Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Forrester Research says 30% of U.S. consumers don’t shop online due to their concerns about Internet security. Tool King adds one more payment option to capture more of those sales.
In a bid to capture more sales from consumers who don’t shop online because they fear their credit and personal information isn’t safe there, Tool King has added another alternative online payment option. The new payment system, from MODASolutions, allows consumers to securely pay for online purchases directly from their online bank account without using credit cards or providing personal information.
According to data from Forrester Research, 30% of U.S. consumers don’t shop online because of Internet security concerns. “We expect this to be very popular with a large number of consumers who consider online shopping a risky endeavor,” says Don Cohen, managing partner for Tool King LLC, of the new payment alternative, SECURE e-Bill. “We believe the convenience and security of this new option will encourage more customers to buy from us.”
When customers of Tool King, No. 282 in the Internet Retailer Top 400 Guide to Retail Web Sites, choose this payment option, they receive an e-mail with the purchase details and instructions to sign on to their banking system web site as they would, for example, to pay their utility bills. In addition to a secure payment method that doesn’t require customers to use a credit card or enter lengthy personal information, “Businesses will enjoy the advantages of an accounts receivable account with easier set-up and much faster processing,” says Cohen, noting that business owners represent a significant share of the customer base.
Cohen adds that the web site saw a lift of approximately 1.5% in sales the first day the new payment option went live, representing sales he believes are incremental.
Launched in 2001, ToolKing.com, the web site of what was originally store-based retailer Tool King, now is the primary growth engine of the company’s business. It offers one of its industry’s largest selection of payment options for online purchases, including major credit cards, gift cards, Bill Me Later, PayPal, and shortly, Western Union.