NETSUITE ECOMMERCE CUSTOMERS' HOLIDAY SALES
SKYROCKET AT TWICE THE NATIONAL AVERAGE
2,000+ NetSuite Ecommerce Merchants Grew Online Revenues 24 Percent to More Than $750 Million in 2010
Seamless Back-Office Integration Fuels Growth by Enabling Targeted Marketing, Dynamic Merchandising, Global Selling and Real-Time Inventory Management
SAN MATEO, Calif.—January 27, 2011—NetSuite Inc. (NYSE: N), the industry's leading provider of financials / ERP software suites, today announced that the thousands of companies using NetSuite's Ecommerce solutions saw holiday revenues grow an average of 24 percent in 2010 compared to 2009 on a per-merchant basis. That rate is double the 12 percent national increase in US online holiday shopping as reported by comScore. Average number of orders and Ecommerce page hits grew rapidly in the year-over-year period as well. New product features added to NetSuite's cloud-based Ecommerce platform include complex promotions that can increase sales and order size for merchants, real-time inventory management which enables merchants to keep their biggest sellers in-stock, robust global selling tools that allow merchants to reach wider markets, and automated targeted marketing than can reduce cart abandonment rates. Le Cache Premium Wine Cabinets, evVive, and Perfect Timing Brands are just a few of the NetSuite customers which enjoyed outsized holiday growth this season. For more information about NetSuite Ecommerce solutions, please visit http://www.netsuite.com/ecommerce-solutions.
Digital business analysis firm comScore recently issued its annual report showing a record $32.6 billion in U.S. online holiday sales in 2010, representing a 12 percent increase from the previous year. Thousands of companies running their business on NetSuite Ecommerce, however, were able to boost sales at twice the national average pace as highlighted by comScore, and significantly higher than the 2.3 percent increase in 2010 U.S. holiday sales as forecasted by the National Retail Federation. This tremendous growth was fuelled by a 21 percent increase in orders and a 31 percent increase in page hits seen by NetSuite Ecommerce companies in a year-over-year comparison. This data set reflects thousands of NetSuite customers ranging from manufacturers and wholesale distributors to pure-play Ecommerce providers representing hundreds of millions of dollars in transactions.
NetSuite's cloud-based Ecommerce platform and the advantages of a single integrated business management suite were key contributors to the gains. Superior self-service options, a 360-degree view of the customer and streamlined order management, are only a few of the superior functionalities that enabled NetSuite customers to grow faster than their counterparts during this holiday season without increasing costs to match. Lower maintenance and implementation costs, due to NetSuite's cloud delivery, helped those merchants retain more of what they earned during the fast-paced holiday sales season.
"While NetSuite has always helped Ecommerce merchants grow quickly and efficiently, even I was blown away that our suite allows customers to grow at double the rate of this already fast growing industry," said Andy Lloyd, NetSuite general manager of Ecommerce products. "These results highlight the power and flexibility the NetSuite cloud offers daily to thousands of companies worldwide."
Among the companies that experienced tremendous 2010 holiday sales growth thanks to NetSuite's Ecommerce advantages were:
- evVive Home Appliances, a premier brand home appliance and lifestyle retailer based in New Jersey. evVive's holiday revenues tripled between 2009 and 2010 on the strength of superior inventory management and order processing capabilities, allowing the company to absorb the demand created by accelerated marketing efforts. Because NetSuite provides a complete business solution, evVive has a single view of the customer and makes it easy for return customers to make additional purchases, process returns, or issue customer support requests. evVive also credits NetSuite's enhanced support for PayPal and Google Checkout, making it easier for the company to reach out to more customers and accept a greater variety of payment types. "You cannot triple your sales without a reliable solution, and NetSuite's biggest strength has always been consistency. We know that it is going to be available when we need it," said Metin Ozkuzey, evVive president. "We built our business from day one on NetSuite and its capabilities grow with our processes. We weren't chasing our tails during busy periods—NetSuite was tracking everything we needed to know about orders, shipments, and returns."
- Le Cache Premium Wine Cabinets (www.lecachewinecabinets.com), a specialty furniture merchant based in Cotati, CA. Le Cache operates three segmented brands on the NetSuite Ecommerce platform. Year-over-year, Le Cache's two incumbent brands increased revenues 30 percent from Holiday 2009 to Holiday 2010. The third brand, Sonoma Wine Accessories, was soft-launched in December 2009 but formally unveiled for the Holiday 2010 season. NetSuite enabled Le Cache to keep wine lovers satisfied without expanding its sales department, and the strong integration between inventory and shopping cart capabilities enabled Le Cache to eliminate full-time spending on a Web contractor. Seamless connectors for Amazon Stores, Google Shopping, and other merchandising portals maximised Le Cache's reach without the need for additional marketing automation software. "No matter how busy we became, we could see everything in real-time, react quickly to replenish our stock, and easily offer our products for sale across multiple platforms," said Ben Argov, Le Cache co-owner. "That's how we were able to grow our existing brands by 30 percent while saving over 50 percent on our Ecommerce costs."
- Perfect Timing Brands (www.perfecttimingbrands.com), a leading supplier of stationery, calendars, and gifts based in Waukesha, WI. Best-known for its LANG line of calendars, stationery, and other gift products, the company's attempt to grow its direct, consumer channel was stifled by an unstable, unreliable Ecommerce platform. Switching from its previous system to NetSuite helped produce a 30 percent increase in revenues from Holiday 2009 to Holiday 2010. Under the old system, transactions were sluggish resulting in frequent cart abandonments, search capabilities and search engine optimisation were poor and maintenance was difficult. The reliable, stable NetSuite solution gives Perfect Timing extensive business analytics, superior merchandising management, and a fast, easy-to-use product and inventory interface that enabled the company to market all of its products online for the first time. "We were crashing on average once every two weeks with the old system, had no inventory insight and no analytics," said Eric Grunewald, Perfect Timing director of Ecommerce and catalog marketing. "NetSuite gave us a year-over-year 30 percent improvement in holiday Ecommerce sales because of the efficiencies in loading new product, great analytical tools and customer reporting, and cart abandonment features we didn't have before."
comScore press release "U.S. Online Holiday Shopping Season Reaches Record $32.6 Billion for November-December Period, Up 12 Percent vs. Year Ago" dated January 5, 2011
For more information about NetSuite, please visit www.netsuite.com.au.
NOTE: NetSuite and the NetSuite logo are registered service marks of NetSuite Inc.