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12/30/1899 12:00 AM
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Phising Scam Goes Low Tech
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Vnunet reports that security companies are concerned about a new type of phising scam that is targets PayPal customers and tells them their has been a hacking attack. The phising scam then requests recipients to fax in their account and banking information to a 1-800 number.
The form, which is hosted on a Polish website, asks for email addresses, credit card details and PayPal passwords and asks the recipient to fax them to a US toll free number, starting with the code 1 800.
"It's possible that some people who know that they need to be careful about entering their confidential information on a bogus website may think that completing and faxing back such a form is somehow safer," said Graham Cluley, senior technology consultant at Sophos.
"Interestingly the phishing gang may have made a huge blunder by including the fax number in their scam. PayPal and the authorities are sure to follow that lead when investigating this matter further."
The phisers are trying to fool people into thinking this is a legitimate request by using the fax number. Hopefully authorities will be able to track the criminals by using the same number. Phising is causing banks, credit card companies and retailers to rethink they way the communication with customers via email.
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12/30/1899 12:00 AM
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Yahoo Buys 40% of Alibaba for $1 Billion
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Reuters reports that Yahoo has paid $1 billion to buy a 40% stack in Alibaba.com, a Chinese Web auctioneer. The move will increase the global battle between Yahoo and eBay over web auctions. Yahoo's move also follows Baidu.com, the leading search engine in China, recent spectular debut on the stock market.
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12/30/1899 12:00 AM
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Web Retailers Playing Cybercop to Protect Consumers
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Internet Retailer has a good article about the growing problem of cybercrime. The article explains what some retailers like online jewelry retailer Ice.com are doing to fight ecommerce threats.
The web has become a base for organized criminals who use the open nature of the web and e-mail systems to steal, or phish for, consumer account information while posing as legitimate retailers and banks, mimicking well-known web sites like eBay.com. They sell the information they gather to other criminals or use it themselves to make fraudulent transactions. Though top of mind recently among many retailers and fraud-fighters, e-mail phishing is only one of several new-age forms of cybercrime. Criminals are also finding ways to plant malicious software onto web sites and computers to capture information, including keystrokes that enter passwords, for use in future fraudulent transactions. Ken Leonard, CEO of ScanAlert Inc., a company that tests web sites for network holes that can let hackers steal information, says that 30% of his clients have network vulnerabilities when they first sign up for service. "The hackers are very busy," he says.
In addition to security practices like secure servers and encryption, online retailers are trying to educate their customers about phising and pharming attacks. The article also some good advice about having clear communications with customers so that is less likely they will confuse a legitimate email from the retailer with one that is a phising attack. Etailers are also trying special monitoring software that filters out bad or stolen credit cards without turning down too many good cards. ICE.com is using softare from IDology to filter credit card orders.
Before it started using the IDology system, Ice.com had to cancel more than 5% of high-risk orders, but it has since cut that to under 1% with zero chargebacks, Schaff says. "In the past, we had no way of knowing if they were legitimate," he says. But with IDology?s web-based IDlive identity-checking system, the retailer is now able to verify the identity of nearly all orders, he says. And with only a small handful that still need further checking, Ice.com staff can personally contact customers for verification, he adds.
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12/30/1899 12:00 AM
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Poachers Digging Up Fossils to Sell on Ebay
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The Arizona Daily Sun reports that poachers are digging up fossils on the Oglala National Grasslands and later selling them at eBay or in other auctions for thousands of dollars. The problem has increased in recent years according to the Daily Sun article.
The sales can be lucrative. Fossilized skulls of prehistoric animals sell can sell for thousands of dollars on eBay. In June, a saber-toothed cat skull sold for $32,312 at a Bonhams & Butterfields Natural History auction.
One of Beasley's duties is to keep up with the market price of fossils. That way when poachers are convicted, she can give prosecutors an idea of how much restitution offenders should pay, she said.
The three who were convicted in the 2003 case were ordered to pay $2,000 each. One of them, Tom Neumeyer of Sheboygan, Wis., a technical college welding teacher, declined to give a reason for wanting the dinosaur bones but said he has learned a lesson.
"I will never do this illegally again, I can tell you that," he said. "This has been the worst experience of my life."
This is sad to hear because paleontologists take great care when removing dinosaur fossils and amateurs could easily make a mistake that could prevent or damage a major discovery. Hopefully, the penalties are set high enough to discourage this criminal behavior.
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12/30/1899 12:00 AM
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Web Auctions Replacing Flea Market
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The National Flea Market Association says the number of flea markets are still increasing but the online auction website like eBay are making it harder for them to compete. With competitive pricing and massivie databases of products individual flea markets have a tough time competiting -- unless they jump online themselves. A Nashua Telegraph article describes some one flea market in San Jose, California that is doing more and more businesses online.
Joe Bumb, 50, George Bumb's nephew, was one of the lucky entrepreneurs who got a boost from the flea market. His store has a revenue of about $100,000 each month, although in recent years business has become more difficult. He sells mostly jewelry these days but finds that people don't believe they're getting a bargain unless they check it out on the Internet.
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"Eventually I won't need a store or rather the store won't help much anymore," Bumb said. "I will be doing this from my garage with a computer."
The Internet side of his business is thriving, with revenue of $20,000 a month and growing.
The customers who do show up in person are far more sophisticated than in years past, said Julie Campbell, 46, manager of the Bellwood Flea Market in Richmond, Va.
"The ones that come into flea markets, if there's something in particular they like - let's say Spider-Man lunch boxes - they look it up in books and eBay before coming so they know the prices," Campbell said. Same for the vendors selling them. While it's possible to occasionally find a bargain, she added, it's less likely nowadays that someone will find a 50-cent gold necklace or a first-edition Beatles record for $5, as some of her acquaintances reported they did in the past."
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12/30/1899 12:00 AM
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Website Features That Turn Away Buyers
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EcommerceTimes.com has an article about a recent Hostway study that found several pet peeves than turn people away from websites.
Pop-up advertising -- 34.9%
Registration log-on pages -- 16.7%
Software installation -- 15.7%
Slow-loading pages -- 9.1%
If you are an online seller you should seriously consider avoiding the above pet peeves because many respondents said they would never buy anything from a website that had one of the pet peeves.
76.7 percent of respondents said they would be extremely or somewhat likely not to revisit a site where they found a pet peeve.
74.2 percent said they would be extremely or somewhat likely to unsubscribe to promotions and messages from a company operating an annoying site.
71 percent said they would be extremely or somewhat likely not to purchase from an irritating site.
71.3 percent said they would be extremely or somewhat likely to have a negative view of a company running a vexing site.
Buyers have many choices online these days so be sure you aren't doing something with your retail website or auction site that causes customer frustation. (Via SurfersSurf.com)
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12/30/1899 12:00 AM
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Jennifer Aniston's Ex Cancels Ebay Auction
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The Beloit Daily News reports that Michael Baroni, an ex-boyfriend of actress Jennifer Aniston has wisely decided to drop a plan to auction off some personal relationship items on eBay.
The goods included a piece of paper with Aniston's name and phone number written in lipstick and a photo of the pair hugging when they first met.
"I have voluntarily canceled the eBay auction upon receiving word from one of Jennifer's representatives that she didn't want me conducting the auction," Baroni said in a statement to The Associated Press on Friday. "I have nothing but fond memories of Jennifer as a friend and only wish her well."
Baroni also said that there are some fake items on eBay claiming to be from him.
"Any such postings on eBay purporting to be from me were not, in fact, from me," said Baroni.
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12/30/1899 12:00 AM
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Bonfire Media and Auctiondrop Piggyback on Ebay Success
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CNN has a news story about two companies Bonfire Media and Auctiondrop which have found success by expediting and facilitating transactions for eBay customers. Bonfire Media is a software company that helps eBay users access the eBay website from a mobile phone. And AuctionDrop helps people sell items on eBay without having to set up the auctions themselves. People drop off items to AuctionDrop and they will sell the items on eBay in exchange for a fee.
