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Author Archive

Conversion Optimization Testing Process

August 5th, 2010
Tags: conversion optimization
Categories: E-commerce
By: Lee Roberts

 

My first social experiment, a study in jury dynamics, was an utter failure. Although my college professor assisted me, I was still in control and being an educator she allowed me to learn from my mistakes. Thank you very much Barb, I did learn a lot.

You see, I included too many variables and the wrong type of measurement.

I separated the participants into groups of 12 and provided them real life jury trials from around the country. Cases included murder, burglary, assault, auto theft, and an auto accident.

My variables included age, ethnicity, number of children, education, type of job, marital status, suffered from a crime, know someone who suffered from a crime, and religion.

Then instead of “guilty” or “not guilty,” I had the participants indicate the level of guilt.

The two factors that caught me ill prepared were ethnicity and level of guilt.

I left ethnicity open to interpretation and came away with people identifying themselves as W.A.S.P., Latino, White, African-American, Cherokee and many others. I certainly learned why the government limits responses to Caucasian, Hispanic, Eskimo, Native American, African-American, and Asian.

I thought the level of guilt would provide an interesting insight into personal dynamics and points of view. Unfortunately, this turned into a mess. The responses were not simple black and white responses. I had results on a 0 to 10 scale of 3.12, 3.45, 6.789, and other wacky numbers.

From this fiasco I learned that scientific studies use tests with limited variables. Adding to many variables causes confusion and becomes too hard to track.

Now, I use the lessons I learned from that experiment to plan and implement conversion optimization studies. These studies require that I develop a hypothesis before we test which aids in limiting the number of variables we use in the conversion optimization testing process.

The Affiliates and Sales Tax Debate

March 23rd, 2010
Categories: Business
By: Lee Roberts

 

Since 2000, many states have sought to find ways to force online stores to charge sales tax.  They call this attempt the streamlined sales tax initiative.  Almost a decade later, states have started creating laws compelling online businesses to collect sales tax for sales generated by affiliates.  Are these laws affecting affiliate advertising legal?

The Due Process Clause of the U.S. Constitution states no government shall “deprive any person of life, liberty or property, without due process of law.  The U.S. Supreme Court has ruled that a minimum connection between a company’s interstate activities and the taxing state.

The Commerce Clause of the U.S. Constitution expressly authorizes Congress to regulate commerce with foreign nations and among the several states.  The U.S. Supreme Court has ruled that the Commerce Clause prohibits states from taxing out-of-state business unless that business has a “substantial nexus.”

So, what’s a nexus?  A nexus is generally determined by the presence of three factors, i.e. sales, payroll and property.   Obviously, payroll is any employee based within a state.  Independent representatives do not constitute a nexus unless that representative collects monies or services the customer in any manner.  Sales requires payroll to be paid to an employee.  Property is defined as any physical property owned by the business.

New York created a law compelling online merchants to collect sales tax for sales made through affiliates.  Their reasoning is affiliates are sales agents of the company.   As a result, many businesses have ceased their affiliate programs in New York.  Amazon.com is currently fighting a legal battle in New York on this issue citing affiliates are advertising channels.

North Carolina, Rhode Island, Colorado and a few other states have created similar laws. Businesses have begun ceasing relationships with affiliates within those states.  Their reasons range from too much hassle to the burdensome range of sales tax laws within each state.

Now, here’s the kicker and something I told Oklahoma’s Tax Commissioner while serving on the Oklahoma Electronic Commerce Task Force.  Regardless of what the states want to do, the U.S. Congress is the only entity that can establish laws governing interstate business and taxation.  When the U.S. Congress does establish taxation laws, those laws will additionally apply to U.S. Territories.   Those U.S. Territories include Puerto Rico, U.S. Virgin Islands, Guam, The Marshall Islands and others.  That means if someone within a state made a purchase from a company in Guam, that person would need to pay sales tax to Guam.

Now, if New York wins against Amazon.com, we have to consider Google, Yahoo, Bing and all the other pay-per-click and cost-per-action advertising channels as a nexus for any business outside of New York.  The legal issues would quickly move to the U.S. Supreme Court as a class action lawsuit.

Is it legal to force a company to assess sales tax on orders through affiliates by claiming the affiliate is a nexus?  Under the U.S. Constitution and previous case law, the affiliate does not constitute a nexus.  States need to wake up to the new economy, embrace it and put all taxes (income, sales, luxury and all others) into a single pot from which to pay their bills.

We are not attorneys and this information should not be considered a legal opinion or used as advice. Please consult your local legal representative for advice.

