Sigma Micro and Stark Brothers Combine to Become Fifth Gear

Sunday, January 24, 2010 by Bryan Povlinski
Today is an exciting today for everyone here at Sigma Micro.  We've officially merged with our sister company, Stark Brothers, to form an outsourced business and technology services company called Fifth Gear.  With Sigma Micro's expertise in ecommerce platforms and retail software, and Stark Brother's fulfillment and logistics prowess we're confident that Fifth Gear will be extremely valuable to manufacturers and online retailers who want a full service solution that allows them to sell to consumers directly.

So what exactly is an outsourced business and technology services company?  Fifth Gear has the unique ability to provide everything a company would need to sell their goods directly to consumers.  This would include a warehouse to store inventory, a technology platform to handle order processing, relationships with major logistics providers, a call center to manage customer service, and a front end web store to display your goods online.  Previously, retailers would have to choose solution providers in each of these different categories and integrate them for the business to work.  This approach can lead to a whole slew of problems if any of the applications don't easily fit together.

With Fifth Gear, the physical warehouse system, the backend online ordering system, and the front end eStore can all be through one provider.  You no longer have to spend time integrating different applications or worrying about incompatibility.  Fifth Gear has all of the tools needed to operate a direct commerce business.

If you'd like to learn more head on over to www.infifthgear.com!


Boosting the Holiday Sales

Monday, November 2, 2009 by eCommerce Gurus
One thing all retail ecommerce companies understand is that during the busy holiday season, their company has a chance to experience high volumes of traffic to their sites. The sometimes difficult part of the on-line retailer is that they do not just want visitors, but instead they want buyers. Here are some tips on how to better your ecommerce platform and ultimately convert visitors into buyers.

The first thing that needs a close examination is the search engine optimization (SEO). According to Lisa Wehr of practicalecommerce.com, there should be more than keyword mining, pay-per-click campaigns and link building. The on-line retailer should also try new tactics to convert browsers into buyers. The on-line security company, McAfee has found that out of 163 million shopping transactions they tracked, 65% shoppers completed their purchase after waiting for a day or more. So the question is, how do you convert web browsers into purchasers.

In order for the retailer to benefit from their ecommerce platform they must be able to entice the customer into buying their products. Some ideas on how to do just that include selling products at a discount. Every person buying products on-line loves to buy on discount. In the case of shopping cart abandonment or just to get the customer to commit to the buy, lure them back by offering the product at a discount or for free shipping. Another tactic is to use email campaigns to get the on-line retailers' products out there while also offering great deals. The email blast also gives viewers another avenue in order for them to refer back to the website. Safety can also be another way transform viewers into buyers. In order to make the consumer feel secure, the on-line ordering system must also be secure. Since identity theft is so prevalent these days, safety of the consumer's personal information must be a top priority. Having a website that is safer than Fort Knox will provide the viewer the confidence in ordering products form that company.

For this holiday season, ecommerce retailers should show that their online ordering system is safe and secure while also offering great prices, discounts and incentives for people to commit to buying products.

Warehouse Management

Monday, October 19, 2009 by eCommerce Gurus
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Ecommerce Puzzle

Wednesday, October 14, 2009 by eCommerce Gurus
Online retail is on a constant growth spurt in the US. There are many contributing factors to this increase in online activity like continual product update, real time inventory numbers, and ease of researching products. For the retailer themselves, this can be a stressful experience. The online retailer wants an ecommerce platform that will serve every purpose of the company. Many ecommerce companies provide different attributes of an online retail software solution.

Imagine, if you will, that you are an online retailer in need of an ecommerce platform. Your company will need software that handles an order management system, warehouse fulfillment and a product data management system, along with other applications that all perform in sync to facilitate your ecommerce needs. Let’s also pretend that you get your order management system from Company A, warehouse fulfillment from Company B, and all others from Company C. These companies represent different pieces to a puzzle. Remember you are the online retailer and you are trying to make your company run as efficiently as possible. How much of a hassle would it be to understand the different software, much less use the software effectively to accommodate your needs?