Auctiondrop CEO George Northup told CNN that his company sold nearly 40,000 items and handed out more than $2 million to sellers last year, taking a third of all sales as commission.
"Essentially (the item to be sold) will come here to our location in Fremont. We authenticate it. List it and photograph it. And run the auction. Collect the money and send you the proceeds," he told CNN.
"We think it's a great value. It costs roughly 33% of the proceeds."
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12/30/1899 12:00 AM
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Amazon.com's Q2: Net Income Down But Gross Profits Up
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Amazon.com's net income fell 32% in the Q2 2005 compared to Q2 of 2004. The net income was $76 million for the second quarter of 2004 but only $52 million for the second quarter of 2005. However, EcommerceTimes.com reports that both sales and gross profits were up for Amazon.com in this year's second quarter.
The Internet retailer said net income for the three months that ended June 30 was US$52 million or 12 cents per share, down from $76 million, or 18 cents a share for the second quarter of 2004.
Sales were $1.75 billion, up 26 percent from $1.39 billion at the same point last year.
The company's gross profit -- net sales minus the cost of those sales -- rose to $450 million, up from $341 million at this time last year.
Legg Mason analyst Scott Devitt told the EcommerceTimes.com that strong sales from independent merchants provided the boost to Amazon.com's big Q2 increase in gross profits.
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12/30/1899 12:00 AM
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eBay: Sellers Using PayPal Must Accept Credit Cards
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InternetRetailer.com reports that eBay is changing its PayPal policy to require that all sellers using PayPal accept credit card transactions. In the past eBay sellers accepting PayPal transactions could refuse credit card transactions to avoid the higher transaction fees associated with accepting the cards.
Wingo says that large sellers -- most of which already accept the credit card option -- seem to be happy with the change. "The reaction we've heard is that they're very much for it because they see that consumers get a little confused," he says.
However, small sellers, who want to avoid the higher transaction fees that come with accepting card-based PayPal transactions, are grumbling, Wingo says.
Typically, small eBay sellers open personal accounts that allow them to refuse credit card payments through the processor, an eBay unit. Personal accounts carry no transaction fees.
Under the new eBay policy, sellers with personal accounts will be required to upgrade to a PayPal business or premier account -- both of which allow credit card acceptance -- if they receive a card-based PayPal transaction. Both business and premier accounts charge transaction fees ranging from 1.9% plus 30 cents to 2.9% plus 30 cents.
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12/30/1899 12:00 AM
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AC Nielsen: 724,000 Americans Say eBay is Primary or Secondary Income Source
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According to a new study conducated for eBay by ACNielsen International Research 724,000 Americans now say eBay is their primary or secondary source of income -- an increase of 68% since a similar study conducted in 2003. The study also found that another 1.5 million individuals say they supplement their income by selling on eBay. In the first half of 2005 U.S. eBay members made a total of $10.6 billion in sales. But of these 724,000 Americans claiming eBay as their first or secondary source of income how many of them use eBay as their primary source of income? The study did not break this figure down but Sellathon says that using the 80/20 rule he would guess that bout 145,000 sellers use eBay as their primary revenue source:
Obviously, I'd love to see AC Nielsen break this data down further. But until they do, I suppose the only thing we can do is guess. I know this isn't very scientific, but applying the ever-present 80/20 rule, I'd hazard a guess that there's about 145,000 sellers who rely no eBay as their primary source of income, and about 580,000 sellers who rely on eBay as their secondary source of income.
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12/30/1899 12:00 AM
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Star Wars Cards Are the Most Popular Movie Trading Cards
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When it comes to trading cards, the force is with George Lucas' Star Wars epic. According to Beckett Media, which publishes trading card magazines and Beckett.com, Star Wars cards are hands-down the most popular movie tie-in trading cards ever. Over the past 28 years, over 250 Star Wars trading card sets have been produced (including more than 40 from the Topps Co.) in over 20 countries, encompassing nearly 10,000 cards. The most sought-after Star Wars cards are the rare, one-of-one Sketch cards that were inserted into 2004 Topps Stars Wars Heritage and 2005 Topps Revenge of the Sith. Those cards feature original artwork from Star Wars artists. They often sell at sci-fi conventions and on the Internet for up to $150.
A Rookie Card (or in this case a "Wookie Card") of Darth Vader -- the central character in the saga's latest installment, Revenge of the Sith -- from the 1977 Topps set will cost you $5. More information about Star Wars cards can be found on Beckett Star Wars card resource. eBay has listings for thousands of Star Wars cards.
"Before Star Wars, trading cards for movies weren't big business," said Doug Kale, Beckett Entertainment editor and contributing editor of Beckett's Collectibles From A Galaxy Far, Far Away. "We based our list of top movie card franchises on several factors -- overall sales, pricing on the secondary markets, total cards manufactured, numbers of countries in which the cards were distributed and, of course, demand. By just about any measure, Star Wars is light years ahead of the competition."
The Top Five most collectible movie-franchise trading cards ever according to Beckett are:
1. Star Wars
2. Star Trek
3. The Lord of the Rings
4. E.T. - The Extra-Terrestrial
5. (tie) Indiana Jones/Batman
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12/30/1899 12:00 AM
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Fire Truck Placed on eBay to Promote New Consignment Service
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Village Soup reports that Rockland Global Packing and Shipping (GPS) has come up with a novel way to promote their new eBay consignment service. They are going to auction off an old out-of-service ladder truck.
"We thought that auctioning the Rockland Fire Department's ladder truck was a unique way to sell it and a unique way to promote our new consignment service," said Pratt. Pratt said all proceeds from the sale of the truck on eBay, less some minor marketing costs, will go back to the city. The plan has been given the blessing of City Manager Tom Hall and Rockland Fire Chief Charles Jordan.
Pratt said the eBay consignment service started as a natural addition to the company's existing packing and shipping services
"It was also a way to grow the business without opening a new storefront and investing a lot of capital," Pratt said.
It is unusual for fire trucks to be auctioned on eBay -- but it probably won't even be the only fire truck up for sale on eBay. There are several fire trucks currently up for auction.
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12/30/1899 12:00 AM
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Google Investors See Promise in Zazzle
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EcommerceTimes.com reports that John Doerr and Ram Shriram, two wealthy venture capitalists rich from their Google investments, think they have found another winner with ecommerce start-up Zazzle.com. Zazzle will sell personalized items like t-shirts and postage stamps using a library of library of 500,000 digital images that Zazzle has slowly been building up. EcommerceTimes says the library includes 3,500 licensed Disney images. Zazzle competitors include companies like Stamps.com, which also offers a personalized stamp service called PhotoStamps and Cafepress.com, which is currently the leader in online personalized items selling t-shirts, mugs and other items through thousands of partner stores created by individuals and website owners. Zazzle's two big competitors, Cafepress.com and Stamps.com, also just announced a partnership, which will allow Cafepress.com merchants to configure and sell personalized PhotoStamps.
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12/30/1899 12:00 AM
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Microsoft Launches Comparison Shopping Beta
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Microsoft has launched a beta test of a shopping comparison site. The beta site can be found here. Chris Jolley, Group Programming Manager of MSN Shopping, told Comparison Engines that they will be using Pricegrabber on the website and also using feeds directly from different merchants:
"Right now we are using Pricegrabber, but we have also increased the number of merchants we're working with directly. The long term the strategy is to explore and investigate ways to bring in relevant offers to consumers. We are launching with Pricegrabber because of the number of merchants they have and the ratings they have. Our relationship gives us a jumpstart in terms of ratings and reviews so we aren't starting from scratch. We are also taking feeds directly from our own merchants."
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12/30/1899 12:00 AM
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Some Retailers Slow to Speed Up Websites
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Internet Retailer is reporting on a new Keynote study that tracks the website performance of some top online retailers. The Keynote study found that the website of Williams-Sonoma Inc., Walmart.com, Eddie Bauer, Staples Inc., Circuit City Stores Inc. and Best Buy. Co. topped the list. However, the Keynote study also found retailers that need to improve their website's performance and speed.
