1. CONFIDENTIAL | 1
Canadian eCommerce Marketplace Opportunity & Challenges
Christian Rodericks, founding partner & vp marketplace operations
SHOP.CA
christian@shop.ca
@rawdrix
September 22, 2014

2. CONFIDENTIAL | 2
So, what is Wrong with Canada?

3. CONFIDENTIAL | 3
What is Wrong w/Canada – ?!?

4. CONFIDENTIAL | 4
What is Right w/Canada – Huh?

5. CONFIDENTIAL | 5
What is Right w/Canada – Now we’re
talking!

6. CONFIDENTIAL | 6
To Start - We Noticed A Whole Bunch of Right!
eCommerce
Globally
Projected to hit $1.9 trillion by 2016
Expected to grow by 53% over next 3 years
Significant
Addressable
Market Size
Canada projected to be $38 billion in 2017
10%+ CAGR over next 5 years
Canadian
Market Growth
has 2 Unique
“Rising Tides”
A shift to online :: Canada = ~4% of total retail
USA = 8% in 2012
UK = 25% in 2014
Ger = 11% in 2014
Cross Border Shopping
+/-50% of dollars spent online go to US sites
Canadian eCommerce is one of the fastest growing segments of the Canadian economy
No Canadian market leader exists
1
2
3
Sources: StatsCan, eMarketer
$18.36
$21.61
$25.37
$29.63
$34.04
$38.74
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
-0.5%
0.5%
1.5%
2.5%
3.5%
4.5%
5.5%
6.5%
7.5%
2012 2013 2014 2015 2016 2017
BillinsCDN$s
%ofRetail
eMarketer Retail eCommece Sales in Canada 2012-
2017 and % of Total Retail Sales
Retail eCommerce % of Total Retail Sale

7. CONFIDENTIAL | 7
What makes us unique?

8. CONFIDENTIAL | 8
Multi-Merchant Marketplace?
One Stop SHOP
One Cart/Check-Out
Online Shopping
Mall
Relentless Focus
Free Shipping & Returns
Customer
Experience
Social Sharing
Share MORE = Earn MORE
Earn Miles
Mix/Match 5,000+ Brands
29 Categories
Your Favorite
Brands
Consumers
Merchants
Marketplace-as-a-Service (MaaS)
Supplier World – P, P, I, OM
Cost Per Order – Know ROI
Retailers,
Manufacturers,
Distributors
MMM Business Model
5+ Million Products
$10 Billion in Inventory
Coast-to-Coast Reach
Virtual
Inventory
No Inventory
No Warehouse
No Pick-Pack-n-Ship
Drop-Ship as
MOR
Leverage and Scale
Minimize Cost Per Acquisition
Maximize Repeat customers
Lifetime Value of a Customer

9. CONFIDENTIAL | 9
With Selection, Service and Rewards
Massive
Product
Selection
Virtual Inventory of Millions of Shippable Products
Leading Loyalty
Program
Domain Expertise & Capital Efficiency
Proven
Partnership
Abilities
600+ Merchant Partners and Counting
5 Year Exclusive Strategic Alliance with Aeroplan
Strong Talent
and Expertise
Rapidly
Growing
+1,200% 2013 vs. 2012
+370% 2014 YTD

10. CONFIDENTIAL | 10
But…Managing 600+ DCs isn’t easy!
Supply and Demand Uncertainty
Supply Chain Disruptions
Unsteady Supplier Performance
Supplier Cancelled Orders
Customer Loyalty & Retention at risk
Cost per acquisition > Cost per repeat

11. CONFIDENTIAL | 11
Managing the chaos
Frequent inventory updates
Carve-out inventory (by brand or category)
Inventory Buffers
Regressive and Predictive Analytics
Subscriptions – Accurately measure demand
Service Level Agreements – Monitor and
Enforce

12. CONFIDENTIAL | 12
SLAs Drive Customer Loyalty

13. CONFIDENTIAL | 13
Strategies for Joining Marketplaces
Test a new brand or product line – pilot demand
before a big buy
White Label - Avoid channel conflicts
Test price elasticity – change in demand quantity /
change in price
Clear older product styles
Additional revenue channels (More ore less than
SEM)

14. CONFIDENTIAL | 14
At the end of the day….
Deliver a customer experience that drives
repeat business through
Great Products
Unmatched Service and
Best in Class Loyalty

15. CONFIDENTIAL | 15
THANKS !!!!