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Sharper Image E-Commerce Site Receives Perfect Ranking for Business Model and Execution

The seven key factors for success include:

1. Selling goods at sufficient gross margins to sustain a profitable business model
2. Offering online consumers a convincing and compelling value proposition
3. Ensuring customer acquisition costs are in line with average sales amounts
4. Providing customers with a user-friendly Web experience that engages visitors
5. Achieving significant visitor traffic while simultaneously managing high conversion rates
6. Managing cost-effective and efficient product fulfillment
7. Providing impeccable customer support through multiple touch points

"Sharper Image is considered well positioned for 2001 and beyond because it is operating well on all aspects of a sound business plan that leverages the Internet as a sales channel," according to Paul Ritter, director of Yankee Group's Online Retail Strategies Planning Service. "Executing effectively on our seven success factors simultaneously is not an easy task, but The Sharper Image has done an impressive job in each area," Ritter concluded.

Sharper Image's online site, www.sharperimage.com was established in 1995. In fiscal 2000, Web sales increased 111 percent to $60.2 million up from $28.5 million in fiscal 1999. Sharper Image's Web sales in fiscal 1999 jumped 479 percent from $4.9 million in 1998 to $28.5 million.

Sharper Image recently launched e-commerce Web sites in Europe, with international online stores that accept Euros for the European Union and British Pounds for the United Kingdom. International online shoppers will be able to get local delivery of the Company's Sharper Image Design(TM) products that have been specifically adapted for use throughout Europe and the U.K.

International shoppers can access Sharper Image UK and Sharper Image Europe through www.sharperimage.com. The Sharper Image plans to continue its international Web expansion to additional geographic regions and currencies throughout 2001.

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Source: The Sharper Image 03/27/01

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