May 17th, 2013

SEO and Social: Future Synthesis

Category:Magento SEO | Posted By Peter Longofono on May 17th, 2013

seo and social

credit: toprankblog.com

Earlier today, Mani Karthik posted some interesting insights on SEO in the wake of social media for Search Engine Land. Strong stuff—here’s a quick summary of his points.

 

Don’t Jump the Gun

Many speak of SEO as if it were already dead, or as if it had been replaced for good by the ubiquitous forces of Social Media. These fears aren’t entirely unfounded—search updates like Penguin and Panda have a way of igniting controversy—but let’s not get carried away. It’s still far too early in the game to call any shots. Recognizing that the industry is in transition, what we can say is that certain traditional (as it were) search engine signals are being supplanted as more accurate, genuine measures of content efficacy come into play. As the scales of importance tip, we have to be extra careful not to write off efforts which can still benefit searchability or reputation in the long-term. Social media remains a value-adding proposition, more than ever, but SEO as an enterprise has resources too rich and roots too deep to just up and vanish.

 

Zooming In

Using “social” as a term already paints with too broad a brush. Which platforms, and why? To understand this, let’s take a look at the evolution of web behavior (particularly with regard to consumer habits) over the years. Search algorithms haven’t fundamentally changed in purpose: they’re designed to return the best possible results quickly, presented in an uncluttered interface to improve the user experience. Concurrently, though, the nature of web communication and the treatment of content have fundamentally changed. You don’t have to go too far back to see how new the concept of “curated sharing” really is in the grand scheme of things. Around the turn of the millennium, search engines really only focused on indexing mountains of data by relevance to satisfy this or that particular query. These primitive algorithms parsed by basic user behaviors and rudimentary filtering, but didn’t do much beyond that.

 

A Sea Change

Over time, we learned that users prefer to share information in smaller, more frequent pieces, and increased autonomy has led to more widespread authority instead of concentrating it in a few major silos. In the old days, trustworthiness was a function of “trust,” defined by the volume of links your site had. Lacking a reliable way to judge content, search engines attributed authority to Wikipedia, established brands, and academia. Now, however, search engines recognize and promote social signals as an organic way of identifying and communicating value. So instead of just links, they now look at likes, shares, tweets, and other human elements in the equation.

 

Down the Rabbit Hole

But the story doesn’t stop there. It’s pretty astounding how sophisticated social parameters and metrics have become in the present day: think engagement levels, reach amplification, frequency, co-citations, demographics, circles, etc. And it’s not as if no one thought of these before—they’ve long been a target for TV and radio—but rather, raw data can now be processed in meaningful ways, eliminating guesswork in the analysis.

All of this is to say that social media is so integral to the core of SEO that it doesn’t make sense to speak of it as replacing SEO in the battle for refined search. The symbiosis benefits both, as many digital integrations are wont to do, and therein lies the ingenuity. And, of course, we should expect changes to continue; optimization is still largely a learning process.

 

Coming Up Next in SEO and Social

So what will happen to social media if SEO is evolving at such a rapid pace? Well, much the same thing. It’s useful to frame the discussion in terms of simplified technology: streamlined or intuitive controls reflect ever more nuanced subtleties in user behavior, and can even become dominant enough to directly influence behavior. Think about the difference between a cumbersome search on AskJeeves and a voice-activated search using Siri for iPhone. That’s not even getting into the next generation, exemplified by Google Glass and other augmented-reality devices, which could eventually communicate fluently across limitless media. As these technologies hone their effectiveness, we may see some truly mind-blowing changes:

 

• Websites free of any SEO campaigns, instead accruing value and relevance solely through social citation.
• Search engines capitalizing on people’s recommendations in novel ways, weighing value not through explicit likes or shares, but rather aggregated impact in real time across a multitude of loci.
• Local search exploding in importance and customization.
• More sophisticated platforms addressing emerging populations and differentiating from one another in ways that speak more strongly to certain types.
• An implosion or state change in “authority” to incorporate personal influence, circles, and redefined domain expertise.
• Merged Web and Social search with strategic intersections.

 

And that’s just the tip of the iceberg. When we consider search in terms of two variables—User and Data—we can already see powerful boosts in efficiency, simplicity, and relevance in how the two interact. And we can be certain that the demand that spurred the innovations we’re witnessing will continue to refine any and all processes over the next decade and beyond. And, as always, the marketer who can think like a bot is the one who will find success—the difference being that it may soon become feasible to program bots to recognize value with something approaching the human mind.

