Brief Article & Series Overview:

One of the things I love about my job is that I get to dissect and analyze some of the things that I think Online sellers are doing right and which areas they could possibly be doing better on. It’s fun to me mostly because no two eCommerce sites are exactly the same and there are so many variables and factors that go into doing eCommerce correctly that it can be extremely challenging to do it perfectly, no matter how large or small your companies and budgets are. In short, there’s always room to improve and there is always something to do when running your own business, Online or off.

This week we are kicking off a new series called Store Spotlight. You may have seen the category or text near the top of some of our pages highlighting this area, but up until now we have not had a chance to get the series started (mostly due to client duties, CSE interviews, timing, etc).

I am proud to announce that this article marks the first ever eCommerce Optimization Store Spotlight. Hopefully, with your loyal readership and the support of others this will become a regular thing on our blog, and should teach each and every one of us a little more about what other eCommerce companies are doing that work, things that don’t work and other unique ideas that have been tried over the years, months or days Online.

eCopt Takes a Look at PlumberSurplus.com:

We were lucky enough to catch up with the folks over at PlumberSurplus.com to ask them a few questions about some of the things that got them on the Internet Retailers Hot 100 Sites list for 2008. The format for this article is mostly QandA, but before we get into that I wanted to share some thoughts, praise and suggestions about the current state of PlumberSurplus.com and provide some feedback for their team. One of the things that make these sites so successful is their desire to do better and their willingness to listen to professionals in the industry as to how they can continue to improve. Asking questions, getting feedback and continually testing what works and what doesn’t is a core part of successful Online sellers. Lets take a look at some of the things PlumberSurplus does right and a few things that, in my opinion, can be improved upon (in pro and con format).

Keep in mind that the analysis I conducted is not exhaustive or in depth by any means, it would take me weeks to plow through everything and give my recommendations. This analysis is meant to show readers some of the things PlubmerSurplus has done right and few things I recommend they consider looking into. I try to keep checkout process recommendations out of the pros and cons sections, but I do look into the homepage, categories, subcats, products and other landing pages.

PlumberSurplus.com Spotlighted Pros:

• Clean design, great color scheme, nice layout, splendid graphics
• Nice clean code, external stylesheets and js files make pages easier to crawl
• Categories, search function and other important navigation appears above the fold
• Hacker Safe seal to reassure shoppers that this site is secure and tested daily
• Phone number, cart contents, help and support links appear above the fold
• Seasonal banners and homepage graphics that rotate give a distinct look to the store
• Banners and graphics are visually appealing and feature real people using the products
• Featured, new and top products are above the fold and is easy for shoppers to use
• Nice related category box near the bottom of category and subcat pages
• Tons of product information, suggestions and promotional statements
• Unique copy that is designed to inform customers, not make the sale or sound “selly”
• Great product recommendations and clearance section makes it easy to see other items
• Categories and subcats are also near the bottom of each page for easy access
• Customer, company and policy information is easy to see and is organized accordingly
• Pictures that stand out, look unique and display product information are always good
• Great internal site navigation, linking structure and accessible pages
• Attractive, easy to see breadcrumbs, sorting and refinement options
• Quality descriptions, shopping and clearance banners make it easier to shop
• Nice 404 pages with links to important site sections and contact page

PlumberSurplus.com Spotlighted Cons:

• Consider limiting the homepage title tag to 60-70 characters or no more than 9 words
• Consider limiting meta description to 180-200 characters or no more than 25 words, sentence format
• Consider using meta keywords in lower case format, limiting them to no more than 45 words
• Consider bringing more attention to the learning center, bulk up the content there often
• Consider adding sorting and refinement options higher onto the homepage and category pages
• Consider moving the brand boxes above the products on category pages
• Consider adding a search by category or subcat refinement in the search bar area
• Consider putting add to cart buttons on category list pages rather than just products
• Consider bringing more attention to the order tracking feature to cut down on CS calls or live chats
• Consider adding the search bar and subcats to the content area on 404 pages

Zachary Applegate & Team Spotlight PlumberSurplus.com:

Tell us a bit of background information. How long have you been selling Online? Do you sell solely on the Net or do you also have a physical location or chain? What kind of items do you sell and what demographics do your average customers fit into?

We have been selling online since August of 2004. PlumberSurplus.com is a pure play online retailer offering tens of thousands of home improvement, plumbing and building products across many categories. These categories are expanding continuously with large product offerings of tools, lighting, furniture and anything related to home improvement. PlumberSurplus.com uses a drop ship supply network to deliver products, rather than carrying inventory. This model gives the company the ability to strategically position suppliers across the country, to insure a better customer experience. Our relationship with our suppliers is unique, we have created a partnership rather than a customer and vendor relationship. We each understand our core competencies and are able to focus on them. Our suppliers offer us a plethora of sku’s, and a relief from the burden of purchasing, warehousing and fulfillment in conjunction with competitive pricing. In turn, we offer our suppliers three key competencies: customer service, marketing, and all things ecommerce. Taking on the customer service burden means the supplier does not have to communicate with the end consumer during any step in the purchasing cycle, including returns.

