How To Pick An Ecommerce Platform

Internet Merchants AssociationLas Vegas, NevadaMarch 26, 2012

History

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•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

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)

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)

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%

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

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)

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

Template Site

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Custom Site

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Most Expensive Site Of All Time

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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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Part 2 – Your Business Needs

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?

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

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

Your Own Brand

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Media Exposure

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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

Marketing – In Demand With No Exposure?

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Marketing – In Demand With No Exposure?

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

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•Etsy•Online Communities•Groupon• eBay•Amazon

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

Google Analytics

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Platform Reporting

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Part 3 – Aligning Your Needs With The Market

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

Ecommerce Marketplace

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pricing

MIVA MERCHANT

Yahoo Store

Ebay

Amazon

Paypal

Volusion

Magento

Shopify

ATGWebsphere

NetSuite

Thank You

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Contact Information:

(800) 608-MIVAwww.mivamerchant.com

Rick Wilsonrwilson@mivamerchant.com