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JANUARY 25, 2005
By Sarah Lacy Smoothing Out E-tailing's Kinks [Page 2 of 2]
"MISSING PARK AVENUE." In contrast, comparison-shopping sites just feed back to e-tailers shoppers who are hungry to buy a given product for a preset. Mercent's software is taking away hassle -- but it's hardly necessary for users of these sites. Mercent customer Crabtree & Evelyn, for instance, uses the company solely for its Amazon store, says Tom Angelo, director of business development for the Woodstock (Conn.) maker of high-end bath products. "We chose Mercent not because of their overall Web strategy," he says. "We were doing business with Amazon and wanted to move forward with building an online store." He adds Mercent was the cheapest of five Amazon-sanctioned software companies, costing between $25,000 and $100,000 a year, depending on how many features customers want. Building a sustainable business will take more than just making selling on Amazon easier. A good next step might be striking up a deal to manage eBay's e-stores, says Tim Clark, partner at technology-research firm The FactPoint Group in Los Altos, Calif. eBay is fast becoming more than just an auction site, and it's hard to ignore. "Having Amazon as a venue gives them a storefront on Rodeo Drive and all these other shopping centers in Yahoo, Froogle, and others," Clark says. "But if they don't have eBay, they are still missing Park Avenue." ALL IN THE TIMING. That said, Mercent could have a jump on this market. Several small companies, such as Channel Advisor, are trying to solve the headaches that come with using bigger Web sites for more sales. But many, Alberg says, are focused on eBay instead of Amazon. But Mercent could face a limited market or -- potentially more maddening for investors -- discover it's too early to the game. Alberg jokes he has made the mistake before of funding something before its time. "But [Mercent has got] real customers, and there seems to be a lot of activity. As retail sales have stagnated, he adds, "brick-and-mortar companies are hungry to do more on the Internet." The limitations of brick-and-mortar retail? Sounds like an argument Alberg could have made when he first invested in Amazon.
 Lacy is a reporter for BusinessWeek Online in the Silicon Valley bureau
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