Etsy’s Social Commerce: Smart at Christmas

Etsy’s new Facebook app, the Gift Recommender, is a smart move and a great example of ways to use your data to attract more business.

I’ve no doubt that some will see Etsy’s “social commerce” via Facebook as “creepy” or invasive, but I suggest you give it a try to get an idea how this new app might impact your business or generate some ideas.

If Facebook isn’t your thing, but any form of retail is, create a test Facebook account with a throwaway email address so you too can see what the fuss is about.

Etsy is widely known for their belief in automated software testing. You can read about their latest project in their developers’ blog at  http://codeascraft.etsy.com/2011/11/09/engineering-social-commerce/

Hat tip to Scobleizer for pointing it out.

Overstock.com 1, New York State 0

New York state’s legislature recently passed a law declaring that any company with affiliates in New York must collect sales taxes on purchases made in that state, effectively inventing sales tax nexus out of thin air. This was the budget balancing brainchild of now humiliated former Governor Spitzer, and unfortunately, his successor pushed the bill along and got it passed.

Under this law, Amazon or Ebay or whoever must collect and remit sales tax, and file the appropriate paperwork for every sale they make to a New York state resident/business. Given that every town, county and who knows what else has their own little sales tax, keeping track of this and reporting it is a nightmare.

Numerous pundits on the net predicted that companies with affiliate programs would start tossing out all the NY-based affiliates. Some thought those predictions were a joke, but it was clear to me that it made perfect sense. Plus it would be a great way to tell NY where to stuff it.

So this week, Overstock.com became the first (known) major internet commerce site to terminate the contracts of all affiliates in New York State.

The law of unintended consequences is one that misguided legislators cannot help but violate.

How to serve mail order coffee while wearing your e-commerce marketing hat

I ordered some coffee beans online the other day and received the box on Saturday. Or maybe Friday – dunno since I didn’t check the mail on Friday.

The box arrived in good condition and the beans were packed in their airtight bag with a nice spring-y colored tissue paper. So much nicer than those annoying statically charged packing peanuts that stick to everything.

Buddha dog
photo credit: SuperFantastic

Included in the box was a hand-written card from one of the owners of the coffee shop (no photo of the owner or the shop), and a business card (no photo). Nicely done, I thought, but what would make the purchase really memorable?

What would provoke me to tell a dozen friends about this package, and even to show it to them before tossing or reusing the packaging?

  • What can they do to make doing business with them unbelievable?
  • How can they truly make it an coffee shop experience – even by mail?
  • If Seth Godin ordered coffee beans from your shop – what would you have done differently, or what would you hope you would have done differently?

Here are a few ideas:

Tell me how fresh it is and why I should care: Include the roasted date on the package so I know that they put my coffee in the box on the same day it was roasted (or maybe the day before). When telling me the roasting date, remind me that coffee beans lose 25% of their flavor within 14 days – or whatever the number is – and note that store-bought coffee is often months old (and Starbucks is as well). Make it clear to me that their efforts to get me the freshest roast possible is so I and my friends and family have the best coffee we can buy – without spending 2 or 3 times what the grocery store charges.

Tell me how special it is: I know of one shop that includes a birth certificate with their Christmas-time Hawaiian Kona coffee package. A nice touch over the holidays, but it could easily be continued throughout the year. If it’s French Roast, tell me where the beans came from. Tell me where the farm is. If it’s Fair Trade coffee, make sure I know about it.

Show me what else I might like if I like French Roast: Next time I order coffee, I might be in an experimental mood. Or I might want something stronger, or different. Let me know what I might enjoy if I liked this one. Help me shop more wisely.

Show me what else I might do if I am “into coffee”: Perhaps I’m using bleached coffee filters. Maybe my water isn’t filtered. Maybe I toss the half-full bag in the fridge or in the freezer. Shouldn’t I get an owner’s manual for this bag of beans?

I mean, if I’m going to really enjoy them and get the same experience I would get if I was drinking my Joe in your shop, what would I do at home?

Help me find the things I’ll need if I really am a coffee geek, or want to be. After all, there is a reason why the coffee is so good at your shop – shouldn’t you help me make my coffee just as good at home with your beans?

