InboxShopping Aims to Help Businesses Increase - Case Study Example

- InboxShopping – A Shopping Platform and Business Solution Introduction In today’s world where most people are in a hurry, we need an online facility that works more instant than Google or Amazon. Simply picking up websites listed on the first page of Google’s SERP does not guarantee that one has landed on the right stuff that he is looking for. To support the premise, Pinsky (2014) noted that Google’s search algorithm is an objective assessor of quality. A software technology is the brain of the algorithm which identifies quality or poor materials. Then again, software systems do not guarantee accuracy and they often fail, “even years after they were built” (Parnas, Schouwen and Kwan, 1990, p.636). On the same hand, shopping on Amazon or other shopping websites does not guarantee that one spends money for the right product. According to Ciciora (2012), one of the negative aspects of e-commerce that may greatly affect the future of online shopping is product quality that continues to decline. With this in mind, InboxShopping (see Appendix 1), will become an innovative shopping tool for customers that offer a fast, credible and safe environment to get the best items already tested by a number of happy users. Moreover, Burrows (2014) noted that ninety five percent of the British people buy goods online. Surprisingly, as reported by Canocchi (2014), the number of people that accounted some 58 percent of the residents in the United Kingdom who preferred shopping and banking online doubled in number since 2010. To motivate these peoples to share their opinions with the community, InboxShopping will present a new incentive program that will not compromise the dependability of their opinions (see Appendix 2) such as redeemable points (cash or items) based on how people rate their reviews. What is more, they can directly shop without leaving their inbox. In other words, InboxShopping will deliver top-rated products via newsletter with an instant “buy now” feature. Furthermore, aside helping consumers find a more convenient way of shopping, InboxShopping aims to help businesses increase their revenues and thrive online. In what way it is possible? Traffic is a life blood of any running website be it a travel blog or an online shopping website. The significant decrease of organic traffic due to Google’s quest to eliminate poor content in the SERPs would mean lost in revenues for affected websites like Expedia.com and eBay. According to an article by Schwartz (2014), one of the biggest travel websites, Expedia, lost 25% percent of their traffic coming from Google. On the same hand, Kim (2014) reported that eBay lost 80% of its organic traffic. Subsequently, the innovative idea of InboxShopping sparks a business opportunity out of the aggressive actions of Google to penalize websites that fall below its standard. Hence, InboxShopping will provide a tool for consumers to a hassle-free shopping and a solution for businesses to thrive online despite Google search algorithm frequent changes. 2. E-Business Plan The whole concept is carefully scrutinized to come up with a feasible business plan. This section will present various researches conducted by industry experts. The idea of InboxShopping is not new and Brown (2014) argued that in starting a new business, it should be started on the current needs of the target market. Indeed, providing an online facility for consumers to have a hassle-free shopping, providing them genuine recommendations from happy users and offering businesses the right audience for their products without the help of Google are the two main goals of InboxShopping. 2.a Industry Analysis As earlier stated, people in the United Kingdom are more preferred in shopping online. Notably, according to Hall (2012), 60% of Britons represented the world’s online shoppers. Similarly, according to a recent report, the UK still holds the most number of online shoppers as reported by Mahapatra (2013) on the International Business Times. Figure 1 shows that Britons are on the top of the list of online shoppers. Figure 1. The UK still holds the most number of online shoppers, according to Mahapatra (2013) More so, Moth (2014) stated that 77% percent of the British consumers would consult reviews published online before they would decide to purchase an item. Importantly, he emphasized that consumer reviews are an essential feature of an eCommerce site. This goes to show that InboxShopping idea is in parallel of the current market research, particularly in the UK – its primary target market. According to the data presented by Nielsen (2012), consumers’ reliance on reviews posted by their friends or other online consumers on social media has had a significant impact on their buying decisions. Figure 2 shows that shoppers have a high trust score with recommendations from people they know ad consumers opinions posted online. Figure 2. Global Trust in Advertising Survey by Nielsen (2012) 2.b Business Goals Firstly, working with the experts in the web industry is crucial in building the platform that will soon be branded as InboxShopping (see Appendix 1.c). Secondly, InboxShopping will have a press release on highly authorized blogs and press release sites on the web today. This marketing strategy is “more important than ever” (Tan, 2012). In general speaking, press releases will create brand awareness and through the years, it evolved to become the new face of public relations that is made possible with social engagement. Surprisingly, the power of social network cannot be underestimated as Rosso (2013) reported that an article about marriage went viral and received more than 26 million views in two months from the date of publication. Not only do the majority of people are more preferred in online shopping, but they also spend a significant amount of time on social networks like Facebook and Twitter. As she interviewed Seth Smith, the author of “Marriage Isn’t For You”, he said that his brother-in-law shared it on Facebook and since then, he noticed that something was up. A newsworthy press release will be written and published on sites like Mashable, Fox News and CBS News – with the right ingredients, it would go viral and become trending on Facebook and Twitter. In the third place, InboxShopping will provide incentives for people who will become part of the community built within the site. Fellow members will rate their experiences posted in the review section and they will earn points redeemable with cash or sponsored items. The point system will significantly drive consumers to review products. They will be oriented that through voicing out their opinions and sharing their experiences with the products they bought online – they will become helping hands of many consumers who are looking for the best items to shop in exchange of their hard earned money. Similarly, to achieve building a responsive email list for businesses out there – members are only eligible for the rewards once they registered on InboxShopping website that automatically subscribe them to the free newsletter. They will be grouped according to their interests, and they will only receive product recommendations based on them. 2.c Business Model The business idea will prosper from its built-in virtual community because it will utilize direct traffic – even without the help of Google. People eventually would remember InboxShopping as a household brand in the absence of Google. Notwithstanding, it should not depend on one business model alone as it will utilize a mix of models to make it even profitable in the near future. That said, InboxShopping will utilize the following business models for an eCommerce business: Virtual Community for online shoppers, Intermediary that connects businesses and customers and Service Provider for businesses that are seeking for the perfect alternative of the organic traffic from Google. The business model is shown in Figure 3 below: Figure 3. InboxShopping Utilizes 3 Revenue Models i. InboxShopping recommends various products to consumers, from books, electronic items, home appliances and the likes. Consumers can buy products directly from the email newsletter or on the InboxShopping website (see Appendix 1.b) . It will provide business solutions to producers, marketers and retailers by selling a responsive list based on interest-based segmentation. ii. InboxShopping primary acts as intermediary between producers and consumers. In other words, it generates revenue from the sales commissions earned when a consumer buys an item via the email newsletter, InboxShopping website, or producers’ website when the buyer came from the InboxShopping website. Primarily, the shipment of goods will be handled by the producers or retailers. In addition, the segmented members of the virtual community based on their interest will receive a daily newsletter with the top recommendations from consumers, coupled with items placed by producers or retailers as sponsored items. Likewise, all payments will be redirected to retailers and InboxShopping will receive sales commission from them as specified by the affiliate program’s payment terms. Furthermore, the consumers’ data (contact information like emails and phone numbers) will not be disclosed to clients. All newsletters will be sent through the InboxShopping email newsletter. iii. InboxShopping email subscribers will be converted as a product – or a business solution for companies that have a little search visibility on Google. Companies will be billed monthly based on the number of impressions and the type of segments they want to have access to. Figure 4 shows how revenue is generated on the site: Figure 4. The site’s main revenue streams iv. Consumers should be part of InboxShopping because the virtual community of consumers will help them find the product that suits their needs. The review section of the website will present honest reviews and recommendations that will help buyers decide whether to buy a certain product or not. InboxShopping will eliminate bogus reviews. The incentive program rewards points redeemable in cash or sponsored items. In addition, consumers can shop directly via the newsletter right in their inbox. More so, producers and retailers should utilize the