ETD: 942 ETD Survey - New format; Online Merchants Choosing
Alternative Payment Options; US GDP Grows at 4.1 Percent Annual Rate
E-Tailer's Digest
etd_post at gapent.com
Thu Dec 22 03:20:24 GMT 2005
E-Tailer's Digest --- Everything for the Retailer
Issue #0942 December 22, 2005
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
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CONTENTS
[1] Greetings
[2] ETD Survey - New format
[3] Online Merchants Choosing Alternative Payment Options
[4] US GDP Grows at 4.1 Percent Annual Rate
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[1] Greetings.
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Hi All:
This will be the last issue before the holidays officially start. I
think this politically correct nonsense for wishing happiness during
these holidays is ridiculous. So, if I offend anybody, my
apologies. To those who celebrate we wish you a Merry Christmas, a
Happy Chanukah, a Happy Kwanzaa and best wishes to any other holiday
you celebrate.
And if you would like to see Merry Christmas in your native tongue
got here... http://etailersdigest.com/resources/christmas.htm We
updated with new submissions. We also updated Happy New Year, Thank
You and Welcome here
http://etailersdigest.com/resources/greetings.htm and thank all who
sent us updates.
Thanks to those of you who took time to respond and comment on our
proposed change of format for E-Tailer's Digest. We have mixed
reactions. I posted some comments below.
If you aren't taking alternative methods of payment, you
should. According to a recent study, merchants can convert as many
as 20 percent more customers by offering them more payment types to
choose from. Personally I use only one card - my corporate American
Express. I don't even own any others. I can't tell you how many
times I place an order only to get to the payment page and abandon
the cart. This week I ordered $1,500 of merchandise from one
merchant, only to have to abandon and go elsewhere. The reason they
don't take Amex? It's too costly. How much do you lose because you
don't? Amex made a big push with corporate cards, so many have and
use them. Think again before you say no to taking Amex.
The U.S. GDP grew the at the fastest pace in 1 1/2 years which is
good news for all. Let's hope it continues through the end of the year.
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, LLC
mailto:georgem at gapent.com
http://www.etailersdigest.com
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[2] ETD Survey - New format
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As reported in our last digest, we are considering a change to
E-Tailer's Digest and we asked for your opinions. It seems to be
evenly split with members as to whether we should do E-Tailer's
Digest as html (yes = mailto:etd at gapent.com?Subject=ETD_Yes-HTML )
or keep it as is (no= mailto:etd at gapent.com?Subject=ETD_No-HTML) A
couple of our members created another answer - both
mailto:etd at gapent.com?Subject=ETD_Both
I've been struggling with ETD trying to come up with a better
format. Since March 13, 1998 E-Tailer's Digest has been basically
the same format - 7 1/2 years!
I'd like to hear from more of you. And I'd like to know about
alternatives that are available. We have free tools to do html
digests. I don't want to pay for a service, since this is only a
"hobby" ;-) actually a way to share information.
Apparently there are some issues with html formats. Here's some of
the comments from those who say no...
+++ First post +++
While I can receive HTML format, I prefer text. I use Outlook to read
email and use IE to view web pages (I personally don't like getting
web pages in my email). I also travel a lot and have my email
forwarded to my blackberry. HTML formatted pages take longer to
download, use up more bandwidth, and generally don't render very well
on these small devices.
There are lots of newsletter tools out there today that will send
both options. I urge you to provide both so that those that prefer
text based emails we can still get them.
Mike Hammons
+++ Next +++
It's been a good seven years, George! I like it the way it is.
HTML Mail trips a lot of spam filters. As do images, which are
often(!) used by spammers to verify reception and tie e-mail
addresses to cookies, thus telling them their spam works!
Thus, I advise all my clients NOT to enable images and NOT to
use browser based e-mail handlers. (Not that all listen... but we get paid
to fix their pain on occasion.)
May I suggest an even better alternative? Send a non-html e-mail
containing a plain link to the latest issue. Best if that link has
no numbers, so it does not look like another I would link to tell
who's visiting. And if it's the same link all the time, we can put
it in our favorites, etc.
