However, the subject of research in this blog would critically examine the E-commerce and its findings. The two sites which we would be studying on, are WizardUniverse (http://www.wizarduniverse.com) and Threadless (http://www.threadless.com).
WizardUniverse.com
Background
Wizard Universe began as a monthly price-guide magazine for comics and toy collectibles in 1991. Through years of establishment and fan support, the American publishing company expanded to distributing branded toy collectibles (eg. DC, Marvel, Mattel and various movie franchises like Star Wars) and organizing major toys/comics convention throughout the country, bringing together fans, consumers and traders.
Comicreporter.com (March 2, 2008)
‘Following several months of perceived decline and turmoil on the conventions end of the fan magazine's super-profitable business, Wizard experienced what was rumored to be a massive turnover in the creative departments of its magazine and on-line divisions and at least one abortive on-line magazine re-launch.’
‘Wizard World Chicago event boasts a weekend attendance of over 58,000 people. Wizard World is now the largest producer of consumer events in its industries with four annual shows taking place in Los Angeles, Chicago, Philadelphia, and Texas and reaching over 125,000 consumers each year.’
Purpose
The site is targeted towards editorial purposes (eg. giving critics and insides of the toys, comics and etc), and providing an online shopping platform for consumers. Ultimately, the site serves as a virtual community for all comics/toys lovers to share their different experiences and interests in the hobby.
Business Model
WU would be identified as a clicks-and-bricks (B2C) model, allowing customers to order goods electronically for delivery. The extent of this model enhances the business(in WU’s case of not having a physical store) in several ways, that is to reach out both local and foreign customers, cutting transaction cost and costs (utilities, tax, transportation and etc) on running a physical retail store and not forgetting running a virtual store round-the-clock.
In addition to expanding its own line of business, WU has also encouraged the C2C (customer-to-customer) transactions among the avid collectors and fans themselves, in light of expanding the toys/comics community. This is sighted in its classified sections of first- and second-hands toys and self-promotion of fan-made toy sites.
Design
Within the online merchandize section, the site has conveniently broken down into the various genres of products; mainly magazines, convention tickets, toys and comics. And within each genres, breaking down into specifically into the different brands.
Each product selection offers a short detailed summary (actual dimensions, description, shipping method/charges and etc) and a full-sized image of the product. Common features such as the top product searches, related product recommendations and the good old search engine are also sighted.
Payment Scheme
WU currently offers various payment methods for their products; namely through credit cards(American Express, Visa and Mastercard) and Paypal.
Basic payment security features are also sighted, 1) VeriSign secure socket layers, which authenticate digital certificates (payments) and encrypts private information of the customer, 2) real-time McAfee Secure which runs daily scans on the site detecting hacking and 3) the international address verification service, provided by the credit card company itself. Apart from these security measures, a tracking system is also put in place for worried waiting customers. Customers are then able to shop with confidence with such features.
Strength
WU provides external links for both toys and comics to be graded under a universal standard. For comics, WU, in conjunction with the Certified Guaranty Company, allows submissions of both new and used comics to be graded professionally by a panel of quality control and pedigree specialists. For toys, they are accessed similarly by a stand-alone organization, the Action Figure Authority. Naturally, there is a charge for the grading service.
With a international grading system put in place, owners and buyers access their selling and buying decisions clearer.
Message boards/forums are created to bring fellow hobbyists, collectors and the friendly people at WU together, exchanging and learning new knowledge and experiences of the hobby. WU also offers free electronic newsletters to further increase the interest among both new and current hobbyist.
Comparison with other toys/comics site
We have identified a local(Singaporean) toys store site, The Falcon’s Hangar. The aim of the site is mainly to showcase upcoming products and their various price listings. We are able to see the vast differences between WU’s and TFH’s sites, comparing how products are being promoted.
Findings on TFH,
1) Product images are gathered from magazine articles.
2) Less attractive and organized layout.
The above-mentioned observations are purely subjective and for discussive purposes only; WU being an international toys/comics giant in comparison to TFH.
Weakness
WU currently only ships to a few international destinations; United States(domestic), Canada, UK, Australia, France and Singapore.
Another weakness based on a personal experience is that the product details do not specify whether WU is shipping the product internationally. It is only a couple of days after payment (when you would be anticipating a confirmation email), that you would be emailed an apologies email notifying that they won’t be able to ship it for some ‘unexplainable’ reasons. Credit charges are subsequent disputed.
