e-Commerce: Complete. Configured. Connected.
Wild, Wild West No Longer
Jan 20th
Amid the noise this week about SOPA and PIPA, and the stunning takedown of Megaupload, a very real business reality is upon us: e-Commerce is no longer the Wild, Wild West. If you’ve never watched Middle Men, the Luke Wilson movie about the first company to work out how to make money processing payments, it’s probably worth a watch. It tells the story of how the pioneers into the unregulated world of online content sales resulted in the first wave of government attention. And it’s likely as much a forecast of what is to come as it is a re-telling of what had already taken place.
Nobody in the industry is untouched by the increased scrutiny on what is being sold, how, and by whom. At Plimus, for instance, we’ve been involved lately in a couple of initiatives driven by the new need for transparency. As many people already know, we’ve recently updated our approach to processing PayPal sales, allowing each vendor to receive revenues into their own, self-directed PayPal account. And we’ve initiated detailed reviews of a number of vendors who are selling products that fit into some categories that are receiving some much closer examination by the credit card associations and other financial institutions.
Change is rarely comfortable, and of course for the vendors whose ability to sell through Plimus is currently curtailed, the business disruption is far from pleasant. Given our business model of making money only when sales actually close, it’s also not that appealing to Plimus to have to create barriers to making sales. In the context of where the industry is headed, however, it’s a natural progression that is both unavoidable and likely for the best in the long term.
Payment processing is really just a long line of trust: each player in the chain must trust those both up- and down-stream in order to agree to complete a transaction. The sophistication and obfuscation of the Web can make it difficult for each player to be absolutely sure who else is in that chain, and there has been a recent awakening to a need for much greater transparency up and down the line. Everyone is seeking to continually firm up their processes to ensure they can have 100% confidence that consumers are being handled properly, and that there’s nothing misleading going on at any stage of the game. It’s not nearly as exhilarating as the initial rush of setting up new and innovative ways to do business online, but it’s every bit as necessary to the long-term health and stability of the whole industry.
The new approach to PayPal is actually helping us get revenues into the coffers of our vendors more quickly, and will ultimately be a great catalyst in accelerating business’ ability to re-market and continue to optimize their sales. Expanding the transparency of our client base so that all the players in the financial chain have total confidence in the process will increase our ability to add new and exciting sales methods and business models, and ultimately increase the conversion ratios we can deliver to the whole community.
Change is never painless, but perhaps the move away from the Wild, Wild West will ultimately bring benefits that we can’t see through the clamor of updating and re-imagining today’s business processes. Either way, it’s a reality that history tells us is coming whether we like it or not.
Introducing the New Plimus PayPal Option
Jan 16th
Generally on this blog we post industry observations. And today – we are really excited to be announcing a new PayPal option from Plimus that we think leads the industry. We know our existing vendors will be happy to see it and new vendors will find a distinct advantage over other PayPal integrations. On Jan. 15, we introduced a new approach to PayPal sales that we know you are going to like. This solution delivers all the e-commerce features you have come to expect from Plimus, but with an added layer of benefits: security, portability and accelerated access to your revenues.
All you need to get started is your Plimus seller account and a PayPal Business, or Premier, account. You enter your PayPal API credentials into your Plimus account, and voila! Your customers can now buy anything you offer – including subscription options – and your revenues are immediately delivered direct to your PayPal account. All the normal post-sales support you rely on from Plimus – from reporting to 24/7 customer support, for invoicing to dispute management, from reporting to refunds – is still in play, but you have access to your revenues immediately.
Using your own PayPal account gives you the confidence and security to control your own PayPal destiny. Build your own independent history and reputation as a PayPal seller. Manage your own account, and use it elsewhere on the Web where you choose. And know that all those subscribers are associated with your account, so you can work directly with them, any time it makes sense for your business.
