Even though it is hotter than a two dollar pistol, E-Commerce still holds fundamental principles that have been around for centuries. Companies that are succeeding in a big way embrace these principles and adapt them for the customer of today and tomorrow.

Three start-up companies illustrate what to do to succeed on the Net with E-Commerce. Notice what they are doing and think how you can adapt it to your own situation.

Moai Technologies---Making Profits of Excess Inventory through Streamlined Sales

Excess inventory is a problem with computers. Companies with aging and excess inventories incur great costs by retaining inventories. Often these excess inventories are unloaded at pennies on the dollar. That’s great if you’re buying but it hits the bottom line hard if you hold those excess inventories. Excess inventories can also cause channel conflict and hurt sales of newer products.

Moai Technologies saw this problem and created a software program that helps companies to maximize their investment. Ingram Micro, one of the world’s largest wholesale distributors of software and hardware purchased software from Moai which allowed for select customers to bid on the excess inventory.

Customers of Ingram Micro can now bid on select products in private auctions. Ingram Micro sells for a higher price margin and doesn’t have the threat of eroding profits like before. The company was able to pay back its $100,000 investment in a few short months.

Moai, a start-up based in San Francisco, is using the auction approach, so successful now with companies like eBay, (www.ebay.com) Onsale (www.onsale.com) and other Websites at Internet Auction List (www.internetauctionlist.com). "Frictionless Capitalism" is underway in roaring form. Adam Smith would be proud!

However, Moai sells software, unlike their distant competitors. Individual companies can purchase this software to determine pricing that the market will bear for given products. They can also keep the pricing and selection secret by admitting only a few select customers. The software also allows for the traditional English auction (bids start low and rise with added interest) or Dutch auctions (used in Farmers’ markets, bids start high and then fall in price at regular intervals till someone grabs the item at the price of the moment).

Moai Technologies has succeeded because they follow a simple rule: Provide an easy way for customers to solve problems. Excess inventories and new product testing are easily done with secrecy and a controlled group.

Moai Technologies, www.moai.com, 415-490-5551

Perceptual Robotics --- Making the Customer Part of the Decision Process

Wouldn’t it be great to be more than one place at a time? Until we get that beaming thing down, the Internet can provide the next-best thing. A company in Chicago, Perceptual Robotics has tapped into the Internet to allow this.

Point your browser to http://www.perceptualrobotics.com/live/livepri.htm and notice the scene. It looks like many offices in today’s world. Cluttered. Messy. Disorganized and some people sitting there. 

However, this is a live picture of what is happening at the instant you view it. This type of technology has been available for a while. However, with this camera, you can zoom in to see more detail of the beer bottles (or champagne bottles if you choose) on the other side of the room. You can point the camera to other directions and see what is on the other side of the room or even outside. You, the viewer are in control, not the operator at the office.

The ramifications of this for sales are enormous. Your customers can "visit" your showroom and see the actual piece of merchandise you have to sell at the moment. They can zoom in on specific aspects of it. They can see you, your product, your office, etc. It is almost like being there.

The best part of the whole process is that anyone with a regular browser can see what is happening. No extra plug-ins are needed. No additional software needs to be purchased on the part of the customer. You simply buy the software from Perceptual Robotics and customers can visit you anytime from anywhere they have their computer running with an Internet connection.

For the customer this provides enormous possibilities in "visiting" several competitors and even having them on –screen at the same time. Customers can be in New York and Los Angeles at the same time! We’ve even got Captain Kirk and Mr. Spock beat on this one!

Perceptual Robotics has brought technology to play with a time-honored principle of selling: Give your customer more information to make better decisions.

Perceptual Robotics, www.perceptualrobotics.com, 847-475-0512

ProFlowers – Use Technology to Reduce Costs and Pass the Savings Along

Buying flowers for a loved one or a special occasion is a time-honored approach to send love, care and gratitude. Technology has allowed us to send flowers to almost anyone, anywhere.

The Internet entered the picture a short time ago. First there was 1-800Flowers, known for revolutionizing the flower business. Then old standard, FTD entered the market as both companies went on the Internet.

Now the market is about to be shaken again. For about half of what you would spend with their competitors, ProFlowers provides fresh-cut flowers directly from the grower to the person you choose. The price is $29.95 plus $5.95 for next-day air shipping. This saves a lot of money. You do have to plan ahead. Orders must be placed by 3:00 Eastern to be delivered the next day. You also can only deliver Tuesday through Saturday. However, the flowers are very fresh as they come directly from growers in California. They also cost less so you can send more for the same amount of money.

ProFlowers provides the ease of use of the Internet, savings that customers like and a product (fresh-cut flowers) that consumers want. They have leveraged technology to provide the benefits for customers.

ProFlowers, www.proflowers.com, 1-800-Proflow

All of these companies have taken time-honored principles of selling and servicing customers into the age of the Internet. Be creative and think of how you can service your customers better, cheaper and faster through technology. Your bottom line will appreciate your creativeness.

Terry Brock is an internationally recognized professional speaker, consultant and author in the fields of business productivity, technology and marketing. His is a syndicated columnist for Business Journals across America and can be reached at 407-363-0505 or by e-mail at terry@terrybrock.com.