How SitStay.com fit Big Blue
into a smaller budget
Among the online retailers that use IBM's WebSphere e-commerce
software are Staples, which is No. 2 in the Internet Retailer Top
500 Guide, and No. 23 L.L. Bean. But SitStay.com, which has yet
to crack the Top 500, found a way to acquire the IBM technology at a
fraction of the usual cost, and now aims to use the new software to
take on much bigger pet supply retailers.
SitStay.com went live with WebSphere Nov. 7 after working out a
deal with systems integrator eGlobal Solutions Corp., which
developed the links between WebSphere and the order management
system SitStay.com uses, OrderMotion. Now eGlobal will market this
system to other OrderMotion users, says Kent Krueger, vice president
of SitStay.com. “We didn’t have to put out as much money as we would
have otherwise,” Krueger says.
That’s important because SitStay.com, an online-only retailer,
does under $10 million in sales per year. The retailer also kept the
price down by licensing a stripped-down version of WebSphere, with
some features deactivated. In all, the implementation cost about
$100,000, whereas it normally would have cost $200,000 to $300,000,
Krueger says. The e-retailer also pays a hosting fee in the range of
$2,000 to $3,000 per month, he says.
WebSphere replaces software Krueger developed himself in 1997.
With the old software, each page’s contents were fixed. That meant
that changing a price or product description on a dog leash, for
instance, meant making the change on every page where the leash was
displayed.
With WebSphere, each page is built on the fly, drawing the
products from a central database. Changing the price in the database
means the new price will show up on every page where the item
appears. “If we want to put everything in toys on sale,” Krueger
says, “a couple of clicks does that.”
Other new features include one-click checkout for customers that
have registered their payment and shipping information, wish lists
that can be e-mailed to friends, and multiple address storage for
customers that head south for the winter, Krueger says.
Sales go directly into the OrderMotion system for fulfillment,
eliminating the manual handling required previously. And the new
system lets SitStay.com trap orders that meet certain criteria, such
as dollar amounts over a specified threshold or orders being shipped
to certain countries. All in all, Krueger estimates the new system
will eliminate a person-year worth of maintenance on the site,
allowing him to better deploy the company’s 11 employees.
Krueger says he’s just begun to implement all that’s possible
with WebSphere. Among the enhancements planned for next year are
product videos, improved site search and customer reviews. “It will
allow us to play with the big boys,” Krueger says. “If you look at
our site compared to Petco and PetSmart we’re similar in look and
feel to them, although we’re a lot smaller.”
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