The stories are abundant. Like the one about the optical retailer who was selling $15,000 a week in Nikon sunwear on his Website. Or the person who spotted Costco.com selling Gucci sunglasses for $99. Or the Oakley frames rolling out of one Website for wholesale prices.

Truth or fiction? Perhaps a bit of both. The World Wide Web still holds some possibilities for those willing to take a bit of a risk.

Sunglasses are the one optical product which many retailers and manufacturers feel comfortable selling on the Internet, primarily because of their non-prescription nature and commodity status.

"Selling products on the Web is truly only for things that are a commodity," says Mike Hundert, president of REM Eyewear. "Oakley and Ray-Ban are the most viable because of their ubiquitous names. After that it becomes more and more difficult to sell brands on the Internet."

Thus, it's the one optical segment that has been through more Internet-based trial and error than all the others. In fact, a simple search for "Sunglasses" on any search engine will unearth hundreds of Websites selling sunwear. They range from large sites (sometimes launched by retailers that also have brick and mortar locations) with volumes of inventory to smaller sites which compete not with product but with super-low prices.

Some of the contestants in the online sales game have been winners, yet many have lost their footing. The recent downturn in momentum for Internet businesses on Wall Street and last year's period of uncertainty about the presidential election results have many (both e-tailers and consumers) stepping more cautiously in this area.

"I launched my site in August 1998," says Jan Kirsch, owner of Royal Palm Optical in Boca Raton, Fla. and the Website Sunglasszone.net. "The lure of service-free sunglasses made it appealing, but it has not been a service-free business. I am still figuring out if I'm wasting my time or not. It's a tough business unless you have deep pockets. And it's a very unstable sales environment on the Web now."

Still, predictions for overall holiday e-tail sales were strong. Customer traffic was expected to grow a momentous 51 percent in December (among people shopping from home in the United States), totaling 5.6 million users, compared to 3.7 million e-shoppers in December 1999.

With hopes of strong future growth, a number of sunglass e-tailers are forging ahead, updating their sites, adding lines and products, and marketing their name to consumers. "It's a business that's quite profitable and worthwhile," says Frank Polanco, dispensing optician at New York Vision in Manhattan, which sells sunwear via a Website called ParkAvenueSunglasses.com. "And we ship everywhere from Canada to Guam. That's really the telltale future of this business-that someone in Guam can put the order through at 2 a.m. their time and have it in a couple of days. That's the key to the Web-it enables you to shop worldwide. Consumers are no longer confined to just getting what's around the corner in terms of fashion, quality, and price."

The Contenders

There are a wide variety of types of e-tailers that focus on selling sunglasses. Sunglass Hut's Shades.com and SunglassHut.com are two of the largest in terms of product selection and service. "Sunglass Hut has the best set-up because customers can also go to local stores to take care of problems or servicing," points out Mike Burke, director of sunglasses at Boll�.

Optical chains such as Sterling, LensCrafters, Pearle, and Cohen's Fashion Optical currently do not sell product on their sites, but they do showcase a wealth of sunglasses for consumers to view and even "try on" with a downloaded photo of themselves. Many even provide "shopping carts" in which consumers can place items they like and can later print out their list and the address of the store location closest to them. Additionally, some chains say they plan to sell sunwear in the near future on the Net.

There are also a number of sunglass-only sites which do not have brick-and-mortar parent stores, such as the more refined Ashford.com, which launched in April, 1998 and markets itself as a "luxury accessories" site. Ashford.com focuses on fashion and higher-end products such as the BCBG and Chlo� lines, while also offering a sampling of sports eyewear, such as Boll� and Ice Tech.

Many other sunglass sites, such as SunglassAmerica.com and The-Sunglass-Store.com follow the sports sunwear route, stocking products from Boll�, Smith, Rudy Project, Maui Jim, Ray-Ban, Costa del Mar, Gargoyles, Hobie, Revo, Serengeti, and Vuarnet. One reason for the plethora of sports product available in the market is that these are the companies willing to sell online.

"The only thing that hinders us is the brands," says Polanco of New York Vision. "As long as we get cooperation from the manufacturers, we will continue to grow."

It will come as no surprise that discounters and price-driven sites have also gotten a foothold in the online sunglass sales arena. Spots like screaminghotdeals.com and italiansunglasses.com carve their niche in selling products at 50 to 70 percent off retail prices.

