E-tailers: Make your customers happy

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13 October 2000 03:00 PM
Tags: tail, site, return, worst, study, studied, firm, customer

A new report says online retailers need to work on their customer satisfaction if they want to lure more business.

In case you had a doubt, a new study says that e-commerce companies aren't up to par when it comes to handling online transactions.

And for Martha Stewart, the results aren't a good thing.

The report, issued by consulting firm Shelley Taylor & Associates, studied 100 online stores in the United States and the United Kingdom. While a few sites got top marks for their ability to handle checkout, post-transaction communication and returns, many fell short.

"In general, the companies ... have room for improvement," the study found.

The finding is important as e-tailers battle to keep existing customers happy and add new ones in the increasingly competitive arena of online shopping. The consulting firm said many sites have not learned the lesson mastered long ago by brick-and-mortar stores, namely, keep the customer satisfied.

Amazon.com was named the best site of those studied, although the report said that it "only squeaked to the top of the list." In particular its return and receipt policies were found to be lacking some of the better practices -- such as including a return shipping label with purchases -- found at other firms.

The best ... and the worst

Nordstrom.com ranked tops in the return category, echoing the offline company's legendary status in this area. Overall, the top five US sites were Amazon.com, TheSportsAuthority.com, Pets.com, Outpost.com and Drugstore.com.

The worst US sites, according to the study, were MarthaStewart.com, Sears.com, Wine.com, Gear.com and Hallmark.com.

Many of the problems sprung from e-tailers simply not keeping customers informed. The survey found that only 16 percent of sites provided access to return policies on the checkout path. And only 36 percent told shoppers whether the items they asked for were in stock before they submitted their credit card number.

The study also faulted what it termed "hidden" shipping costs. Examples of the worst cases included WalMart.com's charging US$17.97 to ship an item that cost US$17.96.

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