Investor presentation usell.com

1. www.uSell.com

2.
Cautionary
Note
Regarding
Forward
Looking
Statements
Certain
statements
in
this
presentation
and
responses
to
various
questions
include
forward-­‐looking
statements,
including
statements
regarding
growth,
opportunities
for
our
business
model,
potential
revenue
stream
from
data,
and
platform
expansion.
The
words
“believe,”
“may,”
“estimate,”
“continue,”
“anticipate,”
“intend,”
“should,”
“plan,”
“could,”
“target,”
“potential,”
“is
likely,”
“will,”
“expect”
and
similar
expressions,
as
they
relate
to
us,
are
intended
to
identify
forward-­‐looking
statements.
We
have
based
these
forward-­‐looking
statements
largely
on
our
current
expectations
and
projections
about
future
events
and
financial
trends
that
we
believe
may
affect
our
financial
condition,
results
of
operations,
business
strategy
and
financial
needs.
Important
factors
that
could
cause
actual
results
to
differ
from
those
in
the
forward-­‐looking
statements
include
effective
marketing
campaigns,
maintaining
and
establishing
relationships
with
partners,
our
ability
to
successfully
replicate
our
platform
for
items
other
than
phones
and
small
consumer
electronics
and
our
partners
providing
sufficient
customer
service
to
our
customers.
Further
information
on
our
risk
factors
is
contained
in
our
filings
with
the
SEC,
including
the
Form
10-­‐K
for
the
year
ended
December
31,
2012.
Any
forward-­‐looking
statement
made
by
us
herein
speaks
only
as
of
the
date
on
which
it
is
made.
Factors
or
events
that
could
cause
our
actual
results
to
differ
may
emerge
from
time
to
time,
and
it
is
not
possible
for
us
to
predict
all
of
them.
We
undertake
no
obligation
to
publicly
update
any
forward-­‐looking
statement,
whether
as
a
result
of
new
information,
future
developments
or
otherwise,
except
as
may
be
required
by
law.

3. WHO
WE
ARE
Entrepreneurial
Passion
Direct
Marketing
Expertise
Nik
Raman
Daniel
Brauser
COO
CEO
Founder
of
Health
Benefits
Direct
Disrupted
traditional
health
insurance
marketing/sales
Founder
of
EcoSquid
(Finalist
in
HBS
business
plan
competition)
Sold
to
eHealth
IBM
client
sales
executive
prior
to
Harvard
Business
School
Developed
innovative
marketplace
model
to
reCommerce

4. ROOTS
OF
RECOMMERCE
“
Your
Personal
Trading
Community
”
“
Shop
Victoriously
”
„ eBay
was
the
original
“reCommerce”
marketplace
Individual
Sellers
„ Due
to
fraud
and
customer
experience
concerns,
eBay
has
become
a
shopping
platform
where
less
than
10%
of
sellers
are
individuals
Individual
Sellers
Power
Sellers
Power
sellers
must
locate
individuals
sellers
or
find
inventory
elsewhere
„ Power
sellers
must
now
find
eCommerce
Market
inventory
elsewhere;
in
other
words,
they
must
become
“Power
Buyers”
eCommerce
Market
„ There
is
a
need
for
a
“Power
Individual
Buyers
Buyers”
platform
that
enables
power
sellers
to
efficiently
acquire
inventory
Individual
Buyers

5. A
GOLD
MINE
OF
DORMANT
INVENTORY
Consumers
have
billions
of
dollars
of
used
inventory
that
has
a
second
life
“
At
least
$75
Billion
of
in
home
inventory
has
not
been
activated.”
Current
consumer
behavior
is
to
buy,
use,
and
hoard
Gift
Cards
Electronics
$30B
$25B
Clothing
Textbooks
+
Video
Games
$15B
$6B