Help me reorder: Until I establish a purchase history, this coffee place has to make a guess about how long it’ll take me to use this bag of beans. I’m guessing they can tell me to the cup how many cups of espresso I’ll get (give or take a couple) from a bag of beans ( I have no idea ).

If they guess that two people are drinking java in my house (an accurate guess) each day, then they’ll need to follow up in a certain number of days so that I never run out of their coffee. How many days should they wait before following up?

Roughly speaking, that’s (cups per bag) divided by (cups per day) minus a few days for shipping so that they have time to get me another bag before I run out and establish motivation to buy someone else’s coffee at the local grocery or coffee shop.

Rhode Island Cinnamon Latte
photo credit: Chris Owens

Adding to that reorder thing – help me get it automatically: If I like their coffee, give me a code or a special URL or phone number or an order form or email address or *something* to make it drop dead simple to order another bag, and include an option to start having them send me a bag so that fresh beans or ground coffee automatically arrive every X days or weeks.

Help me tell a friend about this great coffee and the package and so on: Include a card, something with a bonus-for-a-friend URL, some other doohickey, or a 1 pot sample bag of ground coffee (just in case they don’t have a grinder) or something to give to a friend. If I’m a coffee geek, chances are that I know other coffee geeks – the same kind of people who appreciate the same kinds of things.

Remind me to reorder: Follow up with me in a week or two and make sure the beans are as good as I expected. Remind me how I can get them again and make it as easy as possible. Don’t make me work to get another bag.

Make me feel like I’m part of your gang and do it in a way that’s viral: Include a cleverly logo’d coffee cup in the package for their first order. Remember, it isn’t about getting the order, it’s about gaining a new client. You want people to ask your client about that cup they’re using, so be sure it’s cool enough that they can’t help but use it. Make sure they know that the first order ships free if they mention they saw the cup.

Of course, this discussion could easily be modified for imported bamboo plants, boudin, motivational CDs, workout DVDs, t-shirts, barbeque sauce, gourmet chocolates or anything you are selling online and over the phone.

For more ideas and motivation for your mail order business, order a CD from CDBaby.com and see how they make every aspect of the purchase interesting and fun, even the order confirmation emails.

Amazon launches their weapon of mass destruction, steps on the long tail of independent authors

No Known Restrictions: President Woodrow Wilson Addresses Congress, 1917 (LOC)
photo credit: pingnews.com

People continue to have this idea that companies like Wal-Mart, Amazon, Apple, IBM, Starbucks and Microsoft are bulletproof.

Folks, it just isn’t so. You might also have thought that UCLA was bulletproof Thursday night against Western Kentucky in the NCAA Tournament, except that no one told WKU about it. Top-seeded UCLA pulled it out in the last 4 minutes, after leading 12th seeded WKU by only 4 points with 5 minutes remaining.

David and Goliath plays out every day, if David is clever enough.

These big companies that small business owners love to complain about are great at building giant customer lists and then turning right around and crapping in their corn flakes. They do it everyday. All you have to do is look around (one of the reasons I mentioned the Google Alerts thing yesterday).

It’s Amazon’s turn. They just got punched in the word of mouth.

What am I talking about?

The Amazon print on demand (POD) story at WritersWeekly.com.

And the Wall Street Journal, TechDirt, Washington Post, TechCrunch, Computerworld and Publisher’s Weekly. And so on.

Before you think that this only affects big print on demand publishers, don’t forget that little (and some not so little) independent authors sometimes see the bulk of their sales via Amazon and POD.

If there are fewer authors able to sell on Amazon (because of their demands), what happens? Does the record industry try to do this next? They’ve already lost control, but there is leverage out there if they want to use it (movies, for one).

What about your ISP? Perhaps they will require that all websites updated from your DSL account must be hosted with their web hosting services. They can easily control this.

The upside is that the market always has a way of sorting this stuff out. Somewhere out there, there’s a little print on demand house just rubbing their hands together.

Oh yeah, and I just realized that my Google Alerts are not covering enough bases.