Consumers Win by Shopping Backwards
| Category: E-commerce | Date: 2002-05-02 |
The big winners of the twists and turns of e-commerce are us, the consumers. In Summer 1999, two sites created a hybrid mix of shopping personalization, auction, and product search. These sites use a method called variously reverse shopping, reverse auctions or Dutch auctions (named for the tulip auctions in Holland).
The premise is this: the shopper uses e-mail to tell the site what she wants and how much she is willing to pay for it. Then the site’s system tries to find a merchant willing to sell at the shopper’s e-mail .
The model is similar to Priceline.com, where you submit a price for airline tickets (and now, rental cars) and see if you get any takers. But the reverse shopping sites take the concept out to thousands of merchants. Plus, you can ask for anything: a computer, flowers, an 8-track cassette player.
Two new sites are actively promoting reverse shopping, Respond.com and MyGeek.com. Both launched their services this past summer and both present buying requests to thousands of merchants.
Based in Redwood City, California, Respond.com calls its service Emailshopping. The service connects buyers to sellers. There is no cost to the buyer. To use Emailshopping, the buyer fills out a simple request form describing the product or service he wants and sends it along to Respond.com. The company then forwards the request anonymously to all registered sellers in the appropriate categories. Sellers reply to Respond.com, and those replies are forwarded to the buyer’s e-mail inbox.
The buyer is not bothered by direct solicitation from the seller, and there is no obligation to buy. This is what the interactive Yellow Pages should have been, said Bill Gurley, a partner at Benchmark Capital, one of Respond.com’s investors. The service can help buyers with everything from scarce replacement parts to unusual consumer goods. One customer requested a life-size punching doll. Sugar Ray was in the ad, said the buyer. Respond.com found it.
Launched from Scottsdale, Arizona, MyGeek.com offers a service called Virtual Personal Shopper. The service is comprised of experts who provide advice and information on products in niche categories, to assist buyers with their purchases.
Buyers simply tell the service what they would like to purchase and the request is broadcast to a variety of online merchants. If the buyer is not sure what she wants, the service will assist in refining the request. Merchants then respond with the right stuff. Like Respond.com, the service is free to the buyer.
MyGeek.com’s name stemmed from the endearing qualities of a computer geek. A geek is someone who you can trust and knows the answers, said MyGeek founder Chad Little. The company has matched up buyers for everything from cutting-edge electronics to rare books.
With both services, comparison shopping is a major feature. As with Priceline.com, the buyer can suggest a purchase price (within reason) and ask if any of the member merchants are willing to meet the price. Both services are also effective for comparison shopping, since the buyer often receives multiple responses to a buying request. The buyer can also set deadlines on the purchase.
How well these news services work? Both companies have plenty of positive anecdotal information. But neither company has been in business for more than a few weeks, so it’s too early to tell whether this is an e-commerce breakthrough in shopping technology or just a gimmick that ultimately will evolve into a device for finding rare books and collectibles. Respond.com has received considerable backing from hot-dog e-commerce venture capitalists, so the smart money is betting on the success of response shopping.
About the Author
Robert Spiegel, The Shoestring Entrepreneur, is the author of The Complete Guide to Home Business (AMACOM Books) and The Shoestring Entrepreneurs Guide to the Best Home-Based Businesses (St. Martins Press, due Feb. 2000). For questions or comments mail to:
See details below.
spiegelrob@aol.com
The premise is this: the shopper uses e-mail to tell the site what she wants and how much she is willing to pay for it. Then the site’s system tries to find a merchant willing to sell at the shopper’s e-mail .
The model is similar to Priceline.com, where you submit a price for airline tickets (and now, rental cars) and see if you get any takers. But the reverse shopping sites take the concept out to thousands of merchants. Plus, you can ask for anything: a computer, flowers, an 8-track cassette player.
Two new sites are actively promoting reverse shopping, Respond.com and MyGeek.com. Both launched their services this past summer and both present buying requests to thousands of merchants.
Based in Redwood City, California, Respond.com calls its service Emailshopping. The service connects buyers to sellers. There is no cost to the buyer. To use Emailshopping, the buyer fills out a simple request form describing the product or service he wants and sends it along to Respond.com. The company then forwards the request anonymously to all registered sellers in the appropriate categories. Sellers reply to Respond.com, and those replies are forwarded to the buyer’s e-mail inbox.
The buyer is not bothered by direct solicitation from the seller, and there is no obligation to buy. This is what the interactive Yellow Pages should have been, said Bill Gurley, a partner at Benchmark Capital, one of Respond.com’s investors. The service can help buyers with everything from scarce replacement parts to unusual consumer goods. One customer requested a life-size punching doll. Sugar Ray was in the ad, said the buyer. Respond.com found it.
Launched from Scottsdale, Arizona, MyGeek.com offers a service called Virtual Personal Shopper. The service is comprised of experts who provide advice and information on products in niche categories, to assist buyers with their purchases.
Buyers simply tell the service what they would like to purchase and the request is broadcast to a variety of online merchants. If the buyer is not sure what she wants, the service will assist in refining the request. Merchants then respond with the right stuff. Like Respond.com, the service is free to the buyer.
MyGeek.com’s name stemmed from the endearing qualities of a computer geek. A geek is someone who you can trust and knows the answers, said MyGeek founder Chad Little. The company has matched up buyers for everything from cutting-edge electronics to rare books.
With both services, comparison shopping is a major feature. As with Priceline.com, the buyer can suggest a purchase price (within reason) and ask if any of the member merchants are willing to meet the price. Both services are also effective for comparison shopping, since the buyer often receives multiple responses to a buying request. The buyer can also set deadlines on the purchase.
How well these news services work? Both companies have plenty of positive anecdotal information. But neither company has been in business for more than a few weeks, so it’s too early to tell whether this is an e-commerce breakthrough in shopping technology or just a gimmick that ultimately will evolve into a device for finding rare books and collectibles. Respond.com has received considerable backing from hot-dog e-commerce venture capitalists, so the smart money is betting on the success of response shopping.
About the Author
Robert Spiegel, The Shoestring Entrepreneur, is the author of The Complete Guide to Home Business (AMACOM Books) and The Shoestring Entrepreneurs Guide to the Best Home-Based Businesses (St. Martins Press, due Feb. 2000). For questions or comments mail to:
See details below.
spiegelrob@aol.com
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