Online Opportunity
Monday, May 1 2000
Published on AllBusiness.com
Do you know Bed Bath & Beyond launched its web site this past winter? Not many people do since the chain began the site with only 3,000 of its 30,000 SKUs and did not make any formal announcements during initial operations.
But like other major retailers that have been labeled aggressive— including Wal-Mart, ShopKo and Kmart—Bed Bath & Beyond is not trying to put its whole store online tomorrow. "Our next step is to get word out to the 240 stores," says Eisenberg. "We haven't seen it show up on shopping bags yet. We haven't put a sign up."
While bedbathandbeyond.com is not extensive, one analyst labeled it "attractive, straightforward and easy to navigate." As in stores, focus is on customer service, fashionable product and staying in stock. "We offer 24-hour, live customer service by phone or e-mail seven days a week," says Ronald Curwin, CFO and treasurer. "The customer shopping at 3:00 a.m. will have the finer points of anodized aluminum [cookware] explained. The customer rep even has a product guide glossary to assist."
Unlike in its brick-and-mortar operation, the company is using a fulfillment center to service its web site. "We have a building in Totowa, NJ," says Eisenberg. "It's equipped, it's running, and now that we're satisfied, we'll start the next phase." The next phase, he adds, will involve additional products. But unlike some retailers, it is running the fulfillment center itself. "We can depend on our own people. We know how we think. There are a lot of people who outsource a lot of things. I'm not saying you should never outsource."
As with brick-and-mortar talent, many e-commerce people were recruited from within the company. Most were involved with shipping mail order product from the Manhattan store, a practice that has been discontinued. "We took some of our people, we hired a tremendous number of other people and, in this case, we used outside consultants," says Eisenberg. "That's why we're keeping fulfillment in New Jersey for now. If we have to, we can get 30 more people over there tomorrow. That's what we'd do if we needed to."
Even when the site is publicized in stores, Eisenberg says advertising and promotions will be minimal. "We sent about 20,000 e-mails to customers who said this was okay. We're being careful. We are only corresponding with customers who said 'yes.' We are not using this as a way to impose on people."
But like other major retailers that have been labeled aggressive— including Wal-Mart, ShopKo and Kmart—Bed Bath & Beyond is not trying to put its whole store online tomorrow. "Our next step is to get word out to the 240 stores," says Eisenberg. "We haven't seen it show up on shopping bags yet. We haven't put a sign up."
While bedbathandbeyond.com is not extensive, one analyst labeled it "attractive, straightforward and easy to navigate." As in stores, focus is on customer service, fashionable product and staying in stock. "We offer 24-hour, live customer service by phone or e-mail seven days a week," says Ronald Curwin, CFO and treasurer. "The customer shopping at 3:00 a.m. will have the finer points of anodized aluminum [cookware] explained. The customer rep even has a product guide glossary to assist."
Unlike in its brick-and-mortar operation, the company is using a fulfillment center to service its web site. "We have a building in Totowa, NJ," says Eisenberg. "It's equipped, it's running, and now that we're satisfied, we'll start the next phase." The next phase, he adds, will involve additional products. But unlike some retailers, it is running the fulfillment center itself. "We can depend on our own people. We know how we think. There are a lot of people who outsource a lot of things. I'm not saying you should never outsource."
As with brick-and-mortar talent, many e-commerce people were recruited from within the company. Most were involved with shipping mail order product from the Manhattan store, a practice that has been discontinued. "We took some of our people, we hired a tremendous number of other people and, in this case, we used outside consultants," says Eisenberg. "That's why we're keeping fulfillment in New Jersey for now. If we have to, we can get 30 more people over there tomorrow. That's what we'd do if we needed to."
Even when the site is publicized in stores, Eisenberg says advertising and promotions will be minimal. "We sent about 20,000 e-mails to customers who said this was okay. We're being careful. We are only corresponding with customers who said 'yes.' We are not using this as a way to impose on people."