Sigmacommerce provides all the necessary tools for a successful ecommerce business. Merchandising, call centers, warehouse fulfillment, marketing, finance, web design, and much more are all offered through one company (Sigma-Micro). We not only provide you with all necessary tools but also help implement it into your company without costly down-time. Sigmacommerce has over 25 years of experience when working with the logistics of a retail company. In order to correctly piece the puzzle together, go with a company that provides all aspects of ecommerce business.


Use Dropshipping in Your Ecommerce Business

Tuesday, October 13, 2009 by eCommerce Gurus
Recently we've come across a fantastic ecommerce tool called Doba.  For around $60 per month depending on which plan you choose you'll have access to over 200 different wholesale suppliers and millions of their products.  You can sell any of these products on marketplace sites like eBay or use your own ecommerce platform to see them on your own website.

The beauty in Doba is that you don't pay for any of the products until your customer actually places an order to purchase it.  Then you use you take the customer information from your order management system and enter it into Doba.com.  Then the wholesaler will dropship the product directly to your customer.  You can set your own retail prices, and use all of the product images and descriptions directly from Doba.  Your breakeven point is only $60 per month, and Doba makes it so easy to paste any product onto your website.  Depending on what ecommerce solution provider you use, it may be directly supported for seamless integration.  Check it out, and let us know what you think!

Submitted by: Bryan Povlinski

Implementing Sigma Micro

Friday, October 9, 2009 by eCommerce Gurus
For many people “change” is simply the substitute of one thing to another, but “change” to the online retailer might mean a major headache. Take for instance, software. For online retailers their online ordering system is what allows viewers to explore and compare products, add items to the cart, purchase and ultimately ship to the end consumer. For those online retailers who have existing software that contribute to repeated problems, change is necessary.

Sigma Micro has developed an implementation processes that makes change simple and completely worry free. Our implementation methodology is the only one in the industry that understands the retailers’ worries and designs the process in accordance with the online retailer. In the implementation methodology there are seven steps to complete transitional success and in 25 years of business Sigma Micro has never failed an implementation, and never will. These steps include: plan, build, install, educate, train, activate and optimize. Our implementation methodology is a proven way to help the online retailer change from troubled existing software to Sigmacommerce, a retail software solution. To better understand the seven steps of our implementation process please check out www.SigmaMicro.com and explore the implementation section.

Customer Relationship Management - CRM

Wednesday, September 30, 2009 by eCommerce Gurus

Understanding the importance of the customer is a main focus for retail companies. With Sigma Micro's Customer Relationship Management Application (CRM) those retail stores can manage their customers through a single screen sales and ordering process. What the retailer will see is transactional history, returns, and customer service. The CRM provides the retailer and customer with a better relationship

Within the Ecommerce Platform, the Customer Relationship Management Application will provide the retail companies with customer-managed data that can be revealed to Call Center Representatives through the web or the Call Center. It will also allow access to the customer profiles in order to better manage the customer relationship.

As for the online ordering system of this application the CRM can track the availability of inventory and order status in real time. Through this feature the retail store knows what is available at that time and just where the product is at any moment. The CRM can be a detrimental asset to retailers in order to strengthen the customer relationship.

Multi Channel Software

Tuesday, September 29, 2009 by eCommerce Gurus
Multi Channel Software is designed to unite information across two or more business operations; specifically, retail sales operations.

When most people hear the phrase "retail sales" they think brick and mortar retail.  In fact, any transaction in which a product is purchased by a consumer from a business is a retail sale.  Therefore, retail sales operations occur not only in brick and mortar locations, but also over the phone and online, often driven by paper catalog mailings.

Sigma Micro has been designing and building multi channel software solutions since 1982, first with a product called Controller, and most recently with a program called SigmaCommerce. 

These two order management systems represent over 27 years of expertise in unifying the information that comes from selling through two or more retail sales channels.  This kind of software allows a retailer to track, manage, and measure its entire business with a single, comprehensive tool.

Learn more at www.Sigma-Micro.com.