Baiting Your Website for Customers

August 31st, 2009
Tags: Business, website
Categories: Online Marketing
By: Lee Roberts

 

Several years ago an Alabama State Trooper came upon a young boy fishing off a bridge at night. The Trooper stopped and asked the boy how the fishing was. The boy replied, “It would be great if these damned worms wouldn’t bite.” The Trooper took his flashlight and shined it in the bait bucket. To the Trooper’s amazement he found the boy was using baby rattlesnakes for bait.

Web sites are very much similar to this situation. If you’re using the wrong bait either you’re going to be bitten or your web site won’t work correctly.

The Wrong Bait

(more…)

Reputation Management Increases Sales

July 29th, 2009
Categories: Business
By: Lee Roberts

 

According to a survey by the Opinion Research Corporation, 84 percent of Americans say online reviews influence their purchasing decisions.

Controlling your reputation is critical to your success. Allowing others to control your reputation and brand image decreases your sales by a minimum of 15%.

People do not go on Google and do a search for your company name to find the good things customers say about you. They go to find the negative things. They want to know why they shouldn’t do business with you. Allowing others to control your reputation could cost you a lot of business.

Positive reviews, on the other hand, give potential customers reasons they should do business with you. Websites like Yelp and CitySearch can help you improve your bottom line when you interact with your customers. Talking to a customer who wrote a negative review can help turn that customer into a loyal customer.

Read the story!

You can use CommerceRegistry.com and ShopOklahomaOnline.com as a means to manage your brand as well.

Local Search and Local Results

May 6th, 2009
Categories: Search Engine Optimization
By: Lee Roberts

 

Businesses compete in many areas for the same customers. Local search is one of those areas. In a recent study, we conducted several searches using different Internet Service Providers (ISP) from the same city. The results indicate that results are based upon where the ISP identifies the searcher’s IP is located.

Our offices are located in Norman, OK, which one would think would be the results we would receive. As you’ll see below, that’s not the case.

ISP #1: AT&T

In our searches using AT&T, we discovered the results were for Oklahoma City, OK.

okc-results

ISP #2: Cox Communications

In our searches using Cox Communications Internet Services, we discovered the results were for Norman, OK.

norman-results

In an effort to assist the searcher Google does provide the ability to “Change Location” and acquire results based upon one’s postal code. Being able to change one’s postal code really helps one find the “most” local provider.

The Big Bang Theory of Ecommerce

March 19th, 2009
Tags: E-commerce, internet marketing, Shopping Cart Software
Categories: E-commerce
By: Lee Roberts

 

On March 16, 2009, The Big Bang Theory television show offered up the Big Bang Theory of Internet Marketing.

Penny, like many start-up business owners, had found something she enjoyed doing and decided to turn it into a business. She enlisted the aid of Sheldon to help her with several aspects of getting the business up and producing her merchandise. A bit later the other guys came in and volunteered to help.

Leonard decided he would develop the Web site.

The episode was great and delivered several messages about starting a business and using the Internet as a marketing channel. You need a…

  1. Business plan
  2. Marketing plan
  3. Product development processes
  4. Employees
  5. Storefront
  6. Order fulfillment processes

Remembering the show is a comedy it addressed all the points from a comedic view. Penny’s business failed because she didn’t have all the right pieces.

The episode addressed the “build it and they will come” belief. People that have online stores can honestly say that it’s impossible to have sales within minutes of launching one’s Web site without using a service like Google Adwords.

Google Adwords can help get visitors to a Web site, but it can be costly if not used properly. If you do decide to use Google Adwords or any other pay-per-click (PPC) advertising service, you should consider using a PPC management service.

Shopping cart software can be developed to work well with the search engines, but search engines must first find the Web site before it can index the site’s pages. Submitting a Web site to Google can be quick, but even Google says it may take weeks before it visits and indexes the Web site.

To more easily appear in the free, organic search results, one should use a search engine friendly shopping cart.

Google Indexes HTTPS: What Can I Do?

February 17th, 2009
Tags: Google, search engine friendly shopping cart, Search Engines
Categories: Search Engines
By: Lee Roberts

 

Search engines index Web addresses without a conscious or concern about how other technologies interact with the Web addresses they index.  As a result they tend to index the HTTP and HTTPS version of a Web page.  Indexing both versions causes duplicate content, security concerns, and can be easily avoided.

Search engines dislike duplicate content, but they fail to do anything about it on their side of the equation when it can be easily done.  They expect all business owners, Web designers and anyone else to know how to keep the search engine spiders out of areas they shouldn’t be in.  However, search engine spiders are like “Curious George” and always cause some kind of problem.

We can look at almost any forum focused upon Web design or search engine optimization (SEO) and we’re bound to find at least one post about duplicate content.  These posts range from duplicate content caused by uneducated programmers to that caused by the search engines themselves.

