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E-tailers spruce up for holidays
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August 22, 2000: 11:06 a.m. ET
E-tailers roll out new look for holiday season; Last year's customers unhappy
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NEW YORK (CNNfn) - If it's almost Labor Day, then it must be time for the online merchants to start unveiling their improved Web sites for the upcoming Christmas shopping season.
A market observer warns, however, that customers are likely to be more demanding this year. Almost one e-customer in four is "extremely dissatisfied" with the online shopping experience, according to Internet research firm cPulse.
Toy giant FAO Schwartz, operator of one of the most successful online stores during last year's holiday season, unveiled its new look on Monday, with additional wares and a more advanced search function to help surfers find that perfect gift.
 "We got started right after the Christmas season," said Jennifer Townsend, vice president of the 138-year-old, privately held company. The new site employs the same color palette and logos, even some of the same graphics, as the earlier version, Townsend said. But behind the scenes, the site has undergone a complete overhaul.
Some new features are apparent to the user, such as improved navigation and "mouse-over" features, which pop open new menus when the user guides the cursor over the screen with a mouse, Townsend said.
New functions behind the scenes
Other functions operate behind the scenes, such as an advanced search that allows the customer to hunt for specific products according to price, gender, brand or other factors -- alone or in combination. The new system also is integrated with the company's inventory management system, to give customers a better idea on delivery.
"We did not have any trouble filling orders" last year, when many online retailers had shipping difficulties, Townsend said. "We still took a lesson from all of it," developing new tools as "a way of managing customer expectations."
Another major retailer, Toysrus.com, announced plans this month to team with Amazon.com to produce a co-branded site, linking its position in the toy market with Amazon's e-commerce expertise. Toysrus had problems last Christmas when it was overwhelmed by demand. The new site is slated to debut in the fall.
Improvements are important
Such improvements will be important if e-commerce is to realize its potential in the consumer market, said Jody Dodson, an analyst at cPulse LLC, which monitors customer satisfaction on the Internet.
 Last Christmas set a record in terms of sales and the number of transactions conducted online, but many shoppers went away with a bitter taste in their mouths, Dodson said.
Real-world stores have hundreds, often thousands, of items on display, and shoppers can roam the aisles to find what they want. If they don't see it, moreover, there are floor clerks who can provide directions and advice, he noted.
"You don't get that luxury online," he said. "That's causing a tremendous amount of frustration." He recommends not only improved search engines but also live-chat help services or phone-back features, so the e-tailer can contact the customer to complete the sale.
Shoppers also want reassurance about security -- not only privacy policies, which many Web sites now post prominently, but also pledges to protect the customer's sensitive financial information and purchasing records against improper use, he said.
Shipping fees can surprise
Another problem is the surprise at checkout, when shipping fees may tack as much as 20 percent on to the cost of a purchase. cPulse recommends that online merchants disclose such charges more prominently, or to add the expense into the cost or products.
While he expects this shopping season to go more smoothly than last year, Dodson said, "there's still quite a bit of retooling that needs to be done."
In one area at least -- fulfillment, the process of shipping the products that customers have ordered -- Web merchants are on notice that the law expects them to do better. A group of seven e-tailers settled charges last month by the Federal Trade Commission that they violated U.S. law by failing to notify shoppers of shipping delays. The group -- including CDNow and Macys.com -- agreed to pay $1.5 million in civil penalties and to change their procedures. 
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FAO Schwarz
cPulse
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