But without naming specific retailers or breaking out specific performance statistics, the Keynote study also suggests that many web retailers are still having problems and need to improve site performance. "The retail industry has succeeded in providing descriptive product web sites, but the transaction performance falls short of expectations," says Chris Loosley, general manager, service level business for Keynote. "It was surprising to find that several of the sites had major load-related issues, a result of detailed page designs and did not easily facilitate the check-out process."
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12/30/1899 12:00 AM
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Bipedal Exo-Skeletal Semi-Robotic Vehicle Placed on eBay
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The Anchorage Daily News reports that Carlos Owens Jr. has placed his handmade NMX04-1A Neo-Mech, an 18-foot tale bipedal exo-skeletal semi-robotic vehicle, up for auction on eBay. The bidding starts at $40,000 and ends on July 18, 2005.
Owens is selling the rust-red machine to fund construction of his next project: a mobile amphibious mech that would run on wheels or tracks.
"That's the only reason I'm parting with my baby," the 27-year-old apprentice ironworker said Wednesday. "I've thought long and hard about it."
Even for eBay, item number 5593908816 is pretty unusual, said Hani Durzy, a spokesman for the San Jose, Calif.-based company.
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12/30/1899 12:00 AM
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Amazon.com Celebrates 10 Year Anniversary
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Amazon.com is celebrating its ten year anniversary with celebrities delivering products to customers. Some of the celebrities taking part in the promotion include Nick Lachey, Michael J. Fox, Minnie Driver, Anna Kournikova and Howie Mandel. Videos of the deliveries are available here on the Amazon.com website. The Book Blog has an entry about Daniel Handler's hilarious delivery of one of his Lemony Snicket novels to 11-year-old Alex. MSNBC.com reports that Amazon.com topped Internet Retailer's annual 400 list -- so Amazon.com is doing just fine after ten years of ecommerce.
Amazon has nearly 49 million active customers. They bought more electronics during last year's holiday blitz than books, a first for the company.
With $6.92 billion in sales in 2004, Amazon ranked at the top of Internet Retailer's annual top 400 list, well ahead of computer maker Dell Inc., which posted $3.25 billion in online business-to-consumer sales. Office Depot Inc., which has a partnership with Amazon, wasn't far behind with $3.1 billion.
EBay users sold $34.2 billion in merchandise through the online auction house in 2004 but the magazine doesn't include it on the list because it's essentially an online shopping bazaar, not a retailer.
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12/30/1899 12:00 AM
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eBay Testing New Seller Form
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eBay is testing a new seller form with Alpha Testers. eBay says the new form is in response to community requests for an easier and faster form. eBay also offers an explanation of what its Alpha Testers do:
An alpha tester is someone who is willing to participate in an early version of a new product, or in this case, a new Sell Your Item online form. An alpha tester helps to "kick the tires" and provides valuable input that goes directly toward refining and enhancing the product features.
(Via AuctionBytes.com)
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12/30/1899 12:00 AM
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Report: Web Shoppers Spend More On Electronics
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InternetRetailer.com reports that a new report from Consumer Electronics Association says that online electronics shoppers outspend people who don't shop online by 67%.
The report also says that online shoppers are more loyal than store-only shoppers to particular brands, the top reasons being shopping convenience, order accuracy, product variety and availability and product information. 52% of online shoppers said they were loyal to particular consumer electronics brands, compared to 37% for store shoppers, the report says.
The report also says that an average of 5% of all consumer electronics products are purchased online, but that online's market share rises to 10% for certain categories, including personal computers, digital cameras, wireless home networking devices and portable music players.
This report seems to track with the growing number of blogs and online editorial coverage of gadgets and consumer products. Since so many people learn and read about consumer electronics online it makes sense that are buying online as well.
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12/30/1899 12:00 AM
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Warren Buffett Lunch Auction Goes for $351,100
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An eBay bidder won the Warren Buffett lunch auction for the steep price of $351,100. The auction started at $25,000 on June 23 and received a total of 110 bids according to this MSNBC.com article. Proceeds from the auction will benefit the Glide organization.
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12/30/1899 12:00 AM
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Internet Popular Beauty Shopping Destination
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The Internet is quickly becoming the place women shop for beauty products according to a recent NPD Group report. The total U.S. beauty market continues to grow. Not only have sales increased, but shopping options have increased as well. According to The NPD Group's latest report, Emerging Channels: Beauty Care Products on the Internet, women spend an average of $83 per year on beauty products through the Internet. The study finds women increased their spending on beauty over the Web by 38 percent in the past year, more than any other channel of distribution.
The future looks bright for beauty product shopping over the Internet. One in five women told NPD they intend to spend more over the Internet for beauty products over the next year than they did in the past, making it the number one ranked channel for future purchases.
"What may be even more surprising to many manufacturers and retailers is that the Internet has already surpassed some of the more traditional channels for beauty products in terms of future purchase intent, such as fine department stores, kiosks at malls and phone or mail order channels," said Timra Carlson, NPD Beauty.
According to the report, seven out of ten women will shop on the Internet because it's easy to use. Availability of product follows second with 56 percent of women saying there are "more products I like."
Quality and cost issues are also among the reasons why women intend to purchase more beauty products over the Web. Nearly one-quarter (22%) of consumers think that the "quality of products have increased" and 20 percent say that the "quality of services increased."
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12/30/1899 12:00 AM
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Online Auction: Lunch With Warren Buffet
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Here is an eBay auction that may be difficult for any business person to ignore: lunch with Warren Buffett, the CEO of Berkshire Hathaway. The winning bid will benefit the Glide organization. Bidding on Warren Buffett Power Lunch ends on June 30th, 2005.
Here is the chance of a lifetime to engage and experience the one-and-only Warren Buffett. As CEO of Berkshire Hathaway, Mr. Buffett is famed for his strikingly successful investment strategies and is as well known for his integrity as his brilliance. He is, quite simply, a legend, and he will sit down with you and up to seven of your friends for lunch. Value: Priceless. Donated by: Warren Buffett
Proceeds from the winning bid will benefit the Glide Foundation, one of the most comprehensive service providers working with the poor and homeless in San Francisco. Mr. Buffett will sit down with the highest bidder and up to seven of your friends for lunch. A mutually agreed upon date, time and place for the lunch, in either Omaha or New York, will be selected by Mr. Buffett and the winning bidder. All bidders must pre-qualify. Bidding starts at $25,000.
(Via Business2Blog)
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12/30/1899 12:00 AM
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More Online Sellers Building Own Storefronts
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A Wall Street Journal article says more online sellers are deciding to go it alone instead of using eBay's services. New web tools that make web publishing and web advertising easier are allowing merchants to quickly add an online presence that include ecommerce options.
EBay, with more than 147 million users world-wide, has long been regarded as the dot-com survivor that could do no wrong. Mr. Wieber's story shows why the company may be losing some of that luster. Setting up an online store is so easy these days that sellers needn't rely on eBay as a source of customers. Advertising is simple and inexpensive, thanks to new technology from companies such as Google Inc. And multiple competitors, including Amazon and Yahoo, are pulling once-loyal eBay sellers into their orbit.
However, many of these do-it-yourself outfits may also be using eBay's PayPal services or have an auction in addition to their own store.
EBay executives say sellers often dabble in other marketplaces and with their own Web sites. "It's not an either/or," says Michael Dearing, eBay's senior vice president of marketing and merchandising. He says sellers typically return to eBay because it offers "extraordinary value."
eBay has other threats looming as well. Blogs and new web data sharing tools may allow consumers to organize and compete with eBay's auction services. And Google has confirmed rumors that it will launch an online payment system that could move customers away from PayPal.