The cost for this feature? Exactly the same as for any other payment method offered through Plimus. In fact, to make sure you get what you expect, Plimus dynamically deducts the fees PayPal charges from our rate, every time a sale is completed.
We are confident this update will have a really positive impact on your business. Having your PayPal revenues in hand the moment a sale closes gives you the opportunity to immediately re-invest in driving even more sales; and the control you have over your own PayPal account gives you confidence that you have secure and portable control over your own customer base.
So grab your PayPal API credentials – or open a PayPal Business, or Premier, account if you don’t already have one – login to the Plimus Control Panel, and get started today.
More detail on the www.Plimus.com website.
Plimus is exhibiting at Affiliate Summit West Jan. 9 – 10
Jan 9th
Happy New Year everyone!
2011 was a great year with a growing Plimus team, new customers and affiliate sellers, and the acquisition by Great Hill Partners. We look forward to what’s on the horizon this year and guarantee it will improve our customers’ bottom line.
There is no better way to kick-start the year than a trip to Las Vegas. Plimus is exhibiting at the Affiliate Summit West show taking place today continuing through Jan. 10 at Caesars Palace. Plimus is showcasing our industry leading e-Commerce processing platform for digital commerce, which services more than 7,000 sellers and 85,000 affiliates. Come see us at the booth!
As a reminder, the Affiliate Summit West is a three-day conference for affiliate merchants, vendors and networks to come together and discuss the latest trends and information from affiliate marketing experts. At the show, Plimus’ affiliate experts are on hand to demonstrate how to leverage the Plimus Marketplace e-Commerce platform for maximized conversions and optimized return on investment. We are looking forward to the many organic conversations that always arise during the networking session.
I’ve included additional details about the show below. If you’re interested in scheduling a meeting at the show, just stop by the booth. We hope to see you there!
Affiliate Summit West 2012
When: Jan. 8 – 10, 2012
Where: Caesars Palace Hotel
3570 Las Vegas Blvd S
Las Vegas, Nevada
Booth No. 405 / 407
And once again, Happy New Year from the entire Plimus team!
ComScore Reports e-Commerce Spending Up 15 Percent
Dec 20th
It’s no secret that the holiday shopping season is in full force. With only a few shopping days left, consumers are scrambling to buy gifts for friends and family. According to a recent ComScore report, however, this holiday season has been a little different than previous years. This year, many consumers have gotten their shopping done early, and e-Commerce sales in the United States already have reached $25 billion, up 15 percent from last year.
The information was compiled from online sales conducted the first 39 days of the November / December holiday shopping season. More recently, during the week of Dec. 5, total e-Commerce sales reached $5.9 billion, a 15 percent increase from just one week before. This year also has seen several days with more than $1 billion in total e-Commerce sales. We’re interested to see what the remaining sales number reveal and exactly how big e-Commerce spending will get this holiday season.
As you may have seen, Plimus’ recent “What’s on Your Virtual Wish List This Holiday Season?” survey found that consumers are spending more money online than ever before online. Interestingly, their purchases have expanded beyond physical goods as virtual goods spending increased from 21 percent in 2010 to 24 percent this year. And, 17 percent more consumers have given someone a virtual item as a gift so far this year – have you?
To learn more about the ComScore findings, read the full article by Dean Takahashi, VentureBeat, “E-commerce Sales Hit $25B, Up 15 Percent.”
A Year in Review: 2011 Plimus Highlight Reel
Dec 15th
With the New Year right around the corner, we’re looking forward to further growth and success in 2012. It is impossible to look forward, however, without taking a quick look back to recognize the significant achievements Plimus made during the past year. Adding numerous customers to our portfolio, substantially increasing sales for online vendors and hosting our first-ever digital commerce conference are just a few highlights from 2011.
Among our biggest accomplishments is the wide variety of vendors added to our stable of customers during the past year. Hundreds of new vendors in the software as a service (SaaS) and Cloud-based services industries including SohoOS, DudaMobile, Justinmind, BabyFirstTV.com and Perfecto Mobile have selected Plimus to help them deliver cloud-based subscription services. Even better – our partnership with these vendors has helped them realize an increase of more than 20 percent in revenue.
