Katie: Welcome, dear Business All-star listeners. You've made it back to another brain candy-filled week of our show, and we just couldn't be happier. I'm Katie Laird, and I'm here today with a very exciting guest, Kelsey Ruger. Hi. (Laugh)

Kelsey: Yo.

Katie: Yo, welcome. (Laugh) Esther Steinfeld is gonna be joining us later on, but she is rubbing elbows with some of Houston's finest right now. So, Kelsey, I got you all to myself.

Kelsey: She's being a socialite.

Katie: She is. (Laugh) Our show this week will feature the wonderful and growing world of eCommerce, touching on some great industry news, a little bit about Business Week's 100 best global brands, and then we're gonna talk about an interesting physical side affect that money can have on you.

Kelsey: After that, we'll dive right into the recent shop.org expo, which was in Las Vegas. And Esther will give us the lowdown on her recent trip there, rubbing elbows again –

Katie: Again, jeez.

Kelsey: – with some of the industry giants. And she'll also chat with the CEO of blondes.com. I think she knows that guy pretty well.

Katie: Oh, you know.

Kelsey: From there, we'll chat on some of the brands that have most affected our lives, and what you should know about doing business online. We'll close with a tribute to the glitz and glitter of Las Vegas for business. Elvis sightings not included.

Katie: That's right, (Sings) "Viva, Las Vegas, Kelsey." (Laugh) So in the magical world of business, recently, Business Week came out with their 2009 report on the 100 best global brands, which is kind of exciting to see all of these giants companies kind of swing up and down. Most notably, Microsoft went from the big ole No. 2, all the way down to, okay, No. 3. So, whatever. (Laugh) But something that I'm stoked about – of course, I'm a total Apple geek – Apple has finally made it into the Top 20, up four places this year.

Kelsey: So it makes you wonder what that title of best means.

Katie: Well, apparently, they do, like, some special data collection magic voodoo math. And, of course, math kinda freaks me out. But, basically, they rank based on some top-secret formula that computes value for brands looking at how much of earnings come from outside its home company. I mean, like, they have a lot of stuff that goes in there. (Laugh)

Kelsey: So, do you think –

Katie: I'm not a mathematician.

Kelsey: – if you asked the average person, would Disney be No. 10?

Katie: It depends on the person, right? Like, as a mom, Disney should definitely be in the Top 10. But, yeah, as far as impact – and this is something we're gonna talk about later – as far as the impact that some of these companies have had on our personal lives, I mean, so much of it's subjective to, I mean, who you are, what you're doing, like, how addicted you are to iPhone. Ahem. (Laugh) And I'm pointing at myself. But I'm on the radio; you can't see it. (Laugh) And I'm pointing at you, too, as you hold up your iPhone. (Laugh) So pretty exciting just to see what is kinda going up on and down these days. Cola-Cola is at No. 1, which, I mean, really isn't surprising. Do people in an economic downturn drink more Coke? I don't know.

Kelsey: Maybe Coke's one of those evergreen things, kinda like wine.

Katie: I bet. Like wine, exactly. And we talked a lot about wine last week. (Laugh) So, yeah.

Kelsey: Pepsi's not on this list.

Katie: Pepsi's not on this list. And I don't even know where it ranks. I'm sure it's in the Top 100, but I don't even think it's that high in the 100. So, I mean, but we're seeing big names. I mean, of course, Honda. Samsung's in there. Louis Vuitton, like, congratulations, No. 16. That's unexpected, I guess. I didn't realize that they were that big. Does that make me sound ridiculous? (Laugh)

Kelsey: I wouldn't have ever guessed that Louis Vuitton would be that high on the list.

Katie: Yeah. I – I mean, maybe they own a lot of smaller companies that I don't even know about.

Kelsey: Do you own one?

Katie: No. I own a couple of knockoffs, but – (Laugh) I is broke. I got a three-year-old. I can't be buying a $900.00 purse. (Laugh) And, actually, let's talk a little bit about moving from these giant companies, making lots cash, to actually the impact that money has on us as human beings physically. Now there was a recent article published in Psychological Science that's actually saying that money – and I quote – "Monday can possibly substitute for social acceptance in conferring the ability to obtain benefits from the social systems." So I think in actual English that that means that money can buy you love. Were the Beatles wrong? I'm so confused.

Kelsey: Well, I think in some ways that's right. Money can buy you food.

Katie: Money can buy you food. I know, really.

Kelsey: Won't be hungry. That's physical pain.

Katie: And a really awesome house. That's true. That's true. Well they even said that they did different physical tests where they would do something like trying to stimulate actual physical pain like immersing people's body parts in boiling hot water. The first time, Group A, it would just be like, "Ha, ha. We put your hand in hot water." But then Group B would be like, "Here's $100.00 bill. Ha, ha. We put your hand in hot water." And what do you know? It didn't physically hurt as much when they held money in their hand.

Kelsey: Who comes up with these tests?

Katie: (Laugh) Evil, sadistic scientists. That's who. (Laugh)

Kelsey: I mean, who's the teron that says, "I wanna dip someone's hand in hot water, and then give them $100.00 bill"?

