JupiterResearch Study Finds Multi-Channel E-Commerce Expansion Vital to Online Retail Success

Savvy Retailers Cite Greater Overall Success with Third-Party Outsourcing

RESEARCH TRIANGLE PARK, N.C., May 7 -- ChannelAdvisor, the leading provider of e-commerce channel management solutions, today announced the results of a JupiterResearch study on marketing and sales strategies for online retailers. Sponsored by ChannelAdvisor and conducted by independent research firm JupiterResearch and Internet Retailer, the study provides in- depth insights into the fundamental issues driving multi-channel online retailing.

Seventy-five percent of online retailers surveyed cited multi-channel expansion as a key component in their marketing strategies. Ninety-eight percent report they market on at least two online channels.

"The results provide actionable information for retailers who are evaluating online programs including paid and organic search, and comparison shopping engines," said Brad Wolansky, Vice President Global E-Commerce of The Orvis Company. "We partnered with ChannelAdvisor for solutions to help us manage our paid search and comparison shopping engine initiatives and they have provided good value including higher ROI and predictable rates of success."

The recent findings deliver a unique perspective on how online retailers are capitalizing on the full spectrum of e-commerce channels and explore the benefits and the challenges of expanding their reach. It also focused on the area of third-party outsourcing and how to measure its success. Those retailers who choose to outsource should look to their e-commerce partners to develop performance metrics that demonstrate their long-term worth including lifetime customer value, product margins and customer retention.

"This survey suggests that ChannelAdvisor has a unique opportunity to help retailers assess where they in the multi-channel life cycle and the implications for moving forward," said Scot Wingo, CEO of ChannelAdvisor. "Clearly, going multi-channel is the first step. To be truly successful, they need to define what they expect from their e-commerce solution providers in terms of marketing spend and efficiencies to judge the overall profitability of the relationship."

  Highlights From Survey Results
  Among those retailers who reported using multiple online channels:

  -- 75% enjoy increased sales.
  -- 80% realize increased customer acquisitions.
  -- 71% report significant growth in qualified customers.
  -- 73% operating in six or more online channels require additional support
     staff.
  -- Over 60% cite the ability to target new demographics or enhance
     lifetime customer value.
  -- 55% of those surveyed outsource some marketing initiatives.

Among those retailers who reported outsourcing their multi-channel initiatives:

  -- 69% report increased sales while 65% report increased customer
     acquisition.
  -- Nearly 60% experience higher returns on marketing spend.
  -- 70% report quicker adjustment to market changes and new initiatives.

To get a copy of the complete results of the ChannelAdvisor, Navigating a Multi-Channel E-Commerce Environment: Marketing and Sales Strategies for Online Retailers, visit www.channeladvisor.com/jupiterwhitepaper.

Survey Methodology

Undertaken in March of 2008, JupiterResearch conducted a formal survey of online retailers regarding the use of online marketing and selling tactics. A total of 115 qualified online retailers completed the survey. Respondents received an email invitation to participate in the survey with an attached URL linked to the Web-based survey form. JupiterResearch worked with monthly national business magazine publisher Internet Retailer to develop a sample of online retailers and to assist in the technical tasks of survey fielding.

About ChannelAdvisor Corporation

ChannelAdvisor Corporation provides technology and services that enable leading online retailers to maximize their products across multiple e-commerce marketplaces such as eBay, Amazon.com and Overstock.com, comparison shopping engines such as Shopping.com, Shopzilla, Nextag and Google Product Search and search engines such as Google, Yahoo! and MSN. In 2007, ChannelAdvisor managed over $2.1 billion in gross merchandise value (GMV) on behalf of its customers. ChannelAdvisor solutions combine best practices, on-demand software and integration technology to help retailers sell more products, faster, by automating labor-intensive, manual functions so they spend less time optimizing campaigns and more time solving marketing and business issues. ChannelAdvisor's customers include GSI Commerce, Brookstone, Abebooks and Motorola. ChannelAdvisor Corporation is headquartered in Research Triangle Park, NC with offices in Atlanta, Seattle, the United Kingdom, Australia, Ireland and Germany. For more information, visit http://www.channeladvisor.com/.