Using the Plimus Buy AnywareTM API and Plimus’ unique marketing and sales features, sellers in 2011 generally saw:
• An 11 percent increase in shopping cart stickiness as customers completed the transaction more often rather than leaving items in the cart;
• A 19 percent increase in transactions processed daily from returning customers resulting in overall increased revenue.
Also in 2011, Plimus expanded its relationships within the payments industry. Not only did we add several regional payment methods, including Boleto Bancario in Brazil, and UKash, PaySafeCard and Wallie Card in Europe, we also hosted the first Take Charge 2011 Digital Commerce Summit. This successful one-day event attracted more than 700 people, including C-level executives and entrepreneurs who participated in discussions around the opportunities and challenges of conducting business on the Internet.
Arguably one of the most notable events of 2011 came in August when Great Hill announced its acquisition of Plimus. We’re confident that this relationship will help fuel growth as Plimus expands its focus on its client’s successful monetization of an increasingly global, complex and expanding online and mobile world. Plimus’ vision of e-Commerce 3.0 and “Cloud Commerce” that leverages an open, frictionless e-Commerce approach will be central to upcoming solutions.
Looking ahead to 2012, Plimus has plans for new platform features that will enable vendors to increase close rates and gain competitive advantage. Currently in beta testing, initial results of the new solutions have resulted in sellers experiencing an improvement in close rates of more than 25 percent.
While we’re eager to roll out this platform and announce several other developments during 2012, we can promise one thing will NOT change. We will continue to offer innovative features enabling Plimus vendors to see significant improvements to their bottom line.
Plimus’ Second Annual Virtual Holiday Shopping Survey
Dec 5th
Today, Plimus issued the results of the “Second Annual Virtual Holiday Shopping Survey,” which highlights the differences between consumer’s online shopping habits this holiday season versus their spending habits in 2010.
This holiday season is about giving virtual goods and services! Interestingly, results found that consumers are spending more money online than ever before and their purchases have expanded beyond physical goods. In fact, virtual goods spending increased from 21 percent in 2010 to 24 percent in 2011. Similarly, 17 percent more consumers have given someone a virtual item as a gift so far this year.
Our survey was conducted informally via social media channels, such as Facebook and Twitter. The survey participants were entered into a drawing for a chance to win a $100 gift card for their holiday shopping. To learn more, read the entire release by clicking here.
Plimus CEO Profiled in “Entrepreneur Journeys” Blog
Dec 2nd
This past week, Plimus CEO Hagai Tal was featured in Sramana Mitra’s Entrepreneur Journeys blog. This seven-part series, provides a candid look at Hagai’s evolution as an entrepreneur and how his journey led him to Plimus.
Sramana said it best: “Hagai Tal is the CEO of Plimus as well as a serial entrepreneur and active angel investor. He began his career with the Jerusalem Post, where he created their online presence and established their online business strategy during the late 1990s. He then was an early member of JDate.com before heading off to serve as an active angel investor and serial entrepreneur. Today he leads Plimus, which offers companies a total service e-business platform. Plimus allows companies of all sizes to create online sales and affiliate partnerships through the Plimus e-commerce system and affiliate network.”
Hagai is a great leader and an integral part of Plimus’ success to date. He’s built this company on the foundation that Plimus and its employees are all part of his extended family. When selecting new team members, Hagai not only wants not only great, talented people, but also folks who can work well together. He understands that, in order for the company to be successful, we must appreciate and respect one another.
This series is a great read – I urge you to take the time.You can check it out by clicking here.
Casual Gamers Playing Longer Online
Nov 18th
A recent study from social gaming company PopCap found that casual gamers now spend more time each week playing games online. The survey found that 41 percent of Internet users in the U.S. and U.K. play games for more than 15 minutes a week – nearly doubling the figure from 2010 (24 percent).
