May 2008




           1
2
Big Picture


Compelling Business Model
.




• 33% CAGR between 2000 and December 2007 (after original rapid growth)

• 9...
Big Picture



Award Winning e-Commerce Expertise
.


• National website of the year 2001, 2002, 2004, 2006, 2007
        ...
Big Picture



Major Innovations                      .




• One of first five retailers to solicit customer reviews, sta...
Large Global Market

•   $22B USA market (see below)
•   $25B European market (estimate)
•   $14B Japanese market (estimat...
USA Competitive Position for eBags
                                                    wide selection
                    ...
Compelling Business Model

                                                     eBags
                         Bag Retail
...
Shopping Experience
Shopper Ratings


                              Netpromoter score: 58
                                          Average NP...
eBags Handbags
56% revenue growth in FY’08, 64% in Q1 FY’09




                                               11
Consumer Preferred Brand Offering
Price




                                                     May 2008

               ...
Little Things Matter




                       Video tab (125 videos)
                       • throughout site, too

    ...
Monitor Popular Activities
             See Similar Items, Add to Comparison Chart, Tell a Friend, Zoom




              ...
Growth
Growth Since Inception


     $90
Revenues                                                                                ...
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eBags May 2008

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eBags growth as of May 2008, nine years after March 1999 launch, and about ten years after start up.

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eBags May 2008

  1. 1. May 2008 1
  2. 2. 2
  3. 3. Big Picture Compelling Business Model . • 33% CAGR between 2000 and December 2007 (after original rapid growth) • 9.2M items shipped since inception • 80% direct ship from manufacturer; 21 inventory turns per year Good • No capital raised since ‘99; no debt Balance Sheet • Negative cash conversion cycle (-10 to -25 days) financed growth • Cash flow positive annually from 2002 onward 3
  4. 4. Big Picture Award Winning e-Commerce Expertise . • National website of the year 2001, 2002, 2004, 2006, 2007 (Multi Channel Merchant … among 200 to 400 e-retailers) Extendable Platform . • Run partner sites (and customer care) for Tumi, Case Logic • Integrated footwear site (sold site three years later) • Operating Tumi in Europe and Japan Blended Product Model . • Branded products: 93% of revenues • Private Label products: 7% of revenues, #1 brand, growing fast 4
  5. 5. Big Picture Major Innovations . • One of first five retailers to solicit customer reviews, starting 1999 • Pioneered drop-ship (wide selection) model within bag industry Blended Distribution Model . • Drop-ship from 500 supplier warehouses • Distribute “inventoried products” through one 3PL in Texas Experienced Leadership . • Management: Samsonite, Case Logic • Investors: Benchmark, TCV, angels from Goldman Sachs, Merrill Lynch 5
  6. 6. Large Global Market • $22B USA market (see below) • $25B European market (estimate) • $14B Japanese market (estimate, $10B handbags in 2007) • $61B+ 6
  7. 7. USA Competitive Position for eBags wide selection of bags eBags distribution partner eBags: ultimate bag specialist NEW eBags distribution partner with widest selection and highest level of expertise eBags distribution partner specializes sells all in bags products limited selection of bags 7
  8. 8. Compelling Business Model eBags Bag Retail . . • Inventory 2.0 turns 21.0 turns • Brands 50 550 • Designers Few Many (discovery) • IMU 38% to 55% 55% • Cash Conversion Rate +90 days with terms Negative 10 to 25 days • Financials 500+ closings (US) 200+ (.de) since 9/11 1800Luggage BNKRPT LuggageGiant BNKRPT Bag-N-Baggage BNKRPT -- May 2008 • Customer’s Voice No 1.5M reviews • Big box retailers No (eBags) 8
  9. 9. Shopping Experience
  10. 10. Shopper Ratings Netpromoter score: 58 Average NPS: 13 2007 scores: Apple 66 ------- eBags ------- Intuit 58 Cisco 57 Federal Express 56 Southwest Airlines 51 American Express 50 Commerce Bank 50 Dell 50 Adobe 48 Electronic Arts 48 Award for 2007 10
  11. 11. eBags Handbags 56% revenue growth in FY’08, 64% in Q1 FY’09 11
  12. 12. Consumer Preferred Brand Offering Price May 2008 550 Brands 40,000 SKUs Fashion 12
  13. 13. Little Things Matter Video tab (125 videos) • throughout site, too Auto-fill search Similar items, easy comparisons Live chat 1.5M reviews • 20% response rate Free returns Colors Advanced zoom • With multiple pictures Behavioral targeting Predictive arrival Up to 7 photos per item 13
  14. 14. Monitor Popular Activities See Similar Items, Add to Comparison Chart, Tell a Friend, Zoom 86 clicks on Komen • Six hours of activity – Click activity shows recent changes to key navigation elements are popular • Mega picture 682 clicks • Zoom 549 clicks • Add to cart 381 clicks • See similar items 363 clicks • Add to comp chrt 337 clicks • Tell a friend 35 clicks – We want to encourage this more by tying in rewards program 33 clicks on the 6 BT placements 180 clicks 57 clicks on 40 clicks JanSport’s logo 14
  15. 15. Growth
  16. 16. Growth Since Inception $90 Revenues Recession ******** Sold 6PM.com so eBags $80 could focus on our core business $70 $60 $50 6PM (shoes) $40 eBags $30 Recession Terrorist Attack *********** $20 Dot Bomb ************ $10 Greater than 4% EBITDAA $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal years July through June 16

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