how to pick an ecommerce platform

How To Pick An Ecommerce Platform

Internet Merchants AssociationLas Vegas, NevadaMarch 26, 2012

History

Slide 2

•Based in San Diego, California •Founded in 1995•Data Centers in California, Florida and Georgia•Focus on scalability, rapid deployment and ease of use

Slide 3

Part 1 – The Ecommerce Universe

A Growing US Market (+12% in 2011) of $218 Billion

Slide 4

2009 2010 2011 2012 2013 2014 2015

Revenue $157 $176 $197 $218 $240 $259 $279

% Change 0.11 0.13 0.12 0.1 0.1 0.08 0.08

$157 $176

$197 $218

$240 $259

$279 US Online Retail Forecast

(in

bill

ion

s)

Mobile Commerce Fastest Growing Segment (+50% in 2011)

Slide 5

2010 2011 2012 2013 2014 2015 2016

Revenue $3 $6 $10 $14 $19 $25 $31

% of Ecommerce 0.01 0.02 0.03 0.04 0.05 0.06 0.07

$3 $6

$10

$14

$19

$25

$31

(in

bill

ion

s)

Ecommerce Software Investment Remains Strong

We are not planning to replat-form in the foreseeable future

52%

In the next 12 months21%

In the next 18 months6%

In the next 24 months6%

In the next 36 months4%

We already have a project underway11%

Slide 6

• Forrester B2C Ecommerce Platform Wave Report Q4 2010• Base: 291 US online retail professionals

Types of Ecommerce Platforms

Slide 7

•SaaS/Hosted• Multi-Tenant (Yahoo, ProStores, Amazon Webstores)• Silo (Miva Merchant, Pinnacle Cart)

•Distributed/Downloaded• Open Source (OS Commerce, ZenCart, Magento)• SMB (WordPress Carts)• Enterprise (Oracle ATG, IBM WebSphere)

Cost of Development

Slide 8

•Small/Home Business Software as a Service• Do It Yourself Template Driven – 40 to 80 Hours• Do It For You Template Driven - $500 - $2,500

•Open Source• Do It Yourself Template Driven - $100 - $500 and 100 – 500 Hours• Do It For You Template Driven - $5,000 - $10,000

•Enterprise• Licensing Begins Around $20,000/year• Total Packages $50,000 - $2,000,000

Template Site

Slide 9

Custom Site

Slide 10

Most Expensive Site Of All Time

Slide 11

Cost to Operate (Beware of Hidden Costs)

Slide 12

•Hosting• Flat Monthly Fee ($30 - $500)• Percentage of Sales (.5 – 30%)

•PCI/Regulatory• Merchant Banks PCI Fees

•Automation/Maintenance• How Much Human Time Does It Actually Take?

Slide 13

Part 2 – Your Business Needs

What Are You Selling Online?

Slide 14

•Digital Goods• Downloadable Software• Music• Video Content• Games

•Physical Goods• Are you shipping directly?• Are you using a fulfillment center?

Fulfillment

Slide 15

•Shipping Fees/Logistics• What Will It Cost To Pick/Pack/Ship?• How Will You Charge Your Customer?

•Secure Downloads• Preventing Piracy• Keeping Track Of Usage• Digital Rights Management

Marketing – Do You Have A Built In Audience?

Slide 16

•Your Own Brand• You Don’t Have To Be A Household Name

•Media Exposure• Today Show• Good Morning America• QVC/HSN

•Distribution Channels• Traditional Retail• OEM Partnerships

Your Own Brand

Slide 17

Media Exposure

Slide 18

Distribution Channels

Slide 19

Marketing – In Demand With No Exposure?

Slide 20

•You have a great price on highly sought after product

•You have an exclusive on highly sought after product

Marketing – In Demand With No Exposure?

Slide 21

Marketing – In Demand With No Exposure?

Slide 22

Marketing – Does Your Product Need To Be “Discovered”?

Slide 23

•Etsy•Online Communities•Groupon• eBay•Amazon

www.etsy.com

Slide 24

Deals Sites

Slide 25

How Will You Know You’re Succeeding?

Slide 26

•Analytics• Google Analytics• KISS Metrics• Crazy Egg

•Reporting• Platform Reporting• QuickBooks/Accounting System

Google Analytics

Slide 27

Platform Reporting

Slide 28

Slide 29

Part 3 – Aligning Your Needs With The Market

What Do I Do Now?

Slide 30

•Pick A Platform That Matches Your Needs

•Calculate Total Cost Of Ownership

•Understand Your Ongoing Maintenance/Development Costs

• If You’re Small – Get Started Now

Ecommerce Marketplace

Slide 31

com

ple

ten

ess

of

fun

ctio

na

lity

pricing

MIVA MERCHANT

Yahoo Store

Ebay

Amazon

Paypal

Volusion

Magento

Shopify

ATGWebsphere

NetSuite

Thank You

Slide 32

Contact Information:

(800) 608-MIVAwww.mivamerchant.com

Rick Wilsonrwilson@mivamerchant.com