According to a post on WSJ.com, significant slowdowns were experienced over the long weekend on sites such as Amazon.com (running proprietary software) and Saks.com (running Blue Martini). In fact, Sears.com went dark for several peak shopping hours on Black Friday — from 10:00 AM to 12:40 PM Eastern; failing again at 3:30 PM. Sears uses IBM Websphere Commerce Server.

According to the latest Internet Retailer Top 500 report, the number of top online retailers managing an in-house solution grew by 29% in 2007. Unfortunately, budget-minded IT managers frequently fail to plan for growing demand. With the economy lowering expectations this holiday, it’s hard to imagine server outages resulting from unexpected traffic. But that’s just what happened.

NetCraft reports that Sears.com has been using Akamai for content delivery. Unfortunately, distributing static content such as images and stylesheets through a CDN can’t ensure against server overload. That’s because dynamic content still eats up CPU cycles wherever the software runs. Dynamic content includes things like promotions, pricing, product attributes, item availability, personalization, check out, and most Web 2.0 stuff. That’s just about everything essential to the shopping experience.

In my practice, I’ve seen many companies put themselves in this same position. Additional costs are incurred when more CPUs are added. Lowering costs by undersizing infrastructure is ill-advised, yet all-too-prevalent. For a multi-billion dollar site like Sears.com, undersizing can cost millions more in lost sales during peak demand.

Don’t let this happen to you. Hosted options are available for almost any vendor. If your data center is understaffed, consider third party hosting that monitors around the clock and provides service level agreements that guarantee availability. 

In addition, properly size each vendor proposal when evaluating options. A thorough set of requirements should be included with each RFP. These requirements must contain information essential for adequate sizing of the entire solution, and its associated costs.

Also keep in mind that system integrators, design firms, software purveyors and full service providers all have a tendency to squeeze square pegs into round holes. Each has a bias that is influenced by the company they keep. So consider the advice of subject matter experts that have no vested interest in the final decision. An unbiased third-party consultant with solid domain expertise is invaluable when measuring vendors for fit.

• Mercado, which sold to Omniture last month for a mere $6 million, after running out of cash.
• Fry, Inc., which sold to MICROS Retail in August for $31 million plus assumption of debt.
• n2N Commerce, which closed its doors last holiday after a spectacular failure to launch.
• Accretive Commerce, which sold to GSI last August, before its second anniversary.

Make no mistake: consolidation will only accelerate under current market conditions. Software-as-a-service ecommerce vendors could be especially vulnerable. SaaS models are supposed to have lower operating costs that can be passed onto clients. However, retailers everywhere demand constant innovation that tailors a unique shopping experience. Maintaining this innovation raises the vendor’s internal costs. 

Most SaaS ecommerce vendors have found profits elusive. Many need more capital to sustain operations. Banks aren’t lending; and VCs aren’t investing. So some SaaS providers like LaGarde are seeking a buyer. According to Internet Retailer, LaGarde says it’s in talks with Dydacomp (maker of “Mail Order Manager”).

Dydacomp isn’t saying. They could wait for LaGarde to reduce operations to a skeleton crew before they buy the assets in a fire sale (like Omniture did with Mercado last month). Dydacomp may just pass on the purchase altogether. In that case, LaGarde could go the way of n2N Commerce; and suspend operations.

When a SaaS provider suspends platform operations, the floor beneath its clients disappears. The investment in the company and its technology is a loss. This forces an immediate decision upon clients that moves them onto other technology with haste, at any cost.

Given these market conditions, it is even more important that retailers find objective third party guidance during the vendor selection process. Tools and templates are efficient, but reveal only what vendors are willing to disclose. Bringing unbiased subject matter expertise to the table will save you time, money and heartache down the road.

For years, I’ve advised retailers who are shopping for ecommerce technology. We’ve all seen companies struggle with the vendor selection process. Sometimes, the process is managed in-house. Other times, merchants hire a consultant with limited subject matter expertise or, worse, a vendor bias. It’s no surprise that so many wrestle with indecision; and switch horses with some frequency.

Recognizing the need for a better way that is objective, complete and fast, B2C Partners developed its own method to help clients measure for fit. It’s called FAST Score™.