-javilk- mall-net.com
------------------- IMAGINEERING --------------------
----- Advice, Analysis, Strategies, Development -----
---- Got a problem? Give us a call! 408-705-2284 ----
Serving the World for three generations, since 1933
-----------------------------------------------------
+++ Next +++
I think too many people have HTML turned off for security reasons for
it to be a good delivery method - despite the 'big boys' doing it
all the time.
Gary Foote
+++ Next +++
I am all in favour of the HTML format...but one word of warning. I
have found that some companies block any HTML formatted messages
because of virus worries. No ifs, ands or buts, they just do it.
Perhaps the answer is to give readers the option of which format to
receive. Also, some email services(such as Hotmail) put a block on
attachments and the images attached to your email may count as such.
Best wishes to you for the Holiday season (hope that is now the
correct expression). In Bermuda we still say Happy Christmas.
Richard
Bespoke Solutions Ltd
www.BespokeSolutions.com
1 441 295 0951
Skype: bermudabuzz
+++ [Moderator's Comments] +++
The issues seem to be because of security or bandwidth. So, we are
open for other suggestions. Or maybe we'll leave it as is.
George
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[3] Online Merchants Choosing Alternative Payment Options
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While credit card companies research and develop new anti-fraud
measurements, alternative payment solutions providers are cashing in
on the demand for online security and customer choice.
Alternative payment solutions are often less expensive for the
merchant and can be easier to use than setting up the merchant
account that is required to process credit card payments. What's
more, there is strong data to bolster the use of these alternative
payment solutions.
Quality Research Associates polled 147 of the leading online
retailers last year to determine the benefits of offering multiple
payment options.
Converting Customers
The poll, commissioned by CyberSource, discovered that sellers who
accept four types of payments -- such as credit cards, online checks,
PayPal and similar services -- have more visitors convert to
customers than do merchants who offer a single payment method.
According to the data, merchants can convert as many as 20 percent
more customers by offering them more payment types to choose from.
Those merchants offering one payment type, such as general purpose
credit cards, for example, convert 60 percent of their shoppers.
"Adding payment types can be effective because the Internet is now
reaching well beyond the early adopter," said Doug Schwegman,
CyberSource director of customer and market intelligence.
"We're hitting different demographics now; people who may prefer not
to use credit cards and people who don't have them. Others simply
prefer the convenience of an alternative payment method for a single
transaction."
Schwegman said some amount of shopping cart abandonment is to be
expected in online commerce, but there are certainly ways of keeping
that to a minimum. One of those is making a variety of payment
options available.
An Eye for Commerce
Then there's I4 Commerce, a provider of alternative payment solutions
for multichannel retailers. The company has developed a technology
called Bill Me Later that is catching the attention of major online retailers
With Bill Me Later, customers who do not have a credit card, or those
who, for security reasons, prefer not to use a credit card online,
can still complete their holiday shopping via the Internet.
Bill Me Later lets users enter some basic information, such as date
of birth, to make a purchase. Within a few seconds, Bill Me Later
qualifies the customer, completes the purchase, and sends a bill. The
customer can pay the cost in full or finance the purchase over time.
Companies like Walmart.com, Overstock.com , and SmartBargains are
using Bill Me Later. I4Commerce claimed the alternative payment
method reduces merchant transaction costs and decreases shopping cart
abandonment rates.
Zapping Payments
Western Union lets online retailers accept checks through its
MoneyZap service. Western Union said the service opens up the world
of e-commerce to consumers who write 18 to 20 billion checks annually
at point-of-sale locations and to the more than 80 million Americans
who don't use credit cards, and relieves the burden of processing
online check transactions.
Most recently in the alternative payment solutions arena, NPW
Development acquired GreenZap, an online payment service that
launched in June 2005. The service resembles PayPal in that you can
send money to anyone with an e-mail address. But GreenZap charges a
flat fee versus a percentage of each transaction. NPW acquired the
company and is bolstering revenues by promoting its own online store.