May 16th, 2013

The Physiology of Spending, The Brain and eCommerce Spending.

Category:E-Commerce | Posted By Avi Biegacz on May 16th, 2013

“What was going through your mind when you bought that?” Now, thanks to this awesome infographic from the folks at moneysupermarket.com, you can finally answer the age-old question about how our brains influence our eCommerce spending habits:

eCommerce Spending Demystified

Which part of your brain were you using when you made the decision?

  • The mesial prefrontal cortex which makes decisions based on personal preference, before money comes into play.
  • The insular cortex where you feel actual pain relative to spending money, pushing you to make more financially responsible (read: cheaper) choices.
  • The nucleus accumbens, the gambler in our brain, which urges us to go ahead with decisions it feels will pay off in the end, ignoring the other parts of our brain and that feel less-than-confident.

What do casino chips, one-click-ordering, budget panning all have in common? They are all tricks designed to fool our insular cortexes by replacing actual cash, or even the very act of removing ones wallet from their pocket, with abstract tokens to reduce the pain related to spending.

Knowing how we are constantly manipulated can help you curb overspending.

 

eCommerce Spending

Begin building your Magento store today with Hara Partners

May 15th, 2013

The Marketplace Fairness Act – Sales Tax for Magento.

Category:News | Posted By Avi Biegacz on May 15th, 2013

In the wake of the Senate’s 69-27 vote in favor of the Marketplace Fairness Act of 2013, (the new internet sales tax law) and the impending vote in Congress, the outcome of which determines whether the bill becomes enacted into law, many e-tailers have found themselves in the unenviable position of uncertainty.  They are unable to fully understand what the bill would mean for their business particularly and thus cannot take measures to prepare themselves. To assist e-tailers with this unwelcome and onerous task CCH, makers of the Sales Tax for Magento software suite, and one the of six CSP’s (certified software providers) approved by the bill, released a special report outlining what the bill actually would mean to online merchants; we’ll cover some of the highlights here.

Sales Tax for Magento Users: Demysitified

Proponents of the bill claim that their main motivation is leveling the playing field between brick and mortar merchants and their online counterparts who under current statutes have no requirement to charge sales tax. Additionally, states are looking to recoup their fair share of the $23 billion in tax revenue industry experts claim was “lost” in 2012.

Opponents claim that the bill fails to take into account exactly how difficult it would be for small businesses to maintain compliance in the myriad different jurisdictions whose laws they now find themselves subject to, and that adoption of the bill would leave merchant open to audits and other tax enforcement procedure in states where they have no legislative representation.

To begin collect sales tax from these “remote sales”, as the bill calls them, states would be required to meet certain criteria, among them:

  • Creation of a “single entity administration”, which means that the states must create:
  • A single entity responsible for all administration, processing and audit duties.
  • A single audit for all remote sellers.
  • A single sales and use tax return for all remote sellers.

And this entity has would have responsibility across all state and local jurisdictions

  • A “uniform tax base” for the purposes of simplifying compliance to possible levels.
  • Provision of software to handle all sales and use tax calculations and filing requirements.

While it is prudent for all e-tailers to begin planning how they will cope with these impending changes it is far from certain that the bill will pass through Congress at this time.

“Although the legislation received strong bipartisan support in the Senate, its future passage in the House isn’t a sure thing,” said CCH Principal Federal Tax Analyst, Mark Luscombe, JD, LLM, CPA. “Supporters claim the issue is about fairness and that Internet sellers shouldn’t enjoy an unfair advantage, but critics say it amounts to a tax increase.”

Hara Partners can get you started with SalesTax from CCH, find out more now.

May 14th, 2013

Asian E-Commerce: the Last Frontier, Part III

Category:E-Commerce | Posted By Peter Longofono on May 14th, 2013

asian e-commerce

credit: cheznorfolk.com

Welcome back once more! This is the third article of three covering the challenges and concerns of e-tailers looking to expand operations into Asian e-commerce. Through a mix of mini case studies, relevant metrics, and solution strategies, we’ll explore the issue from the inside out. If you need to get caught up, please take a few minutes to read Part I and Part II before continuing. If not, let’s go!

