GHOST OF CHRISTMAS PRESENTS PAGE 1 | 2
This partnership has the potential
to make other big online toy retailers (eToys, KBKids, and Wal-Mart, for instance) appear elfin by comparison. "We are really ramping up for the holiday season," says Barbour. He promises an ad blitz, which shows that Toys R Us is confident of its ability to take all comers. He adds that the company has "virtually quadrupled" warehouse capacity and has hired four hotshot executives to oversee its growing business. Of course the new, untried delivery system could again collapse under the strain of new orders; if it does, Barbour acknowledges, "it's going to be an interesting situation." But he promises there will be more customer-service centers and a souped-up computer system and no recorded messages that hang up on you.
The question is, Do America's mommies and daddies dare trust him? And not only him but also the executives at all the Web toy stores who vow to do better this year?
The answer is, Probably. "Part of how you do well in business not just online, but any business is learning," says Toby Lenk, ceo of eToys Inc. in Santa Monica, Calif., the first company to mass-market toys through the Internet. With last year's lessons learned the hard way millions in lost revenue stockings are unlikely to go unstuffed. "Everybody is talking about the same thing," says David Novitsky, vice president and general merchandise manager at KBKids.com. "Customers have to be confident that when they go online, they can get what they order in a timely manner." Since Christmas falls on a Monday this year, some companies are asking shippers to make special weekend deliveries. And Lenk, who blames a third-party processor for last year's woes, says all orders are now handled in house. "The details matter, and we get them right," he boasts.
In fact, so confident are toy executives that the problems have been licked, most say customers will be able to shop late in December and still get their gifts under the tree. If this is propaganda, the industry certainly believes it, as evidenced by the toy companies' plans for Web expansion. Toys R Us will soon introduce Sportsrus.com and revamp Babiesrus.com. eToys is pumping out a private line of both toys and "storage" products, including backpacks, closet organizers and the like. "Kids like to have really cool laundry bags," Lenk claims. "Nobody really dominates storage as a category."
Competition for your e-dollars will be stiffer than ever. Already this year two websites with big-name corporate parents Walt Disney Co.'s Toysmart and Viacom's RedRocket have gone under. The remaining sites loudly trumpet whatever small advantages they offer in hopes of outdoing the competition. KBKids.com lets online customers return orders in its brick-and-mortar stores. eToys puts gift labels on wrapped items and in a move that places parental wishes over the better judgment of marketing executives has taken the name eToys off its delivery boxes, to keep prying little paws out of closets.
I, for one, am ready to try again, but I'll be more careful this year. I will order as early as possible, and in a pinch, I will settle for an online gift certificate, which is less likely to get delayed in the mail. I will be sure to print out copies of all purchase orders and confirmation numbers. And I've learned my rights: the Federal Trade Commission requires companies to deliver what they promise or give prompt notification of any glitch, so customers can cancel orders and get refunds. (It was this notification rule that Toysrus.com and KBKids.com sometimes failed to honor and that is the chief reason for their lingering legal problems.) Last year I wound up with two Furby Babies one from the local store, the other a tardy arrival from Toys R Us. This year I have my sights set on Poo-Chi, the electronic dog that looks a little like Scooby Doo. If I have to buy him only once, I'll consider it a successful Christmas and a merry one too.
Jennifer A. Kingson is an editor at the American Banker newspaper
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ILLUSTRATIONS BY FRANCISCO CACERES
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