Social e-commerce taps voice of shopper

In 2004, Manish Chandra and his wife, Asha, were in the process of remodeling their home and found it difficult to choose furnishings that matched their vision of how it should look and feel. They tried the Internet, but grew even more frustrated as they sorted through an endless maze of online catalogs and irrelevant Web pages.

The experience led Chandra and two partners to start Kaboodle, a shopping community where e-commerce meets social networking.

"Shopping is an inherently social activity, where discovery, input, recommendations and purchasing are all part of the normal shopping process," Chandra said. "Our goal in creating Kaboodle's online shopping community was not only to give our members the tools to emulate the offline shopping experience online, but to also leverage the power of the online experience."

At Kaboodle, users can solicit advice from other site members as to which products to buy.

Launched in 2006, Kaboodle claims 500,000 registered users and more than six million monthly visitors. Chandra says that the site "appeals most to people who enjoy the experience of shopping. So, not surprisingly, most of our members are women." He identifies the core demographic as women 18-34 years old.

Chandra only sees an upside for retailers. "It's interesting to watch: a single product added to one user's list can ultimately end up on hundreds of lists in Kaboodle." And that can translate into a corresponding jump in sales.

Kaboodle is not the only player on the social shopping scene. Many other sites have sprung up on the Web, each with its own take on the mashup of e-commerce and social networking, but basically doing the same thing — using Web 2.0 technologies to offer people a place where they can gather and discuss the products that define them.

Here's a random sampling of some of the more popular sites:

• Pronto: Claiming more than 70 million products from 65,000 stores, Pronto offers photos and reviews of a wide array of products, plus a link to online stores that carry the item, sorted by price, much like Amazon.com. This site is geared more to the shopper who values information over socializing.
• Rasba: Rasba is a site for hipsters, with clothing and accessories geared toward the indie-rocker type. Like MySpace, Rasba offers user profiles, friend lists, wish lists and the opportunity to track what friends are buying. Users can earn commissions by recommending products to others who buy.
• StyleHive: Much like Rasba, StyleHive is for culture mavens, billing itself as "an online style club for people who live for fashion, design and shopping. It's where you meet your style muses and follow them as they discover and share their latest finds." StyleHive users can comment and chat with other users and share wish lists. Designers are encouraged promote themselves, assuming they can take the heat if their lines are rejected. StyleHive is about starting the next trend, not following the current one.
• ThisNext: More like Kaboodle, ThisNext offers "raves," reviews and recommendations of products from registered users. Shoppers can see what's hot by city by clicking on an interactive map to see what users thereare recommending. The product lines are far-ranging, from clothing and accessories to sporting goods.

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It's not just for kids

Roman Tsunder, president and founder of mobile media network Access 360 Media, says young adults are the biggest users. "Gen X and Y users have the biggest presence online in these communities, because they are accustomed to using technology to stay connected with, as well as share and receive validation from, their friends."

But the profile of users on social networks is broadening, according to Sue Spielman, chief technology and co-founder of bSocial Networks, which provides software to power social networking sites. "Initially, we were talking about students between 15-21 years old, the majority of which were on MySpace and Facebook. Now, we are seeing that the fastest growing demographic is the 25- to 35-year-old segment."

No matter the age, social shopping sites are reflective of a larger trend toward collaborative thinking, evidenced not only by Facebook and MySpace but larger-scale community projects such as Wikipedia. "Young people are hopelessly addicted to the hive and are basically starting to rely on their networks to aid in the decision process," Tsunder said.

"It's just part of the culture now," said Brian Ardinger, vice president of Nanonation. "Shopping used to be, you went to a particular place and you bought what was on the shelf. Shopping has expanded so much now, you can do things from anywhere. And because of that, retailers are looking for ways to differentiate."

But just as a recommendation on StyleHive can lead to an obscure item being added to hundreds of lists and deemed the Next Big Thing, so can a negative review have devastating effects.

"Retailers are obviously savvy about this," Ardinger said. "They understand that they've got to step up their game, to make experiences more exciting and engaging and empowering, because they are going to be talked about."