Electronic Retailer - July 2012 - 25

No matter how a buyer’s order comes in – from any of these websites, or via a call center in response to a DRTV advertisement, or via a catalog order form – “it’s all connected to the same Amazon fulfillment system and the same payment-processing system. We can give [clients] one report, and everything they need to run their business is in that single report.”
– Ranjit Mulgaonkar, founder and CEO of DNA Response
its other centers in 11 states – 39 fulfillment centers in all, comprising 26 million square feet of warehouse space, Mulgoankar says. The client’s customers “get the same fulfillment experience they would get from Amazon, because it is Amazon,” Mulgoankar says. Because they receive their products in two to four days, rather than weeks, fewer orders are cancelled. “We don’t eliminate cancellations but we can reduce them significantly,” he says. There is less time for the customer to experience buyer’s remorse. “And at least you don’t cancel just because you got tired of waiting.” The incrementa l revenue t hat Mulgoankar promises comes from online sales that the client would not make if DNA weren’t in the picture. In what may be a genuinely unique initiative, a program called DNA Marketplace makes clients’ products available on up to 17 online shopping sites simultaneously. Those include major e-commerce sites such as Amazon, eBay, buy.com, sears.com, and Linens ‘N Things’ online store. According to Cesari, it isn’t just the number of shopping sites on which a product suddenly can appear but also the expertise with which the product is marketed on those sites that makes DNA unusual. Other DR sellers can get their products on Amazon, for instance, “but people won’t know you’re on the site,” Cesari says. “The difference with these guys is that they understand the inner workings of Amazon.” That includes Amazon’s internal search algorithms. Cesari is a DNA client as well as an advisor, having engaged the company to handle a juicer machine called the Jay Kordich PowerGrind Pro. “When they put up our juicer on Amazon, it [immediately] was one of the first that came up in a search,” he says. “Normally, that wouldn’t happen.” Search engine marketing and search engine optimization are services that DNA takes on for clients. The company also hosts single-product e-commerce sites tied to DRTV campaigns, such as Lucidal, as well as online stores for clients with multiple products, such as Nutra Sonic, which offers more than 60 different items. Finally, DNA hosts an e-commerce “mall” called SeenOnTVProducts.tv that sells all of its clients’ wares in one location. No matter how a buyer’s order comes in – from any of these websites, via a call center in response to a DRTV advertisement or via a catalog order form – “it’s all connected to the same Amazon fulfillment system and the same payment-processing system,” Mulgaonkar says. “We can give [clients] one report, and everything they need to run their business is in that single report.” That includes the number of calls to a call center or the number of online orders from each website, as well as revenue generated, units sold, how much inventory remains, how many products were returned and more. “This is information that lets clients make

decisions about pricing, inventory and profit,” Mulgaonkar says. When DNA talks to potential clients who have been getting multiple reports from multiple vendors, he says, “They sometimes tell us, ‘It’s hard even to figure out if I’m making money.’”

What Next?
DNA is a well-funded start-up. Launched last year with $575,000 in investment capital, the company received an additional $3.2 million early this year from a group of backers including Seattle-based Benaroya Capital. Tim O’Brien, vice president of Cesari Direct, describes Benaroya as “a group of very sophisticated venture capital people, steeped in the dot.com industry,” whose investment constitutes a “big stamp of endorsement” for DNA and its business model. Central to that model is the revenuesharing scheme. The negotiated cut of revenue that DNA demands varies by a number of factors, including the size and weight of the client’s product, Mulgaonkar says. The one-time setup fee charged to clients ranges from $2,500 – for simple placement in the As Seen On TV mall and the 17 e-commerce sites in the DNA Marketplace program – to $25,000 for the full program of dedicated websites, call center connections and search engine marketing. As of April, DNA had 15 employees to serve its 13 clients. By year’s end, Mulgaonkar projects that the company will have 30 employees and more than 30 clients. He expects DNA to turn its first profit by the fourth quarter of 2013. By early next year, he says, the company will expand its operations to Europe, where Amazon has a strong fulfillment presence. Asia will follow. Mulgaonkar also plans to expand his client base within the direct response world. Almost all of his current customers either use DRTV or plan to. “But we’re talking to a customer who wants to do a catalog and to another who wants to do radio,” he says. “For us, it doesn’t matter. An 800 number is an 800 number. A website is a website.” 25

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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