6. MOBILE
IS
THE
CLEAR
OPPORTUNITY
The
mobile
market
is
rapidly
expanding
on
the
high-­‐end
Over
50
million
iPhone
5
devices
were
sold
in
2012
Samsung
Galaxy
S3
sales
surpassed
30
million
devices
in
2012
RAPID
MARKET
EXPANSION
*Derived
using
annual
churn
data
given
current
&
projected
sales
volume
and
re-­‐
sale
market
An
estimated
137.5MM
smartphones
will
be
shipped
in
2013;
growing
to
185MM
by
2017
Historically
less
than
10%
of
phones
are
recycled-­‐
consumers
need
financial
motivation
$9.2*
Billion
$5.2
Billion
$1.6
Billion
2011
2012
2013

7. OUR
SOLUTION:
THE
REVERSE
AMAZON
The
world’s
first
reCommerce
marketplace
where
customers
can
sell
high
demand
second
hand
goods
for
cash
in
sixty
seconds
or
less
A
simple
back
end
platform
that
enables
power
buyers
to
bid
on
goods
and
access
inventory
in
a
just
in
time
fashion.
A
logistics
and
shipping
system
that
is
optimized
to
efficiently
move
devices
from
consumers’
homes
to
buyers’
warehouses.

8. WHERE
WE
FIT
Original
eCommerce
Model
Individual
Sellers
Evolved
eCommerce
Model
Individual
Sellers
Power
Sellers
Power
sellers
must
locate
individuals
sellers
or
find
inventory
elsewhere
eCommerce
Market
eCommerce
+
reCommerce
Individual
Sellers
Re-­‐Commerce
Market
Power
Sellers
eCommerce
Market
eCommerce
&
Wholesale
Markets
Individual
Buyers
Individual
Buyers
Individual
Buyers

9. HOW
IT
WORKS
Front
End
(uSell.com)
Search
for
Product
and
Find
Offers
Data
and
Metrics
Reporting
Catalog
and
Pricing
Mgmt.
Order
Lifecycle
Management
Back
End
(uSell
Buyer’s
Platform)
Order
Lifecycle
Management
ONLINE
FLOW
OFFLINE
FLOW
Consumer
uSell
Fulfillment
uSell
Buyers
Retail
and
wholesale
Liquidation

10. HOW
WE
ACTIVATE
INVENTORY
DIGITAL/ONLINE
MARKETING
Effective
at
Reaching
Active
Customers
Wealth
of
User
Data
Highly
Measurable
TRADITIONAL
(TV)
ADVERTISING
Reach
Inactive
Customers
Creates
Competitive
Barrier
to
Entry
Highly
Scalable
Website
Clickstream
Data
Online
Marketing
Campaign
Data
TV
Spot
attribution
Data
3rd
Party
Data
•
Codifying
and
commercializing
a
proprietary
Inventory
Activation
model
•
Combining
the
data-­‐centric,
ROI-­‐driven
discipline
of
online
marketing
with
the
reach
and
scale
of
traditional
marketing
to
effectively
activate
new
customers

11. HOW
WE
DISTRIBUTE
OUR
TECHNOLOGY

12. STAPLES:
POWERING
RETAIL
TRADE-­‐IN
uSell
has
leveraged
its
technology,
marketplace
and
logistics
platform
to
power
online
trade-­‐in
for
Staples
Staples
is
the
second
largest
e-­‐tailer
in
the
U.S.
with
27M+
monthly
visitors
The
combination
of
uSell’s
marketplace
and
technology
leveraged
by
Staples
brand
and
reach
represents
a
tremendous
opportunity
This
model
is
highly
scalable
to
roll-­‐out
across
other
major
retailers

13. UNIQUE
VISITOR
GROWTH
MONTHLY
UNIQUE
VISITORS
1,200,000
1,100,000
1,000,000
Sep
2012
–
Sep
2013
900,000
800,000
700,000
600,000
500,000
400,000
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Seven
straight
quarters
of
unique
visitor
growth
driven
by
rollout
of
online
and
offline
media
campaign
Sep-13

14. REVENUE
GROWTH
$600,000
$500,000
$400,000
MONTHLY
REVENUE
Partner
Lead
Revenue
Fulfillment
Revenue
Ad
Revenue
Jan
2012
–
Jun
2013
$300,000
$200,000
$100,000
$0
Seven
straight
quarters
of
revenue
expansion
fueled
by
visitor
growth
and
increased
monetization
of
both
partner
and
user
base

