New E-Commerce Startup

Major retailers have taken notice and last year eBay and Amazon were among the first to embed their own social e-commerce tools directly into their websites. Soon after, other big names followed, such as QVC, Sears, Nike and Sephora. But it can be harder for small shops to compete since big names have the manpower to build custom social e-commerce experiences.

Enter Blucarat. Launched last year, this patent-pending platform activates social engagement between shoppers directly on retailers’ websites, so users can connect with friends, sharing photos and shopping advice, chatting and viewing trending products – all in real-time, right on the retailer’s website.

Companies upload Blucarat’s ‘Social Bar, ’ a toolbar, to existing web layouts. The tool was designed to be an easily installable enterprise solution for niche, startup or smaller retailers, says Tom Kwon, the company’s chief executive officer and founder.

Tom Kwon (center) with the Blucarat management team

Source: Blucarat

Kwon is an e-commerce consultant who was the lead developer of WhiteHouse.gov at its launch and founded web development companies DMIND and Altruik. He says that e-commerce platforms haven’t changed dramatically since the 1990s and still operate “like a card catalogue with product offerings. It’s a solitary experience that serves the merchants and doesn’t take into account what customers are looking for.”

To better understand shoppers, Kwon’s team delved into market research and discovered three core drivers for consumer purchases: affirmation, information and inspiration. When buyers shop in physical stores with friends, they can get instant, trusted feedback on all purchases, poll strangers for opinions and ideas, and see firsthand which items are flying off the shelves.

But online, affirmation remained a missing link. “Online ratings and reviews alone can’t provide affirmation because shoppers are acutely aware that these posts have been manipulated, ” he adds.

And those seeking a friend’s opinion online must copy and paste the URL into an email, leaving the virtual store to do so. This lag ultimately leads to a weak sales conversion rate. Retailers lose consumers during that “golden moment, ” Kwon says.