Global Payment Solutions
In preparation for the 2005 holiday shopping season, electronic
payment processor Paymentech launched a new service in July designed
to make it easier for merchants to expand their businesses globally
and accept payments in the customers' currency of choice.
Paymentech's Global Currency Management enables Internet catalog and
recurring billing businesses to accept payments in more than 150
presentment currencies and to settle transactions in four popular
currencies: the U.S. Dollar, the British Pound Sterling, the Euro and
the Japanese Yen.
Paymentech said chargeback risk and customer disputes are greatly
reduced, because merchants are able to bill customers in their local
currency, greatly reducing customer confusion over the final price.
Paymentech guarantees the exchange rate for each transaction,
including chargebacks.
Temporary Credit Cards?
What about the notion of temporary credit cards? Do they alleviate
concerns of online shoppers? Do these disposable credit card numbers
eliminate the risk of hackers gaining personal data ?
"Temporary credit cards and transaction numbers are helpful if there
is a theft, but I would rather work on preventing theft in the first
place," Matt Ornce, COO of EPX, a payment processing company that
works with Visa, MasterCard, Discover and American Express, told the
E-Commerce Times.
An Excellent PR Maneuver
Vic Dolcourt, senior product manager for risk products at CyberSource
Corporation, said temporary credit cards are an excellent public
relations maneuver, but fairly unspectacular when it comes to usage.
"Temporary credit cards have a faulty basis. It's for consumers who
want to shop with really risky merchants," Dolcourt said. "It's a
competitive move by the banks to show they are interested in
security, but only a small portion of the population use them."
The fact remains that a large portion of consumers are using other
alternative payment options -- analysts expect that number to
increase as new options become available and more consumers without
credit go online to find bargains.
Details at...
http://www.ecommercetimes.com/story/47623.html#
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[4] US GDP Grows at 4.1 Percent Annual Rate
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The U.S. economy grew at the fastest pace in 1 1/2 years in the
summer as booming auto sales offset the adverse effects of hurricanes
Katrina and Rita. But the year is expected to end with much slower growth.
The Commerce Department reported Wednesday that the gross domestic
product, the broadest measure of economic health, grew at a 4.1
percent annual rate from July through September.
That was down from a 4.3 percent estimate made a month ago but it was
still the fastest pace since early 2004. The gain was even more
remarkable considering that the country was hit by devastating
hurricanes and gasoline prices that topped $3 per gallon.
On Wall Street, the Dow Jones industrial average was up 28.18 points
to close at 10,833.73.
Analysts believe growth has slowed substantially in the current
quarter to between 3 percent and 3.5 percent, reflecting slower
increases in consumer spending. The slowdown includes a slump in auto
sales reflecting falling popularity for some sport utility vehicles
now that gas prices are much higher.
While rebuilding in the hurricane areas will offset some of the
slowdown in consumer demand, analysts don't expect that stimulus to
be felt until next year, given the delays in reconstruction efforts.
An inflation gauge tied to the GDP rose at a rate of 3.7 percent in
the third quarter, the fastest pace in more than a year and up from a
3.3 percent rate of increase in the second quarter.
However, excluding food and energy, the GDP inflation measure was up
a more moderate 1.4 percent, the slowest increase in almost two
years. Prices by this inflation measure had been estimated to have
increased by an even lower 1.2 percent a month ago.
Some analysts said the slight upward revision in inflation would keep
the Federal Reserve tightening interest rates with at least two more
moves forecast in January and March.
The GDP report also showed that the profits of U.S. companies from
current production fell by $54.4 billion in the third quarter
compared to an increase of $59.3 billion in the second quarter.
Profits were cut by $165.3 billion at an annual rate from the
estimated impacts of Katrina and Rita, which required higher payouts
by domestic insurance companies and also depressed profits at
companies hit with uninsured losses.
GDP report: http://www.bea.gov/bea/rels.htm
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