huge popularity in recent period reaching record levels in July 2013.  This remarkable rise of product listing ads is mainly due to its heavy return on investment. One digital marketing technology company that helps retail clients bid on Product Listing Ads, has claimed on average it generates $9 in sales for every $1 spent.

Features

The web giant launched paid Google Product Listing Ads in October 2012. Since after that, the click-through rate for PLAs during the year became about 47% higher than the click-through rate for text-based pay-per-click ads on Google. According to a report by the U.S. Internet Research team at Jefferies Equity Research, Product Listing Ads are being used by more retailers than ever in recent times. In Product Listing Ads, product images and prices from merchants are displayed prominently in the central area of a Google search results page. This has boosted the click through rate. Eventually high CTR of PLAs coupled with a 93 per cent year-over-year increase in click share indicates a shooting popularity of PLAs within online shoppers, as observed by Marin Software.

Reason behind the rising trend

Product listing ads have many advantages. It attracts more traffic and leads resulting to a much higher CTR compared to text ads. Sometimes it becomes double or triple than usual CTR.  Through PLAs you can improve the quality of your leads by directly displaying product information to increase probability of the shoppers to complete a purchase on your site.  It is also easy to manage the ads as PLAs use the product attributes defined in the Merchant Center data feed to show the ads on relevant searches instead of keywords. PLA s cover a broader reach as more than one can appear for a particular customer search and, if relevant, a Product Listing Ad and a text ad can also appear at the same time, doubly reaching the shoppers.

Accountability

After the launching of PLAs by Google Inc in October 2012, during the fourth quarter U.S. online advertisers collectively spent 12% more year over year on paid search ads and online advertisers spent 618% more on PLAs than when they  launched in Q4 2012. Impressions were up 380% and clicks 312%, according to Ignition One, a digital marketing technology firm’s Q4 2013 digital marketing report.

Ignition one also added that during the week of Thanksgiving, PLAs accounted for 13% of all clicks on search ads on Google, and the click-through rate on PLA ads was 74% higher than on Google’s pay-per-click ads.

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