Day 1: Geek Gear is now open for business

Tony Sarno
20 February 2007, 9:53 PM


APC's Geek Gear is now live. It's the world's first e-commerce store in which you can buy products and then go behind the scenes to find how out the business works and how well it's trading.


Geek Gear is now live - with real product!Geek Gear is now live - with real product!

 

We’re nervous today. Our store, Geek Gear, has just opened for business after a period of development that's been the subject of a series in APC magazine. Like owners of any new business on its first day, we’re wondering if we’ve selected the right products, if we’ve priced them correctly and if we’ve done enough marketing. I’m even wondering if the T-shirts slogans are funny enough.

 

Geek Gear is a real online store, but one with a difference. You can purchase gear from it, but also find out what's going on behind the scenes. It grew out of an idea for an e-commerce tutorial series we had a few months ago. When APC discussed the proposed series with e-commerce company, NetMerchant, they instead offered to build us a real online shop. We jumped at it and the “reality e-commerce” concept was born.

 

Instead of presenting you with a text book on how e-commerce works, we'll let you be a fly-on-the-wall in a real business which has invested in stock and e-commerce infrastructure and needs to make it pay. We're kicking off with a modest range of products, but we're planning on growing the store as a real-life example of an e-commerce business trying to become a success in the online world, where the rules can be quite different to those experienced by bricks and mortar businesses.

 


Since APC staff's main skillsets are in publishing rather than e-commerce, we formed a loose partnership with NetMerchant in which we're effectively the shop’s “owners” and they are the suppliers of the e-commerce gear and expertise. It's the kind of relationship that many businesses wanting to launch a serious online store venture will need to form with an e-commerce supplier. NetMerchant will bill us for their services (we'll itemise them for you) and the only free “extra” they will provide is their insights into what makes a successful online business.

 

On most days, I will report back to you on how the shop’s faring, together with Luke Amery, the managing director of NetMerchant. We’ll open up the store's books and detail any developments (or dramas) in our dealings with customers and suppliers. In turn, we hope you’ll give us your comments on the store and your opinions on how we’re running the business. Nothing is sacred. We’re open to all advice.

 

 


 

Geek Gear has two main departments: APC-branded products, labelled "APC Gear" in the left navigation menu, and those under the Geek Gear brand in the "Apparel" and "Gadgets" links. Over coming days, we'll also describe every department of the store in detail, and how we set it up.


Come back tomorrow morning for a report on the first day’s trading. In the meantime, have your say by posting comments on this blog. Feel free to ask any questions about our experience in setting up Geek Gear.

 

Tony Sarno
Editor, APC

 


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Wes:

Hope to see more variety soon, but all in all a good start.

29 February 2008, 8:29 PM (4 years ago)report abuse Send to a friend reply

tin:

Please tell me this is going to turn into something like ThinkGeek.... With all the toys and (pretty darned good quality) shirts and such.

29 February 2008, 8:29 PM (4 years ago)report abuse Send to a friend reply

Helen:

You're such a bunch of nerds. That T-shirt on pressing the right buttons made me laugh. But I'm not sure it's going to turn you guys into chick magnets.

29 February 2008, 8:29 PM (4 years ago)report abuse Send to a friend reply

Bargain Hunter:

Cool. Will APC do discounts for its readers?

29 February 2008, 8:29 PM (4 years ago)report abuse Send to a friend reply

bryce:

I pay 80 bucks a year, can I have a discount :) ?

29 February 2008, 8:37 PM (4 years ago)report abuse Send to a friend reply

retailtherapy:

Was reading in the mag that Geekgear.com has cost you $35,000 to put together? Mighty expensive shopping cart. I;m sure I could do something similar for a few hundred bucks.

29 February 2008, 8:30 PM (4 years ago)report abuse Send to a friend reply

Tony Sarno:

If you actually read the entire article you refer to, you'd discover we do spell out the costs, but I'll go through them again. At least $24,000 of the cost is the stock to fill the store's shelves. So that doesn't count, it's part of starting the business, not the cost of setting up the store. And if you break down the store's costs, they are as follows: |

The domain name $55

Trading name $137

Trademark registration $240

Security certificate $635

Bank merchant account setup $75

Payment gateway setup $395

- then there's:


Site design - $6,000. Here it could have been zero cost if we'd just gone with the basic templates that any shopping cart comes with. But we're doing what any business serious about their online shop would do - and that's design the look & feel and branding from scratch,or at least customise the templates extensively. The cost of the design is similar to the kinds of prices web design studios will charge an ordinary business.

