Internet Retailer - Strategies For Multi-Channel Retailing

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Feature Article May 2005   
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Amazon moves into Europe with its first e-commerce services deal

Marks & Spencer, the large U.K.-based multi- category retailer, is turning to Amazon.com Inc. for a better multi-channel ordering system in addition to improved functionality at MarksandSpencer.com. The move marks Amazon's entry into the European market for enterprise retail e-commerce services.

Marks & Spencer, which sells products including apparel, home furnishings and wine, will use an Amazon-hosted e-commerce platform to support a single ordering system for its three selling channels of stores, call center and web, the retailer says. "Marks & Spencer already has a successful web site with over 24 million visits every year, but our e-commerce and customer ordering capabilities have yet to reach their full potential," says Steven Sharp, director of marketing and e-commerce.

The single cross-channel ordering system, by replacing three separate systems in use today, will let customer service reps respond with information about orders regardless of which channel a customer shopped, a spokeswoman says. "With Amazon, we'll be able to track customer orders from in-store to the web to call centers," she says.

Marks & Spencer also expects to leverage Amazon's web site expertise to improve the performance of its MarksandSpencer.com. "Our site is fine at the moment, but it's not sophisticated in terms of functionality," the spokeswoman says. "Once on the Amazon platform, we'll begin to exploit all the benefits, including a better site search engine, that come with it."

Marks & Spencer and Amazon say the first phase of new service capabilities will be completed early next summer, when Marks & Spencer customers will begin to see the benefits of an integrated multi-channel ordering service. Marks & Spencer will maintain control over management of its web site, customer service, warehousing and distribution.

Amazon is already a provider of e-commerce services to several U.S. retailers, including Toys 'R' Us Inc., The Bombay Company Inc., Target Corp. and Borders Group Inc. End of Content

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