Catalog Fulfillment Solutions

Thursday, September 24, 2009 by eCommerce Gurus
Not all catalog fulfillment solutions are created equal.  Stark Bro's Fulfillment Solutions (SBFS) offers such services for retail companies who sell direct to consumers through a catalog.  These services include warehousing and shipping, outsourced call center services and unbeatable freight rates that individual retail businesses could never negotiate alone.  Stark's shipping volumes allow them to negotiate rates with major carriers like Fed Ex, UPS, and the US Postal service. 

Stark takes these responsibilities and their related costs off the plate of a retailer and manages all of them independently with sophisticated order management systems build exclusively for direct retailers.  Learn more about Stark Bro's Fulfillment Solutions at www.starkbrosfulfillment.com.

Looking for a new Ecommerce Solution Provider?

Thursday, September 17, 2009 by eCommerce Gurus
As the weather cools and the leaves fall, this only means one thing to retailers. Things are about to get crazy with the holiday shopping season. As we move into the busiest and most stressful time for your online ordering system have you taken a good look at your current ecommerce solutuion provider? Does your retail software solutuion provider assist you with the following items:


- Do you have an ecommerce platform that is easy to use and encourages growth in your business?
- Do you have an end-to-end order management system build exclusively for direct retailers?
- Does your provider also have catalog managment software and do catalog fulfillment? 
- Does your provider have a robust customer relationship management application?
- Does your retail solutions provider have a multi channel software system or is it all located in one system with one shared database?

Can your system do all that? If not maybe its time to look for a new Ecommerce Solution Provider so you are all ready to kick butt next holiday season. 


The Difficulty of SEO for Ecommerce Websites

Thursday, September 10, 2009 by eCommerce Gurus
A major factor in the success of an ecommerce website is the effectiveness of search engine optimization efforts.  When people use the web they're constantly searching because search engines like Google have become so good at delivering relevant results.  With a search bar built into most new broswers it's often easier to just write the name of a website or product into the search box and Google will get you there faster than if you typed the entire address.

The way to get your website at the top of Google's results is a combination of having the right keywords on your site, and having other sites link to yours.  On an ecommerce website with potentially thousands of different product pages, it's pretty time consuming to get your keywords on each page.  It's almost essential that your ecommerce platform have some kind of automation built in to help you populate page titles and descriptions without tons of manual labor.  However, it's a bad idea to simply automatically generate the same title and description on each page because your products are not the same.  Your ecommerce solution provider should be able to help you work out a process to make this pain free.

Everett Sizemore has written an outstanding article on ecommerce SEO techniques that's a must read for anyone doing business on the web or using some kind of online ordering system.  I'd suggest you read the full article, but here's a run down of his best points.

Never, Ever, Use Manufacturer’s Product Description

Everyone else uses it so make yours different.

Set Product Names in Stone

If they change then you have to go through the work of changing the URL and any links

No Matter How Similar The Products, Always Write Unique Descriptions

This takes a lot of time, but it should help your search engine rankings considerably because you're able to insert the keywords that you want.

Redirect Removed Products Right Away

Don't let your customers get errors because you left a URL on the site of a product that's no longer there.

Use the Canonical URL Link in Your Header

Keep all your links in order with this tool so that they all count toward your ranking in Google because if you don't then yoursite.com and www.yoursite.com count as two different websites.

Put Content on Directory Pages

Put some content at the top of your group or category pages explaining what types of products are on that page.

Affiliates Rock

There are a lot of internet marketers out there that want to promote your products.  Give them that option.

Affiliates Rock But Don’t Reconvert the Believers

If someone likes your product enough to post about it and link from their own blog it's not necessary to convert them to an affiliate.  They're already an affiliate.

Never Stop

SEO is never finished.  Google can change algorithims whenever they wish and new competitors are always popping up so you can't be content.

Put Your Blinders On

Focus on just a few of your most important keywords when things seem to be getting too hectic.

Interlink

Linking between your own pages is incredibly easy, and again you can help your rankings on the keywords that you want.

