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FEATURE STORY
www.artbeads.com - Artbeads offers a selection of high-quality retail beads and findings from several countries including Indonesia, India, and Israel. The site was launched as a brand-new business in 1999 by owner Devon Kimura, who had some previous Web experience but had never sold beads. Kimura chose Yahoo Store as a template to set up his site because it was easy and inexpensive. With all the services he needed to sell a range of 250 products, his basic monthly overhead was $500, a relatively small amount compared to the start-up costs of most small businesses. The first six months were a trial period. The low overhead allowed us to experiment and find out if we really wanted to commit to the new business.
As his business grew, Kimura added more products and customized his Web site. Yahoo Store uses RTML, a proprietary language, so I had to hire a Web site design company to modify the site even though I know how to program in HTML. He is very pleased with his expanding business but cautions would-be merchants not to underestimate the time involved in servicing a Web-business. Other bits of advice: don't try to grow too fast; have a product you are really proud of, and don't give up your day job until you're covering your expenses.
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www.riogrande.com - Rio Grande is one of the big names in jewelry supplies and equipment. With several hefty catalogs and a great deal of industry experience, it is a natural candidate to dominate the online marketplace. Despite their strategic advantages, Rio Grande has moved slowly, opting to launch its Web site in phases. Their site currently offers information about the company's products and services. You can order their catalogs online or purchase liquidation items, but most of the product line is not available for purchase through the Web site.
Rio Grande prides itself on excellent service. Their goals are related to customer satisfaction, customer retention, and customer experience. In line with these priorities, they develop the infrastructure first and then introduce new products. Director Andrea Hill explains the company's strategy. By starting with a simple site, we have had time to develop our internal systems and perfect our skills. The Internet poses many new challenges. Customers expect immediate gratification. It is important to have trained staff available to deal with the increased traffic. It also took time to develop a written e- mail style that matches the verbal style we use on the telephone.
Customer screening is another issue. Rio Grande doesn't sell retail to consumers but it has an important position in the industry helping to develop new jewelers. Online it can be particularly difficult to tell the difference between a consumer and a serious student of the jewelry arts. Now that they have had time to tackle these issues, Rio Grande will move forward. We will start rolling out more functionality later this year, beginning with a cross-section of products and gradually expanding.
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www.artgemsinc.com - At this Web site, you can choose from a wide range of wholesale beads. The core business of Indian gemstones is augmented by Czech glass, pearls, silver charms, findings, and many other items. Owner Moon Shaikh hired permanent new staff members to build and maintain his Web site. Authorizing a large production budget and keeping the project in-house were important to Shaikh. You get what you pay for. I hired professionals and they did a good job. We know our product and what it should look like. If I don't like the pictures, I reject them. It is important for customers to receive exactly what they order.
Updating the site is a full-time job. Currently the pages load in about 2.5 seconds but Shaikh plans to reduce that to 1.5 seconds. New products are added immediately, a decided advantage over printed catalogs, which take six to eight months to produce and are often outdated before they are mailed. Initially, Shaikh thought his site might replace his printed catalog - but his customers clearly want both. Although the Web site currently brings in only five percent of his overall business, he sees great growth potential and is committed to remaining on the cutting edge of e-commerce.
- Research by Tom Thomas
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