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Web Watch

Mark Gibbs, Information Age

01/05/1999 17:09:44

Picks

Intel (http://www. intel.com)

Intel has gone from having a strictly informational home page, when it fired up its Web site in 1994, to generating e-commerce revenue of $US1 billion per month today. Driving the transformation is Sandra Morris, a 14-year company veteran whose latest success comes from her online endeavours. Watch what Intel does under Morris' guidance -- she has the vision and the power to redefine e-commerce.

Site most responsible for changing an industryAmazon.com (http://www.amazon.com)Amazon.com, seller of books and music over the Internet, opened its virtual doors in July 1995 with the idea of using the World Wide Web as its storefront. But it wasn't until the company went public in May 1997 that Amazon.com surprised traditional booksellers (primarily book superstore, Barnes & Noble) with its e-commerce punch. Today, Amazon.com has 4.5 million active customers, many of whom experienced e-commerce for the first time through the site. Amazon.com's market grasp is firm and its technology impressive, with sophisticated personalisation, account management and customer service features. Book selling and buying will never be the same.

Site that has spawned the best new business opportunityeBay (http://www.ebay.com)Founded in 1995 specifically for online sales, eBay has developed an auction format on the Web that has attracted more than one million registered users. The company lists more than one million items for sale and adds upwards of 150,000 new items, in more than 1000 categories, daily. The categories include every kind of collectible. The company runs a novel business that's growing at a phenomenal rate. When it comes down to business, eBay is doing all the right things with e-commerce. Where else could you spend $15,000 on a rare porcelain Coca-Cola sign from the 1800s?

E-comm site that best targets an international clienteleDoubleClick (http://www.doubleclick.com)DoubleClick sells online advertising space worldwide. In December 1998, DoubleClick served up more than five billion ads across 6400 sites. And on top of that, DoubleClick has completely internationalised its Web site, which supports 13 languages. DoubleClick is one of the few companies that recognises the need to customise for local markets and that this localisation is crucial to international business. Last year, 14 per cent of its revenue came from international operations. That segment is showing a 64 per cent growth rate this year. If you think you're in a global market and you've not done what DoubleClick has, go back to the drawing board.

Company that came by its e-comm success accidentallyFederal Express (http://www.fedex.com)Federal Express, the doyen of the shipping industry, today has a firm grasp of the benefits of e-commerce. Back in the early ‘90s, the company was providing its customers with custom package tracking and shipping software. In 1994, FedEx stuck an experimental toe into the fast-flowing stream of the Internet and launched its Web site, with only a basic package tracking facility. Customers were delighted, and within a few months FedEx was phasing out the custom software and gaining a significant edge over its biggest rival, United Parcel Service. FedEx's e-commerce strategy is now focused, efficient and effective, despite a somewhat accidental start.

Pans

Company that should most obviously be conducting business online but isn't yet Merrill Lynch (http://www.ml.com)In the frequently asked questions list at Merrill Lynch Online, you'll find the question "Can I trade electronically with Merrill Lynch Online?" To which the answer is: "Electronic trading is not part of the Merrill Lynch Online service at this time. Your Financial Consultant remains at the heart of your relationship with Merrill Lynch, and all transactions must continue to go through him or her." Considering the success of E*trade online, it is hard to understand why Merrill Lynch can't see the writing on the wall. Can you say "shrinking market share"?

Company that offers most unusual incentive for using its e-comm siteInternet Entertainment Group (http://www.sexquotes.com)Of all the marketing strategies that we would never have thought of -- let alone believed would work -- giving away pornographic pictures while users get stock quotes is one of them. That said, SexQuotes, a Web site owned by the notorious Internet Entertainment Group, does just that, showing just how wrong we can be. Please, no jokes about keeping abreast of the marketplace.

Most overhyped e-comm site

K-Tel (http://www.ktel.com)

K-Tel markets and distributes consumer products through retail stores and by direct response marketing. K-Tel's products include albums, compact discs, cassettes, housewares, automotive accessories and other devices. On April 9, 1998, the company announced the launch of its K-Tel Express Web site. Wham! Its stock rocketed to $US79 within a couple of weeks in spite of the fact that analysts described the company as "illiquid". But despite the stock's stellar performance, the company's chairman held more than 70 per cent of it. Fact is, there's not much there -- the financials aren't too impressive, and the company is under investigation for misrepresenting earnings. As an example of the overvaluation that even a weak e-commerce plan can engender, the K-Tel case stands out.

Most overrated e-comm site

Any portal site claiming to provide e-comm servicesIf there's one thing that has received more than enough attention in the past few months, it's the portal business. There are so many portals to choose from, and while they have their benefits, they are a flash in the marketing pan. We thought about building our own and calling it YABP.com (Yet Another Boring Portal), but we lost interest. We think these sites have a limited high-profile lifespan and will fall from hot to cool in a year's time.