Threadless.com
Background and Purpose
Threadless.com is an online apparel store with earning revenue of $30 million. Founded by Jake Nickell and Jacob DeHart (above) in 2000, Threadless is targeted towards the ‘made for the people, by the people’ concept. Instead of having a hired group of designers for the shirts, Threadless uses designs which are submitted by people from the Threadless community (i.e. registered users of the Threadless website). Thus shoppers are actually shopping for t-shirts designed by people all over the world! The idea behind this is that people are getting what they really want instead of just things supplied by the site. It also strives to provide a large range of T-shirt designs for different age groups, and to make it more attractive, the website is designed based on a fun and playful attitude.
Business model
The business model for Threadless is more than just the typical B2C (Business-to-Customer) model. Unlike regular online shopping websites, Threadless uses both the C2B (Customer-to-Business) model and the B2C (Business-to-Customer) model.
As we mentioned earlier, Threadless uses the designs submitted by the community. A sum of money will be rewarded to the designer if his/her design is selected to be printed. This constitutes the C2B model of Threadless and it is a feature we will like to discuss more.
Payment Scheme
Similar to most e-commerce websites, Threadless provides a step-by-step billing guide to assist the shoppers. The order is verified, followed by collecting of shipping and billing information, and lastly confirmation of the order. For now, the only mode of payment is credit card (Visa, Mastercard or American Express), which is a weakness that we will talk more about later.
Shoppers can also track their order status using the tracking system. By entering their order information, the order status will be shown. The customer can enter the name and credit card number if he forgets the order number. This provides more flexibility and convenience for the shoppers.
Key Characteristics
Threadless uses designs and ideas submitted by users of the website. The submitted designs will be scored and commented by the community. Each week, based on those scores and comments, the Threadless staffs will decide on which designs to be printed onto T-shirts. If the design is selected, the designer will receive a reward of $2000 in cash and also a $500 Threadless gift certificate. Not only that, if the design goes for reprinting, the designer will get another $500! Other than designs, Threadless also accepts slogan ideas. Monetary rewards are also available for selected slogan ideas, though the amount is less than the rewards for T-shirt designs.
A feature which differentiate Threadless from other online apparel stores is that when a size went out of stock, most stores will simply put ‘Out-of-stock’ beside the size or even omit that choice completely. In Threadless, when a popular design went out of stock, shoppers can request for a reprint for that particular size and design.
Another feature of this websites is that it encourages shoppers to submit their own photo of themselves wearing the Threadless T-shirts. When a shopper clicks on the T-shirt, he’ll see more than just the design of it. The photo submissions from the community will appear, showing the shopper how the T-shirt will look like on people of different size, age and gender. This feature gives Threadless a competitive advantage over its competitors.
Strengths
When designers post their designs on their own blogs, homepages or other forums, usually they will try to get the words out and encourage their friends to vote for it. More people soon get to learn about this website and through the word-of-mouth; Threadless has unknowingly gained a huge customer base.
The available designs are mostly those which are highly rated and liked by the community, Threadless need not worry about having no sales or the designs not selling well. The operating cost for Threadless is also low because it does not need advertising, professional designers and salesman.
Weaknesses
Currently credit cards are the only mode of payment and this limits the number of potential buyer because some younger shoppers may not have a credit card.
A suggestion to this weakness will be to implement PayPal as an additional mode of payment. With that, shoppers who do not own a credit card only need to have a PayPal account and will be able to shop for the T-shirts they like.
Common security verifications like for example VeriSign is not displayed in the website. This could reduce the confidence in their shoppers because that is a sign to ensure secure online transaction. New Threadless customer may think that it is a scam site due to the lack of those verifications.
Threadless showcases their designs on a model and also as a picture file on their sites. This gives free-riders a chance to steal the designs and use them without the permission of the artists because with the picture file, it is easy to use it to print onto T-shirts. A solution to this problem can be to watermark the picture file as shown below.
Beyond T-shirts
In March 2007, Threadless expanded its audience and started selling clothes for infants below a year old. They also started a line of T-shirts for kids.
In May 2008, they also started selling the construction paper printed with some of the selected designs. Those are more limited in stock and thus a little more costly than the T-shirts.
Threadless has evolved into a huge community of design enthusiasts, where they share and comment on each others’ art on the blogs and forums. From an online shopping websites, it has become a virtual space for people to hang out, interact and share ideas. Now Threadless even has its own TV shows on YouTube called ThreadlessTeeV.
Final thoughts
In today's world, a website would be favourable for any successful business. But if it's not meeting the customers' needs, it can also be the kiss of death. If it's up to date, easy to navigate, interactive and visually appealing, a website can be a valuable tool in providing customer service.A site should emphasize namely on visual appeal, easy navigation and its usability. With these characterisics working in hand, the site would definitely be drawn to go deeper; like in the case of WU and Threadless.
Now talk about shopping without the hassle of walking those aisles…..
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