Additionally, even knock-offs have found their niche. At replicaoutlet.com, consumers can find Oakley knock-offs at $20 to $30. Its disclaimer states: "These glasses are sold as novelties and are not the real thing; they just look like Oakley glasses."

A Web of Dispensers

Optical dispensers have also launched a presence on the Web, but in a slower and quieter way. "A lot of optical shops sell sunwear through e-mail because they are not that advanced yet to do it over a Website," says Ray Khalil of Lafont.

This is the case at Optiks (optiks.com) in Bloomington, Ind. "A lot of people e-mail us orders for things they see on the site," says Pam Weddle, dispensary manager. "It's mainly people asking for eyewear or sunwear that they saw a celebrity wearing in a movie."

The consensus is that many progressive optical shops do have their own sites for marketing purposes or e-mail orders, but do not make a concerted and organized effort to sell product there. But some of the more assertive dispensers have launched Websites targeted directly at selling sunwear and eyewear. "A lot of optical shops out of Europe seem to be launching online," says Bob Schulze, sales director at Bada.

The-Eye-Shop.com is the Website launched by one of the more forward-thinking optical shops in France, L'Oleil du Mont-Blanc in Chamonix. Launched last year, The-Eye-Shop.com has more than 2,000 sunglasses available for purchase.

Owner Denis Chaussein prides himself on the fact that the site offers the newest in sunwear fashion first. "I want to give the best of it," he says. "I am often on the Web, and the styles are often one or two years old on these sunglass sites." He says that newness is his niche. Some U.S.-based optical shops have also been able to carve out a place for themselves in e-commerce.

ParkAvenueSunglasses.com, launched 14 months ago by New York Vision optometric practice, started as a contact lens site. It eventually grew into a sunglass business because owners Brian Lewi, O.D. and Paul Stockman, O.D., saw the potential. They currently also sell contact lenses at clecontactlenses.com. The sunglass lines they sell include Ray-Ban, Revo, Maui Jim, and Boll�.

In a rather unconventional approach, Try it On optical shop launched its first brick-and-mortar store at the same time as its online shop, eyeglasses.com, where both sunwear and eyewear are sold. "The Website launched in early 2000 and the shop opened in end of 1999," says James Hilford, head of marketing for Try it On, based in South Norwalk, CT.

"We have 71 brands and 9,000 frames on the Website. But what's carried in the optical shop is not as comprehensive, and it's mainly sunglasses." Hilford also notes that the Website was the original focus, but it was decided a store could be opened simultaneously because the licensed opticians on staff for the Website could also run a retail optical location.

The Challenges

At Royal Palm Optical, Kirsch decided to launch sunglasszone.net to capitalize on his growing in-store sunwear business. While the site has had some rewards, overall Kirsch says he is frustrated with the business partly because of his inability to get certain products to sell on the site. "Price-wise we can compete, but when it comes to certain products we just can't get them. We are higher-end, but the higher-end vendors don't want to sell online. They don't want to lose control." He notes that his site is holding its own, but not making a profit. "We are not in a fair playing field when companies allow their largest customers, like Sunglass Hut, to sell online but not us," he says.

In fact, dispensers say they have even received memos from companies like Luxottica and S�filo saying that none of their products are to be sold on the Web.

For this reason, some retailers with online businesses have actually pulled the plug on the e-commerce element of their Websites. "We did dabble in it," says Norman Childs, owner of Pittsburgh-based Squirrel Hill Eyetique. "But the products we sell in the store are higher-end, and these companies frown upon selling on the Net. We did try to sell other things on the Net and we set up an online store, but we decided to rip it up about a month ago." Childs notes that an e-commerce business really needs to be a fulltime business to be successful, and it should be set up as a separate company. In lieu of his e-commerce efforts, Childs says he is "opening up more stores and a laser center."

Setting Up Shop

If you are up for a challenge and in it for the long haul, many say that despite some setbacks and difficulties, a long-term e-commerce business selling sunwear can be profitable. "A Website has to be an extra business," says Chaussein. "In the beginning it won't be profitable, but it may be by the second or third year."

Thus, with some insider knowledge, you can make the decision whether e-commerce is right for you and your business. The first step-once you've decided to forge ahead-is to procure a Web designer who can provide you with a site that fits with your dispensary's image and goals, as well as the right price. The price you will pay to set up the site will vary widely depending on what you want to accomplish.