 

 

 

Tech in Asian E-Commerce

Picking up where we left off, let’s take a look at how Zazzle was able to launch its international sites so quickly. Thanks to purpose-built data transfer and international-friendly modules, Zazzle was able to launch dual e-commerce sites in Australia and Japan with a few months of each other in 2010. For its Japanese site, Zazzle’s commitment to all-Japanese product descriptions and customer service, as well as yen-centric pricing structures, significantly eased the transition. Moreover, they collaborated with Transcosmos Inc. to arrange call center services and specialized marketing programs ahead of time, incorporating SEO and paid search utilities geared towards Japanese keywords and search habits. Their success is more or less directly attributable to these preliminary efforts.

Same goes for Newegg, the heroes of Part I in this series, whose use of internal technology and a substantial team of Chinese designers and programmers was pivotal in the launch of Newegg.com.cn. The eternal question for Western e-tailers looking to break in is one of differentiation: facing the inarguable success of native Asian e-commerce entities, how do outsiders distinguish themselves?

Newegg cobbled together an answer out of several important components. Their delivery network capitalized on regional carriers to extend the convenience of next-day shipping to several Chinese urban epicenters. They also ported in proven perks like live chat, longer warranties, and packaged installation services. Localization is the name of the game—they’ve become masters at representing it in the Newegg web experience.

 

Extending the Establishment

When it comes to established brands, sometimes existing momentum can do a lot of work. Take chain retailer Gap, whose national network of approximately 130 stores across its constituent brands in Japan has been in development since 1994. Thus, when they launched their Asian e-commerce site just last October, they had a successful operational infrastructure already in place. Customer favorites such as universal shopping carts and free local shipping were easily and efficiently integrated from day one. And many of their customer experience features translated well with Japanese customers, who loved Gap’s size charts, multi-angle photos, color switching, and zooming. They capped the experience off with return merchandise capabilities and dedicated Japanese content—all elements giving customers the “ability to shop how, when and where they want,” according to Gap Senior Director of Asia online Iris Yen.

 

The Final Word

Entering Asian e-commerce markets is largely a matter of bypassing expensive startup mistakes. There’s such diversity that U.S. retailers really need to focus on one or two to begin with. Experts put consumer involvement in emerging markets in terms of a four-stage evolution:

 

1. Once they have a device paired with a reliable internet connection, they start by exploring web content and using social media.
2. Then they take basic e-commerce steps: booking travel, etc.
3. Next they seek out entertainment: books, music, movies, etc.
4. Finally, having become fully integrated into the online shopping mentality, they purchase from the full spectrum of products: apparel, electronics, healthcare, even groceries.

 

Knowledge of your consumers’ place in this evolution is crucial and can truly mitigate the difficulties of the process. Circling back to Newegg, timing played a huge role in their astounding success when they entered the Chinese market. At the time, the foundation for e-commerce was in its infancy, and the Chinese government actively encouraged foreign investment with tax breaks. It was the right place and the right time for Newegg to step up and meet a growing demand. But perhaps most important of all was Newegg’s commitment to fostering regional relationships with existing Chinese businesses. Their continued success, and yours, is proportional to the recognition of and support for an emergent, consumer-driven market.

 

The Biggest Gainers in Asian E-Commerce Markets

Format: Retailer — 2012 Web Sales — 2011 Web Sales — Growth

NOTE: many of these figures are based on Internet Retailer estimates

 

AUSTRALIA

JB Hi-Fi — $52.9M — $29.9M – 77.2%

The Catch of the Day Group — $302M — $198M — 52.53%

 

CHINA

Suning Commerce Group Co. Ltd. — $4.76B — $945.1M —403.67%

Lele Furniture Information Technology Co. Ltd. — $160.2M — $32M — 400%

 

INDIA

Flipkart.com – $74.9M — $40M — 87.21%

IndiaTimes Shopping — $142.4M — $90.7M — 57%

 

JAPAN

Kenkou Corp. – $8.7M — $6.2M –40%

Gilt Groupe Co. Ltd. — $68.1M — $54M — 26%

 

SOUTH KOREA

Yes24 Co. Ltd. — $306M — $244.8M — 25%

LiBRO — $3.24M — $2.59M — 25%

May 13th, 2013

Asian E-Commerce: the Last Frontier, Part II

Category:E-Commerce | Posted By Peter Longofono on May 13th, 2013

Asian e-commerce

credit: iglobalstores.com

 

 

Welcome back! This is the second article of three covering the challenges and concerns of e-tailers looking to expand operations into Asian e-commerce. Through a mix of mini case studies, relevant metrics, and solution strategies, we’ll explore the issue from the inside out. Check out Part I for an introduction to the topic. Let’s go!