FAST Score rates vendors along four primary dimensions:
(1) Features, (2) Administration, (3) Services and (4) Traction. And each dimension contains more detailed criteria with simple adjustments to match business needs. In addition to four primary dimensions, FAST Score also examines (5) Estimates, such as time and cost; and (6) RFP Distinctives which are unique to each client.

Scoring across nearly 100 criteria, FAST Score helps executives identify strengths and shortcomings at a glance. FAST Score was also built for re-use. More than a dozen evaluations are complete and on-hand, so the time to decision is dramatically accelerated. B2C Partners has built a library of these FAST Score assessments. We are now making this library available to retailers where speed and savings are imperative.

Our current library includes FAST Score assessments for ATG, Demandware, Escalate Retail, Fry Inc., iCongo, LaGarde (Phoenix), MarketLive, Novator, PFSWeb, The Acquity Group, Truition, Venda, Virid and WebLinc. More are underway, including GSI Commerce and IBM.

We are offering a FREE, 21-page vendor profile of ATG to all qualified retail prospects. Contact us for details.

Bill Mirabito will present how to select the right fit for your business

Kingston, Mass. – October 30, 2008 – B2C Partners (www.b2cpartners.com) announced today that its founder and principal analyst Bill Mirabito will present a webinar, “Choosing the Right Ecommerce Platform in a Tough Economy” on Thursday, October 30 from 2:00 PM - 3:00 PM Eastern. With credit markets tightening, many technology vendors face an uncertain future, and nowhere is this risk greater than in the crowded market of ecommerce platforms. In this one hour session hosted by Venda, analyst Bill Mirabito of B2C Partners will share his method to identify the eCommerce platform that is the best fit, regardless of economic conditions. 
 

Who:  Bill Mirabito, founder and principal analyst, B2C Partners
What: “Choosing the Right Ecommerce Platform in a Tough Economy”
When:  Thursday, October 30 from 2:00 PM - 3:00 PM Eastern
 

Attendees will learn:

• How the economy will accelerate vendor consolidation
• How to build a vendor short list that reflects your business model
• How to organize RFP selection criteria for useful decision making
• How to conduct client reference calls that are candid and insightful
• How to present a recommendation and win the support of stakeholders

Register:  https://www2.gotomeeting.com/register/374831412

About B2C Partners
Bill Mirabito is founder and principal analyst at B2C Partners. For more than a decade, Bill has managed ebusiness activities, both as a marketer and technologist. Most recently, he covered ebusiness products and services as senior retail analyst at Forrester Research. In 2006, Bill founded Sunfitters, an online specialty retailer with which he remains involved. He previously held product marketing positions at Demandware and Akamai Technologies - with primary focus on retail solutions. Bill also consulted for BJ’s Wholesale Club, where he led the retailer’s first ebusiness initiatives and later served as IT executive for online commerce. For more information or to schedule a briefing with B2C Partners, please visit www.b2cpartners.com

B2C Partners Recommends Online Storefront “Catalysts” for Small Businesses

Kingston, Mass. – October 15, 2008 – B2C Partners (www.b2cpartners.com), a firm that helps online retailers with technology evaluation and vendor selection, today released a new list of eCommerce platforms that won’t break the bank. Designed for small and medium-sized businesses (SMBs) looking for a new eCommerce technology, the list of more than 50 providers is based on B2C Partners’ extensive industry experience helping retailers with technology evaluation and selection.

Many retailers looking to launch an online presence are faced with a challenge – they are often strapped for resources, under-staffed and looking for the best available solution for their needs within a short timeframe. Many retailers are overwhelmed with options and don’t know where to begin.

“Not everyone has the potential to drive $5 million in online sales out of the gate. So where do they turn?” said Bill Mirabito, founder and principal at B2C Partners. “There are many eCommerce platform ‘Catalysts’ designed specifically for the small- and mid-sized market. Unlike enterprise solutions that require a million dollar budget or tens of thousands in recurring monthly fees, the SMB focus of ‘Catalyst’ solutions deliver more limited features with simpler deployment options that are very affordable. Some open source options are even free.”

Below is B2C Partners’ list of SMB eCommerce platforms that won’t break the bank: