Mr. Tilghman: I'd argue that the most important components actually vary from company to company to a certain degree. Customer interaction, product display and ease of use are important for all sites, in our opinion. That said, transaction efficiency is more important for some retailers than others. Within my universe of coverage, I think Staples, Best Buy and GameStop do the best job of integrating products, customers and transactions on their e-commerce sites. Some of their competitors have sites that look plain, lack useful information to customers, are too slow to load or lack the draw to help either close the sale or inspire repeat visits. For Staples, the company's Web site is an integral part of the ordering process. Customers must be able to easily navigate the site and complete transactions without having to worry too much about the process. They need to find products quickly and efficiently, given that many procurement managers are also tasked with other workplace obligations. At Best Buy, the Web site is another leg of the company's selling model, an extension of the store footprint. So the focus for the company winds up being a little different than Staples because of the type of customer you are trying to serve. The purchase is likely discretionary, generally price-checked, subject to other customers' opinions and in many cases wanted as soon as possible. GameStop is similar to Best Buy with one exception - video games offer a much higher level of potentially interactive content that the company must share with its existing and potential customers. Release dates and upcoming products are also more important than in a traditional retail model, and we believe the company does a good job of offering that information to customers.
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