Separate Brand from Non-Brand Keywords

When looking at your analytics don't lump all of your keywords together because your website name is going to get a lot more traffic from search engines than a particular product or keyword.

I agree with many of Everett's points, but I also realize that it's a ton of work to do everything he suggests well.  Maybe just pick a one or two things to focus on right away.  Find an ecommerce solution provider who will work with you on these initiatives.  Finally, make sure you're using an effective online ordering system to manage your ecommerce store.  Oh, and read blogs about ecommerce and SEO...you're bound to find some great information that you've never thought about.

Posted by: Bryan Povlinski


Catalog Fulfillment

Thursday, September 10, 2009 by Corner Office
Check out Stark Bros Fulfillment (www.starkbrosfulfillment.com) for all your catalog fulfillment needs.  For over 14 years, we have provided Stark Bros with the order managment systems and ecommerce platform they need to be your full service, catalog fulfillment partner.  Stark Bros leverages our multi channel software combined with their infrastructure to deliver to market a complete mail order solution.

Why Outsource your Catalog and eCommerce Fulfillment?

Thursday, September 10, 2009 by Corner Office
In times like this, direct retailers must consider new business models to gain a competitive advantage.  To better focus your time and energy on your expertise in merchandising and direct marketing strategies, have you considered outsourcing your catalog and ecommerce fulfillment?  With our industry leading Order Management Systems, SigmaCommerce and Controller+, we have the technology, infrastructure and expertise you require.  We utilize our own proprietary multi channel software with a robust ecommerce platform.  We manage 400,000 square feet of warehouse space and two fully staffed call centers.  The combination of our technology, infrastructure, and operational expertise forms a full service order management system.   Let us prove that outsourced catalog and ecommerce fulfillment can work for you. 

Retail Giant Buys its Own Social Networking Company

Friday, March 13, 2009 by Corner Office
Sears Holdings Corporation has recently opened www.ServiceLive.com, an online marketplace designed to be a name-your-price resource for home and office improvement related services.  It seems like a great use of online media for connecting contractors with clients, not to mention the myriad opportunities for exclusive Sears product suggestions.

While I'm a do-it-yourselfer at home, most home owners are probably unlikely to get more than a couple quotes for improvement projects.  I also imagine the traditional process for finding bidders on office remodeling projects is less effiicent than it could be; limited to probably 2-4 service providers.  After all, who wants to spend as much time investigating competitive options as it would take to simply get the work started?  It looks like Sears' ServiceLife.com marketplace could address issues of convenience and efficiency for everyone. 

Here's the really interesting part:

According to Internet Retailer, SHC Israel Ltd. has acquired Delver.com, a social search company, with hopes that their "talent and innovative social media technologies" will enhance Sears' ability to engage customers online.  George Coll, Senior Vice President of New Services at Sears, seems pretty well focused on the purpose of this new acquisition, highlighting meaningful relationships and improved customer experience as the goals of the investment.

Anyone can see the potential usefullness of Sears' new business unit, but the difference between good and great lies with the website's ability to connect; connect with home owners, connect with business administrators, connect with service vendors, and connect each of them with Sears' products/brand image.

So, it seems that social marketing is gaining recognition and value among retailers -- a trend that will continue to grow as long as we're willing to listen and adapt.  Funny thing is, there's no one-size-fits-all method for making social groups work to our advantage. 

Sure, there are the tried and true customer relationship management applications and online ordering systems with tools like customer ratings and reviews, but these represent the penny ante; the minimum requirement for playing the game.  The more unique and remarkable a social shopping experience, the more connecting power it has, and the more likely it is to spread from today's users to tomorrow's users.


Posted by : Jesse Kurth

HSN Takes a Hit While the Online Channel Grows

Thursday, March 12, 2009 by Corner Office
I usually keep a close eye on updates from Internet Retailer, and it seems that late-February / early-March is the right time for reflecting on retail performance from the previous year.  I've been taking notes to share with you, just in case you're not such an avid IR reader. 

First on the list: the Home Shopping Network.

