Last week I visited Honeyshed, a fresh reinvention of home shopping that elevates products and brands to the level of fetish with an irreverent mix of urban sass and scantily clad, er, lass. We’ll be covering Honeyshed in a feature article in Electronic Retailer to coincide with a major marketing launch in November. In the meantime, check out their sizzle (or is it fo shizzle?) reel and if you’re interested in advertising on Honeyshed, contact Beth LeManach at Lemanach@honeyshed.com or Blaine Pate at Pate@honeyshed.com.
I have heard more than enough about John McCain’s limited understanding of the Internet (everyone look, a politician was honest; let’s all berate him for it!). But, at the very least, it brought a major issue forward. The plain and simple fact is the Internet is a scary and complicated thing for many in Congress. During some hearings I attended this week, it became clear that some members really did not understand the way the Internet works. Many members did not seem entirely clear on the difference between searches and search ads. One member even admitted confusion about what cookie is. Another member referred to IP addresses as IPS’s. I don’t want to pick on any members, and I can’t even really say I blame them. The average age for members of Congress is near 60, and only a few members have had experience in the Internet industry. In contrast, many members have private-sector experience that easily allows them to become leaders in other fields, like finance, agriculture or energy. That is why educating lawmakers about the way the Internet works (and even what exactly it is) will be essential for the Internet industry. I am convinced that better understanding is the key to better legislation. ERA looks forward to working with industry leaders to achieve this goal.
Tomi Turner works in ERA’s government affairs department.
Thinking about adding electronic processing capabilities?
There’s a lot you should know.
There are countless reasons why a business should add credit card and electronic payment processing capabilities: transactional speed, convenience, increased customer satisfaction, improved cash flow, views into sales data and more. But perhaps the most important consideration is the sheer volume of consumers who use non-cash methods as their primary form of payment.
In 2005, credit card and electronic transactions accounted for an overwhelming $3.4 trillion of total U.S. payments, according to The Nilson Report. That’s 50 percent of all transactions nationwide for that year. More recently, Visa USA estimated that nearly 60 percent of U.S. consumers aged 18 to 25 use cards as their primary payment method.
So while the reasons for adding payment processing are clear, understanding all your options and which are right for your business is far more complex. This article will give you the information you need to get started in setting up payment capabilities for your business, and it will provide some of the essential details you need to consider when selecting a provider.
How Payment Processing Works
Some form of the modern credit card has been in use since the late 19th century, mostly as department store charge cards representing lines of credit. Things have changed and today, the step a merchant needs to take in order to accept credit card payments is to establish a merchant account with a bank or third-party payment provider. Once your account is live, the transaction process generally works as follows:
1. A customer presents a credit card for payment.
2. By swiping the credit card through an electronic point-of-sale (POS) transaction terminal, typically provided by the bank or payment provider, an electronic request is submitted to the processing network for authorization.
3. The processing network receives your electronic request and determines if the cardholder’s account is valid and if the funds are available. If so, a response called an “authorization code” is transmitted, guaranteeing your access to the funds.
4. A receipt is then printed for the customer using the POS terminal or your computer. The customer then signs the receipt and, for their part, the transaction is complete.
5. At the end of the business day, a merchant will electronically submit a final request to the processing network to “capture the funds” for all authorized transactions in a given day. This process is referred to as settlement. Once approved, a response is generated to your electronic terminal or computer.
6. From there, the funds associated with the batch you settled are deposited electronically into your business bank account, usually within 48 to 72 hours. Typically, the rate and any fees paid to your merchant account provider are deducted from your account at the end of the month.
7. At the end of the month, your merchant account provider will send a statement to you, detailing the credit card activity for the month and the associated fees you’ve been charged.
This process describes what happens in a traditional retail, or “brick and mortar†sales environment. For Internet and e-commerce merchants, the set-up process requires a few additional steps. (more…)
As frequent visitors to the blog may have guessed, there has been some inter-generational chit chat at ERA about what is appropriate for Facebook postings. As I have somehow managed to survive to age 40 in spite of a seriously misspent youth, I fall somewhere between the portion of the office who remember the impact of the first fax machines and those who can type out a Shakespeare sonnet in under 5 minutes using just their thumbs, I find myself in a slightly unique position of coming down a little on both sides of the fence.
