Dick Smith has an online mission.
IT, stock issues are among the reasons why web sales are currently not higher. DS has dropped Blue Martini, which was Woolworth's online platform, and moved to Magento ecommerce system, which will help it fulfill its online dream of 10% sales.
The ecomm platform, which is built on open source technology, offers shipping, fulfillment applications and back end integration, is eBay owned - "not a bad owner to have" says Abboud.
Dick Smith web store with Magento system been live only a few weeks now but the retailer's new boss says he is "excited" about move to fulfilling stores out of a group of locations (it was previously fulfilling stock out of Chullora, NSW).
This new ecommerce system looks set to be the key to doubling to web sales to 10%.
"We now have stores across Australia with the new platform and as we roll out every store fulfilment, Magento allows us to do that."
"As we move to every store fulfilling, there's not that 'out of stock' issue," referring to "the opportunity" the retailer will have.
"If I've got 75 stores in Qld with that, today if you're online and that sku is out of stock in Chullora (NSW) or the one store in Qld ..it doesn't convert." But if 75 stores had that stock "then it does convert," he says.
Magento's "strength is they have a box package that you can bolt on every time you want to advance your online system."
"A lot of online players are shipping out of one location..to ship a TV from here to Kalgoorlie will cost me $300.. I don't make $300 on a TV," Abboud noted.
The ambitious retailer also plans to have 10,000 product skus for its online store.
It is interesting to note DS two most profitable stores are in Kalgoorlie, WA and Cairns, Qld, both regional locations.
But DS has other tricks up its sleeve to grow its web sales and counter the fierce competition it is facing from online players, both locally and from overseas sites like Amazon.
To lure consumers it is introducing lower spec accessories including the Tandy brand, which will have slightly reduced packaging cost , "obviously specs may not be of the same grade but we'll be able to compete with online dual players," says Abboud.