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	<title>bob ketner &#187; 1.0</title>
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		<title>Red Envelope: what went wrong?   1.0 must 2.0</title>
		<link>http://bobketner.com/news/2008/04/04/red-envelope-what-went-wrong-10-must-20/</link>
		<comments>http://bobketner.com/news/2008/04/04/red-envelope-what-went-wrong-10-must-20/#comments</comments>
		<pubDate>Fri, 04 Apr 2008 17:05:22 +0000</pubDate>
		<dc:creator>studiosfo</dc:creator>
				<category><![CDATA[1.0]]></category>
		<category><![CDATA[2.0]]></category>
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		<category><![CDATA[ecommerce]]></category>

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		<description><![CDATA[Gift sites are notoriously hard to merchandise.  Red Envelope did an ok job but apparently not good enough.  The chat at TechCrunch speculates management issues because the company has $12.3M  in the bank according to TC.  Traffic failed to bump much for the big gift days 2 years straight though, indicating [...]]]></description>
			<content:encoded><![CDATA[<p>Gift sites are notoriously hard to merchandise.  Red Envelope did an ok job but apparently not good enough.  The chat at <a href="http://www.techcrunch.com/2008/04/03/red-envelope-may-be-heading-to-the-deadpool/" target="_blank">TechCrunch</a> speculates management issues because the company has $12.3M  in the bank according to <a href="http://www.techcrunch.com/2008/04/03/red-envelope-may-be-heading-to-the-deadpool/" target="_blank">TC</a>.  Traffic failed to bump much for the big gift days 2 years straight though, indicating that online gift seekers found other avenues online or off.</p>
<p>Their catalog was ok but I&#8217;d say could have benefited by having fewer &#8220;premium&#8221; style goods and more personable items like those found at <a href="http://www.etsy.com/" target="_blank">Etsy</a> which is doing great on traffic.   Their catalog did have the occasional jaw-dropper pricey item such as these braided bracelets for $150. yikes.</p>
<p style="text-align: center"><img src="http://bobketner.com/wp-content/uploads/2008/04/red.jpg" alt="red.jpg" /></p>
<p>Again gift giving is a difficult play but still, this should have been a viable business by any measure.</p>
<p>So what wen&#8217;t wrong?  Somehow the site dropped out of view in the storm that is 2.0.  Without a strategy to mix into other sites I&#8217;m hard pressed to name any retailer strong enough to be a destination site on its own.  Relying on affiliates is like relying on a volunteer workforce &#8211; it is outreach but looks like you can&#8217;t just sit back and watch the orders come in anymore.</p>
<p><a href="http://bobketner.com/wp-content/uploads/2008/04/redchart.jpg" title="redchart.jpg"></p>
<p style="text-align: center"><img src="http://bobketner.com/wp-content/uploads/2008/04/redchart.thumbnail.jpg" alt="redchart.jpg" /></p>
<p></a></p>
<p>On the other hand, it may indeed have been sustainable in operations, but mismanaged from the inside <a href="http://www.techcrunch.com/2008/04/03/red-envelope-may-be-heading-to-the-deadpool/#comment-2129316" target="_blank">as some are commenting</a>. This is often the case when things just don&#8217;t add up.  Interested in avoiding this fate?  Call me at 408-667-5949.</p>
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