Michael Levit of Vendio.com presented this session to attendees of the Internet Merchants Association & ASD attendees on August 9, 2010 in Las Vegas.

1. Follow the Customers: Selling on Amazon, eBay and Webstore Michael Levit - Vendio EVP Marketing August 9, 2010 @Vendio @Levitmc #eCommerce

2. Agenda-ish Why am I Talking to You eCommerce Industry Overview The Goliath’s – eBay and Amazon Other Marketplaces Emerging Channels Storefronts

3. Vendio Introduction Leading On-demand eCommerce platform for small and medium sized merchants (SMM) 70,000 merchants selling over $1.5 Billion of goods annually Incorporated in 1999, headquartered in Silicon Valley Offices in Romania and India ~70 employees worldwide Multi-channel eCommerce Platform offering Customizable fully-hosted online store Inventory, channel & business management solutions Reporting & analytics Dealio.com – Vendio’s comparison/social shopping site Acquired by Alibaba.com last month – Now enabling B2B2C 3

4. Sales Volume of Select Customers The Digital Oasis $1,952,000 $4,665,000 $1,075,000 $1,000,000 $1,900,000 $1,000,000 $865,000 $770,000 $1,023,000 $802,000 $935,000 $1,140,000 $953,000 $673,000 $1,432,000 $447,000 $1,611,000 $3,283,000 $2,175,000 $1,150,000 $2,000,000 $945,000 $1,225,000 $430,000 In aggregate, Vendio merchants generate >$1.7 Billion in annual sales

7. Fewer than 25% have deployed eCommerce functionalitySmall (ish) merchant growth outpacing overall market 5

8. Online Shoppers Use Multiple Sources for Purchases 89% Marketplaces/ Store/ retailer Websites Search Engines 86% 78% Manufacturer Websites 77% User ratings and reviews of products 66% Recommendations (People who bought) Recommendations (recently viewed) 65% Recommendation emails 61% 61% Recommendations (People who viewed) 59% Recommendations (Best sellers) Question and answer sites 49% 20% 40% 80% 100% 0% 60%

9. “The reality is that any merchant selling online will list their items for sale in multiple locations—on Amazon, eBay, their own Websites, etc.” - November, 2008 7

10. SMMs Relied on eBay 5 Years Ago Merchant Online Store 8

11. Google is Changing the Landscape Merchant Online Store + 9

12. Creating Challenges and Opportunities Merchant Channel Management CSE’s/ Search Online Store 10

13. Ensure you have Channel Management 11

14. Largest Marketplaces in the World

16. Natural Search (UGC)

17. Affiliate Items Lower Costs (Scale) Lower Prices Merchants Buyers Orders Buyers Generate Transactions Transactions Attract More Merchants

18. eBay vs. Amazon GMV

19. 3rd Party GMV - eBay vs. Amazon GMV in Thousands

20. eBay and Amazon are Huge

21. Amazon is Executing Very Well Expanding into new markets Amazon Payments Mechanical Turk eBooks and Kindle – growing Cloud computing Fulfillment by Amazon (FBA) Growing FBA but still competing with their sellers Aggressively growing 3rd party merchant base 30% items sold by 3rd party merchants 2MM merchants

22. The Only Constant is Change Lowering insertion fees as they are traded for final value fees Many promotions can bring down costs for merchants (i.e, free listings) Complex pricing… changes favor ‘store’ subscriptions with no store benefits Facing extreme item dilution with millions of new items flowing into the ‘core’ Focused on streamlining the buyer experience and increasing cataloging Merchants can still sell successfully but need a strategy…

23. Other Marketplaces to Consider

24. Analyzing the Other Marketplaces

25. Analyzing the Other Marketplaces

26. eBay and Amazon are Huge

27. Should You Care About Mobile? eBay is projecting $1.5 billion in mobile GMV in 2010 Amazon completed $1 billion in sales in the past year

28. Other Commerce Opportunities? Private Online Sales Online/ Offline Commerce

29. Riding the Facebook Rocketship

30. The Third Leg of the Stool – Your Own Storefront

31. Ewwwww, ahhhhhh, How Pretty… Beauty Is more than skin deep 27

32. Vendio Platform—Channel Mgmt Simultaneous item publishing Single inventory item created and marketed across all channels Channel specific requirements simplified with “profiles” Inventory quantities kept in sync across channels as items sell User defines “stock out” risk to determine reserved quantities Includes refund management and inventory audit tracing Unified order and customer management Each channel has a unique and complex management system Merchants see a comprehensive view of all customer activity Customization lets each user tailor the experience to their needs Extensible through web services integration 28

33. Other Store Considerations Storage and Bandwidth SKU’s Search Engine Optimization (SEO) Security/ PCI Compliance Item & Order Management Third Party Integration CSE Feeds Customer Support Designs/ Templates Price

34. Different Types of Store Providers Multi-Channel Providers Store Centric Providers Domaineers

35. A Further Slice of Providers

36. Signup and Setup Should be Easy

37. Domains Should Integrate Easily

39. Simple Setup for Categories

40. Add Items to the Store Vendio Stores feature full Inventory Management. Easily add and remove items for sale including post-sale functionality such as automating coupons to your past bidders. Manage one set of inventory from one dashboard, across your Vendio store and if you choose – other channels such as eBay, Amazon, Google (CSE).

42. Comparison Shopping Engine 101 CSE’s/ Deal Sites/ Coupon Sites Google Shopping.com, Pricegrabber, Shopzilla/ Bizrate, Smarter, Become Dealio, Thisnext, Kaboodle, Couponcabin, Retailmenot, Fatwallet, ebates, Shopstyle, Shopwiki, Dealnews, Ciao

43. CSE’s are in Tough Spot

44. SEO 101 – How do you SEO? SEO is a ‘black box’ that is purposefully hard to understand. Pick target keywords Optimize page Title Content URL Description/ Images/ Meta Tags H1’s Secure Backlinks Free Tools Seobook.com / Seomoz.org Keyworddiscovery.com Google Insight Avoid “Black Hat” tactics (i.e, keyword stuffing, buying links and copying content)

46. Bid amount

47. Keywords and keyword groups

48. Content networks vs. search network placementSEM can be as little as $0.05 CPC & go up above $200 CPC Track, track, and track some more Set low spending caps so you don’t lose your shirt Get Free bonuses for getting started

49. Questions? Michael Levit mlevit@corp.vendio.com Twitter: levitmc