Katie: I really don't know. I mean, (Laugh) maybe this is what bankers talk about during Happy Hour, like, "Wouldn't it be hilarious if we got some guys and we put 'em in a –" (Laugh)

Kelsey: See, next week, they're gonna, "It was all a joke. You got punked."

Katie: Exactly, totally. So even though wherever people had money in their hand, like the physical affects of pain were less obvious to their brains, I guess. It's funny, 'cause wherever they would let someone hold money, but then they reminded them about the fact that they were debt or that they owed money on a parking ticket or something, that would bring back their pain, again. So even though they were holding the money, just even thinking about losing it and having to pay out, it would bring it all back again.

Kelsey: So did they have a control group, like the put the water – put your hand in, and then just give you a plain sheet of paper?

Katie: I think that they did. I mean, this – it seems like it was an ongoing multi-month look at the relationship between money and physical pain. So, while scientists are looking at how money impacts people in severe pain with boiling water, there's also an interesting study that came out recently. And, of course, Esther's gonna be talking more about her shop.org or Viva Las Vegas experience. But these Forrester analysts were taking a look at Web retailers. And it's interesting because even though the economy, let's face it, has been kinda crappy this year, online retailers' Web sales are growing at double-digit rates throughout the second quarter of this year, which is actually really exciting. So Forester actually threw out a few tips for companies either interested in jumping onto the eRetailer bandwagon or that are already on there wanting to kind of revise some of their strategies. They suggest that online retailers should be focusing on small wins, on really paying attention to what a lot of people may consider the quote/unquote, small stuff, like a nice, easy, smooth checkout process, letting their customers choose different shipping options, and really just focusing on the details to help them, like, wanna buy stuff online.

Kelsey: That doesn't seem like groundbreaking information. Haven't we always said, "Keep it simple"?

Katie: Keep it simple, but to me it's interesting to see these analysis that aren't just in – 'cause, I mean, we're kinda geeky and we're all about usability and, like, "Yay, put your customer first." But the fact that that's their No. 1 tip is, like, "Focus on the small stuff and just keep your people happy," like, that's really cool. It's, like, "Duh." But, "Yay."

Kelsey: Like, (Sings), "Ahh."

Katie: (Sings), "Ahh."

Kelsey: (Laugh) So a few reasons that the Forrester analysis threw out there for why online retailers are doing so well despite the economic downturn is that they're really freaking awesome at responding to a very, very fluid and changing competitive environment. I mean, they are ready, willing, and able to change things overnight, or over a couple months if they're seeing that something's not working. And, of course, I mean, that goes a lot towards the medium that we're talking about when you're online. It is very much a living, breathing place. You gotta be flexible.

Katie: Exactly. You have to be flexible. But, I mean, that's a big reason why they think these guys are doing so well, and, also, that they really get the importance of online social communities. I mean, to us, like, this is such a no-brainer thing, but the fact that people are growing and making money, making jobs, and just rocking out, it's brilliant.

Kelsey: So are they actually starting to participate more in the communities, or they just understand it?

Katie: I think it's both. And it's not just that they participated, that they get it, but they're also bringing it in to their eCommerce sites, making it easy to Tweets product they just bought or rate stuff.

Kelsey: Making it a part of their process.

Katie: Exactly. It's just – yeah. They just kind of wrapped their arms around it, and I totally relate that.

Kelsey: That's really cool.

Katie: That is. That is really cool. So what's your favorite place to go shopping online?

Kelsey: Amazon.

Katie: Amazon?

Kelsey: You know I'm a book freak.

Katie: Yeah.

Kelsey: I read four to five books a month, so –

Katie: Yeah. And, actually, I would have to say the same, Amazon. Thanks to the fact that I now have an iPhone, Amazon Kindle, like, being able to read books – and, of course, the Kindle's an eBook reading device. But now if you have an iPhone then, of course, there's an app for that. You can get books off iPhone, or off Amazon.

Kelsey: Oh, you know what? I guess maybe the iPhone app store is actually where I shop the most.

Katie: Actually, yeah. I don't even consider it shopping, 'cause most of the stuff's free, but –

Kelsey: That's what they want you to do. It's not shopping.

Katie: Exactly, and then I'm like, "Ninety-nine cents. Whatever. I can buy this 99-cent –"

Kelsey: One hundred dollars later –

Katie: Yeah, exactly. It totally adds up. Although, it's funny 'cause now I do actually really think hard if I wanna spend $1.99 on some completely random app that I'll only use five times, so it's really cool like. What is that auto tuner one? Do you – have you seen that? What's that guy's name?

Kelsey: Yes, I do. It's I Am T-Pain.

Katie: That's right, I Am T-Pain.

Kelsey: We gotta use that on the show one day, John.

Katie: You totally, totally should. (Laugh)

Kelsey: I use OmniFocus to manage my tasks. And so I wanted to have the iPhone companion. And it used to be that $20.00 wasn't anything, right? You'd buy an app online and install it on your computer. You're like, "Twenty dollars?" That's better than the $800.00 you'd pay for an Adobe program.