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12/30/1899 12:00 AM
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Online Auction: Freedom Jeep
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Chrysler has posted an eBay auction for a patriotic 2005 Jeep Wrangler X. The proceeds are being donated to the United Service Organizations (USO). The opening bid for the Freedom Jeep is $25,000. The jeep is autographed by over fifty political and business leaders. The auction ends on July 4, 2005. (Via Drivers Drive)
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12/30/1899 12:00 AM
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Shopping.com Survey Reveals Online Shopping Habits
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A Shopping.com survey of 1,000 online shoppers has found out that many shoppers are just as likely to shop with small independent retailers as large ones for apparel. The survey also found that people in the Northeast buy the most clothes; personal care products are starting to be a strong online category and Midwest shoppers are the least likely to buy luxury items. One finding, that more people are buyiny electronics online, was not much of a surprise considering all the blogs and websites providing editorial gadget coverage. Here are some of the results from the survey:
Clothing Appeals Most to Younger, Northeast Crowd
American adults, men and women over the age of 18, report spending an average of $177 on clothes over the three month period from January 1st through April 1st. Younger adults ages 18-34 spent an average of $208 on clothes, which is $37 more than adults ages 35-54 (who averaged $171) and $62 more than those ages 55+ (who averaged $146). Adults in the Northeast spent more on clothes than adults in other regions of the United States, spending $206 on average during the first quarter of 2005; followed by the South ($185), West ($161), and Midwest ($155).
Smaller Retailers on Equal Footing with Larger Chains
Sixty percent of survey respondents said they did not have a preference on the type of retail store they visited when purchasing apparel. Though 26 percent chose to purchase apparel from a large chain retailer, 14 percent said they preferred to shop with smaller, independent retailers.
Gizmos and Gadgets
Consumers continue to flock online to shop for electronics ranging from computer equipment to video games to PDAs to digital cameras. In the first quarter of 2005, nearly 23 percent, or one in four respondents, purchased computer equipment such as desktops, laptops, monitors and printers, and one in five purchased video gaming systems and games. Similarly, 20 percent of respondents also shopped for audio equipment, such as iPods, MP3 players and home theater systems. While men showed that they were more likely to purchase electronics, both men and women preferred to consult a friend or family member before making a purchase. Men were also more inclined to visit the retailer's website and comparison sites before buying.
Personal Care Products Are Big Sellers Online
Within the personal items category, personal care products, such as soap, shampoo, conditioner and toothpaste, top the list of items that adults have purchased online in the past three months (17 percent) followed by beauty products (12 percent), fragrances (nine percent), and hair styling products (nine percent). Not surprisingly, women are more likely than men to have purchased any of these products online, with 27 percent of women having done so in the past three months, compared to 19 percent of men. However, while men are less likely to shop for these products online, it was personal care products and hairstyling products that made it to the top of their shopping lists, at 18 and 10 percent, respectively.
Online Luxury Goods Appeal to Younger Set Nationwide -- but not Midwesterners
Younger shoppers are savvier about purchasing coveted luxury items online versus hitting the stores. Of the adults surveyed who have purchased luxury clothing online in the past three months, 48 percent are 18-35 (35 percent are 35-54; 17 percent are 55+). Shoppers in the Midwest are the least likely to purchase luxury clothing online, with only four percent of shoppers surveyed in that region having purchased high-end clothing online during the first quarter of 2005. Shoppers in the South, Northeast and West purchased an equal amount of luxury clothing online, with 10 percent of respondents in each region having purchased luxury clothing online during the first quarter of 2005.
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12/30/1899 12:00 AM
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New Dotcoms Trying to Get Online Takeout to Work
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Several new companies are trying out the idea of online takeout again. This business model failed a few years ago -- possibly because it was ahead of its time. These new companies are hoping that was the case. A New York Times article discusses three different companies that are offering online takeout services including Seamless Web, Delivery.com and Snapfood.com. One trend that may help these new dotcoms is a boom in takeout and drive-through orders:
According to the National Restaurant Association, 41 percent of fast-food restaurants reported that their takeout and drive-through orders rose last year compared with two years ago. (Fifty-eight percent said there was no change.)
Hudson Riehle, a senior vice president at the association, said almost 10 percent of consumers last year placed an order online for takeout or delivery food - roughly twice the number of two years ago.
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12/30/1899 12:00 AM
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Popular Online Perfume Retailer Began as Hobby
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Jacquelyn Tran, the founder of Perfume Bay, originally started the online retail website as a hobby. It has since grown into a million dollar business with 10 full-time employees. CNN reports that the website was an offshoot from a L.A. retail store started by her parents, who were Vietnamese refugees.
One of the most popular pages on her site is where customers can find newly launched fragrances. Another lets customers know about particularly hot products. "We have very loyal customers," says Tran, "and we try hard to give them what they want."
Perfume Bay now has 10 fulltime employees. Tran has expanded advertising to local television and gets good results from regular e-mails to existing customers. She has started to explore possible cross-promotional deals with other e-tailers such as florists and jewelers.
Tran's "hobby" grossed more than $6 million in 2004. "I never imagined I would be where I am today," she says.
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12/30/1899 12:00 AM
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Women Driving Online Shopping Sales
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An article in The Sun says that women are a growing force in online shopping. This probably comes as no surprise to anyone in the online retail industry.
"Women are flocking to the Internet in droves to comparison-shop, research and buy," said Scott Silverman, executive director of Shop.org, the online retailing division of the National Retail Federation in Washington, D.C. The survey released May 24, conducted by Forrester Research for Shop.org, garnered responses from 137 retailers nationwide.
Categories like cosmetics and jewelry are expected to soar as a result of women's growing interest in online shopping.
Online sales of cosmetics and fragrances are expected to soar 33 percent, to $1.6 billion this year, while sales of over-the-counter medicines and personal care are forecast to grow 32 percent to $1.3 billion, according to the survey.
Online sales of jewelry and luxury goods are headed for a 31 percent gain this year to $3.2 billion, and flowers, cards and gift purchases are on track to rise 30 percent to $4.8 billion, the survey revealed.
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12/30/1899 12:00 AM
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Amazon.com's Brief Outage
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InternetNews.com reports that Amazon.com had a brief 41 minute outage earlier this week. The outage was reported by AlertSite which monitors some major websites.
Amazon.com didn't respond to requests to verify or explain the outage, but an operator who answered the company's main phone number said it was probably true. A customer service rep told internetnews.com, "Earlier today, they were upgrading the system, and it did slow it down a bit. It should be fixed now."
AlertSite Godskind pointed out that the 41-minute glitch reduced the company's total availability for the month -- assuming 100 percent possible uptime -- by more than .1 percent. "If Amazon.com has a 41-minute outage during the lunch hour, it probably left impressions on a million people," he said.
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12/30/1899 12:00 AM
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Scripps Acquires Shopzilla
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Shopping-related search is getting a lot of attention these days. Marketwatch.com reports that the EW Scripps Company, a media company that runs cable networks like HGTV dan the Food Network and publishes newspapers, has acquired Shopzilla, a shopping website offering product comparison and reviews. Shopzilla was previously known as BizRate. The news follows on the heels of eBay.com's recent acquisition of Shopping.com.
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12/30/1899 12:00 AM
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Yahoo Cuts Auction Fees to Challenge Ebay
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TechNewsWorld reports that Yahoo has cut some of its auction fees to challenge eBay. Yahoo says it is removing all fees associated with Auctions listings, including listing fees and final value fees. This could be attractive to eBay sellers who are continue to pay up-front listing fees. However, eBay may be able to get away with charging more because of its massive user base. TechNewsWorld explains the cost differences now that Yahoo has removed listing fees:
EBay's listing fees range from 25 cents for items that start for sale at less than a dollar to US$4.80 for items on which the bidding begins at $500 or more. The so-called final value fee starts at 5.25 percent of the total sale price.
Depending upon the category and other factors, the savings on an item that sold at auction for $100 could be more than $5, depending upon the number of extras a seller chooses to draw attention to its listing. For sellers who peddle dozens of items each week, that could represent a significant bottom-line difference.