We have also developed a highly successful marketing machine which provides sales from a new channel and customer. To make this relationship work we developed custom solutions for all things ecommerce to scale to a distributed inventory model, in order to do so a custom shopping cart, order processing system, front end and back end was built. These are all integrated across the supply network, as we grow we continue to massage these solutions to maintain scalability. Traditional distribution in our industry is based on territories for manufacturer’s representatives, wholesalers and plumbing contractors, none of which are concerned with the end user. Our customer is the do-it-yourselfer that traditional distribution is not reaching. It doesn’t make sense for traditional distribution channels to reach out to this customer, in the words of a PlumberSurplus.com founder “They would be stepping over dollars to pick up dimes.” Internet sales can pick up where these channels leave off. Offering the single project customer the breadth and depth of product on a single website that would traditionally only be found in showrooms and trade shows scattered across the nation.

Did you build your own eCommerce site, hire a developer, use a program or other?

PlumberSurplus.com was built in house. Early on we outsourced development but have since hired a development staff, so little development is done outside of PlumberSurplus.com at this point. As we grow and better understand our core competencies we have turned to third party solutions like Mercado and Live Person. Our approach is as simple as “Don’t reinvent the wheel, unless you have to…” We understand that Mercado is at the top of the industry in site search and merchandising and that Live Person is the leader in online interaction. Accepting this allows us to use their software to enhance our own custom solution and provide a better online experience.

Do you currently deal with eCommerce marketing and product promotion efforts in-house, through a professional firm or other?

We currently manage all marketing, product promotions and merchandising in-house. Marketing efforts include activities related to paid search, natural search, comparison shopping engines, affiliate networks and marketplaces, but we do use a third party for part of our bid management. Our promotions are done in house but usually stem from a partnership with our suppliers. Our unique relationship with our suppliers gives us the opportunity to recommend promotions to our suppliers and work on developing them together. Each party contributes to the promotions so that everyone benefits. One example of this is our current Google Checkout promotion. We are offering customers that checkout through Google Checkout entry into a sweepstakes for the chance to win a DeWALT tool. While we were the brains behind the promotion our supplier is providing the product as a gift and we are marketing the sweepstakes.

Are you able to handle site maintenance, order fulfillment, customer service and marketing with a small team of one to ten employees or do you find that a larger staff helps to make the business run more smoothly? Is your team big or small?

Our team is larger than ten but is proportionate to our growth. February of 06 over February of 07 we realized 350% growth. With that kind of growth in such a short amount of time, an increase in staffing was inevitable. While we do not have a large staff our staffing is tied to our volume, growth and strategic plans more so than the number of functions that need to be managed on a daily basis. With our staff at its current size and our current rate of growth we have found that we are able to perform all maintenance, marketing and customer service duties in house with the help of third party solutions like Live Person. However because we use a sophisticated drop ship model we have suppliers strategically placed throughout the country to fulfill our orders.

What are some of the factors that have attributed to your success during your time in eCommerce?

It may be cliché and may not make the highlights reel, but finding the right people and doing our best to give them the resources they need is key to our success. In the recruitment effort it has been important for us to remember that the most experienced, educated person isn’t always right for our company right now. The right person has been more important than the right resume.

With that being said PlumberSurplus.com is made up of ecommerce fans, people who love what they do and are surrounded by others that are equally as passionate. This type of attitude fosters dedication, talent and variety. This, combined with the leadership capabilities of our executives and their ability to drive and resource the company, all contribute to the success we have experienced. The culture is saturated with a drive to stay ahead of the curve while still being realistic about the future. We make small SEO changes that we know may not bear fruit for months, focus on optimization strategies that may seem minor but when combined can really add up. We are constantly reassessing our technology and methodologies and finding opportunities to improve.

As challenging as it can sometimes be in the moment… our success is also supported by passionate, energetic people with differing opinions and the resilience to work through them. Coupling this with humility and a willingness to submit makes for a highly effective working atmosphere. I would say we are still trying to create this picture in our office and may always be. None the less, traversing the path to this goal contributes hugely to our success.

What things have you tried in the past or currently that have NOT worked to your advantage that you originally thought would?

In our day to day research we came across Forrester data that said that a healthy percentage of consumers do not end up making their final purchase online because of fears about post transaction problems. In other words, customers want to be comfortable with the returns process. We decided that developing a 365 day returns policy was a good idea, for various reasons: easing customer uncertainties with a very liberal returns period, building customer loyalty and trust by giving consumers lots of time to mull over their buying decision, and increasing sales by creating a comfortable place to do business online without increasing returns by much. Although this seemed like a good idea at the time the numbers didn’t support the new policy and we found that customers did take advantage of the extended returns period. We have since had to roll back the 365 day returns program to do further research before making any additional changes to our returns policy.

