Retail software upstart Teikametrics is tapping the former chief executive of Brookstone Holdings Corp. to help retailers avoid fatal mistakes as they try to reach consumers online.  Jim Speltz joined the Boston-based retail consultancy and software provider as chief operating officer, the company said Wednesday, and will help coach small- and medium-size retailers on how to sell on Amazon.com Inc. AMZN 2.17 % without getting swallowed up the way Brookstone and other brick-and-mortar retailers have in recent years.  Brookstone, a specialty retailer of travel gadgets, massagers and other novelty items, was hit hard by changing retail industry currents. As consumers shopped more online, Brookstone’s e-commerce sales grew. But the company’s profits withered as it struggled to operate more than 200 storefronts as e-commerce sales took business away.  Brookstone eventually filed for chapter 11 bankruptcy protection and was bought in 2014 by a Chinese investment consortium that helped bring iit out of bankruptcy. Speltz resigned from the company in September 2014.  Mr. Speltz oversaw the company for five years leading up to its sale, including a partnership with Amazon, and says that experience can provide lessons for smaller retailers as they navigate similar waters.  “What you saw over the period of 2009 to 2014—that five-year window was a very strong and steady increase in the direct-to-consumer business while the brick-and-mortar business began to struggle,” he said. “So underlying what was perhaps masked by the public-facing financial results for Brookstone was a very healthy direct-to-consumer business, and one in which Amazon was a terrific partner.”  Founded in 2012, Teikametrics provides software to help adjust prices on Amazon listings, advises retailers on how to streamline the shipping process when using Amazon’s sales and distribution services, and coaches them on strategies such as where to invest in inventory, and how to avoid being undercut by competing retailers on the same listings—including Amazon itself.  For example, a reseller might sell in a category that is highly concentrated, with several retailers competing for a sale within the same listing on Amazon, Mr. Speltz said. A reseller in a hot product category may choose to list merchandise under its own brand or try to get an exclusive color or feature from its suppliers, he said. Companies may also consider whether to sell on their own websites at the same time as they are listing on Amazon.  Many smaller sellers may not have much of a choice: Mr. Speltz said 45% of online shoppers bypass search engines entirely and go directly to Amazon when looking for products.  “You have the opportunity to participate in the world’s largest and most compelling shopping platform, and to do so in a way that is not only profitable but adding to overall transactions,” he said. “Brookstone had a very large portion of its business derived with Amazon as a partner…My belief is that Amazon doesn't represent a competitor in the retail landscape. Amazon is a partner.”  Write to Loretta Chao at loretta.chao@wsj.com
Former Brookstone chief executive Jim Speltz joined startup Teikametrics, where he will coach retailers on their online strategies, including working with Amazon.com.