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12/30/1899 12:00 AM
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eBay Acquires Shopping.com
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eBay has acquired Shopping.com, an online shopping portal that allows consumers to find and compare prices on numerous products. A BusinessWeek story on eBay's purchase says that Shopping.com could help eBay "plug a hole for the auction giant: Its dependence on mostly small merchants."
This could prove to be a savvy way for eBay to attract new buyers and sellers. Shopping.com at first glance looks like quite a different business from the more direct marketplaces eBay has been purchasing. Unlike eBay, which charges merchants fees for listing and selling merchandise, Shopping.com is essentially an advertising play. It makes money from fees it charges merchants for sending potential customers their way, regardless of whether those visitors buy anything.
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12/30/1899 12:00 AM
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eBay Beginners Don't Focus on Low Cost Items
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The Auction Rebel has a good post about six mistakes beginners make. They include not learning eBay's policies, giving up too early, having unrealistic expectations and selling low cost items. The Auction Rebel says low cost items don't provide much profit:
Even if your break even point for the $7.50 item above is only $5.00, how many of them are you going to have to sell to generate a sizable profit? You need to be able to expect a large enough profit from each item sold so that you don't have to spend 18 hours a day with your business to reach your goals.
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12/30/1899 12:00 AM
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Regulation for Drop-Off Stores?
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IHT.com has an article that says California, Florida and Texas are debating about whether laws that prevent stolen items being sold at pawn shops and auctions should be applied to drop-off stores. Some of the major drop off stores include QuikDrop International, AuctionDrop and iSold It. They do a big business facilitating online auctions like eBay. eBay and the drop-off stores oppose any new regulations.
California, Florida and Texas have been considering legislation that would impose regulations on drop-off stores. And in New York City,where secondhand stores must obtain a license and maintain transaction records for police inspection on demand, the Department of ConsumerAffairs is considering the question of whether the stores qualify as secondhand stores, said Dina Improta, a spokeswoman for the department.
EBay officials and store owners say criminals are not likely to walk into a drop-off store, offer personal information, leave a telephonenumber and wait for a check to arrive in the mail.
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12/30/1899 12:00 AM
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Amazon.com Redesign Features Search
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Amazon.com has a new redesign that moves away from the familiar Amazon.com tabs and focusing more on search. There are still a couple tabs on the top of the site. One of the tabs reads "See All 31 Product Categories." This tab opens up a window listing all the stores when the mouse is moved over it. An Amazon.com product search box and a search box Amazon's A9.com search engine now appear near the top of the website. Amazon.com must think people are more familiar with search now and no longer need the tabs. Amazon also has many more categories than a few years ago and it was becoming more difficult for them to use the tabs without the site looking messy.
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12/30/1899 12:00 AM
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Walmart.com Turns to Netflix for DVD Rentals
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Bloomberg reports that Walmart.com is stepping out of the DVD rental business and turning it over to Netflix. Netflix is currently leading in the online DVD rental battle for marketshare with 3 million customers, but the powerful Blockbuster brand is trying to catch up. Bloomberg describes the Walmart and Netflix agreement:
Netflix said the agreement with Wal-Mart, which has an estimated 300,000 rental customers, will not ``materially impact'' its current subscriber growth or financial performance. Wal-Mart wasn't investing in and expanding its subscriber base as aggressively as either Netflix or Blockbuster Inc. and will now focus on DVD movie sales, Lehman Brothers analyst Anthony DiClemente wrote.
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12/30/1899 12:00 AM
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Over 100,000 Star Wars Related Items on eBay
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A new ShoppingBlog.com entry about Star Wars products says eBay currently listed over 100,000 Star Wars products. There are even items for babies like Star Wars bibs and "When I Grow Up I Want to be a Jedi" t-shirts.
Throwback items from the 1970s Star Wars films are popular as well. An eBay "Star Wars" search currently brings up 120,239 items, so if you are desperate for an old Lando Calrissian action figure you will probably find it there. Here are some of the many other Star Wars products and services available:
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12/30/1899 12:00 AM
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Online Auction Fraud Complaints Soar
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The Mercury News reports that complains from Internet auction fraud nearly doubled from 2002 to 2004. Online auction fraud also has the unfortunate distinction of being the fastest growing type of online fraud.
Internet auction sites such as eBay have become wildly popular with consumers seeking to buy and sell merchandise online. Unfortunately, they are also being used by thieves to fence millions of dollars in stolen jewelry, coins, plasma-screen TVs and other goods to unsuspecting buyers.
According to figures released by the Federal Trade Commission (FTC), Internet auctions have now become the fastest growing category of Internet crime. In fact, during the past three years the number of Internet auction fraud complaints received by the FTC has nearly doubled -- rising from 51,000 reported cases in 2002 to 98,000 reported cases in 2004.
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12/30/1899 12:00 AM
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Writers Write, Inc. Launches PleasantMorningBuzz.com
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Writers Write, Inc., the parent company of TradersTrade.com, has announced the launch of the newest Blog in our Network: Pleasant Morning Buzz. Pleasant Morning Buzz features light-hearted commentary about current events and items of interest.
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12/30/1899 12:00 AM
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PowerSellers as Celebrities?
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Some of eBay's top sellers are starting to see a glimpse of fame. AuctionBytes.com has an article about two PowerSellers, Deb and Andy Mower, who were featured in the New York Times and then on television. The Mower's sell home, garden and pet products.
PowerSellers are taking their spot in the world of American celebrity, and that spot is a bright one. Stories appear in print ranging from the small local newspaper to the business section of the Sunday New York Times. In October, the Times ran an article on the topic of eBay PowerSellers that featured Debnroo, also known as Deb and Andy Mowery. Happily, this was just the beginning of the successful couple's touch with fame and glory.
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12/30/1899 12:00 AM
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Online Window Shopping Popular With Consumers
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A recent study has found that online consumers take a while before making a decision and they will often multiple websites before buying a product online. Online shoppers have many tools at their disposable like comparison shopping websites and websites offering product reviews. An EcommerceTimes article has the details on the study:
Online consumers are no longer rushing to click the shopping cart button on Web sites. Instead, they spend days digitally window-shopping before buying, abandoning shopping carts with an ease that frustrates and often confuses online retailers.
"The shopping cart abandonment issue is the most important thing that we uncovered," Ken Leonard, CEO of ScanAlert, told the E-Commerce Times. "Most merchants think that shopping cart abandonment is just part of the online shopping process."
His study showed the average time delay between a consumer's first visit to a Web site and the first purchase was just over 19 hours. About 35 percent of all tracked shoppers took more than 12 hours to make a buy decision, while 21 percent took more than three days, with 14 percent taking more than one week to decide where to buy.
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12/30/1899 12:00 AM
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Amazon Loses Circuit City But Gains Macy's
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Macy's, a major retail brand, will offer products on Amazon.com according an article on InternetRetailer.com. Macy's also sells products at macys.com. Amazon.com just lost Circuit City so a new major brand will be a welcomed addition. Circuit City will now sell its products exclusively at circuitcity.com. InternetRetailer reported on the kinds of products Macy's will sell at Amazon.com:
Macy's says its items for sale at Amazon will include its exclusive brands -- INC International Concepts apparel and Hotel Collection bedding -- as well as a wide selection of jewelry, apparel, beauty and home products.
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12/30/1899 12:00 AM
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Credit Card Companies Tighten Guidelines
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Silicon.com reports that American Express, MasterCard and Visa are tightening guidelines on customer data protection and will now also require companies selling products online to renew each year for certification. Silicon.com explains:
Firms processing more than 20,000 transactions per year will be required to scan their networks each quarter and conduct annual audits of their compliance with the standards in order to qualify for certification.
Non-compliance will mean e-tailers will be unable to process transactions with the credit card companies -- cutting off their livelihood over night, or forcing them to involve customers in more convoluted processes such as sending cheques or making money transfers -- neither of which will appeal to merchant or customer due to extra time, costs and liability associated with such methods.