service because it connects them to the right demographic – based on personal interest. They will be provided a sponsors’ interface where they can log in and study the available statistics of the consumers. Google is constantly eliminating substandard practice in content marketing, and link building that is why several businesses lost their visibility on the first few pages of Google’s SERP. InboxShopping is the perfect solution to reach their target audience via email marketing – business owners can sleep tight at night knowing that they are not affected when Google penalizes their websites – they can depend on InboxShopping interest-based demographic that promises bigger conversions and revenue. Conclusion The InboxShopping idea is profitable in its nature. The UK is a home for many online shoppers and they need credible recommendations before spending money for a product available online. The review section and the “inbox” shopping concept are two main features of the site for the consumers to enjoy and benefit. Consumers will find it easy to decide which product to purchase. In addition, they can shop via mobile phones easily. That is to say, InboxShopping will allow them to shop and securely pay for the products they placed in the virtual shopping cart directly in their inbox. What is more, consumers who take the time to share valuable information on the site earns points that are redeemable in cash or sponsored items – majority of the people respond to incentives. On the same hand, businesses found that it is hard to rank on Google’s SERP nowadays. The algorithm is constantly changing and Penguin becomes tougher and tougher as it penalizes websites like Expedia and eBay – giving them the access to the InboxShopping e-mail marketing scheme will essentially help them promote their products to the right audience. On the other hand, the limited resources would prevent upgrades from taking in place sooner after the implementation of the site. The technicalities of the platform needs a lot of hard work and knowledge of scripting and coding. Yet, as InboxShopping grows, it can sustain itself for further upgrades. Hence, the concept and the revenue model are feasible – InboxShopping will earn a significant amount of revenue from sales commission and email marketing out of its platform. Bibliography PINSKY, D. (2014) Panda 4.0: Googles Still Gunning For Low Quality Web Pages. [Online] Available from: http://www.forbes.com/sites/denispinsky/2014/06/09/google-panda/2/. [Accessed: 22nd November 2014]. PARNAS, D., SCHOUWEN, A. and KWAN, S. (1990) Evaluation of Safety Critical Software. [Online] Available from: http://www.cs.unm.edu/~cris/591/parnas1990evaluation.pdf. [Accessed: 22nd November 2014]. CICIORA, P. (2012) Online retail contributes to decline in product quality, study shows. [Online] Available from: http://phys.org/news/2012-07-online-retail-contributes-decline-product.html. [Accessed: 23rd November 2014]. BURROWS, T. (2014) Online shopping 20 years on: It started with the secure purchase of a Sting album... now 95% of British people buy goods via internet retailers. [Online] Available from: http://www.dailymail.co.uk/news/article-2722631/Online-shopping-20-years-It-started-secure-purchase-Sting-album-95-British-people-buy-goods-internet-retailers.html. [Accessed: 23rd November 2014]. CANOCCHI, C. (2014) Three in four Britons now shop online, half use internet banking - and over-65s are quickly catching up with youngsters. [Online] Available from: http://www.thisismoney.co.uk/money/news/article-2719087/ONS-Three-quarters-Britons-shop-online-half-use-internet-banking.html. [Accessed: 24th November 2014]. SCHWARTZ, B. (2014) Expedia Lost 25% Of Their Search Visibility In Google Possibly Over Unnatural Links. [Online] Available from: http://searchengineland.com/expedia-loses-25-of-their-search-visibility-in-google-possibly-over-unnatural-links-182113. [Accessed: 24th November 2014]. KIM, . (2014) Panda 4.0: Why eBay Just Lost 80% of its Organic Rankings. [Online] Available from: http://www.wordstream.com/blog/ws/2014/05/21/panda-4. [Accessed: 24th November 2014]. HALL, J. (2012) Britons are biggest online shoppers in developed world. [Online] Available from: http://www.telegraph.co.uk/news/uknews/9054400/Britons-are-biggest-online-shoppers-in-developed-world.html. [Accessed: 24th November 2014]. MAHAPATRA, L. (2013) Shopping Online: United Kingdom, Denmark And Sweden Have The Most Online Shoppers [Charts]. [Online] Available from: http://www.ibtimes.com/shopping-online-united-kingdom-denmark-sweden-have-most-online-shoppers-charts-1426988. [Accessed: 24th November 2014]. MOTH, D. (2014) 77% of UK shoppers consult reviews before buying online: report. [Online] Available from: https://econsultancy.com/blog/64406-77-of-uk-shoppers-consult-reviews-before-buying-online-report. [Accessed: 24th November 2014]. NIELSEN. (2012) Consumer Trust in Online, Social and Mobile Advertising Grows. . [Online] Available from: http://www.nielsen.com/us/en/insights/news/2012/consumer-trust-in-online-social-and-mobile-advertising-grows.html. [Accessed: 24th November 2014]. MAHAPATRA, L. (2013) CHART: What