Rainbow Shops David Cost has spent decades thinking about and executing on ecommerce strategy during a time of tremendous growth in online commerce. He sat down earlier this year to talk to Signifyd’s Mike Cassidy, head of PR and storytelling, to dig into some of the key challenges retailers face and to talk about his experience tackling them.
Reviewed, revised and approved by Signifyd humans.
Among the topics Cost and Cassidy cover in the first episode of Season Two of The Fearless Commerce Podcast are:
- The future of retail
- Shifts in digital marketing and ongoing privacy concerns
- The importance of first-party data and the decline of third-party cookies
- The nuances of buy online pick up in store (BOPIS)
- Scaling artificial intelligence in retail.
Cost also turns to his experience moving Rainbow Shops’ digital store to the Shopify platform, providing guidance to merchants facing an impending replatforming. Among the considerations Cost’s team worked through was putting in place a fraud prevention strategy that would help Rainbow Shops stay ahead in the competitive retail space.
Here’s a summary of the podcast highlights:
Welcome and introduction
Mike Cassidy opens the podcast by welcoming back David Cost, vice president of digital and ecommerce at Rainbow Shops. Cost, the first returning guest of The Fearless Commerce Podcast, dives into retail innovations and ecommerce trends.
Upcoming ecommerce innovations and privacy concerns
Cost discusses ecommerce shifts, particularly around privacy and cookies, and explains the challenges of managing customer data as third-party cookies are phased out. “We’re moving toward first-party data strategies,” Cost says, referring to Rainbow Shops’ initiatives to improve customer experiences and comply with privacy regulations.
First-party cookies vs. third-party cookies
Cost delves into first- vs. third-party cookies, explaining how Apple and Google’s restrictions on third-party cookies impact user tracking. He highlights how first-party cookies can remain active for up to 20 years, enabling brands like Rainbow Shops to offer a personalized shopping experience amid changing digital privacy standards.
Exploring Gen AI in product photography
The conversation shifts to Gen AI’s potential in ecommerce. Cost recounts how Rainbow Shops explored AI to automate product photography but faced challenges in scaling. “Gen AI is impressive in demos but struggles with our daily volume of images,” he notes, pointing out AI’s limitations in high-volume retail environments.
The decision to replatform to Shopify
Cost reflects on Rainbow Shops’ shift to Shopify. “Replatforming allowed us to stay ahead of the competition,” he says, emphasizing Shopify’s efficient checkout process. He explains how Shopify’s technology positions Rainbow to leverage emerging technologies.
Implementing buy online pick up in store (BOPIS)
Cassidy and Cost discuss the BOPIS initiative at Rainbow Shops. Cost describes how BOPIS lets Rainbow compete with online giants like Amazon by leveraging its 1,000-plus physical locations. “Customers want a seamless shopping experience, and BOPIS bridges online and in-store shopping,” he explains.
Addressing fraud and package theft with BOPIS
Cost explains how Rainbow Shops addressed package theft by offering BOPIS. With FedEx hold locations, Rainbow reduced claims by 80%, boosting customer satisfaction. “In-store pickups help us mitigate package theft,” he says.
First-party fraud and reducing fraudulent claims
The conversation turns to first-party fraud. Cost outlines Rainbow’s empathetic approach, aiming to understand customer pain points rather than labeling all unreceived packages as fraud. “Some customers aren’t trying to scam us—they’re in tough situations,” he explains.
The importance of understanding customer experiences
Cost emphasizes retailers’ need to delve into customers’ environments. “There are often alternative explanations for fraud,” he notes, adding that Rainbow Shops’ customer experience improvements have reduced fraud and increased loyalty.
David Cost’s journey into ecommerce
Cost shares his path into ecommerce, beginning with his co-founding of PriceSCAN in the ’90s. He reflects on his early internet work and its influence on his digital commerce career. “I’ve always wanted to use technology to enhance shopping,” he says.
Hiring for ecommerce roles and the importance of technical knowledge
Cost discusses hiring for ecommerce roles, stressing the value of technical knowledge. “Even marketers need to understand the tech behind ecommerce,” he says, advocating for a comprehensive grasp of online retail tools.
Closing remarks and future conversations
Cassidy wraps up, thanking Cost and hinting at a future return. Cost’s in-depth understanding of ecommerce trends and retail transformation offers actionable insights for the digital commerce space.
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