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12/30/1899 12:00 AM
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Become.com Offers Shopping Search
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Become.com is a new search engine focusing on shopping from the founders of MySimon.com, a popular comparison shopping website. EcommerceTimes.com reports that the new site which debuted this month already indexes 2.2 billion webpages of shopping information from over 20 million sites. EcommerceTimes.com says the new website will soon face competition from a similar search service called BrilliantShopper.com. Of course, there are also all the existing shopping searches and comparison websites like ShopZilla.com, Google's Froogle and BizRate. SearchEngineWatch.com offers a list of more shopping search tools here.
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12/30/1899 12:00 AM
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Bigger Phishes Coming
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In Star Wars Episode One: The Phantom Menace Qui-Gon wisely points out that "there's always a bigger fish" when a really, really giant fish eats the monster fish that was chasing their underwater ship. It seems that Qui-Gon's saying is true with web phishes as well. News.com reports that the initial phising activity was just the beginning of the problem for ecommerce and that bigger phishes are probably on the way.
The first wave of phishing attacks played on the ignorance of unsuspecting consumers, spamming their in-boxes with e-mails that looked like they linked to Web sites belonging to banks, investment companies and e-commerce businesses such as eBay. In reality, they were fake pages designed to lure people into divulging account login data, or other sensitive personal information that could enable the crooks to commit identity fraud. Recent attacks have gotten more sophisticated, with advances in phishing schemes that use e-mail and the creation of fraudulent Web pages that appear almost identical to their legitimate counterparts. And new threats have arisen: Attacks based on instant messaging; ploys that use JavaScript technology to hide threats on legitimate Web pages; and new social-engineering strategies.
The News.com article has details about types of phising including pharming, IM phishing and cross-site scripting. The bottom line: expect phising to get much worse. Inform your customers about phising threats. Monitor your incoming links and customer emails to see if you can catch a phising problem early -- before it impacts lots of your customers. More advice about phising can be found at the Antiphising.org.
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12/30/1899 12:00 AM
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Fields.com Returns
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Fields.com, the online shopping site for the Marshall Field's department store, is back online. InternetRetailer.com reports that Fields.com went offline after the company was acquired by May Department Stores last year. After the acquisition May shut down Field's ecommerce deal with Amazon.com, which powered online shopping for Fields.com. Now Fields.com is online using technology from May Department Stores. InternetRetailer.com says Fields.com currently carries 15,000 products, but plans to "continue to add products throughout 2005, including in women's, men's, beauty, shoes and kids' categories."
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12/30/1899 12:00 AM
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Online Shoe Sales Soaring
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Online shoe sales are exploding as shoppers find online shoe sites an easy way to quickly browse shoe catalogs for brands, colors and styles. EcommerceTimes.com explains:
With entire collections concentrated in easy-to-navigate online shopping sites and an extensive choice of size and color, women, and increasingly men, are putting their feet up and ordering the latest designer shoes from the comfort of their homes.
Zappos, a popular U.S. shoe retailer, expects it sales to climb to $300 million in 2005 -- nearly double last year's $184 million in sales. Zappos Chairman Nick Swinmurn said the retailer is doing well with its luxury brands. Swinmurn told the EcommerceTimes.com, "We found that luxury brands needed an exclusive category of their own." European online shoe retailers like net-a-porter.com and Yoox are also seeing quickly climbing shoe sales.
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12/30/1899 12:00 AM
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Walmart.com Expands Pet Department
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Internet Retailer reports that Walmart.com, the online counterpart of the massive retail company, is expanding its online pet offerings to compete with major pet retailer online brands like Petco.com, Petsmart.com and DrsFosterSmith.com. Internet Retailer said that Walmart.com will focus on supplies for dogs, cats, fish and small animals and that the online pet offerings will exceed those found in Wal-Mart's offline stores. Information Week reports that Tricia Doty, Walmart.com's director of merchandising, home and family said, "Pet merchandise has consistently been a top search component at Walmart.com, and we're complementing what our Wal-mart stores already offer. Seventy-two percent of pet owners buy their pets holiday gifts."
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12/30/1899 12:00 AM
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Popularity of Comparison Shopping Sites Growing
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A new report from BizRate Research for Shopzilla indicates that many online shoppers visit comparison shopping websites before hitting the main retailer websites. The study found that 59% of online shoppers start at aggregator sites now begin at these aggregator websites. The majority of online shoppers (71%) also said they find better deals and discounts online than in the bricks-and-mortar shopping world. InternetRetailer.com has more details about the survey here.
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12/30/1899 12:00 AM
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Netflix Up Against Huge Competitors
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Business2.0 has an article about how huge competitors are moving into the movie rental business made popular by leader Netflix. Netflix, which climbed to 2.6 million customers in 2004, faces competition from Wal-Mart, Blockbuster and Amazon.com. They could also faces threats from movie downloading if it becomes as big as the music download industry has. Business2.0 writes:
The first to take on Netflix was Wal-Mart (WMT), which began offering online DVD rentals in June 2003. Then, last summer, Blockbuster dived in, sinking a whopping $100 million into its fledgling service. And now, finally, comes Amazon, which in December waded into the British market -- a move seen as a test run for an American service, probably launching midyear.
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12/30/1899 12:00 AM
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7-Eleven Eyes Download Profits
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Reuters reports that convenient store chain, 7-Eleven, plans to test music download sales. 7-Eleven runs over 5,800 store nationwide. The store might also consider movie downloads if the music test is a success. Reuters writes, "James Keyes said selling digital content, including music, could provide a good growth opportunity as sales of portable gadgets such as Apple Computer's iPod take off. Customers should be able to walk into a 7-Eleven store to burn their favorite songs onto a CD or download content onto their portable music player, Keyes told a Merrill Lynch retailing and consumer products industry conference in New York."
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12/30/1899 12:00 AM
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Bad News: Spam Still Works
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The BBC reports that a new survey from Mirapoint and the Radicati Group has found that nearly a third of e-mail users have clicked on a link inside a Spam message. The study also found the one out of every ten users is buying stuff as a result of the spam message. "This preliminary data is surprising and somewhat shocking to us," said Marcel Nienhaus, market analyst at the Radicati Group. "It explains why e-mail security threats including spam, viruses and phishing scams continue to proliferate."
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12/30/1899 12:00 AM
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E-Filing Growing Rapidly
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Many Americans are opting for e-filing when it comes to tax returns. FCW.com reports that over 50% of Americans will file their tax returns electronically in 2005. Internal Revenue Service Commissioner Mark Everson said, "Those who file paper returns are now in the minority. E-filing is fast, convenient and gets your refund to you in half the time of paper returns." An IRS statement said that 9.2 million returns had been filed electronically through March 4 -- 2.1 million more than at the same time last year,
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12/30/1899 12:00 AM
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The Top 5 Online Scams
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A PC World article, reprinted on Yahoo News, looks at the top five scams facing Internet users. Phising appears to be taking off the fasting. The five scams listed by PC world are Auction Fraud, Phising Scams, Nigerian 419 Letter, Postal Forwarding/Reshipping Scam and the "Congratulations, You've Won an Xbox (IPod, plasma TV, etc.)" scam. Most people have experienced at least a couple of these scams. Of the top five scames phising is growing the most quickly and is probably the most harmful. PC World writes:
In fact, phishing attacks seem to be the new, hot scam. Scammers send you an email that tries to lure you to a legitimate-looking website where you'll be asked to enter personal information. The thing is, it's all fake; and if you fall for it, someone is ready to take your Social Security Number and start opening credit card accounts.
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12/30/1899 12:00 AM
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Etailers To Personalize Income Traffic
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Online retailers are beginning to understand how powerful and accurate their online search tools must be. They also are looking toward personalizing their website for their customers. Retailers are increasingly looking at where their incoming traffic is coming from and then using this information to choose what to display to the incoming customers. For example, if someone has come in through the keywords "women's apparel" it might make sense for the retailer to show them a store front catered to women shoppers. Eric Peterson of Jupiter Research told Internet Retailer, "If you have customized results based on priorities like profit margins, inventory or just what sells, the next logical direction is toward customized results based on where a customer came from and what her interests are."