On the one hand, I think that the “kids†(sorry, Pat and Katie) have this bizarre notion that anything they did prior to entering the work environment should not be held against them. What’s most interesting to note is that when they discuss this problem, there is a sense of ownership of Facebook. Sort of “What are these old people doing in our Facebook?†I think itÃs worth noting for the record that Facebook is open to everyone. Leaving photos of yourself from that one horrific frat party on a public Facebook profile, particularly when you put that profile on your resume, is no smarter than showing up drunk to a job interview. My point being, there is an expectation that you should know how the world works at your age and if you want to get ahead in a world that puts a value on appearances, then you need to take ownership and manage your image. In my book, itÃs probably not the inappropriate photos that are going to get someone into trouble, but the fact that they were stupid enough to not set their profile to private.
On the other hand, to the older folks (and if you think I’m going to name names for that group, think again), I have to go back to my favorite line from Stripes: “Lighten up Francis.†I “came of age†just after we discovered that sex really could kill you and, to paraphrase Bill Cosby: cocaine is a personality enhancer, but what happens if you’re an a**hole? So it’s ironic that the generation that reveled in wanton sex, drugs, Rock nà Roll (or worse, disco), and junk bonds not to mention some really questionable fashion statements in their 20’s should be so concerned about a few pictures of college juniors having way too much fun at Mardi Gras.
In short: If you are applying for a job and you are foolhardy enough to put your Facebook profile on your resume, don’t be surprised if the picture of you and the goats at your buddyÃs bachelor party become the deciding factor between you and an equally qualified candidate. If you’re on the hiring end and you canÃt ignore Facebook, just remember that testing boundaries is one of the things that makes this country great. If that doesn’t work, think about the stupidest thing you’ve done in your life (if you can remember it) and ask yourself this question: Is THAT the event that defines who you are, or is it the other 99.999 percent of your life?
Are you in the greater Los Angeles area? If so, we invite you to join ERA and Electronic Retailermagazine for cocktails and hors d’oeuvres in Santa Monica. This event is free for ERA members and retailers. Non-member suppliers pay only $99 (credit this fee to your ERA membership when you join within 30 days of the event). To RSVP, e-mail Katie White at kwhite@retailing.org. The Casa del Mar, Hotel by the Sea is the picturesque setting for an evening of building new relationships and catching up with industry colleagues and friends. While we encourage you to let loose and have a good time, plan on having a designated driver because we’d hate for you to end up in a situation like the man in this video!
For many marketers and retailers, there is something even scarier than a DUI—and that’s a recession! If you can’t join ERA in Santa Monica on Wednesday, please join us remotely from wherever you may be for Thursday’s webinar: Recession-proof Your Business. Sponsored by West Corporation, the webinar will be held from 2:30-3:30 EST and is free for ERA members and retailers; non-member suppliers may join for $99. For more information, please contact Ashley Cavell by e-mail at acavell@retailing.org or via phone at 703-908-1020.Â
Yesterday I had the opportunity to attend a hearing on privacy and the Internet. The Senate Commerce, Science and Transportation Committee is currently investigating the use of behavioral advertising and its potential impact on personal privacy. The industry representatives did an excellent job of explaining their privacy policies. From my perspective as a consumer, I found the testimony persuasive and I am not concerned that information collected about me will fall into the wrong hands. One company offered testimony that it had more than 40 full-time privacy officers; another said they let users customize privacy settings, and all of the companies described the techniques they use to anonymize data.
However, the industry is being put on the defensive by groups who would suggest tailored advertisements are somehow a threat to the consumer. Several questions posed by the senators reflected concern about the practice of behavioral advertising in general, even if data is adequately secured. As advocates for the industry, we now have the task of explaining to lawmakers that advertisers are not interested in sensitive personal data, and have a strong incentive to protect the consumer. The consumer has many choices and the Internet sites are in many ways more subject to the consumer’s whims and fancies than other businesses. Visiting different websites usually doesn’t cost more money, and physical location isn’t an issue. If consumers are concerned about a website’s privacy policies, it is easy for them to stop visiting that website altogether.