The study, conducted by Information Solutions Group for PopCap Games, polled results from 1,201 online surveys. Demographically, 801 of the respondents originated from the U.S. while 400 were from the U.K.
Nearly 120 million consumers (in the U.S. and U.K. combined) play social games – are you one of them? Survey results indicate that consumers are now more likely to purchase virtual items or services while playing an online game. Forty-six of respondents indicated that he or she would purchase virtual game content with their own money, up from 32 percent in January 2010. Overall, nearly 31 million players worldwide have purchased a virtual good and/or service during online game play with actual currency.
Other interesting statics include:
• There are more female social gamers than male players in both the U.S. and U.K. (54 percent vs. 46 percent in the U.S, and 58 percent vs. 42 percent in the U.K).
• Men, however, are more likely to make in-game purchases than women.
• The average age of a social gamer is younger, as the average age of a social gamer declined from 43 years of age to 39.
You can learn more about the study by reading the article, “Gaming Stamina and Player Growth is on the Rise, PopCap Survey Says,” by Cassandra Khaw of VentureBeat.
Report: New Research on Virtual Goods
Nov 16th
A recent report from the analyst firm Juniper Research forecasts that virtual goods purchased via a mobile platform will total $4.6 billion in 2016. According to the report, the increased use of social gaming is largely due to the rise in smartphone and tablet adoption. As consumers continue to replace feature phones with smartphones, virtual goods bought from mobile social media services will increase from $3 billion this year to nearly $5 billion worldwide in 2016.
The Juniper report states that most social media services have not yet been able to monetize their offerings effectively. So, while many social media sites are popular with U.S. consumers, it remains a challenge for these sites to make a profit from those who use their platform. Simply, they need to make sure the consumers are more than just casual visitors to their site, but that they are consistently upselling them with value-added goods and services.
Looking globally, Juniper analysts reported strong sales of virtual goods through mobile media services in Japan and China, stating the firm expects this growth to expand to the United States. By adopting monetization models that cater to mobile offerings, social media services can increase revenue per user and sustain profitable revenue models.
An open architecture is key to a successful monetization model. Today’s online commerce happens anyplace, anytime and anywhere. It’s social and it’s virtual. A profitable online sales model cannot be constrained by platform, technology or location. Here at Plimus, we feel that all organizations, not just mobile social media services, require a frictionless, simple and open solution that facilitates a move toward a business model that increases ROI and takes advantage of the increase in virtual goods spending forecast by Juniper Research.
What do you think? What monetization models will have the greatest impact on increased virtual goods and services sales?
Additional information on the Juniper report can be found in the article, “Report: Social Virtual Goods Via Mobile to Reach $4.6B in 2016,” in Mobile Payments Today.
Making Strides
Nov 11th
What better way to bond with your co-workers than for all of you to get up early on a Saturday morning, put on pink-trimmed shirts and accessories, and walk 5 km in downtown San Jose? Well, that’s exactly what Team Plimus did on Saturday, October 28th when several Plimus employees joined in the American Cancer Society’s Making Strides Against Breast Cancer walk.
It’s like the universe knew that we were not so sure about committing to a work event that required arriving at 8am, so the weather gods blessed us with a spectacular sunny morning – just cool enough that you didn’t get too hot walking and warm enough that you didn’t need to wear a coat – that made getting up early completely worth it. There was a grand stand at the event where speakers motivated us and music rev’d us up as we walked the 5km route around San Jose’s downtown Guadalupe Park and Trail.
Team Plimus consisted of 19 walkers – 9 employees, 5 spouses, 8 children, and 1 dog (our most favorite Plimus pooch, Cashew). Thank you to those walkers and to the Plimus employees, friends and family who helped us raise $1,095.00 (not including matching funds) in the fight against breast cancer.