NetMerchant software setup - $2,995
Design integration - $2,500

These costs are what any e-commerce provider would charge you for an online store that's reasonably ambitious. Again, an off-the-shelf shopping cart would be cheaper, but the majority of businesses getting into e-commerce will need more than just a shopping cart. At some point, they'll need to consult with specialists who can help them create something that mirrors the sophistication of a reasonably large business.

I hope this answers your point.

Tony Sarno

 



29 February 2008, 8:37 PM (4 years ago)report abuse Send to a friend reply

Confused?:

So you have $24,000 worth of tshirts, caps, cup warmers, wifi sniffers, backpacks, LCD clocks and MP3 players sitting around the APC offices waiting to be bought....?



29 February 2008, 8:37 PM (4 years ago)report abuse Send to a friend reply

Tony Sarno:

In effect, yes. Geek Gear is holding some stuff  (truth be told, it's currently being held in someone's garage) and some is still on its way. In the office at APC, we haven't actually physically taken hold of anything except samples which we've photographed for the store.

 




29 February 2008, 8:37 PM (4 years ago)report abuse Send to a friend reply

Potoroo:

I made a comment using the feedback mechanism. There was no acknowledgment when I submitted it. Is that because geeks are assumed to know that the lack of an error message indicates success? :-)

PS: The feedback text box itself is unduly small. Is this to encourage us to prepare our feedback in Notepad before cutting and pasting it? Or am I not a geek and in the wrong place entirely because I write in Standard English?

29 February 2008, 8:30 PM (4 years ago)report abuse Send to a friend reply

Dan Warne:

Thanks for the feedback -- much appreciated. We have a list of things to be fixed on the site and comment moderation notifications are on the list! :-)

PS -- the feedback text box is resizable (bottom right hand corner has a dragable resizing corner.)



29 February 2008, 8:38 PM (4 years ago)report abuse Send to a friend reply

Potoroo:

I'm confused about what you mean by "comment moderation notifications". I had not assumed GG site feedback was to be made public, unlike here where it is obvious.

29 February 2008, 8:38 PM (4 years ago)report abuse Send to a friend reply

Tony Sarno:

I think you're referring to the feedback mechanism on Geekgear.com.au, which is specifically for customers to feed information back to the store (as you would find on most e-commerce sites). The feedback on this page is to our blog about the store.

29 February 2008, 8:38 PM (4 years ago)report abuse Send to a friend reply

Michael C (MiCCAS):

Just got the e-mail and I'm SOOO EXCITED!

http://blogs.miccas.net/miccas/2007/apcs-geekgearcomau-finally-launched/

29 February 2008, 8:38 PM (4 years ago)report abuse Send to a friend reply

julz:

Gee, I was taking a look at the site and that APC USB Cup Warmer looks good. Is it like a stainless steel cup or something?

Just a suggestion, you should describe the items in a bit more detail, especially the gadgets.

29 February 2008, 8:30 PM (4 years ago)report abuse Send to a friend reply

wannabegeek:

Great concept, good looking store .. but ..
I'm not really sure that there is anything remotely geeky for sale except maybe a binary led clock, everything else is pretty much the same as every other net store. Maybe read some endgadget posts and get some ideas from there. Just because something has the word geek on it doesn't make it so.
al

29 February 2008, 8:38 PM (4 years ago)report abuse Send to a friend reply

Laurel Papworth:

I think you have a great opportunity here to move away from a shopping cart mentality (although NetMerchant does it very well) to social media advertising and sales.

An example would be Jinx.com (now owned by NewsCorp) who sell t-shirts and stuff - you can comment on each t-shirt and send fotos in of yourself wearing them. A phenomenal World of Warcraft community (def: geeks) has built up around them. I own about 7 of their t-shirts. :P

In Australia, remogeneralstore.com do a great job of integrating a shopping cart with user generated content. Ok it IS messy, but their community are loyal and sticky - it costs a hell of a lot more to catch an online buyer, but if you can keep them, thats the trick. ROI figures - participatory consumers return 5x more often and stay 9x as long, Brand recall is 5x higher when found through a social network than a search engine (McKinsey report).... I could go on and on. And probably will. Heh.

This blog is a step in the right direction though. :)

29 February 2008, 8:30 PM (4 years ago)report abuse Send to a friend reply

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