It is also important to inform lawmakers that regulating Internet ad companies is not even the best way to protect consumers from privacy breaches. The government could more easily punish and deter illegal hacking or misuse of data. They could also provide grants to Internet advertising agencies to aid in developing new technology to protect consumer’s privacy. It’s obvious to me that Internet advertisers aren’t the bad guys, but it might be a struggle to convince Congress of the same.
Tomi Turner works in ERA’s government affairs department.
The ERA Minute is a new feature where ERA members can film marketing tips that will be distributed throughout all of ERA’s channels and social networking outlets. If you’re interested in making the next ERA Minute, contact Tom Quash at tquash@retailing.org.
Inventions—they are a full-time job for a guy like me. I have been licensing inventions for the past eight and a half years. I’m a matchmaker, the e-Harmony of inventions. I try to make “love connections†between inventors and companies.
I will never say that I’ve seen it all. Every day I see something new and innovative. For instance, I have been presenting new product ideas to Allstar Marketing Group for several years. They are the team that brought you Aqua Globes and Cold Heat. And who can forget the direct-response monster, Smart Spin? Last year, I found an air freshener invention in our vast catalog of products. It was a small cartridge that affixes to the top of your ceiling fan. When the fan spins, the fresh smell of lavender fills the room. I had never seen anything on the market like it before. I checked the patent status, and it had been issued a utility patent.
I thought: This can’t be real. It’s so simple. It’s so inexpensive. Has this really never been done before? Let’s see what Allstar thinks. So, I presented it to Gary Sullivan, who is an “all star†himself and works as their new product scout. When he presented it to the gang, it was a hit and “Fan Fragrances†was born.
Allstar developed the product in China, and has just begun to market the product nationally and internationally. They do a great marketing job on their own; we assisted by using our own publicity department to get the word out there and help promote their new product.
Is your company looking for new inventions or products to sell on TV or into retail? Our service is free to qualified manufacturing companies, distributors and catalogers. Also, by checking out our online retail store, marketers can search through all of our products available for wholesale distribution. We have thousands of patented inventions with prototypes in most categories waiting to find your love.
Allowing colleagues and co-workers to view your Facebook and MySpace page has been a conflict my friends and I have struggled with since graduating from college. Is it appropriate to allow your workplace access to your college pictures? And more importantly, will we be judged based upon these pictures? This argument has plagued my generation. When the following question came across our ASAE listserv, I couldn’t wait to see what other people thought. The original post was from a communications company looking to hire an assistant. While the employer was browsing applicants’ Facebook pages, they found “stuff that was disturbing and raises questions about the suitability for a couple of the candidates.†The employer wanted to know if it was appropriate to mention/question an applicant about his or her Facebook profile, and was “looking for tips on how to navigate this situation.†The listserv took off like rapid fire as my inbox proceeded to be inundated with opinions and tips from all over the map!
Some people felt the candidates should have cleaned up their Facebook page and that my generation is too open with social networking. One woman stated, “Bottom line: I think job seekers should be savvy enough to know their stuff is out there and self-censor, or not, as they feel is appropriate. A friend of mine de-activated her totally tame profile for a while during a federal hiring process, and I think that’s wise in this climate.â€This really made me think: De-activate my profile over a frat party in college? Get real?!?!
The beauty of Facebook is being able to keep in touch with numerous people, as you can send messages, write on their wall, and even tag pictures of events you have participated in. In a day and age where time is valuable, it makes keeping in touch easy. I immediately knew there would be one person who could relate to me on this issue. “Pat you have to come in here. I can’t believe this,†I yelled to Pat Cauley, whose office is across the hall from mine. He was in shock too, “Do they even know how Facebook started?†he asked. “Obviously not, we have to set the record straight.†Pat and I collaborated and came up with this Listserv response, “I joined Facebook in the fall of 2004 as a college junior. At the time you needed an .edu e-mail address to even join the site, as it was an online social diary/interactive yearbook. As the place where we like to connect with and keep in touch with college and high school friends, this should not represent a young professional’s work ethic or ability. Imagine if your employment qualifications were based upon your pictures from Woodstock that suddenly surfaced online.†Again, my inbox was like rapid fire—e-mail, e-mail, e-mail, I couldn’t believe how many responses. Some responses agreed with my view while others didn’t. However, I found the most surprising post came from a CAE (certified association executive). He has hired two people in the past six to eight months and actually passed on dozens of applicants who had no findable Internet content. Why? He felt just because questionable behavior wasn’t on Facebook, doesn’t mean the applicant didn’t partake. He decided he knew more about those applicants who were engaged on the social web than those who weren’t.
