GCSAA refines e-commerce strategy
Overbeck, AndrewLAWRENCE, Kan. - In a series of meetings in mid-August, the GCSAA decided to drop the idea of creating a neutral exchange as a part of its ecommerce initiative and has moved in favor of concentrating solely on the more traditional storefront model.
After a 60-day pilot program, and numerous meetings with suppliers and feedback sessions with superintendents, the association chose to abandon the controversial exchange format that would have charged a transaction fee on every purchase thatwas made through the site.
"We have simply refined the plan," said chief financial officer Julian Arredondo. "This is not a failure. The pilot was intended to show us what people wanted and what would work. Suppliers got pretty anxious, but we wanted to test it and get feedback. The decision to concentrate on the storefront model was made by the board because they feltlike the message was strong and clear that both buyers and sellers wanted to move in that direction."
However, XS Inc., the GCSAA's ecommerce partner, has more experience developing neutral exchange models, like Xsag.com. Arredondo does not see a problem with this. "They are our technology partner," he said. "The way that they operate in other industries is up to them. The way they operate in this one will be different because we both understand what the industry needs."
MAXIMUM FLEXIBILITY
According to Arredondo, the storefront model gives suppliers and distributors maximum flexibility.
"It will essentially be an electronic version of the existing relationships that are in place between the superintendent and the supplier," he said. "Both sides were more comfortable with that model."
The new site, to be unveiled later this year, will function as a portal to direct superintendents to industry suppliers. There will be storefronts for companies that do not presently have a Web site and links to companies that already have an Internet presence.
"That was the idea from the beginning," Arredondo said. "Many companies have already invested in their own sites. We will offer those who haven't an Internet solution. But everyone has different needs, so flexibility is key."
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