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PA e-Comm News October 11

ADVERTISERS OF THE WEEK

Amazon.com said that a labor dispute that has paralyzed U.S. West Coast ports is not a cause for concern for the company during its busiest quarter because the majority of its U.S. business was in domestically produced goods such as books, music and media. The only product category that might be hit is electronic goods, which could always be moved by airfreight. The company declined comment on whether it would repeat its fourth-quarter 2001 surprise of posting its first-ever quarterly profit but does expect a good holiday season. Attracting higher sales more consistently throughout the year will be key to long-term profitability for Amazon, which has said it needs revenue of about a billion dollars a quarter to generate a positive margin. With its "used stores" service, customers can buy and sell used goods privately, with Amazon taking a cut of about 3 or 4 dollars for every successful transaction. This "marketplace” has grown rapidly and already accounts for over 30% of units moved via the U.S. Web sites.

Hotwire has been fined $50,000 following a federal inquiry that found the online travel company was running deceptive advertising. The U.S. Department of Transportation decision was taken in response to formal complaints filed by American Trans Air and Frontier Airlines earlier this year. The complaints centered around certain Hotwire radio commercials which offered examples of low airline fares to certain destination cities but failed to mention where the flights originated or when the fares would be available. The DOT found that, in some cases, fares were not available in certain cities where they were advertised. Hotwire has been cooperating with the DOT and has already addressed concerns raised in the complaint, the company said in a statement. The purpose of the ads was to illustrate the type of savings possible for flexible travelers who use Hotwire, according to the company. Now, Hotwire has added origin city and booking date to its advertising. Last month, the National Advertising Division of the Council of Better Business Bureaus, following up on a complaint filed by rival Priceline.com, recommended that Hotwire drop or modify claims in its advertising that it offers "better deals" and the "lowest price guaranteed."

Operators of interactive online games have hit upon an audience-pleasing business model by featuring subscription plans that give users unlimited access for a monthly fee. These PC-based role-playing games are really gaining traction by charging monthly fees usually between $10 and $15. Sony's Everquest game is the latest example of this business model working well with tens of thousands of users paying a regular subscription fee of about $12.95 to play. Games also draw advertising money to sites, including demos from traditional game publishers as well as full-length interactive games backed by companies like Fox Sports and the TNT cable TV network. Now, companies like Yahoo! and AOL are setting up subscription-based models for selling content. Most entertainment-oriented sites, however, have had mixed success with the subscription model. It is expected that the ranks of online gamers will be boosted as console players migrate to the Internet; just as Microsoft earlier this year introduced online offerings tied to its Xbox player and Sony has similar plans for its PlayStation 2 console.

Hewlett-Packard will launch a revamped Web site to sell personal computers directly to small businesses in an attempt to catch up to Dell Computer. This new site is not novel but rather copies established sites like Dell, Intel, Cisco Systems and other technology vendors by integrating thousands of items from the product catalogs of HP and Compaq Computer. HP is also cutting costs by requiring its suppliers, which have located facilities near the distribution centers, to keep parts in their own warehouses and on their own books until HP actually needs them.

Everyone knows that it costs more to acquire customers than to retain them. Web-based customer service is not just about enabling the call center with newfangled CRM technology but it is about companies meeting customers' needs online and throughout the entire customer life cycle. Companies hoped CRM would drive customers to cheaper Web interactions and thus cut operating costs but most successful online companies approach online interactions as a way to enhance the customer experience, not merely to cut costs. These operations make it easier for customers to conduct business online and their sites are easy to navigate allowing visitors to access the right content quickly. Dell, for instance, has a toll-free telephone number appearing at the top of the home page for customers who prefer to talk to a live agent rather than to order products online. Understanding customers is the first step to building a strong online customer experience. Customer information provides a knowledge platform for a business to use throughout the customer relationship and the payoff, of course, is repeat business. 

PROCUREMENT OPPORTUNITIES

The following is a listing of recently published technology procurement opportunities with various governmental entities. We hope our readers take the opportunity to investigate these postings and increase their business:

TREAS - Bureau of Engraving and Printing (BEP)
Office of Procurement
D -- D-Environmental, Health and Safety Online Training
Solicitation 01
http://www.eps.gov/spg/TREAS/BEP/OPDC20220/Reference-Number-02ES-0023/listing.html

NASA - Langley Research Center
Office of Procurement
70--AVIONICS SOFTWARE
Synopsis
http://www.eps.gov/spg/NASA/LaRC/OPDC20220/1-203-SS.100702/listing.html

GSA - Federal Technology Service (FTS)
FTS, 7T-2 Louisiana
D -- CASE MANAGEMENT SOFTWARE AND SUPPORT
Combine Synopsis/Solicitation
http://www.eps.gov/spg/GSA/FTS/7TRT2/7TF-02-0012A/listing.html

GSA - Federal Technology Service (FTS)
IT Solutions West Branch ( 4TRW)
70 -- 4THF21028814
Synopsis
http://www.eps.gov/spg/GSA/FTS/4TRW/4THF21028814/listing.html

DISA - Acquisition Directorate
DITCO-Scott
D--INFORMATION TECHNOLOGY SERVICES, INCLUDING COMMUNICATIONS SERVICES
Synopsis
http://www.eps.gov/spg/DISA/D4AD/DITCO/VARIOUS-07-Oct-2002/listing.html

DOJ - Federal Bureau of Investigation
Information Technology Contracts Unit/PPMS
D -- computer network access from local, state, and federal law enforcement information
Synopsis
http://www.eps.gov/spg/DOJ/FBI/PPMS/RFP916682/listing.html

GSA - Federal Technology Service (FTS)
Federal Technology Service (5TF)
D -- Microsoft Premier Support Services
Combine Synopsis/Solicitation
http://www.eps.gov/spg/GSA/FTS/FairviewHeightsIL/Reference-Number-
5TS5703C009/listing.html

NEWS & NOTES is a service of the PA e-Commerce Association. Please forward this e-mail to anyone else who might be interested in the content or in learning more about the Association. Remember to visit our website @ www.paecomm.org. or give us a call at 800-497-0809.

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