So, I guess you are damned if you do and damned if you don’t? I welcome you to check out my page and let me know what you think. Or better yet, why doesn’t everyone relax and enjoy this humorous infomercial parody video of Facebook.
Katie White is ERA’s retailer relations manager.
As advocates for choice, competition and innovation on the Net, we’re troubled to read about a ludicrous court ruling against online commerce. The French Tribunal de Commerce in Paris ordered eBay to pay 39 million Euros to French luxury goods maker LVMH. Mike Masnick of Techdirt shares our outrage here.
Judging by media coverage of this ruling, one would think it’s all about preventing sales of counterfeit goods. But it’s actually much farther-reaching than that, in a way that’s incredibly damaging to the growth of e-commerce, small business and consumer choice in Europe. The French Court ruled that eBay must halt the sale of legitimate, genuine LVMH perfumes on the eBay site. Essentially, the Court held that a big business like LVMH could stop customers and owners of its products from re-selling them to someone else. This is blatant discrimination by French authorities against the e-commerce channel. eBay is appealing the ruling (read their take on the ruling on their company blog, eBay Ink). The outcome of this appeal could impact the future of e-commerce around the world.
Imagine if efficient online marketplaces like eBay, Overstock, Amazon and others had to pull the plug on entire categories of items, preventing perfectly legal sales of authentic items. Millions of shoppers use these sites to find great deals on things they want or need. During tough economic times, many people look to the web to help stretch a household budget. And millions of people around the world use the web as a tool for running their small businesses. And if you think that this is just another example of “France being France,†think again. This backward, anti-competitive perspective may be coming to a court near you. Any day now, the Federal District Court in New York will rule on Tiffany’s lawsuit against eBay. Again, Tiffany is crying counterfeits, and trotting out dubious data on online sales. But we believe Tiffany’s real interest here is to shut down any distribution of Tiffany products that isn’t completely controlled by Tiffany. Got a gift of earrings that just aren’t your style? If the New York court rules the wrong way, you may no longer have the option of selling them online.
Of course, counterfeits are a scourge to any marketplace. They undermine brand integrity and cheat buyers. And counterfeits have been a problem long before the Internet existed. eBay and others have worked hard to stem the sale of fake items. But go to any urban sidewalk, bazaar or back alley, and you’ll likely find the counterfeit trade still thriving. So when manufacturers and retailers cry “counterfeit†and point fingers at the e-commerce channel, their true motives are exposed. They’re calling for competition prevention—not consumer protection. And when courts agree with them, we all lose.
Steve DelBianco is executive director of NetChoice.
As I prepare for this year’s ERA Annual Awards Show under the call to arms “Retailers Rock,†I’ve been on an iTunes download binge worthy of Barry, Jack Black’s dogmatic record clerk character in the movie “High Fidelity.†A few classic gems from the Stones and The Who, a nice sprinkling of three-chord bliss from the likes of X and the Ramones, even a download of The Tubes’ first gem, which provided the soundtrack for my first job as a pump jockey at 16. Maybe this latter disc was prescient for what I would go on to do for a living for it contained the Zappa-esque, “What Do You Want From Life?†Sample lyrics:
“What do you want from life?
