SVP, Corporate Communications
NetSuite Ecommerce Customers Achieve 30 Percent Increase in Online Revenues and 99.99 Percent Site Uptime in Q4 2008 over Q4 2007
SAN MATEO, Calif.—February 12, 2009—NetSuite Inc. (NYSE: N), a leading vendor of on-demand, integrated business management software suites for the mid-market enterprise and divisions of large companies, today reported the aggregate revenue and site uptime results achieved by its Ecommerce customers during the recent 2008 holiday season. NetSuite-powered Ecommerce customers beat the national averages across key Ecommerce performance indicators by achieving a 30% increase in revenues and 99.99% site uptime.
The strong performance of NetSuite etailers is in stark contrast with overall industry averages, which included a 3% decline in overall online spending for the 2008 holiday season when compared to the same period in 2007 (source: ComScore: http://www.comscore.com/press/release.asp?press=2659) and 96.81% average site availability among the nation's top 50 Ecommerce sites, according to the US Internet Retailer Benchmark (source: Gomez).
Despite current economic conditions, NetSuite-powered Ecommerce businesses experienced significant growth compared to the record-setting 2007 holiday season.
Collectively, NetSuite-powered Ecommerce businesses in Q4 2008 recorded:
NetSuite international customers also did extremely well during the recent holiday season. NetSuite's UK Ecommerce merchants saw a 94% increase in revenue in the fourth quarter of 2008 compared to the fourth quarter in 2007. NetSuite's Australia Ecommerce merchants saw a 73% increase in revenue in the fourth quarter of 2008 compared to the fourth quarter of 2007.
"NetSuite's Ecommerce customers have proven that even in tough times, profits and sales can be increased when using a smart, scalable solution like NetSuite Ecommerce," said Baruch Goldwasser, Ecommerce Subject Matter Expert. "Our Ecommerce customers showed a phenomenal 30 percent gain during the 2008 holiday season — an incredible achievement."
NetSuite's Ecommerce software, which allows companies to deliver an "Amazon.com-like" experience to customers, is garnering rave reviews. NetSuite won the Software & Information Industry Association (SIIA) 2008 CODiE Award in the software category for "Best Ecommerce Solution." In July, Gartner placed NetSuite in the visionary quadrant of the "Magic Quadrant for E-Commerce" report.
Following is a sampling of NetSuite Ecommerce customers' recent success:
DealYard.com (www.dealyard.com), increased sales year over year by 45% and experienced a two-year growth rate of 113%.
DealYard.com is a leading online retailer of brand-name merchandise at discounted prices of up to 70% off retail prices and is committed to offering the best brands at outstanding values to its customers. DealYard.com has generated a year-over-year annual sales growth rate of 45% and two-year growth rate of 113%. Their disciplined focus on growth and profitability, along with their partnership with highly scalable NetSuite, resulted in a ranking of No. 28 in the Inc. 500 fastest-growing private retail companies in America.
"NetSuite's Web-based application allows us to reduce operating costs and thus maximise operational efficiency and scale by providing complete and flexible ERP, CRM and Ecommerce solutions," said Rob Heller, CEO of DealYard.com. "Even in this very difficult and challenging economic climate we were able to gain market share and generate significant revenue and profit growth."
In Casa Gifts (www.incasagifts.com), achieved over 300% growth from 2006 to 2008.
In Casa Gifts is an online boutique that sells occasional favors, gifts and accessories for occasions like weddings, bridal or baby showers.
"NetSuite is our backbone and it continues to prove itself a great investment, bringing together our accounting and reporting, marketing, Ecommerce and product management activities together under one roof," said Mary Maesano, co-founder and president of In Casa Gifts. "We've done a lot of great things since launching in 2006 that helped us achieve over 300 percent growth in the two years since then. No doubt, delivering excellent service in the online space is fundamental, but we wouldn't have had the time to focus on customers nearly as much if we didn't have the right system. In Casa Gifts and NetSuite have a great 'marriage' and we look forward to realising 100 percent growth in 2009, despite the tougher retail market environment."
Best American Arts (www.bestamericanarts.com), had an increase of 37.6% in the fourth quarter of 2008, compared to the fourth quarter of 2007.
BestAmericanArts.com is the award-winning website that provides easy and convenient access to the work of America's best artisans. According to BestAmericanArts.com, buying American artisan jewelry and home décor items strengthens the U.S. economy.
"With NetSuite's Ecommerce platform we were able to create a completely customised look and feel for our Web store," says Tom Reidy, CEO. "Additionally, we appreciate the real-time inventory control that NetSuite provides so we never disappoint a customer by showing a product that is out of stock. This is particularly important to us because we carry many one-of-a-kind items. Our fourth quarter alone was up 37.6 percent over 2007 and we couldn't have done it without NetSuite."
Neteon Technologies, Inc. (www.neteon.net), increased sales to $4.5 million in 2008 compared to $3.3 million in 2007.
Neteon is a value-added reseller of industrial networking equipment for federal and state governments, Fortune 500 corporations, schools, universities, research facilities and industrial automation system integrators.
"While other businesses were feeling the effects of the economy this year, we grew our sales from $3.3 million in 2007 to $4.5 million in 2008," said Chung Yu, President. "Our Web store is integrated with NetSuite's shopping cart and accounting system and because NetSuite is Web-based, we don't need to spend precious manpower to manage our own internal hardware for this important function, sparing us that headache."
Bluw UK (www.bluw.com), increased online traffic to over 3,000 hits per day in 2008 compared to an average of 300 hits per day in 2007.
Bluw, based in the UK, is a product design, manufacturing and distribution company in the gifting and toy industry. The decision to integrate its US retail site with NetSuite in 2008 allowed the company to have all information — shopping cart, CRM, inventory management and product delivery management through the UPS integration facility — in one place.
"NetSuite has helped us create huge overhead savings in reconciling interfaces from different systems and allowed us to focus on the most important issues of driving traffic and converting it to sales," said Ian Harkin, Financial Director. "While NetSuite helped us increase our traffic from an average of 300 hits to over 3,000 hits per day in 2008, we did not have to worry about software, hardware, system support, and upgrades as all of this was included in the package."
DVA, Inc. (www.dva.com), has experienced an increase of more than 500% in its Ecommerce business.
Distribution Video & Audio, Inc. (DVA) started in 1988 selling used videos for new store openings and video rental chains, such as Hollywood Video and Blockbuster Video. Then they sold 100,000 units a year. Today DVA sells more than 10,000,000 units per year. In 1995, DVA expanded into three separate divisions: Consumer Sales; Library and Government Sales; and Liquidating and Wholesaling. In 2003, they added a Special Markets division.
"Before switching to NetSuite, we tried four or five different Ecommerce platforms without finding one that could truly cater to our needs," says Brad Kugler, Owner. "Since come on board with NetSuite our Ecommerce business has increased by more than 500 percent. The end-to-end integration saves us multiple entries and the real-time inventory has been hugely successful."
For more information about NetSuite Inc., please visit www.netsuite.co.uk.
NOTE: NetSuite, and the NetSuite logo are registered service-marks or trademarks of NetSuite, Inc.