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12/30/1899 12:00 AM
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Leahy Announces Bill to Stop Phising and Pharming
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InternetNews.com reports that Senator Patrick Leahy has introduced a new bill (Leahy's Anti-Phishing Act of 2005) targeting the growing phising problem. Phising involves sending customers fake registration forms for online banking or online shopping from spoofed email addresses. The criminals sending the forms then collect the identities and credit card numbers and use them for purchases or sell them to other criminals. The new bill is seperate from the anti-spyware bill currently in the works. InternetNews.com says the bill also covers pharming where criminals hack a person's computer and redirect them to fake websites where they can collect personal information like banking account passwords or credit card numbers. On the senate floor Leahy said, "It has been reported that the average phishing website is active on the Internet for less than six days. Moreover, the mere threat of these attacks undermines everyone's confidence in the Internet. When people cannot trust that websites are what they appear to be, they will not use the Internet for their secure transactions. Traditional wire fraud and identity theft statutes are not sufficient to respond to phishing and pharming." The Industry Standard reports that the bill proposes penalties of up to 5 years in jail and fines of up to $250,000 for perpetrators of phising and pharming attacks.
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12/30/1899 12:00 AM
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Amazon Reports Rise in Jewelry Sales
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Amazon.com, Inc. announced that December 2004 jewelry sales increased more than 120 percent year-over-year, and its triple-digit growth has continued in 2005. Customers are choosing from Amazon's large selection of rings, necklaces, earrings, bracelets, watches and even body jewelry like the best-selling belly bar by Paris Hilton. Perennial favorites remain heart-inspired jewelry, diamonds and pearls. The rise of online jewelry sales and the switch of online retailers like Amazon.com from media items like books and music to apparel and jewelry has occured with rapid speed over the past couple years. The increase has occured as online retailers have improved the ease of online shopping and broadband has greatly improved the speed of web shopping. More online jewelry retailers can be found here on ShoppersShop.com.
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12/30/1899 12:00 AM
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Ecommerce Growth Continues Despite Fraud
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Ecommerce continues to thrive despite continuous attempts to defraud consumers and merchants through cyber attacks, viruses, stolen credit card numbers, worms and phising. While threats continue shoppers have taken advantage of broadband to use the Internet for more and more transactions. EcommerceTimes reports that a Verisign study found that the total dollar amount of Internet transactions grew by a staggering 88% in 2004. The EcommerceTimes article also discusses the many security threats harming ecommerce. It says the biggest threat continues to be worm propagation attempts. But, phising is also a big problem, with many phising sites (58%) located outside the U.S.
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12/30/1899 12:00 AM
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Onine Shoppers Slightly Less Satisfied
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In an article that goes against the grain of recent upbeat ecommerce articles, PC World reports that some shoppers are unhappy and that eBay and Amazon are actually having trouble keeping shoppers happy. The American Customer Satisfaction Index found that customer satisfaction in online purchases dropped by 2.7 percent in the fourth quarter of 2004. The study also found that customer satisfaction scores for the leading etailers Amazon.com and eBay both fell. Larry Freed, president and CEO of ForeSee Results, told PC World that, "I think the drop in scores is actually a good thing for consumers. These companies are sharp, aggressive, and focused; and they will improve things." That may be true but it could also be an opportunity for niche competitors to find and offer something the etailing giants are lacking.
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12/30/1899 12:00 AM
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Web Shopping Soars in Britain
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Just like in the United States online shopping is soaring across the pond. The reason in England is the same as in the U.S. -- broadband. Broadband just makes online shopping and browsing easier and faster. The BBC reported that the most popular items being purchased online include books, music and videos. Electronic products came in fourth with 19% of those surveyed having bought tech gadgets online. Clothing was also a common online purchase by British shoppers.
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12/30/1899 12:00 AM
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Safer Transactions With One Time Use Cards
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A recent AuctionBytes.com article discusses the increasing availability of one-time use credit cards. These are cards with a unique number issued by the bank and a credit limit determined by the customer, so that the card can be used for a short time without revealing the customer's true credit card number. AuctionBytes.com Editor and Publisher Ina Steiner writes that, "Recently I logged in to MBNA (the same place I can review my credit card transactions), and used the ShopSafe service to create a one-time number with a limit of $15. I used this number to register with a new site that required credit-card registration. Now if there is ever an attempt to use this credit card, I will know which site is responsible." An article on Bank Technology News about the "controlled payment numbers" said, "Experts are divided about the effectiveness of the numbers, but generally agree they provide banks with an added level of protection against at least one kind of identity theft: Internet heists." The temporary cards will probably also help online shoppers feel safer knowing that their real credit card number is not exposed.
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12/30/1899 12:00 AM
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Heavy Valentine's Traffic Crashes Hallmark
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InternetRetailer.com reports that Hallmark.com got into some traffic troubles on the busy Valentine's Day holiday and crashed several times. comScore Networks Inc. said Hallmark received 962,000 visitors on Valentine's Day. Hallmark said the traffic they received was unprecedented and double what the traffic of previous years. Hallmark better solve its traffic woes in time for next year so it can monetize all that new traffic.
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12/30/1899 12:00 AM
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Does Google Want to Sell Domains?
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Google's recent confirmation as a domain registrar has surprised analysts who wonder what the online search leader is up to. Why does Google want to enter a business where Network Solutions, GoDaddy, Register.com, Yahoo and other domain name retailers already have an upper-hand and strong branding? One possiblity could be that Google wants to sell domains to go with the Blogger.com business. ECommerceTimes.com reports that a Google spokesperson said the company has no plans to sell domain names but believes the information could help their search results. Lextext.com publisher told EcommerceTimes that Google could potentially fine tune search results by checking the registrar list of expiring domain names.
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12/30/1899 12:00 AM
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Rising Fees Upset Some eBay Merchants
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MSNBC.com reports that eBay is taking action to appease some merchants that were upset by recent fee hikes by the leading online auction company. Now, eBay says it will lower some fees and improve customer service. Some web groups, going by names like GreedBay, were set up eBay merchants to complain about the rising costs. Red Herring even ran an article called FeeBay last month about eBay's new fee hikes and the possibility of some merchant's leaving. In GreedBay some members are posting that the new fee cuts are small compared to the recent fee increases. A new MercuryNews.com article discusses complaints about fees at eBay and mentions websites like shmeebay.com and nolistingday.com where a boycott is being planned. An article on USAToday.com earlier this month described some of the complaints from eBay merchants. Some merchants are threatening to leave eBay on February 18th when new fee increases take place. AuctionBytes.com editor Ina Steiner told USA Today that eBay customers are "fed up with shrinking profits, more complicated policies, the occasional fraud and inadequate customer support." The problem for many merchants is that eBay dominates the online auction marketplace and has enormous traffic making it difficult to find a comparable alternative. eBay is reaching a point in its growth where it is getting more difficult for the company to balance continued huge profit increases for shareholders with what to charge for its services. While eBay needs to keep shareholders happy they also need their merchants to continue listing millions and millions of items.
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12/30/1899 12:00 AM
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Amazon.com Offers Annual Shipping Fee
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Amazon.com has launched a new shipping program called Amazon Prime that offers customers unlimited two-day shipping for an annual fee of $79. Amazon Prime can be used with books, books, DVDs, music, electronics, kitchen appliances, tools, health and personal care. MSNBC reports that Patty Smith, an Amazon.com spokesperson, said thhat Amazon expects the Amazon Prime service to be a large expense for the company in the short-term. However, they expect the annual shipping free to drive incremental demand over time. On the website Amazon.com refers to the service as "All You Can Eat" express shipping. Shipping is one of the costs associated with online shopping that consumers complain about most and special offers like shipping discounts and free shipping are often very popular. It will be interesting to see if any other online retailers offer similar offers.
