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How To Pick An Ecommerce Platform
Internet Merchants AssociationLas Vegas, NevadaMarch 26, 2012
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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
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Part 1 – The Ecommerce Universe
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A Growing US Market (+12% in 2011) of $218 Billion
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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)
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Mobile Commerce Fastest Growing Segment (+50% in 2011)
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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)
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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
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Types of Ecommerce Platforms
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•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)
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Cost of Development
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•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
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Template Site
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Custom Site
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Most Expensive Site Of All Time
Slide 11
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Cost to Operate (Beware of Hidden Costs)
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•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?
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Slide 13
Part 2 – Your Business Needs
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What Are You Selling Online?
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•Digital Goods• Downloadable Software• Music• Video Content• Games
•Physical Goods• Are you shipping directly?• Are you using a fulfillment center?
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Fulfillment
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•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
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Marketing – Do You Have A Built In Audience?
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•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
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Your Own Brand
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Media Exposure
Slide 18
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Distribution Channels
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Marketing – In Demand With No Exposure?
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•You have a great price on highly sought after product
•You have an exclusive on highly sought after product
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Marketing – In Demand With No Exposure?
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Marketing – In Demand With No Exposure?
Slide 22
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Marketing – Does Your Product Need To Be “Discovered”?
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•Etsy•Online Communities•Groupon• eBay•Amazon
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www.etsy.com
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Deals Sites
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How Will You Know You’re Succeeding?
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•Analytics• Google Analytics• KISS Metrics• Crazy Egg
•Reporting• Platform Reporting• QuickBooks/Accounting System
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Google Analytics
Slide 27
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Platform Reporting
Slide 28
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Slide 29
Part 3 – Aligning Your Needs With The Market
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What Do I Do Now?
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•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
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Ecommerce Marketplace
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com
ple
ten
ess
of
fun
ctio
na
lity
pricing
MIVA MERCHANT
Yahoo Store
Ebay
Amazon
Paypal
Volusion
Magento
Shopify
ATGWebsphere
NetSuite