Consumers Will And Wont Buy Online. [Online] Available from: http://www.businessinsider.com/what-people-buy-online-2013-1. [Accessed: 24th November 2014]. BROWN, P. (2014) Looking For A New Business Idea in 2014? Steal One Of These. [Online] Available from: http://www.forbes.com/sites/actiontrumpseverything/2014/01/05/looking-for-a-new-business-idea-in-2014-steal-one-of-these/. [Accessed: 24th November 2014]. TAN, M. (2012). Why Press Releases Are More Important than Ever. [Online] Available from: https://www.legalzoom.com/articles/why-press-releases-are-more-important-than-ever. [Accessed: 24th November 2014]. ROSSO, S. (2013) Going Viral on WordPress.com: 26 Million Views and Counting — Seth’s Story. [Online] Available from: http://en.blog.wordpress.com/2013/12/23/going-viral/. [Accessed: 24th November 2014]. Appendix 1 a. Domain name – the chosen domain name is inboxshopping.net. The main idea is to give the consumers the ease in shopping via newsletter. A newsletter based on subscribers’ interest will be sent via email. I choose that domain because it perfectly describes the nature of the site and the service it provides. Likewise, it is clear that businesses have the access to the subscription data of the consumers – more effective than building campaign with the use of search engines. With InboxShopping, retailers can offer their products to their chosen demographic directly via newsletter. b. I have a lot of design plans for my e-business. Firstly, the site must be responsive. In other words, the interface is compatible with desktop computers or mobile devices. According to research presented in my report, the majority of people in the UK (target market) use mobile phones in online shopping and banking. Secondly, the website will be a hybrid of a shopping site and a social network. People love social network and no question why Facebook reaches more than a billion users. As people read pages from left to right, the top recommended items will be placed on the right (a shopping section) and the review portal will be put at the right portion of the site. Similarly, an advanced search box will be placed on the top of the shopping area where consumers can easily search the items they are looking for not visible on the homepage (there would be a filtering option based on categories). Likewise, a captivating email subscription and a section where consumers can subscribe and register will be placed on the top of the review portal section. In the third place, another section will be placed after the shopping area and the review portal where people can see the recent purchases made through InboxShopping site or InboxShopping newsletter. c. The whole idea is ambitious and I am convinced that this is feasible – both the revenue model, the website concept and the platform itself. The biggest challenge lies in building the platform: the website and the newsletter with “buy now” function. That said, I planned to talk to an experienced web programmer and designer. Building a website like this is never been easier with the services I can get from oDesk or Freelancer. Based on my experience, even Fiverr.com has reliable service providers for a much cheaper price. An e-business idea as ambitious as InboxShopping needs a bigger budget, but I must make sure to compare all prices from different marketplaces. I planned to use Magento, however, I want to take the recommendations of a chosen programmer. As per research, there are several online sellers who utilized Magento as an eCommerce platform. d. This is the sample layout for the homepage of the site. e. The ambitious idea, as I said, requires a lot of technicalities. In order to make this possible, I need to study web designing. In the designing stage, I plan to come up with an original layout – especially the skin of the website and the newsletter. I want to work closely in writing its CSS and HTML. I also plan to familiarize the back end of the website, whether on WordPress or Joomla. While it is more secure to hire an expert to do all these, I can save a lot of my resources (money) if I know how to fix minor issues like updating plugins in the back office. Moreover, I want to subscribe CopyBlogger and other websites that teach better SEO for website owners. Writing and submitting a press release can be a daunting task, however, with knowledge about social media marketing – this could be a lot easier. Appendix 2 Eliminating Bogus Reviews - InboxShopping will be a virtual community of consumers who will review the pros and cons of a particular product they personally used. Unlike most websites that review products in the sole purpose of making money from commissions, the platform only accepts people who actually bought a product. Unlike how software technology objectively categorizes materials as appropriate or not, InboxShopping will utilize human to subjectively evaluate a product. Honest opinions are shared and these would significantly affect the buying decisions of other people. Apparently, the absence of an affiliate program will reduce bogus reviews. Some affiliate marketers are writing fake reviews to earn bigger commissions. Read More