This may be a lack of optimism on our part but over the last few years we have outgrown every building we have moved in to. Each time we move we sigh and think to ourselves this is plenty of space we should be able to stay here a while. About nine months later we sigh again as we look around the building and think about how we are bursting at the seems and a new solution needs to be found. Now that we have gone through this process a couple of times we have learned to better estimate space in association with our expansion as a company, especially as we make plans to move in to additional ecommerce spaces.

What is the single most important thing you’ve learned about selling Online during your time in business?

Selling online is hard. It isn’t just about having a good website and a good product. It’s not like the Field of Dreams, where if you build it they will come. There are a lot of well-funded competitors out there and you have to do a lot to stand out and get traffic. Things can change and opportunities arise with little more than a moments notice and being able to effectively handle the fast pace can really help or hinder a business. Selling online involves many of the same concepts of traditional retailing, using different tools and techniques. We need to remember not to get wrapped up in the tools and techniques, but rather to clearly understand how the tool or technique supports a proven retailing concept.

In your opinion, what is the most important thing to remember when attempting to grow your Online business from one step to the next (meaning expand, scale, etc.)?

If you’ve defined the next step and are attempting to grow to it, you must already have some sort of strategic plan that is tied to your vision and supported by your competencies. Assuming that is in place and of good quality, the most important thing to remember is resource availability and quality. You can never get to the next step without the application of resources. If you aren’t highly funded you may not have access to an abundance of high quality resources. You need to get creative and solve the resource issue before moving forward. You may also need to allow the availability of resources to help define your next step.

What is the single most important thing shoppers and existing customers have come to expect while shopping with you? Customer service? Quick delivery time? Security? Lots of options? What makes you stand out in your niche?

I think our customers have come to expect all of these things. Our customer service team is continually learning, growing and developing infrastructure to better equip our customers with the knowledge needed to make a purchasing decision. This is important in our industry as not every customer is familiar with the ins and outs of our product offering. Customers have come to expect that their products will be delivered in a timely manner; they often have contractors scheduled, installation plans, inspections of their projects and so on.

While many of our product lines vary in delivery times we try to be as accurate as possible on each product detail page when describing the lead time on a product. Given our business model it can be difficult to convey real time data to customers regarding delivery status. We offset this by integrating our UPS account with our suppliers and we make sure that the products ordered by the consumer are shipped from the nearest warehouse thus cutting down on delivery times. Right now we can ship the majority of our products the same day or the next day. The HackerSafe seal by ScanAlert has become a staple for insuring security to consumers. We have seen an increase in conversions where the seal is displayed, we believe that this is backed by the fact that security is extremely important to our customers. We want to insure that our customers are assured of their security in whatever way we can.

Our product offering is not only one of the things that has become most important to our customers but it is one of the things that makes us stand out against our competition. Breadth and depth of product is one of our core competencies; you will be hard pressed to find retailers in our space that carry the product offering that we do on one site. We believe this benefits our customers, especially for those who are doing a project or complete remodel. Instead of jumping from site to site and going through multiple checkouts these customers can check out with all of the products needed to complete their project on PlumberSurplus.com.

If you could give only one piece of advice to merchants who are just starting to sell Online, what would it be?

Try to start planning, not just working, from day one. You will change, scrap, and laugh at many plans you make, but by the time you actually need a plan, you will know how your business works and how to make one.

Conclusion & Final Thoughts:

It’s easy to see why PlumberSurplus is a Hot 100 Retailer, they pay attention to details, they listen to feedback, they test their pages and they have spent many man hours making sure their eCommerce site uses the top recommended best practices for selling Online. From what I can see, it’s no accident that they have become so successful, rather it is a direct reflection of their desire to be the best at what they do. Not only that, but by reading their answers you can tell they are passionate about their products, business and employees which are all ingredients for eCommerce success.

I look forward to seeing where PlumberSurplus takes their business in the next 2 to 3 years and as the eCommerce space continues to change. Obviously, they spend a ton of time researching and analyzing their processes, but that can only take you so far. They also do a wonderful job of implementing new features, new tools and great content to help their shoppers have the experience they desire while shopping on PlumberSurplus.com.

To Zach and the PlumberSurplus.com team: Thanks so much for taking the time and effort to participate and fill out our QandA questions. You have one of the cleanest, nicest looking designed sites I have seen in a long time, with nearly all of the proper elements in place. All of the time, effort and money you have invested has gone to great use and I believe that’s a direct reflection of your management and other team members. You should all pat yourselves on the back for such a quality job well done. Please don’t hesitate to ask me for more detail on my recommendations, I would be happy to advise where I am needed.

To our readers: Hopefully you enjoyed our first ever Store Spotlight with the PlumberSurplus.com team. If you are interested in getting more insights directly from some of the most successful Online sellers, simply subscribe to our main articles feed, email updates or the Store Spotlight category feed. The subscription page has even more options to choose from including our gadget or widget. We will continue to post these articles with other Hot 100 eCommerce Sites.

This article is part of our blog series called Store Spotlight. This is the first post in the series. We hope to get ALL the top retailers to participate.