Be AnOnline Triple Threat

Prepared for theInternet Marketing Association

March 18, 2013

Harry HirschmanMarketing, Sales & Customer Support

Overview• Who is Vendio and Harry?• What is a “Triple Threat”?• Why Should I Be a Triple Threat?• How Do I Get There?

Vendio & Me• Vendio helps businesses grow and be more

efficient selling through multiple channels– Vendio is on the side of the merchant—Always– Marketplaces consider buyers to be their

customers, and they make the rules

• I stand with the Underdogs– Former Navy fighter pilot– One person with the right equipment can cover

a lot of ground and do a lot of damage

What Is An “Online Triple Threat”?

But that’s not today’s topic….

Singer Dancer

Actor Entrepreneur

Sadly

Our “Online Triple Threat”….

• Markets to 50% of online shoppers• Leverages the trusted brands of others• And uses technology provided by others

– Services, logistics, marketing, fulfillment

• BUT ALSO• Builds its own relationships with customers• Is a business that outcompetes those who don’t do it

24.7%

12.9%

40.7%

21.6%I have tried other markets, but they did not result in sales

I have tried other markets, but it was too complex or hard to manage

I have not tried other markets, I do not have the time

I have not tried other markets, the market I use is working for my business

Most Merchants Don’t Try or Gave Up Early

Why haven’t you tried other marketplaces besides eBay and/or Amazon?

• “All buyers buy through mycurrentchannel.”• “But I LOOOVE mycurrentchannel.”• “I don’t want my brand associated with that

channel.”• Managing other channels is too expensive • Managing multiple channels takes too much time• I don’t want to risk overselling my inventory

Common Excuses

Why Doesn’t Everyone Do It?

“Don't push growth; remove the factors limiting growth.”--Peter Senge, The Fifth Discipline

Buyers are EverywhereAmazon: 40% 3rd Party, 100MM US visitors eBay: All 3rd Party, 80MM US visitors,

$10BB in mobile sales alone

Google: All 3rd Party, 165MM US searchers Driving customer to YOUR brand

Facebook: 160MM US “potentials” Engaging their passions

And *someone* is fulfiilling these orders….

Like, Everywhere

eBay and Amazon Third Party GMV

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

eBay GMV Amazon 3P GMV

GMV ($M)

• Amazon grew 3rd Party sales >75% in 2012, and now represents nearly 40% of unit volume

• eBay accelerating again since 2008/2009 restructuring

Your Sales Channels are Business Partners… Not Friends*

• Each channel has selling risks– Suspended items/accounts for terms violations– Appetite to grow through their own sourcing

(Amazon)– Increasing desire to compare offers on price (eBay)– Changing fees, policies and item restrictions

(Google)– Amount and quality of traffic sources– Stuff changes—leadership, direction, support, etc.

• Diversification reduces risk• Your brand is your biggest long term asset

* Note: Some individuals at these companies can be both

Many HAVE Brands ON These Channels

Repeat buying on your own store has a lower cost of sales

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% of Category GMV by buyer-seller pairs with 10+ transactions

We see it in aggregated repeat buying data

Benefits Of Multi-Channel Selling• More money for you

– Sell wherever you can reach profitable buyers– Lower your overall selling costs– Nurture your most profitable sales – repeat buyers– Fastest path to global sales growth, too

• Less risk– Reduce marketplace power through diversification

• Lower impact of marketplace fees and rule changes• Smaller pain if Amazon starts selling your profitable

products

– Each customer with a relationship with your brand is one step closer to reducing market competition

How Can It Work For You?• How do you eat an elephant?

– One bite at a time!

• John Melville’s impact on eCommerce– “Winners make it to the starting line”

How Do I Get There?

• Be ready for a sustained effort, it may take some time

• Be smart – Automate!– Manage marketplaces and your website

the same way with one interface• (whisper… Vendio!)

• Keep the customers you’ve got – This is about building something that will endure

Selling on Amazon• Tons and tons of loyal shoppers• No listing fees make experiments

affordable• Great for selling new, like-new, and

refurbished items, including liquidations• Their catalog, their photo, their item

description– Less work for you, less differentiation,

compete on price (ugh)

• If you’re adding your inventory one-at-a-time, you’re blowing it!

Selling on eBay• Tons of shoppers• Variety of selling formats

– Unique or unusual, vintage, less-than-perfect condition, collectibles, price discovery

• Establish your own relationship with customers

Adding Your Branded Online Store

• And mean it this time• The cornerstone of the Triple Threat• Goal: Cost-effectively build base of

loyal customers– Control your own destiny– Be unique, be different, be special

• Build a trusting relationship with your customers

• Your fastest path to Facebook, Mobile, Google Shopping, and other CSEs

Adding Facebook• Facebook has a ridiculous number of users, page views,

and share of people’s “internet time”• fCommerce, is it here yet?

– Not quite, but promoting brands through social already is– Fortune favors the prepared mind—be ready when it hits– Figure out a way to “be there” but don’t bet your business on it

Take Advantage of “Mobile”• mCommerce is growing like the

internet in the late 1990’s– eBay drove >$10 billion from mobile in

2012

• Still complicated and costly to create a site specifically optimized for mobile devices– Many devices, many mobile browsers,

constant change– Partners can help

TrafficComparison Shopping Engines (CSE’s)Demand GenLead GenPaid search (SEM)Free search (SEO)SocialMore… Lots More

Products Need To Be:

Visible – Online Catalog and pricing

Transactionable – Shopping Cart and checkout

Order ManagementInventory MgtShipping / FulfillmentCustomer ServiceRewards, Coupons and Loyalty Programs

Think About The Whole Cycle

Pre-Sale Sale Post-Sale

TrafficComparison Shopping Engines (CSE’s)Demand GenLead GenPaid search (SEM)Free search (SEO)SocialMore… Lots More

Products Need To Be:

Visible – Online Catalog and pricing

Transactionable – Shopping Cart and checkout

Order ManagementInventory MgtShipping / FulfillmentCustomer ServiceRewards, Coupons and Loyalty Programs

Think About The Whole Cycle

Pre-Sale Sale Post-Sale

eBay, AmazonFacebook, TwitterPinterest, etc.

You You

Be Unique, Be Different, Be Special

• It’s the best way to make money in this world

• Tools and platforms have evolved to make it more attainable than ever

• Take advantage of the strengths of the two biggest online marketplaces…

• While building a loyal customer base to reduce risk and control your own destiny

Let your

Fly!

Vendio, Simply Powerful eCommerce

Harry Hirschman

Vendio Marketing, Sales & Customer Support650-293-3500

650-619-5108 mobileHarry.Hirschman@corp.vendio.com

www.vendio.com