15. REPEAT
CUSTOMER
GROWTH
14.00%
12.00%
10.00%
REVENUE
FROM
REPEAT
CUSTOMERS
Jan
2012
–
Sep
2013
8.00%
6.00%
4.00%
2.00%
0.00%
Consistent
growth
in
repeat
users
driven
by
improvements
in
customer
experience;
will
continue
to
compound
over
time

16. BASELINE
REPEAT
VISITORS
150,000
145,000
140,000
135,000
BASELINE
REPEAT
VISITORS
Jun
2013
–
Dec
2013
130,000
125,000
120,000
115,000
110,000
105,000
100,000
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13

17. CONTRIBUTION
GROWTH
$1,800,000
$1,600,000
$1,400,000
REVENUE
VS.
MEDIA
SPEND
$1,636,386
$1,224,340
$1,200,000
$1,270,998
$1,046,399
$1,000,000
$818,130
$1,042,392
$779,681
$800,000
$680,260
$813,945
$834,692
$729,298
$600,000
$591,432
$400,000
$200,000
$327,770
Revenue
$244,607
Media
Spend
$0
Q1 - 2012
Q2 - 2012
Q3 - 2012
Q4 - 2012
Q1 - 2013
Q2 - 2013
Q3 - 2013
Since
Q01
2012,
CPV
has
decreased
from
$0.61
to
$0.51
while
RPV
has
increased
from
$0.42
to
$0.61

18. USELL
GROWTH
VS
GAZELLE
$5MM INVESTED
$50MM+ INVESTED
Vs.

19. ü 467
unique
reviews,
largely
since
August
2013
ü 9.86/10
Average
Rating

20. USELL
MEDIA
COVERAGE
&
TESTIMONIALS
“My
favorite
of
the
selling
sites.”
-­‐
Jean
Chatzky
|
NBC
Today
Show
“Find
the
best
prices
for
your
used
tech.”
-­‐
Roy
Furchgott
|
The
NYT
“There
are
countless
other
services
out
there
for
reselling
used
electronics,
but
uSell's
new
approach
is
to
search
multiple
buyer
companies
and
find
the
one
that's
willing
to
pay
the
most
for
what
you
have.”
-­‐
Katherine
Noyes
|
Discovery
“Eco-­‐friendly
uSell
buys
back
your
old
devices
while
protecting
the
planet.”
-­‐
Clayton
Morris
|
FoxNews.com
“uSell
is
to
other
recycling
sites
what
Kayak
is
to
other
travel
reservation
sites.”
-­‐
Jacqueline
Emigh
|
Notebook
Review
“You
can
skip
the
cellphone
contracts
...
bring
your
own
device
is
now
an
option.”
-­‐
Sean
Capitain
|
MSN

21. INVESTMENT
HIGHLIGHTS
• Management
has
a
combined
30+
years
in
Direct
to
Consumer
Marketing
• Insiders
have
invested
over
$5M
• Business
model
proven
in
cell
phone
vertical
•
Five
quarters
of
sequential
revenue
growth
•
Five
quarters
of
sequential
marketing
efficiency
improvements
•
Consistent
90%+
gross
margins
• Targeted
expansion
into
new
categories
• Comparable
company
business
models
•
Kayak.com-­‐
acquired
for
$1.8B,
8X
Revenue
•
Pricegrabber-­‐
acquired
for
$500M,
9x
Revenue
•
Shopping.com-­‐
acquired
for
$630M,
6.5x
Revenue

22. SNAPSHOT
OF
COMPANY
AND
STOCK
Symbol:
OTC
Bulletin
Board:
USEL
Stock
Price:
$0.20
High/Low
(52-­‐Week):
$.07-­‐
$0.39
Average
Daily
Volume:
90,000
shares
Shares
Outstanding:
75.9
million
Inside
Ownership:
53%
Market
Cap:
$15
million
Q3
Revenue:
$1.64
million
vs.
$729K
year-­‐over-­‐
year;
+125%
growth

23. www.uSell.com
hart@haydenir.com
uSell.com
@usell
CONTACT
US
Hayden
IR
(917)
658-­‐7878