As I understand it, HSN is the hallmark direct-response television retailer.  Of course, most of my familiarity with the company comes from sleepless nights in front of the tube, when the only viewing options are get-rich-quick infomercials and HSN.  There's plenty to be said for this business model; I can't tell you how many items I've been tempted to purchase with judgment impaired by sleep deprivation.  But that's a marketing lesson for another time.

According to IR's reports, HSN's direct-response TV business unit held it's own by maintaining sales levels from 2007, which, considering the economic events of 2008, might as well be considered a landmark achievement.  However, HSN experienced real growth through HSN.com, it's ecommerce operation, which grew 16% over 2007.  This performance is par for the course, as online growth metrics have consistently outperformed traditional channels year-over-year.  If you think about it, the online channel is the greatest innovation in "home shopping" since direct response TV anyway.  HSN seemed pretty well positioned to take advantage in the first place.

Despite these great numbers, HSN Inc.'s total sales fell 3% in 2008.  This is because HSN owns a very separate business unit called Cornerstone Brands, which operates an ecommerce channel, catalog, and retail stores.  HSN would have posted considerable growth overall if not for this unit which shrank in every channel.  Store and catalog sales hemorrhaged losses of 22% while the web, still the best performer, lost 6.7% of sales over 2007. 

This illustrates two important lessons for retailers:
  1. Ecommerce is the indisputable champion for consistent year-over-year growth, or at least, protection from cataclismic losses in retail sales.
  2. Ecommerce is not the magical door to Narnia.  Even well managed online divisions cannot push a company with unpopular brands and products into the black.

Mail order solutions and product data management will only get you so far. A good online ordering system with appealing products and (price points) to match will go a long way in hedging your bets for 2009.


Posted by: Jesse Kurth

Smart Retail is Like an Orange?

Wednesday, January 14, 2009 by Retail Legends

Recently, I have been soaking up lots of information about how retailers can survive and thrive in this current economy. I ran across an interesting blog post about the importance of managing risk through multiple sales channels. This can be demonstrated through a simple analogy of sharing two oranges; each orange representing a revenue channel of the business. 

When I share oranges with my friend, I take two oranges and cut them in half. I give her half of one orange and half of the other. I do this because I want her to have at least one half of a good orange. It's also so I don't end up with a full bad orange. Fundamentally, I've managed my business risk through typical strategies; including transferring the risk to another party, reducing the negative effect of the risk, and accepting some part of the risk. I do this so that I don’t end up with a full bad orange.

The part of this analogy I find especially relevant is the part about transferring risk. This tip is especially relevant for direct retailers and manufactures in today’s volatile economy.  An easy way to diversify risk is for the retailer to continue to do what they’ve always been successful at; selling their product through their traditional channel(s), then diversifying their level of risk by giving the eCommerce piece to an outside party who’s in the business of maximizing a retailer’s eCommerce revenue channel. This new revenue channel will not only allow the retailer to sell to the customers in their city but makes their products available to the entire country.

If a retailer does not have a “web guru” on staff or a customer relationship management application, I know a few people who can assist with website re-design and online ordering systems.


There are over 1 Billion online shoppers… and growing. Are you getting a piece of this good orange


Posted by: Rachel Modiano

Beware the taxman

Tuesday, January 13, 2009 by Retail Legends

With the economy in a tailspin and state/local budgets getting squeezed, you can bet tax laws for Internet sales will come under tremendous pressure.

The Internet Tax Freedom Act originally passed in 1998 and renewed by the 2004 Internet Tax Nondiscrimination Act will expire in 2011.  With 2008 on-line sales projections in excess of $200B governments are certainly salivating over what could be an additional $4B in tax revenues by 2011.  (seems like such a small number when you compare it to the $750B TARP and  the $800B stimulus package proposed by President elect Obama).

While 2011 seems like a long way off there's sure to be plenty of debate.

Should they extend the tax moratorium? Should it be abolished and force merchants to comply with every state and municipality tax law? Or should they enact a more easily implemented Streamlined Sales Tax?

Don't wait. start reviewing the impact on your eCommerce and Order Management solutions.  Changes like this to your on-line ordering system could be major.  Plan for the worst and hope for the best by getting the answers now to a few simple questions.  You'll be glad you did.


