This week, there was a little hiccup online due to the recent discovery of a cyber attack on eBay; however, eCommerce headed in a positive direction overall. A new software developed by BloomReach, SNAP, hopes to customize online shopping experiences using big data and make the conversion funnel even shorter for online stores. Inditex, the spanish clothing company that houses Zara, is hoping to grow and gain more market share with their expansions and being online may be just the way to do it. Pinterest is hoping to impress marketers with their online scrapbooking platform and possibly jump on the paid ad bandwagon. See below for our Weekly Wrap Up summaries!
It was recently discovered that nearly three months ago, eBay went through a major cyber attack in which hackers were able to gain access to 145 million records that contained encrypted passwords, birthdays, and phone numbers. Although, there hasn’t been evidence of any unauthorized activity or access to financial credit card information, the eCommerce giant is advising their customers who bought or sold something in the last year to change their passwords. Online shoppers may start to worry but for now, analysts and academics believe that until a catastrophic event outweighs the convenience of online shopping, it will continue to go strong.
A Complicated Technology Making Online Shopping Even Simpler
BloomReach is taking the use of big data to the next level. With their new software, SNAP, online stores can show their customers only the products they want which could drastically shrink the amount of steps taken from the homepage to the “add to cart” button. According to De Datta, CEO of BloomReach, the enterprise-level software can recognize visitors with 99% accuracy. It is a cloud based service and what’s great is that it can be easily added to a site without it being rebuilt. The core technology behind SNAP has seen positive results with ModCloth thus far, so this may just be the solution to browsing endless pages of unwanted products.
Inditex, the parent company of the popular spanish clothing line, Zara, is growing and expanding their business! They’re headquarters in Arteixo, Spain was recently doubled in size and they’re investing more into both their bricks and mortar and online store. Since they do not advertise, their retail locations are key however an online store will definitely help them obviate the need for secondary stores. Their website acts as an important marketing tool and provides a wealth of information since they get nearly five million visits a day! If Inditex continues on this online path, they have the potential to reach online sales of €2.4 billion by 2017. Although their market penetration is still tiny in most of the countries they operate in, they are betting that an internet push will change that.
Move over Twitter and Facebook, Pinterest is joining the party! The popular online scrapbooking site is now allowing marketers to ingest data from its services to help them better understand and interpret users’ activity on the site. Pinterest hopes to prove to marketers that their platform is beneficial enough to pay for ad spots when it becomes available. For now, they are testing a paid ad product called “Promoted Pins” with a handful of advertisers. Looks like Pinterest is just getting started.