2014

Innotrac Shares Findings of Direct Response Operations Benchmarking

ATLANTA, March 1, 2012 /PRNewswire/ -- Innotrac Corporation (NASDAQ: INOC), a best-of-breed commerce provider integrating digital technology, fulfillment, and contact center solutions to support global brands, today announced summary results of a custom SmartHub® benchmark analysis, focused around direct response operations.

SmartHub® is Innotrac's new proprietary benchmarking tool, providing clients and strategic partners with end-to-end intelligence and analysis of the online retail purchase cycle.  From the pre-order site experience all the way through the final steps of the returns process, Innotrac's methodology analyzes each important customer touch point, charting merchants on everything from the expedience of confirmation emails, to evaluation of the packaging material used in shipment.  Innotrac conducted a custom review of eleven top direct response merchants to compare with its sampling of top eCommerce retailers.  Among the key findings of the study:

  • The average shipping cost for DR orders was $11.33.
  • Three out of the eleven DR orders shipped in 7 or more days , compared with only one in twenty shipments that took as long for eCommerce merchants in the Q4 2011 SmartHub® sample.
  • Only one of the eleven DR marketers surveyed offered free shipping, whereas roughly two-thirds of those in the Q4 2011 SmartHub® sample did. 

"Free shipping has become a key conversion driver for many eCommerce retailers, but isn't used nearly as often in the direct response sector," said Jon Eggleton, Innotrac's Vice President of Marketing & eCommerce.  "That's something that direct response marketers may wish to re-consider if they want to expand their market opportunities."

Multi-facility distribution is another way some marketers are able to grow market share.  Split inventories have proven to minimize delivery times and freight costs for large volume marketers.  For those that do not wish to replicate inventory in more than one location, facilities strategically located in the Ohio River Valley area can typically reach 40% of the country's population within 2-3 days via ground shipping.

"As the electronic commerce landscape continues to evolve, marketers will need to evaluate their distribution strategy to make sure that they are staying competitive across all channels," said Dan Reeves, Vice President of Direct Response at Innotrac.  "Having access to the type of intelligence that SmartHub® provides can help marketers support their growth goals all the way to retail sell through."

The Direct Response SmartHub® analysis evaluated multiple operational categories and included top DR products from long and short form.  For more information about SmartHub®, visit www.innotrac.com.

About Innotrac
Innotrac (NASDAQ: INOC) was founded in 1984, with the goal of providing the highest quality fulfillment services to both our clients and their customers.  We have an integrated network of seven fulfillment centers, along with a contact center in North America.  Innotrac Europe GmbH, founded in 2011, has a network of fulfillment centers, contact centers, and returns processing facilities with operations in the UK, Germany, France, Denmark, Sweden, Poland, Austria, Italy, Switzerland and the Netherlands.  Connect with Innotrac at www.innotrac.com or http://www.linkedin.com/company/innotrac.

Information contained in this press release, other than historical information, may be considered forward-looking in nature. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Innotrac's operating results, performance or financial condition are competition, the demand for Innotrac's services, Innotrac's ability to retain its current clients, Innotrac's success in growing its existing client base, developing new business, Innotrac's ability to maintain or improve gross margins in the face of increasing revenues, reducing operating costs in response to reduced service revenues, realization of expected revenues from new clients, the general state of the industries that the Company serves, changing technologies, Innotrac's ability to maintain profit margins in the face of pricing pressures and numerous other factors discussed in Innotrac's 2010 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission. Innotrac disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.

Media Contact:
Yolanda Kokayi
Innotrac Marketing Manager
678-584-4096
ykokayi@innotrac.com

SOURCE Innotrac Corporation



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