To get cable TV and watch it every night…
Well, you can’t have that, but if you’re an American citizen you are entitled to:
A heated kidney shaped pool,
A microwave oven—don’t watch the food cook,
A Dyna-Gym—I’ll personally demonstrate it in the privacy of your own home,
A king-size titanic unsinkable Molly Brown waterbed with polybendum,
A foolproof plan and an airtight alibi,
Real simulated Indian jewelry,
A Gucci shoetree,
A year’s supply of antibiotics…â€
You get the idea. Yes, this was the ’70s and drugs were prevalent in the workplace. But it also points out how personal each person’s quest for nostalgia is and why, despite the best efforts to tap into a collective consciousness for the good ‘old days, advertisers so frequently fail in their attempts to reference music in television advertising.
Personally, I don’t care if I ever hear another cut from Fleetwood Mac’s “Rumors†in this lifetime. That “Now dare you go again, you say you want your freedom†thing has been warbling on the radio ad naseum since both Steve Nicks and I actually had abdominal muscles. Nor is Led Zeppelin going to make me ever buy a Cadillac. And please spare me the Ameriprise and Cialis ads with well-heeled, frisky Centrum Silver Surfer-types frolicking on the beach (Psst: they’re havin’ sex tonight!) I’m an American. I want something new. And shiny.
Nobody serves this up better than Apple that consistently introduces new candied-like objects of desire accompanied by fresh cuts that springboard out of their commercials to become the soundtrack of our lives—today. Whether it’s introducing U2’s “Vertigo†or breaking Yael Naim’s “New Soul, “ they’ve got it down. Heck, my mother—who is in her 70s—bought the new Coldplay as a result of their most recent ad.
I imagine the younger generation—the one I’m a guest speaker to annually who have informed me that the Geico caveman spots are the apex of good advertising—would site U2 and Coldplay as contemptible examples of sellout bands. Meanwhile, my son listens to Tom Petty, while I favor Snow Patrol. Bottom line: With easy access to an infinite catalogue, tidy generational generalities don’t work anymore. I lived through the Gerald Ford Presidency, disco and “Family Feud†once and it was enough, thank you. So, even though the juice in my gin may be of the joint variety, I need it to move to Amy Winehouse, not April Wine. Hit me.
Last week I visited Honeyshed, a fresh reinvention of home shopping that elevates products and brands to the level of fetish with an irreverent mix of urban sass and scantily clad, er, lass. We’ll be covering Honeyshed in a feature article in Electronic Retailer to coincide with a major marketing launch in November. In the meantime, check out their sizzle (or is it fo shizzle?) reel and if you’re interested in advertising on Honeyshed, contact Beth LeManach at Lemanach@honeyshed.com or Blaine Pate at Pate@honeyshed.com.
I have heard more than enough about John McCain’s limited understanding of the Internet (everyone look, a politician was honest; let’s all berate him for it!). But, at the very least, it brought a major issue forward. The plain and simple fact is the Internet is a scary and complicated thing for many in Congress. During some hearings I attended this week, it became clear that some members really did not understand the way the Internet works. Many members did not seem entirely clear on the difference between searches and search ads. One member even admitted confusion about what cookie is. Another member referred to IP addresses as IPS’s. I don’t want to pick on any members, and I can’t even really say I blame them. The average age for members of Congress is near 60, and only a few members have had experience in the Internet industry. In contrast, many members have private-sector experience that easily allows them to become leaders in other fields, like finance, agriculture or energy. That is why educating lawmakers about the way the Internet works (and even what exactly it is) will be essential for the Internet industry. I am convinced that better understanding is the key to better legislation. ERA looks forward to working with industry leaders to achieve this goal.
Thinking about adding electronic processing capabilities?
As frequent visitors to the blog may have guessed, there has been some inter-generational chit chat at ERA about what is appropriate for Facebook postings. As I have somehow managed to survive to age 40 in spite of a seriously misspent youth, I fall somewhere between the portion of the office who remember the impact of the first fax machines and those who can type out a Shakespeare sonnet in under 5 minutes using just their thumbs, I find myself in a slightly unique position of coming down a little on both sides of the fence.
Yesterday I had the opportunity to attend a 
Inventions—they are a full-time job for a guy like me. I have been licensing inventions for the past eight and a half years. I’m a matchmaker, the e-Harmony of inventions. I try to make “love connections†between inventors and companies.
Allowing colleagues and co-workers to view your 
As advocates for choice, competition and innovation on the Net, we’re troubled to read about a 