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12/30/1899 12:00 AM
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Apple, Google, Ebay Among Top Global Brands
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Brandchannel.com has announced the results of its poll of the best global brands. Apple came it at number one thanks to its success with the iPod. This bumped Google down to number 2. Ikea and Starbucks came in third and fourth and Al Jazeera was the big surprise in the fifth position. eBay was ranked 9th and Yahoo and Amazon.com were not in the top ten. Reuters has more information on the global ranking.
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12/30/1899 12:00 AM
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Ebook Sales Continue to Rise
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Ebook sales have continued to rise over the past several years. A recent report from the Open eBook Forum which compiled from data submitted by 23 ebook publishers and retailers, found that revenues from ebook sales in Q3 2004 increased 25% over the same period in 2003. The study also found that a total of 419,962 ebooks were sold in Q3 2004 alone, an 11% increase over the same period in 2003, during which time 377,095 ebooks were sold. An article on writenews.com listing the 2004 ebook bestsellers shows that authors Dan Brown and Greg Bear topped the list.
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12/30/1899 12:00 AM
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Most Transactions Via Broadband
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Nielsen//NetRatings has found that 69 percent of retail purchases transacted online were conducted via a broadband connection, compared to 31 percent transacted via narrowband or dial-up access during November 2004. The finding was derived from the Nielsen//NetRatings MegaView Online Retail service, which tracks online consumer retail activity and purchasing behavior. Custom research from MegaView Online Retail found that broadband consumers spend on average $158.21 per person, 34 percent higher than the $117.89 average spent by narrowband users. In addition, a broadband shopper showed a higher likelihood of converting to an online buyer; the conversion rate for broadband users reached 26 percent, compared to the conversion rate of narrowband users at 21 percent. In addition,broadband users visited online retail Websites more frequently, averaging 18 visits as compared to 14 visits by narrowband users. Broadband users also spent more time online, averaging more than 22 hourswhile narrowband users spent nearly 18 hours online.
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12/30/1899 12:00 AM
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Overstock.com Targets Women Shoppers
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EcommerceTimes.com has an interview with Overstock.com President Patrick Bayren who discusses the online retailer's special focus on women shoppers. Bayren said they target women with their advertising and design their website for female shoppers. Asked why Overstock.com appeals to women shoppers Bayren said, "I think Overstock appeals to female shoppers for several reasons: For a lot of women, shopping is like a sport; they shop frequently and thus are keenly aware of prices and inventory cycles. Women know that paying retail is foolish. I think they also enjoy the thrill of the hunt and sense of pride/accomplishment in finding that red hot deal that few others will have discovered, too." Bayren also said he thinks women shoppers will continue to bring more business to online retailers in the future while taking it away from traditional brick-and-mortar retailers.
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12/30/1899 12:00 AM
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CSO's Concerned About Phising in 2005
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A quarterly survey of 459 chief security officers (CSOs) and senior security executives conducted by IDG's CSO magazine reveals ninety-six percent (96%) of CSOs expect phishing activity (i.e., scams using email or pop-up messages to deceive the recipient into disclosing sensitive information) to increase in 2005, but the majority (65%) are not confident that businesses and law enforcement are taking action to prevent phishing scams. An overwhelming majority (95%) of CSOs report they take their own preventative measures by deliberately avoiding responding to an email or pop-up due to concerns it might be phishing. "More than most other folks, security executives are attuned to the threat phishing poses," said Lew McCreary, editor in chief of CSO magazine. "And they tend to practice what they preach when it comes to prevention strategies. They also look for help from industry peers and law enforcement to spread awareness about any new threat."
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12/30/1899 12:00 AM
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Top 50 Retailing Sites
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InternetRetailer.com has put together a list of its picks for the top fifty online retailers. The feature also includes provides a detailed analysis of each of the retailer. A lot of the retailers on the list used technology to enhance online shopping. InternetRetailer.com writes, "Retailers are doing all they can not only to improve the online shopping experience and but also to bring to online shopping features and benefits that just aren`t possible in a store or a catalog." Features like online customization, virtual displays and online assembly instructions were provided by some of the retailers included in the list. The list of top retailers include big names like Amazon.com, eBay.com, Macys.com, NeimanMarcus.com, BestBuy.com and Sears.com. The list also includes lesser-known stores like AuntiesBeads.com, FirstStreetOnline.com, Telescopes.com, ToolKing.com and VermontTeddyBear.com.
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12/30/1899 12:00 AM
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Online Holiday Sales Surge
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Spending at brick-and-mortar retailers may not be meeting expectations, but online spending soared again this holiday season. Sales were up 28% the first six weeks of the season with consumer already spending over $16 billion online. Wired reported that NetRatings listed music as the top gift category, followed by videos, jewelry, books, toys and video games. Wired also discussed a Jupiter report that found more online consumers purchasing high-end and luxury items online. This could be thanks to a wealthier demographic that uses broadband and the fact that luxury retailers have been rapidly adapting and expanding their online retail divisions to please their customers.
Source: Wired, InternetNews.com, Yahoo News
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12/30/1899 12:00 AM
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eBay Buys Rent.com
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News.com reported that eBay has acquired Rent.com for $415 million. Rent.com is a provider of apartment listings that charges landlords to list available openings to potential tenants. The move follows eBay's recent purchase of a 25% state in online classified provider craigslist.org and makes it cleaer that eBay is looking to expand into classified type areas. However, eBay so far has not ventured into personals or recruiting outside of the craigslist.org investment.
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12/30/1899 12:00 AM
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Etailers Bullish on Sales
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Online retailers, also known as etailers, are very optimistic about the online shopping holiday season following an early report from ComScore Networks, showing a 23% increase in this holiday season's sales through November, 26th. News.com reported that Hitwise, which measures online traffic, found that "shopping and classifieds sites claimed 11.39 percent of all U.S. visits on Thanksgiving, breaking the 2003 high of 8.96 percent, which was also set on the holiday." So far both web traffic and early sales point to a very strong season for online retailers. And the good news is that there doesn't seem to be anything, such as a worm or a virus, that could cause this pattern not to continue into December.
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12/30/1899 12:00 AM
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Amazon.com Hit With Outages
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Amazon.com was hit with repeated outages on one of the big online shopping days of the year. News.com reported that in the morning of 12-6-04 and into part of the afternoon some web shoppers found "Service Unavailable" and "We're sorry!" messages instead of the usual Amazon.com storefront. Some shoppers also experienced a slower website. It was unclear whether the problems were the result of an attack or a technical glitch at Amazon.com.
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12/30/1899 12:00 AM
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Best Web Shopping Days; Monday and Tuesday
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Unlike the physical retail universe which usually sees its best days on holidays and weekends, most ecommerce takes place during the week -- especially on Monday and Tuesday. This was part of the data reported from a new ecommerce study by Verisign and reported by TechNewsWorld.com. The study also found the while sales are slower than expected offline, they are up significantly online this season. Reported by Verisign: "The total number of online purchases from Thanksgiving 2004 through the following Monday reached 14.9 million; a 14 percent increase from the same time period in 2003."
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12/30/1899 12:00 AM
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Kmart and Sears: Big Retail IT Plans
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The new merger between Sears and Kmart could result in a new major ecommerce portal. Kmart and Sears have become the third largest retailer and eWeek reports that the combined company has huge ecommerce and IT-integration plans. However, Frost and Sullivan IT research director Rufus Connell told eWeek merging the seperate IT components of the retailers will not come easy. Connell said, "Sears and Kmart will have to overcome huge challenges not to fall even farther behind Wal-Mart in terms of efficiencies."
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12/30/1899 12:00 AM
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Stopping Phishing
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One of the biggest threats to the growing ecommerce industry is phishing. Phishing attacks include spoofed emails and fraudulent websites designed to fool recipients into divulging personal financial data such as credit card numbers, account usernames, passwords and social security numbers. The number of phising attacks have been soaring in 2004. According to the Anti-Phising Working Group (APWG) there were over 6,000 new and unique phishing email messages reported to them in October. This was over three times the number of unique reports received in August and an average monthly growth rate of 36% since July.
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