How do you provide customer service?
We send confirmation emails when we receive the order. We again send a
confirmation email when the order is shipped to give them their UPS tracking
number. We want to address some of the biggest concerns of the customers,
particularly questions like "Will I ever get this order? How can I get hold
of someone?"
We made the decision in early 1999 to put our phone number everywhere on our
web site so our customers can call us. We don't have 24/7 coverage but we have
enough staff to handle the phone during office hours. We never let the phone
ring 2 or 3 times. There's a voice that answers and customers are rarely put on
hold. A knowledgeable staff answers questions. If there is a concern, it is
quickly handled.
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We are also very generous in our return policy, in giving information, in
helping people along or in making a decision or to resolve a problem.
Has shipping costs deterred customers?
Probably. But we have selections and we have service.
Yes, our products are expensive to ship. But we cut our margin so we can stay
competitive. If somebody go to a big toy store, and if they find that one
specific item that we also sell, many times they will find it for less. With
specialty stores, we are generally more competitive.
Where we blow everyone out of the water is when somebody is sending it as a
gift. No one will gift wrap these wagons because they're too large. So we will
gift-wrap them. We gift wrap them, put a card, and ship them anywhere in the
country for the same costs, as you would have it shipped to your house. And many
times, for the same costs as you would pick it up somewhere in a specialty
store.
If you go to ToysRUs and get the wagon for less, and try to wrap it and ship
it, first of all it would take you about three hours to do it and it would cost
you the same amount of money. We have the extreme advantage when you are trying
to send it as a gift.
It is a big bulky item. So when you buy it from a store, you have to get it
off the shelf, bring it into your car and try to get it into your car. Imagine
if you are a parent with screaming kids trying to fit this big wagon in your
hatchback or your little trunk - it is hard.
There is a cost difference, but convenience wise, we can blow the competition
out of the water.
How are you managing the growth of your business?
In the early part of 2000, we were experiencing triple growth over the year
before. After three years of being in business, we were heading to about 24-fold
growth over our first year.
At that point, I was considering whether to outsource our fulfillment or
expand our business. I wasn't sure what was going to happen. I decided to
outsource because I didn't know how much more we are going to grow. If the
growth stalls and I expand, we would have people sit around in an empty
warehouse.
So we decided to outsource our entire fulfillment in September 2000. And of
course, the market started to crash. Instead of having triple growth, which we
were on target until that second quarter, we slowed down to about 50 percent
growth. So we ended up having a 2-fold growth instead for 2000 over 1999.
Our decision to outsource was good since we are not overextended now. We're
still strong and focusing on our customer service. Our repeat customers and
referral customers are coming back very strongly because of the service we've
given them in the past, and that has propelled us to 60% growth this year over
the last.
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