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Innotrac Shares Findings Of Direct Response Operations Benchmarking

Stocks in this article: INOC

ATLANTA, March 1, 2012 /PRNewswire/ -- Innotrac Corporation (NASDAQ: INOC), a best-of-breed commerce provider integrating digital technology, fulfillment, and contact center solutions to support global brands, today announced summary results of a custom SmartHub® benchmark analysis, focused around direct response operations.

SmartHub® is Innotrac's new proprietary benchmarking tool, providing clients and strategic partners with end-to-end intelligence and analysis of the online retail purchase cycle.  From the pre-order site experience all the way through the final steps of the returns process, Innotrac's methodology analyzes each important customer touch point, charting merchants on everything from the expedience of confirmation emails, to evaluation of the packaging material used in shipment.  Innotrac conducted a custom review of eleven top direct response merchants to compare with its sampling of top eCommerce retailers.  Among the key findings of the study:

  • The average shipping cost for DR orders was $11.33.
  • Three out of the eleven DR orders shipped in 7 or more days , compared with only one in twenty shipments that took as long for eCommerce merchants in the Q4 2011 SmartHub® sample.
  • Only one of the eleven DR marketers surveyed offered free shipping, whereas roughly two-thirds of those in the Q4 2011 SmartHub® sample did. 

"Free shipping has become a key conversion driver for many eCommerce retailers, but isn't used nearly as often in the direct response sector," said Jon Eggleton, Innotrac's Vice President of Marketing & eCommerce.  "That's something that direct response marketers may wish to re-consider if they want to expand their market opportunities."

Multi-facility distribution is another way some marketers are able to grow market share.  Split inventories have proven to minimize delivery times and freight costs for large volume marketers.  For those that do not wish to replicate inventory in more than one location, facilities strategically located in the Ohio River Valley area can typically reach 40% of the country's population within 2-3 days via ground shipping.

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