One may ask, “What is duplicate content?” The answer varies depending upon who you ask. However, the accurate answer is any content that is significantly duplicated on other pages within a single Web site. The question then evolves to, “When all the Web pages of a Web site have the same navigation, header and footer how does that affect the duplicate content equation?” No one has definitively answered that question; however some have cited that when more than 51% of the text content is the same on one or more pages then duplicate content exists.

Fortunately for this thesis I’m not here to answer that question. However I am here to say that when search engines err in indexing both the HTTP and HTTPS version of a Web page they cause duplicate content. Regrettably, the search engines will turn and state that if the Web site blocked their access then they couldn’t index those pages and therefore duplicate content wouldn’t exist.

In examining the security issues involved in search engines indexing the HTTPS version of a Web page we easily find the search engines at fault. One might question how a security problem exists when this happens. Actually it comes down to more than just a security problem; it’s more of causing a merchant to lose a potential sale.

Current browser technology examines the secure site certificate’s assigned Web address and compares it to the requested Web address. If a mismatch exists the browser will not show the requested page, rather it shows a notice that recommends the person not proceed any further. This security problem then causes the merchant to lose a potential sale because the shopper’s concerns for security elevate to the level of “flight” versus conducting business with the merchant.

Far too often search engines ignore techniques available to them to eliminate duplicate content for the simple fact that search engines thrive on content. In other words, the more space they can fill up in their databases the better they think they are doing their jobs.

Search engines should take it upon themselves to not present or even index the HTTPS version of a Web site. Unfortunately their sense of social responsibility seems to not exist.

Over the years many people have questioned how they can fix the problem. The solutions provided, at least the ones I can find, focus upon using a .htaccess file to direct search engine spiders to a robots_ssl.txt file with instructions to not visit pages within the HTTPS environment. These solutions presume that Apache is the Web server software being used.

A better solution exists that will work with any programming language and Web server software. I’ll simply explain the logic instead of provide a sample code base.

If Server Port is 443
Then Add to the section of the Web page.

This simple method will prevent search engines from indexing the Web page and following any link found on the Web page in the secure environment.

As Web site owners, Web designers and search engine optimization experts we must take it upon ourselves to clean up the mess “Curious George” causes. As a shopping cart developer, Merchant Metrix has incorporated the above method to prevent duplicate content and most importantly instruct the search engines to not index or follow links in the HTTPS environment.

If search engines accepted their social responsibility, they could strip the “s” from the HTTPS and eliminate the duplicate content and security problems they have caused. Whether they do accept this social responsibility or not … time will only tell. Until then, we must do our parts to aid the search engines and provide them “search engine friendly” Web sites to navigate and index.


About the Author:
Lee Roberts, CEO/Founder of Merchant Metrix, Inc, has been working in the industry since 1996. Roberts pioneered the “search engine friendly shopping cart” in 2000. Merchant Metrix, Inc was awarded The Journal Record’s (Oklahoma’s major business newspaper) Innovator of the Year for 2009.

The Pottery Barn 9 – Trick

February 12th, 2009
Tags: Merchant Metrix, Online Store Software, Shopping Cart, Shopping Cart Software
Categories: E-commerce
By: Lee Roberts

 

Every now and again I’ll hear about how people have come up with ideas to hack an online store through various techniques. The latest technique is associated with The Pottery Barn, but according to reports it seems to work on other sites like William Sonoma.

At Merchant Metrix we’re concerned with our clients’ businesses and want to ensure hacks like this and others do not exist. This concern led us to develop a shopping cart software package that eliminates these and other problems.

Microsoft Buys Yahoo — Maybe?

February 12th, 2009
Tags: Google, Mirosoft, Search Engines, Yahoo
Categories: Search Engines
By: Lee Roberts

 

Well, they haven’t finalized the deal yet. Hopefully they do.

Google’s now trying to bribe Yahoo into staying out of Microsoft’s hands. No matter how you peel this onion, Google owning any piece of Yahoo should be an anti-trust issue.

Google’s “do no evil” would certainly be revoked IF Google gets its hands on Yahoo. Owning more than 80% of the PPC market will certainly give Google more power than it should have.

If Microsoft could make a real play at improving search, the day it happens will be enjoyable for many people.

You ask why? Short answer is I’m no Google fan.

Sure Microsoft has it’s problems, but doesn’t everyone?

Yahoo Says No Way

February 12th, 2009
Tags: Google, Mirosoft, Yahoo
Categories: Search Engines
By: Lee Roberts

 

Well, Yahoo has officially rejected Microsoft’s $44.5 billion proposal. No biggie … Microsoft has other ways to get Yahoo — if they are truly serious.

I’m still thinking Microsoft’s ownership of Yahoo will be much better than giving 90+% of the pay-per-click business to Google. If Google gets Yahoo’s ad space, Google will be in position for an anti-trust case.

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