 

 

 

Making Inroads in Asian E-Commerce

Iconic retailer Macy’s used its considerable resources to team up with FiftyOne Inc. and VIPStore, securing a delivery agreement with the former and a marketing deal with the latter to spearhead an initiative aimed at Chinese web shoppers (predicted to surpass 400M consumers by 2017, according to eMarketer Inc.). Even for a mammoth entity like Macy’s, understanding the habits and predilections of Asian online shoppers can be a struggle.

Just look at The Home Depot Inc., which announced in September imminent plans to close seven big-box stores in China due to China’s lackluster response to its stars-and-stripes DIY approach. In arena where success hinges on a sustainable e-commerce base, you’ve simply got to play to your audience better. And they will: instead of going it alone, they plan to cut the risk via a possible alliance with 360Buy Ltd., #3 on Internet Retailer’s list of the top ten Asian e-commerce retailers.

 

To the Amazon!

…or, more accurately, Amazon.com, who has Asian online market penetration down to a science. Their approach to Japan—notoriously tough customers ever since, well, the dawn of East-West trade—is practically textbook. Back in 2000, as one of the first U.S. retailers to enter the country, Amazon established a solid foundation by aggressively studying the buying and navigation habits among almost 193,000 Japanese customers already regularly using Amazon’s home site (again, there are benefits to extensive infrastructure and a robust market research team). From there, they built up a template for further action:

 

• Enter early
• Begin with a fully developed product inventory
• Utilize an intelligent and responsive customer service program
• Build site features around local shoppers’ preferences

 

Concurrently, they developed physical properties to facilitate large-scale logistics: a headquarters in Tokyo, regional distribution centers, and customer service centers. These efforts paid off in spades: from its amazon.com.jp property, an all-Japanese bookstore comprising 1.7M books by Japanese authors or popular translations, the company milked the region into its second-largest foreign market with $7.8B in 2012 sales, accounting for more than a quarter of Amazon’s 2012 international sales.

“Amazon likes to do its homework and make a big enough investment in all the right things to position itself to grow as the market grows,” quips Scot Wingo, ChannelAdvisor CEO. Indeed!

 

The Saga Continues

Of course, the battle is far from won. Amazon.com may seem to be sitting pretty with 11 Japanese distribution centers and 50M products on amazon.com.jp, but it still defers to Rakuten Inc., the market leader with 2012 estimated sales of $9.76B. Efforts continue to expand and revitalize Japanese operations. Like what? Try the Kindle Paperwhite and Fire tablets, recently released in Japan alongside a Kindle bookstore hawking Japanese digital content. There have also been strong initiatives to augment its fashion and food product offerings, as well as plans to fortify same-day delivery to more of western Japan.

“Amazon is setting the bar,” says Wingo, “[that] a lot of other U.S. and Japanese retailers will have to meet.” Yet they aren’t sitting idly by—they’re taking cues! Amazon took about 18 months to launch its first Asian e-commerce site, whereas Zazzle was able to up the ante since then via quicker data transfer between its systems and sites. According to CFO Jason Kang, Zazzle anticipated these challenges, incorporating codes and modules accommodating a variety of languages and currencies when it developed its internal e-commerce platform in 2005. All told, this cut the time to go-live for its Asian e-commerce site by half.

 

The Ten Fastest-Growing E-Retailers in Asia

Format: Retailer (Country) – Asia 500 Rank — 2012 Web Sales — 2011 Web Sales — Growth

NOTE: many of these figures are based on Internet Retailer estimates

  1. Suning Commerce Group Co. Ltd. (China) – #5 — $4.76B — $945M – 403.67%
  2. Lele Furniture (China) – #57 — $160.2M — $32M — 400%
  3. 51Buy.com (China) – #8 — $1.606B — $379.6M — 322.96%
  4. DHgate.com (China) – #155 — $53.6M — $13.4M — 300%
  5. Jiuxian.com (China) – #33 — $317M — $81M — 291.36%
  6. Green Box (China) – #194 — $38.8M — $12.4M — 212.9%
  7. VIPShop Holdings Ltd. (China) – #20 — $632M — $224.3M –181.82%
  8. Gome Electrical Appliances Co. Ltd. (China) – #24 — $507M — $195M — 160%
  9. Jumeira Network (China) – #55 — $163.5M — $64.1M — 155.13%
  10. Vancl.com (China) – #10 — $1.4B — $560.6M — 149.72%

 

All China! Very interesting. We’ll be back shortly with the thrilling conclusion!