We've received a number of calls about the December 1, 1997 issue of The Green Sheet and the lead story, "The New ISO Paradigm." To answer the two most common questions, first let me offer a brief description.
We believe that many merchants can benefit by using the on-line MerchantWAVE software to maintain their physical store inventory. Imagine that with a PC or two equipped with a cash draw, and the willingness to use the Internet to maintain all or a portion of a merchant's inventory, the merchant can gain the benefits of opening their store to the world. It takes no additional capital to open stores, yet the inventory in one physical store becomes the basis for a worldwide virtual store.
In addition, the economics of commerceWAVE are extraordinary. From the least expensive buy rate at $450, plus $59.95 (five products) per month to the most expensive at $8,500 and $650 per month (500 products) the cost of a completely commerce-enabled site is very, very lucrative for an ISO.
With this "anything is possible" approach you can make some very serious money. And the talent and system to back your sales are available and ready today.
Has everyone bought into this idea? Well no, but that is changing rapidly. If you're on the West Coast, you may have seen the commercial for Jack in the Box in which they scoff at the idea of using a Web site for marketing efforts. Well, a year ago that was the predominant tone of the industry. Executives just didn't get the Internet and the potential revenue it could mean for their companies. In fact, research showed that 80% of corporate communications did not consider the Net to be an important tool.
The tide is changing. According to Spiral Media, today 87% of executives say companies must have a Web site to stay competitive. Seventy-six percent of respondents reported that public Web sites have increased their brand awareness. A different survey by Web Techniques magazine also demonstrates the impending growth of Internet commerce. The survey found that the number of Web sites that will consider using electronic commerce products, technologies, and services will increase by 116% in the next six months. The amount of revenues generated from Web-based electronic commerce is expected to grow by more than 100% in the next year.
According to another research firm, Forrester Research, companies who operate on-line spend less time processing orders and more time getting the product to the consumer. Forrester also found that net inquiries cost 60% less than telephone queries. On-line orders are also 4% more profitable since they operate `round the clock and are less expensive than employees.
For ISOs, this change in attitude means a new market, but it will require some work from merchants and ISOs. One firm says their company spent two years on cold calls and presentations to get clients to use the Net. Another uses "commerce ambassadors" to walk customers through their initial orders.
How will you take advantage? You must realize someone is going to sell Web services to your customers. Your decision is simply: is it going to be you?
To sign up, or to learn more about commerceWAVE, call Luanne Hinkle at (760)931-0070 or visit their Web site at http://www.commercewave.com.
