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How To Pick An Ecommerce Platform

Internet Merchants Association
Las Vegas, Nevada
March 26, 2012
History


• 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 2
Part 1 – The Ecommerce Universe



Slide 3
A Growing US Market (+12% in 2011) of $218 Billion

                         US Online Retail Forecast
                                                              $279
                                                       $259
                                                $240
                                        $218
                                $197
                         $176
  (in billions)




                  $157




                  2009   2010   2011    2012   2013    2014   2015
    Revenue       $157   $176   $197    $218   $240    $259   $279
    % Change      11%    13%    12%     10%    10%      8%     8%

Slide 4
Mobile Commerce Fastest Growing Segment (+50% in 2011)

                                                               $31

                                                        $25
  (in billions)




                                                 $19
                                          $14
                                   $10
                             $6
                      $3

                     2010   2011   2012   2013   2014   2015   2016
    Revenue          $3     $6     $10    $14    $19    $25    $31
    % of Ecommerce   1%     2%     3%     4%     5%     6%     7%

Slide 5
Ecommerce Software Investment Remains Strong

                                We already have a
                                project underway
                                       11%
               In the next 36 months
                        4%

            In the next 24 months
                     6%

          In the next 18 months                                       We are not planning to
                   6%                                                   replatform in the
                                                                       foreseeable future
                                                                              52%




            In the next 12 months
                     21%


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

Slide 6
Types of Ecommerce Platforms


• 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)



Slide 7
Cost of Development


• 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


Slide 8
Template Site




Slide 9
Custom Site




Slide 10
Most Expensive Site Of All Time




Slide 11
Cost to Operate (Beware of Hidden Costs)


 • 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 12
Part 2 – Your Business Needs



Slide 13
What Are You Selling Online?


 • Digital Goods
    • Downloadable Software
    • Music
    • Video Content
    • Games
 • Physical Goods
    • Are you shipping directly?
    • Are you using a fulfillment center?



Slide 14
Fulfillment


 • 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



Slide 15
Marketing – Do You Have A Built In Audience?


 • 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


Slide 16
Your Own Brand




Slide 17
Media Exposure




Slide 18
Distribution Channels




Slide 19
Marketing – In Demand With No Exposure?




• You have a great price on highly sought after product

• You have an exclusive on highly sought after product




Slide 20
Marketing – In Demand With No Exposure?




Slide 21
Marketing – In Demand With No Exposure?




Slide 22
Marketing – Does Your Product Need To Be “Discovered”?


 • Etsy
 • Online Communities
 • Groupon
 • eBay
 • Amazon




Slide 23
www.etsy.com




Slide 24
Deals Sites




Slide 25
How Will You Know You’re Succeeding?


 • Analytics
    • Google Analytics
    • KISS Metrics
    • Crazy Egg
 • Reporting
    • Platform Reporting
    • QuickBooks/Accounting System




Slide 26
Google Analytics




Slide 27
Platform Reporting




Slide 28
Part 3 – Aligning Your Needs With The Market




Slide 29
What Do I Do Now?



 • 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


Slide 30
Ecommerce Marketplace


                                                                          Websphere
                                                                           ATG
             completeness of functionality


                                                                         NetSuite



                                             MIVA MERCHANT         Magento

                                                              Volusion
                                                          Shopify
                                                         Yahoo Store
                                             Amazon
                                                      Ebay


                                                Paypal

                                                             pricing


Slide 31
Thank You


 Contact Information:

                      (800) 608-MIVA
                   www.mivamerchant.com

                          Rick Wilson
                  rwilson@mivamerchant.com



Slide 32

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How To Pick An Ecommerce Platform

  • 1. How To Pick An Ecommerce Platform Internet Merchants Association Las Vegas, Nevada March 26, 2012
  • 2. History • 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 2
  • 3. Part 1 – The Ecommerce Universe Slide 3
  • 4. A Growing US Market (+12% in 2011) of $218 Billion US Online Retail Forecast $279 $259 $240 $218 $197 $176 (in billions) $157 2009 2010 2011 2012 2013 2014 2015 Revenue $157 $176 $197 $218 $240 $259 $279 % Change 11% 13% 12% 10% 10% 8% 8% Slide 4
  • 5. Mobile Commerce Fastest Growing Segment (+50% in 2011) $31 $25 (in billions) $19 $14 $10 $6 $3 2010 2011 2012 2013 2014 2015 2016 Revenue $3 $6 $10 $14 $19 $25 $31 % of Ecommerce 1% 2% 3% 4% 5% 6% 7% Slide 5
  • 6. Ecommerce Software Investment Remains Strong We already have a project underway 11% In the next 36 months 4% In the next 24 months 6% In the next 18 months We are not planning to 6% replatform in the foreseeable future 52% In the next 12 months 21% • Forrester B2C Ecommerce Platform Wave Report Q4 2010 • Base: 291 US online retail professionals Slide 6
  • 7. Types of Ecommerce Platforms • 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) Slide 7
  • 8. Cost of Development • 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 Slide 8
  • 11. Most Expensive Site Of All Time Slide 11
  • 12. Cost to Operate (Beware of Hidden Costs) • 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 12
  • 13. Part 2 – Your Business Needs Slide 13
  • 14. What Are You Selling Online? • Digital Goods • Downloadable Software • Music • Video Content • Games • Physical Goods • Are you shipping directly? • Are you using a fulfillment center? Slide 14
  • 15. Fulfillment • 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 Slide 15
  • 16. Marketing – Do You Have A Built In Audience? • 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 Slide 16
  • 20. Marketing – In Demand With No Exposure? • You have a great price on highly sought after product • You have an exclusive on highly sought after product Slide 20
  • 21. Marketing – In Demand With No Exposure? Slide 21
  • 22. Marketing – In Demand With No Exposure? Slide 22
  • 23. Marketing – Does Your Product Need To Be “Discovered”? • Etsy • Online Communities • Groupon • eBay • Amazon Slide 23
  • 26. How Will You Know You’re Succeeding? • Analytics • Google Analytics • KISS Metrics • Crazy Egg • Reporting • Platform Reporting • QuickBooks/Accounting System Slide 26
  • 29. Part 3 – Aligning Your Needs With The Market Slide 29
  • 30. What Do I Do Now? • 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 Slide 30
  • 31. Ecommerce Marketplace Websphere ATG completeness of functionality NetSuite MIVA MERCHANT Magento Volusion Shopify Yahoo Store Amazon Ebay Paypal pricing Slide 31
  • 32. Thank You Contact Information: (800) 608-MIVA www.mivamerchant.com Rick Wilson rwilson@mivamerchant.com Slide 32