Posted by: Jeff Long

Better Mouse Trap

Tuesday, January 13, 2009 by eCommerce Gurus

The “better mouse trap” was a theory that Ralph Waldo Emerson came up with, saying that if you build a better mouse trap people will come beating down your door to get it.

Today we see a lot of mouse traps out there in the online world. We jump on every band wagon there is -- just claim to be “2.0,” or “3.0,” or quote Seth Godin if you want some attention. In all honesty, the trend-heavy world of online banter has some really good ideas floating around (especially Seth), but that’s not my point.

When it comes to drawing people to your site and selling products, it’s the content that sticks in consumers’ minds. Do you get more excited when you read your friend’s product review than you did when you read the product’s description? We are all still human and our neurons fire just the same as they have for the past hundred years. Communication is still the key.

With that in mind, explore the options: a customer relationship management application or online ordering system can really add to your bag of tricks, but...

No matter how you do it, you’re selling to a person, so choose your mouse traps wisely.


Posted by: Travis Hall
 

Good Inventory Management is Imperative: Part IV

Wednesday, December 31, 2008 by Retail Legends

I have picked on almost all other areas except the warehouse operations, so it looks like a good day for that topic.

 

The warehouse personnel are the safe guarders of the company’s inventory in the physical sense.  Good warehouse inventory practices may take some time to establish, but in the long run will benefit the company in many different ways.

 

Warehouse inventory management practices must not be optional.  A good slotting strategy and commitment to place all products in appropriately accountable locations is imperative to good inventory management.  A good end-to-end Catalog Fulfillment / Order Management System or Warehouse Management System will go a long way to helping or enforcing the practices that a company adopts.

 

I can’t begin to tell you how it frustrates me to walk into a warehouse operation and see the “in the corner”, “against the back wall”, or “in Bob’s desk drawer” locations.  This method of tracking inventory is wrong for so many reasons.  To name just a few:  lost merchandise (probably buried under other stuff), only the so called “experts” know where anything might be, the warehouse accountants or inventory control people probably know where nothing is, the merchandise can’t be fulfilled efficiently, and because no one knows where anything is, purchasers probably are mistakenly buying more stuff to pile onto the heap. 

 

Good slot management allows for easy training of new or temporary employees.  Picking operations can be made significantly more efficient.  Picking errors can be drastically reduced.  Inventory control and accounting can be made more accurate and effective.  Purchasing is more likely to order the needed merchandise.  And, upper management will be much happier having a real handle on probably their biggest money investment.

 

Although this is the end of the inventory management chain, this is really where all success hinges.  Purchasing and Accounting can’t be successful without good warehouse practices.  For the sake of the success of your business, look into making this a priority.  “We don’t have time to…”, “I don’t see why…”, “But, Bob knows where everything is” are not valid excuses, and the excuses are costing your company money.

 

Posted by: Kevin Smith

Full Service Direct Retail Solution

Wednesday, December 17, 2008 by Corner Office

Without question all businesses are facing daunting economic challenges on a global scale yet direct retailers are holding their own this holiday season, primarily through the strength of online sales.   As I interact with direct retailers, I consistently hear concerns however regarding compressed margins, the rising costs of logistics, lack of resources, and limited infrastructure to support future growth.  These concerns exceed the capability of a stand-alone ecommerce solution provider or order management system.

At Sigma we offer the full solution to these problems.  Our clients serve a wide range of compelling niche industries and we are advising them to focus on their core capabilities as direct marketers and expert merchandisers.  In turn, we provide them technology, fulfillment and operational expertise and they leverage our physical infrastructure, including warehouse, call center and IT hosting facilities, to drive profitable growth. 

The challenges and needs of direct retailers are unique and let’s face it, ecommerce is not easy.   Retailers must succeed on all of their channel strategies to achieve profitable growth while delivering great service.  This requires more than a retail software solution.  It requires a business partner with over two decades of direct retail expertise. 


Posted by: Matt Konkle