Electronic Retailer - July 2012 - 23

You Sell Like Amazon?
For a piece of the DRTV marketer’s action, a new company called DNA Response Inc. has teamed up with a well-known fulfillment system to store and ship products. That company happens to be Amazon.com.

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A former Amazon.com executive is promising to bring Amazon’s state-ofthe-art expertise in e-commerce and fulfillment services to direct response television (DRTV) advertisers and other DR marketers. Since his new company uses Amazon’s actual warehousing and fulfillment system, the promise is not an empty one. Last summer, Ranjit Mulgaonkar, 53, left a job as director of business development and partner strategy for Amazon’s e-commerce services to become founder and CEO of DNA Response Inc. Also leaving Amazon to launch the new company as co-founder and vice president of business development was Josh Nelson; co-founder Dana Mulgaonkar joined the team as vice president of business operations. Seattle-based DNA, launched in July 2011, describes itself as a turnkey provider of order-management, e-commerce and online marketing services to the direct response industry. As of April, DNA had 13 clients, including the Nutra Sonic and Comodynes skin-care lines, Lucidal, a brain supplement, and the Jay Kordich Juicer. All client products are stored at Amazon’s U.S. fulfillment centers. Regardless of how buyers’ orders come

in – online, by phone or by mail – products ship within 24 hours. They usually reach the buyer within two to four days, Mulgaonkar says, noting that typically consumers wait considerably longer to receive DR products. DNA operates entirely on a revenuesharing model. For a start-up fee plus a negotiated share of the revenue generated by a client’s campaign, the company handles tasks that ordinarily are farmed out to several vendors. Instead of sending bills to its clients, DNA deducts its own cut and then sends them electronic payments. In a typical DR campaign, the marketer gets billed for various online services, as well as “credit-card processing, warehousing, shipping, boxes, labels, whatever,” Mulgaonkar says. “A big complaint is, ‘I’m getting buried in billing.’ We flipped the model upside down. … We said, ‘How about if we pay for online marketing costs, hosting, merchant accounts, warehousing, affiliate commissions and other line items, and then just send the client their revenue share?’” Direct response industry veteran Rick Cesari, CEO of DRTV marketing company Cesari Direct of Seattle and a member of DNA’s advisory board, says it is hard to distinguish aspects of the

new company that are genuinely unique from those that are just highly unusual. The revenue-sharing business model is an example. Other suppliers to the e-commerce industry use “performancebased online models,” Cesari says, “but nothing this robust.” As far as he knows, no other vendor will handle online marketing plus multichannel credit card processing and fulfillment, all on a revenue-sharing basis.

E-Commerce and More
To explain the niche that DNA is carving for itself, it is easier to start with the parts of a direct response campaign that the company doesn’t handle. Mulgoankar says that DNA does not take on creative, production or media-buying tasks for DRTV, radio or print campaigns. It also does not do copywriting or other such creative work for websites, but it does coordinate and partner with agencies and suppliers that specialize in those functions. DNA does not operate a call center or a customer-service unit. But its free software is easily adaptable so that any call center the client chooses can use DNA’s service for real-time credit card processing and to put orders into the Amazon fulfillment system. 23

July 2012 | electronicRETAILER



Electronic Retailer - July 2012

Table of Contents for the Digital Edition of Electronic Retailer - July 2012

Calendar of Events
Your Association Your Bottom Line
Industry Reports
FTC Forum
eMarketer Research
IMS Retail Rankings
Jordan Whitney's Top Categories
From the Executive's Desk
Cover Story: Could You Sell Like Amazon?
Counterfeiting: Why We Should Care and What We Can Do
All Media Are Not Created Equal
Guest Viewpoint
Inventor's Corner
Retail
Fulfillment
Legal
Advertiser Spotlight
Bulletin Board
Advertiser Index
Classifieds
Rick Petry
Electronic Retailer - July 2012 - cover1
Electronic Retailer - July 2012 - cover2
Electronic Retailer - July 2012 - 3
Electronic Retailer - July 2012 - 4
Electronic Retailer - July 2012 - 5
Electronic Retailer - July 2012 - 6
Electronic Retailer - July 2012 - Calendar of Events
Electronic Retailer - July 2012 - Your Association Your Bottom Line
Electronic Retailer - July 2012 - Industry Reports
Electronic Retailer - July 2012 - 10
Electronic Retailer - July 2012 - 11
Electronic Retailer - July 2012 - 12
Electronic Retailer - July 2012 - FTC Forum
Electronic Retailer - July 2012 - eMarketer Research
Electronic Retailer - July 2012 - 15
Electronic Retailer - July 2012 - IMS Retail Rankings
Electronic Retailer - July 2012 - 17
Electronic Retailer - July 2012 - Jordan Whitney's Top Categories
Electronic Retailer - July 2012 - 19
Electronic Retailer - July 2012 - 20
Electronic Retailer - July 2012 - From the Executive's Desk
Electronic Retailer - July 2012 - Cover Story: Could You Sell Like Amazon?
Electronic Retailer - July 2012 - 23
Electronic Retailer - July 2012 - 24
Electronic Retailer - July 2012 - 25
Electronic Retailer - July 2012 - Counterfeiting: Why We Should Care and What We Can Do
Electronic Retailer - July 2012 - 27
Electronic Retailer - July 2012 - 28
Electronic Retailer - July 2012 - 29
Electronic Retailer - July 2012 - All Media Are Not Created Equal
Electronic Retailer - July 2012 - 31
Electronic Retailer - July 2012 - 32
Electronic Retailer - July 2012 - 33
Electronic Retailer - July 2012 - 34
Electronic Retailer - July 2012 - 35
Electronic Retailer - July 2012 - Guest Viewpoint
Electronic Retailer - July 2012 - 37
Electronic Retailer - July 2012 - Inventor's Corner
Electronic Retailer - July 2012 - Retail
Electronic Retailer - July 2012 - Fulfillment
Electronic Retailer - July 2012 - Legal
Electronic Retailer - July 2012 - Advertiser Spotlight
Electronic Retailer - July 2012 - Advertiser Index
Electronic Retailer - July 2012 - Classifieds
Electronic Retailer - July 2012 - 45
Electronic Retailer - July 2012 - Rick Petry
Electronic Retailer - July 2012 - cover3
Electronic Retailer - July 2012 - cover4
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