At ParkAvenueSunglasses.com, Stockman set up the Website himself. He also inputs all the information necessary for updates and downloads photos off catalogs when necessary. The costs to his 12-year-old practice are therefore minimal when it comes to the Website.

The best scenario is if you have a talented Web designer on staff. Since the chances of this are minimal, you should shop around to find the best price/value relationship for your initial setup and continuing update work.

Sunglasszone.net's Kirsch invested about $12,000 in the initial design. "I pay a considerable amount to change the pictures and prices every time an update is needed," he adds.

Chaussein, who was working on his Website launch for three years, says you can invest the same price on the Website as you would in opening a new optical shop. "I hired someone to make the site for me," says Chaussein. "You always think it's finished, and then there are more products to put up. You pay all the time. Constantly."

In fact, at Eyetechoptical.com and Sportsoptical.com, the sites from Eyetech Sports Vision and Optical in Lakewood, Colo., owner Bret Hunter says updates can also get expensive. "When I updated my Smith section it cost $1,000 or $1,200," he says. "Every time you update, which is constantly necessary, it costs from $500 to $1,000."

Hunter, however, has a friend who runs a Web design company who gave him a good deal, but he says his site is worth $15,000. "I am happy to say that I actually make money on the Website, he says. "I put it up as a promotional tool, and I actually profit from it and sell sunglasses all over the world."

Staffing needs will also be determined by how much business you are garnering from the site and if these duties can be shared by a member of your dispensary staff. "We have a dedicated person dealing with orders off Web," says Polanco. "We started with three people sharing their duties between the dispensary and the site, then we hired one full-time person just for the site. As it grows we will see how many more people we need."

Time is also an issue when considering a Website. "You should consider how much time you have to set up the site," says Hunter. "Most of the time, your Web designer knows nothing about the products you deal with, so it will take a lot of time to explain what you need to them. It took four to six months to get mine up and going."

Finally, promotion of your site and its name is crucial, say most dispensers involved in the business. "It's important that the name of your site is easy to remember," says Hunter. He promotes his site through advertising in small local sports newspapers and magazines and sometimes the nationally distributed cycling periodical Velo News. "You have to advertise the name-that's one of the costs," he says. "It's one of things people don't realize-that the marketing can cost more money than actually setting it up. But getting the name out there is crucial or people won't get to your site."

At Ashford.com, the promotional effort is a focus on online advertising. "We have partners like Amazon.com and we have a presence on their site and in their mailers," says a spokesperson for the company. "We are also listed on many search engines. We believe we also have a lot of word-of-mouth since we pride ourselves on customer service."

In fact, Ashford.com features free overnight shipping with a 99.9 percent fulfillment rate. They even have a guarantee that if a consumer places an order by 5 p.m., it is guaranteed to arrive the next day via Fedex or their CEO will send him or her a dozen roses.

It is services like this that larger companies can offer that make the job of the smaller dispenser competing on the Web more difficult. "The most challenging thing we deal with is backorders," says Polanco. "People come to the site expecting immediate response. The expectation level for fast turnaround is very high. It may take us a day or two to process orders." Thus, one of the biggest challenges becomes differentiating yourself, even from the big guys, and keeping consumers interested.

There are certainly both positive and negative aspects to launching an online e-commerce effort for sunwear. But dispensers have an advantage in that they already have a physical store with set accounts and an image and reputation. "The people who have both brick-and-mortar and e-tail businesses have a successful formula," says Paul Craig, president of Rudy Project US. "Many pure e-tailers have gone belly up, and we as a distributor no longer pursue pure e-tailers as aggressively because there are so many horror stories."

It is certainly a business that has seen some degree of success and could be more profitable in the future if run correctly. "A Website is time consuming and costly, but it is a really good promotional tool," says Hunter. "Especially if you have something very different. If you have something just like everybody else, you'll only get lost on the Internet."

Still, e-sales will not be a business that will infringe upon sunglass sales in retail stores and optical shops, say most. "I think everybody thought two years ago that selling on the Web was going to be much better than it turned out to be," says Boll�'s Burke. "There's room for optical shops to sell sunglasses for a long time, and they don't have to worry about competition from the Web." EB