Spycob B2B Presentation (eBay-PayPal) 2016LKD
Transcript of Spycob B2B Presentation (eBay-PayPal) 2016LKD
SPYC B pilot with
1 from 12
25M 13M62% apparel &
accessories
sellers:Sellers on
marketplaces other than eBay, boutique owners
Value added services for eBay and other marketplaces.
Spycob is a big data solution helping sellers source and research fashion products for resale
What is Spycob?● We help sellers on eBay and other marketplaces become more profitable by
discovering authentic brands from the top retailers at the lowest possible price via Spycob SaaS solution○ We scout major retailers for deals on apparel and accessories looking
for 50%-99% discounts● Building the B2B solution on the basis of existing B2C site (also have an
Android app)● Pilot with eBay, partnership with PayPal
○ Access to 25mm sellers on eBay and additional 13mm business users via PayPal
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The problem
● Average eBay and PayPal combined fees amount to 12-14% of the value of goods sold
● Buyers on eBay are increasingly unwilling to pay more than 50% of retail price even for new items
● The key issue for professional sellers on eBay and other marketplaces - search for best resale items
○ Good online deals on branded goods often raise authenticity issues ■ Reputational damage and penalties from eBay
○ Many sellers source resell items by physically going to stores like Macy’s and Nordstrom, which is time consuming and inefficient
○ Great offers have a very short life - some get sold out in a matter of minutes
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Our users
From small scale sellers... ...to “power sellers”Characteristics ● Up to 50 listings a month
● Hardly breaking even● Sourcing via physically visiting
stores● No IS/IT in place
● Up to 40K listings a month● Trade across various marketplaces● Have some sourcing solutions
unavailable to small scale sellers● Have some form of IS/IT in place
Needs ● Filters and alerts allowing to find deep discounts on branded products
● Filters and alerts ● Auto-purchasing and auto-listing● Analytics● Inventory management
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Our solution● Our solution is a product customised for needs of every type of seller - from
occasional sellers to “power” sellers● Our product will streamline sourcing of resale items
○ Increase the number of listings ○ Earn more on the sale of each listing○ Gives peace of mind regarding authenticity of the top brands merchandise
● Sellers will be able to put together a solution which meets their needs best by choosing from a ‘menu’ of services:
○ Custom filters and notifications ○ Auto purchasing and auto listing○ Analytics○ Inventory management
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Business model - monetisation Free trial
30 days
Subscription fee
$5/mo $10/mo $50/mos Custom● 1K views ● 10K views ● 100K views ● Unlimited
Simple filters ✔ ✔ ✔ ✔
Custom filters ✔ ✔ ✔
Notifications ✔ ✔ ✔
Analytics ✔ ✔
Auto-purchase ✔
Auto-listing ✔
Inventory mgmt ✔6
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Spycob helps sellers chose products And helps to find products
By request
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By request
Indicative market opportunity (eBay platform only)A. Total ebay sellers: 25mmB. Active sellers: 80% of totalC. Clothes, shoe, cosmetic category: 62%D. Spycob’s share of active sellers: 10%
● 12.4mm sellers = addressable audience
● Spycob’s share = 1.2mm A x B x C x D
High volume / high frequency $50/mo
$10/mo
$5/mo
Medium volume / medium frequency
Low volume / low frequency
Spycob’s revenue:● $10mm/month● $126mm p.a.
“Power sellers” Custom
85%
10%5%
<1%
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● Promote Spycob among its sellers, bringing user acquisition cost for us to zero
○ Featured ads / banners
○ Text/email - eBay’s preferred
ways to communicate with its sellers
● Importantly, any cooperation will require minimal, if any, technology investment on ebay’s part
Our partnership with eBay (pilot project underway)
● Increase revenue/active seller for ebay
○ Customized solutions facilitating
sourcing of items for resale and their listings on ebay
○ Increase the volume of items listed by each active seller
● Attract new sellers to ebay○ Convert “leisure surfers”, spending up
to 3 hours in app, to ebay sellers
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Competitive landscape
Marketers
Consumers
By request
Projections (next 24 mos)
● Projection includes eBay & PayPal partnerships (eBay - 25mm sellers, PayPal - 13mm) ● Break-even / CF positive within 12 mos● Other opportunities: marketplaces (Amazon - 2mm sellers, all other: 3mm sellers),
international via parcel services, expansion into other product lines in lifestyle category), B2C (150mm users in the U.S.)
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Required investment
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By request
Spycob team
Alex Romanenko
Natalya Matyushenko
Co-founder, CEO/CTO
Co-founder, COO
Serial entrepreneur, software/hardware companies, work with the major banks in Ukraine and abroad, sold own software to China. based in San Francisco
Serial entrepreneur. Project management, operations, business strategy development. In startups since 2012, as COO, Evangelist, Mentor. based in San Francisco
Maria FrolovaCFO/BDO
Corporate finance professional with 15 years of experience in investment banking and private equity. Co-founder of and advisor to a number of startups.based in San Francisco
Appendix
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Status
By request
Our history
By request
How eBay sellers operate now
Physical store
“Up to 75%” ads from major online retailers
Obscure sites with deep discounts/ cheap deals
eBay seller
Purchase @50% discount
eBay buyers
c.13% fee to eBay & PayPal
Sell @50% discount
� Time-consuming
� Time-consuming � Misleading
� Counterfeit risk18
How we want eBay sellers to operate
eBay seller:● More listings!● Higher margins!
Purchase @ 75%+ discount
eBay buyers
c.13% fee to eBay & PayPal
Sell @ 50% discount
● All brands● All major retailers● 50-99% discounts● Only authentic products
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Great team with a track record of successful ventures
By request
Timeline for pilot
Mar-Jul (Aug) 2016 Feb-Mar 2016 Aug-Sep 2016
Users for test group
Web-based solution
25mm users
13mm users
Make PayPal payment method of choice
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By request
Roadmap
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By request
Additional partners
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By request
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Competitive landscape
Spycob
deep discount
no discount
store social / discovery
market place
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CompetitorsWhere eBay recommends to look for products for resale?
“Manufacturers make goods and sell at a discount (wholesale) to businesses that have a sales force to resell the product for profit to end consumers (retail).““Can a beginning eBay seller actually get wholesale prices without buying a lot of inventory? The simple answer is no, not really.” “Think of your local department store's after-Christmas sale merchandise... ” Source: ebay.com
Small sellers don't have a lot of money to shop wholesale, so they shop by physically going to stores and spend a lot of time searching the best deals.
Who help them to chose what to buy?No one. All the analytical tools help selling existing inventory, but do not help buying good resale products
1. Retailers: Macy’s, Nordstrom, Yoox, Asos etc.
2. Analytics: Terapeak (eBay&Alibaba only data)
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Process map
DRAFT ...
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SPYCOB