Ritz Interactive grew over 30 percent in the fourth quarter of 2006 with Google Checkout

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"During the holiday shopping season and all of Q4 2006, Google Checkout promotions were instrumental in driving our 34% revenue growth."

Fred H. Lerner President and CEO

Company

At Ritz Interactive, online retail isn't just a part of the business; it's the whole business. It is an e-commerce company that runs a network of 19 retail websites, including RitzCamera.com, WolfCamera.com and BoatersWorld.com. The 41-person company makes sure that online transactions go smoothly for customers, and they do it well: total merchandise revenue is nearly $100 million. In the past five years, Ritz Interactive has received a shelf full of excellence awards and has experienced a compound annual growth rate of approximately 25% during that period. In 2006, Ritz Interactive's merchandise revenue grew 11 percent in the first three quarters of the year and 34 percent in the fourth quarter. Google Checkout played a significant role in that Q4 growth.

Approach

No stranger to online checkout systems, Ritz Interactive added Google Checkout to the company's sites in 2006. "We immediately recognized the benefit of teaming up with Google," says Fred H. Lerner, president and CEO at Ritz Interactive, Inc, noting that "We saw tremendous potential for increased traffic and lower processing costs." Ritz Interactive shoppers have the option of choosing Google Checkout when completing their purchases. Google Checkout helps customers purchase quickly and securely using a single username and password. It also works with Google AdWords through the Google Checkout badge – an icon that Checkout merchants can add to their AdWords ads that helps boost their visibility.

Ritz Interactive also opted for Google Checkout promotions. The company supported the promotions fully, sending out email announcements touting the deals, placing prominent home page ads, and adding special landing pages offering Google Checkout promotions.

Results

"Google Checkout enhances the checkout experience for consumers by simplifying and organizing checkout."

Ritz Interactive's implementation of Google Checkout has paid off handsomely. After implementing Google Checkout, site traffic increased more than 40% and overall cart conversion rates improved 35%. Lerner says that Google Checkout absolutely played a part. "During the holiday shopping season and all of Q4 2006, Google Checkout promotions were instrumental in driving our 34% revenue growth," Lerner says. "Post-promotion adoption of Checkout has been excellent."

Ritz Interactive also accrued savings in transaction processing, because Google Checkout pays those costs for participating businesses based on their AdWords spend. And though there are always adjustments when adapting new features to existing sites, Lerner credits Google support with helping to smooth the way. "We had excellent account managers," he says. "Easily accessible, responsive, and accountable."

Ritz plans to keep up the good work with Google Checkout by running promotions throughout 2007 to enhance its several online boating and marine ventures, and to continue the growth in proven markets. "Google Checkout enhances the checkout experience for consumers by simplifying and organizing checkout," Lerner says.



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