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Click Flop Drives OZ Retailers To Invest In New Online Operations

By David Richards | Tuesday | 02/04/2013

They dubbed it "the sale that stops the nation", but instead Click Frenzy, the online web site that was supposed to deliver millions of customers for retailers, instead exposed a massive back-end weakness for many mass market retailers.

Back in November, millions of people logged in to retailer web sites in an effort to buy online bargains, but the 24-hour sale site, along with several retailers' online operations, could not cope with the huge volume of buyer traffic and crashed.

The one-day super sale was an attempt by Australia's online retailers to fight back against overseas companies; instead it has exposed a massive weakness that is now being fixed.

Now retailers, who suffered during last year's 'Click Frenzy' Internet debacle, are investing in new web site operations with the second half of 2013 set to see major marketing battles among several mass retailers, who are looking to grow their share of the fast growing online shopping market.

A big winner out of the Clik Frenzy failure is IBM and eBay, who has a 49% share in the Magento eCommerce platform.

Launched in 2008, Magento is an open source ecommerce web app that is now considered as the archetypal CMS system for many online retailers and businesses.

In Australia Dick Smith and Bing Lee have recently moved to implement their online operations using the Magento system. Also considering Magento is Betta Electrical. 

Widely adopted by over 125,000 retail businesses worldwide, the software allows retailers to deliver extensive marketing programs by linking products and offers online.

Currently both David Jones and Myer are building out new online operations in partnership with IBM.
Several major retailers are also set to integrate the US Webcollage rich media content engine that delivers content right inside a SKU.

Research recently conducted by one of the biggest retailers in the world revealed that the presence of Webcollage Power Pages that deliver rich media content just below a retailers online SKU can deliver up to a 36% improvement in sales. It also drives consumers to shop at retailer stores.

Edward Cooper, Sales & Marketing Manager for Clik/Flip, who sells the Webcollage engine in Australia, said "Retail in the second half of 2013 is going to be extremely competitive. Several retailers, including JB Hi Fi, Betta Electrical, Teds Cameras and 2nds World, are already delivering rich media content including videos, eBooks and interactive tours right into SKUs on their web sites. Several other major retailers will implement the code into their new sites as they are rolled out in the second half of the year".

"This content not only helps a consumer make a decision, it is also driving consumers into a store to purchase" he said.

He added "In the USA most major retailers including Best Buy's Walmart, Staples, Amazon, Target, Costco, Walgreen and CVS are using rich media content and the Webcollage suite of tools because it cuts out a major operational overhead while providing for their suppliers an easy way to deliver content their web sites. Vendors are also able to post the same set of content to 12 retailers at the same time".

"The big difference for vendors is that they can use a simple set of templates to deliver the content, The Webcollage platform automatically creates three packages, Power Page, Mini-Site, and Mobile with the content automatically showing up on a retailer's web site when a consumer goes looking for information".

One major retailer said "The debacle of the Click Frenzy Internet day revealed major weaknesses for several retailers. While many retailers had an operational web site they did not have a robust backend. This was caused because several retailers ran off to web designers as opposed to investing in robust CMS systems. We were among the retailers who failed to invest in a better back end and we now have to move to a new proven system. We should have made this move two years ago".  

*4Square Media has a direct content relationship with Clik/Flip.

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