Salesforce.com Gets Into the Retail Business


Posted on December 12th, by thinkstrategies in Uncategorized. Comments Off on Salesforce.com Gets Into the Retail Business

Continuing to push the envelope, Salesforce.com announced its new AppStore today, and boldly entered the on-line payment transaction management business.

Building on the momentum of its successful AppExchange platform and clearinghouse for Software-as-a-Service (SaaS) providers, Salesforce.com has taken the next step in becoming an end-to-end mechanism for independent software vendors (ISVs) looking for help developing and marketing their on-demand solutions.

In October, Salesforce.com unveiled a new Apex developer’s toolkit at its Dreamforce conference. Apex is aimed at making it easier for customers and partners to customize Salesforce’s applications.

Now, Salesforce.com is making it easier for its AppExchange partners to sell their solutions via the web. The new AppStore will include a two-tier referral program and automated checkout capabilities. ISVs can choose between a standard or premium referral service. The standard service includes search engine optimization and other marketing services for a 10 percent referral fee that is paid to Salesforce.com on all transactions closed via AppExchange. The premium referral service includes additional custom marketing services for a 25 percent referral fee. The AppStore Checkout capability will include online ordering, billing, invoicing and collection services for an ongoing 20 percent commission.

Some ISVs may cringe when considering whether to pay up to 45 percent of their AppStore-related revenue to Salesforce.com for the privilege of employing these new services during their first year in the program. However, THINKstrategies believes many will see the AppStore as a valuable new channel to market which eliminates the hassles of building and administering their own online transaction and marketing capabilities. These ISVs will also be attracted to the broader base of potential customers which Salesforce.com can provide which can generate net new revenues.

There is still reason for some ISVs, as well as many of Salesforce.com’s competitors to cast a wary eye toward this latest initiative. Rather than rely on a third-party payment program to serve its needs, Salesforce.com recognized that it will be in a stronger position by creating its own online transaction service. Of course, its partners must weigh how ‘locked in’ they are willing to be by taking advantage of the new AppStore capabilities. And, Salesforce.com’s competitors must determine whether they need to match the new online merchandizing capabilities in order to continue to attract partners and customers.

Skeptics have challenged the logic of Salesforce.com’s every move since its inception, and the company has succeeded in proving them wrong every time. THINKstrategies believes Salesforce.com will make the AppStore a winner also and force others to respond to its rule-changing maneuvers.







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