Katie: Exactly, yeah.

Kelsey: Well, $20.00 on the app store is a fortune.

Katie: It totally is.

Kelsey: And you really think – it's really changed the way you view how much you're spending.

Katie: It totally, totally does. And I know that I have the worst sense of direction in the entire history of the universe. I've actually gotten lost going home before. (Laugh) But I've always wanted to get like a TomTom or some GPS device, but I just can't get myself to lay down the money right now. And I was looking forward, 'cause the iPhone, of course, there's an app for that. You can get the TomTom app. But that's, like, $90.00. And it's cheaper than buying a darned thing, but I mean, holy Moses, $90.00.

Kelsey: That's, like, one of the most expensive things on the AP store.

Katie: Totally, yeah. It's insane. So I just – I don't think I could ever get over that hurdle unless, like, suddenly my iPhone would make coffee and drive my daughter to daycare every day. Nah. Over $5.00, forget about it. (Laugh) So jumping back on the eCommerce bandwagon – are you ready?

Kelsey: Yes, I am.

Katie: Now, it's time for the CEOs Say the Darndest Things. (Silence from 0:11:19 to 0:11-29) So the specific CEO that I have in mind is eBay CEO, John Donahoe, who totally came out swinging at shop.org, saying apparently time and time again, I think three or four times in his keynote presentation that "eBay is not a retailer. We will never be a retailer. We will never be a retailer, and we will not compete with our sellers." These are kinda fighting words 'cause there's been a whole lot happening in the eCommerce world recently, including I know that Sears has recently launched a marketplace, and Walmart has their Walmart place. I mean, they're in competition with amazon.com right now, like, completely. So instead of just selling Walmart stuff, now they're selling a ton of people's stuff, like, eBags, CSN Stores. I mean, there's millions and millions of more items that they can buy that aren't even from Walmart these days. I mean, they're throwing it down.

Kelsey: Yeah. And you know what's really funny? If you really look at what he said, they said that they're more like an outlet mall. Wouldn't you think Walmart would be more like an outlet mall?

Katie: Yeah, actually. (Laugh) And another thing that he said was that eBay wants to be – and here's kind of a connection – the iPhone of eCommerce.

Kelsey: Oh, I hate when people say that.

Katie: I know. (Laugh)

Kelsey: So but I mean, but really, what did he mean about that?

Katie: Well, he said that – so, they wanna be the iPhone of eCommerce, so a platform on which many apps can be built by third parties in order to accelerate innovation. And so here he's talking about all the new stuff, like Twitpay that they're working on. So PayPal meets Twitter meets eBay, and just trying to, I guess, use the collective genius of their adoring public to make eBay better. (Laugh)

Kelsey: I don't – I still don't see the iPhone comparison, but okay, okay.

Katie: (Laugh) Hey, iPhones are hot right now. You just throw one in a sentence, and it works, okay? (Laugh)

Kelsey: Right.

Katie: So, I mean, it's interesting to see a giant, an absolute giant in the eCommerce industry, they're kind of changing their position in the world. They're trying to make sure that they're not gonna be competing with third-party merchants. And, I mean, I don't know. Like, are they really feeling the heat? Do they really think that Walmart Marketplace is gonna be a contender?

Kelsey: In all seriousness, I like them trying to differentiate themselves. I'm just not sure if that's the area.

Katie: Well, and I mean, there's so many other things that they're doing. I mean, for instance, they're talking actually about harnessing the collective brilliance of the world and saying that they're gonna be doing community-generated catalogues. They're gonna be looking at lot more at tagging and getting these third-party vendors to be just adding to the text savvy of the entire site. And, actually – okay. We're back on the iPhone again. Have you looked at eBay on the iPhone?

Kelsey: No, I haven't.

Katie: It's awesome. It's totally –

Kelsey: I'm gonna do that now.

Katie: You don't even have to have and app. It's totally cool. So our hats are definitely off to you, John Donahoe, and all of the eBays out there in the world. We really do dig people that are just kinda walking a different path. Keeping it shaken up, really focusing on the community, and giving us a chance to get in the dialogue as well.

Kelsey: Yeah. That reminds me of a quote from Leonardo Da Vinci.

Katie: He's a rapper.

Kelsey: Usually when I say it, I mess up and I will say, "Leonardo DiCaprio," and everyone gets a good laugh.

Katie: (Laugh)

Kelsey: But the quote, goes "Life is pretty simple. You do some stuff. Most fails. Some works. You do some more of what works. If it works big, everybody copies you. But the trick is to do something different."

Katie: Oh. Okay.

Kelsey: So they're trying to do something different.

Katie: And that is definitely the challenge. Yeah. You're listing to the BusinessMakers Overtime Show with Katie Laird and our awesome guest, Mr. Kelsey Ruger. Esther Steinfeld is gonna be back in Segment 2, going over some of her latest adventures in eCommerce Land. We'll see you in a few.