Ricotio is an e-commerce platform that provides drop shipping services to connect retailers and suppliers across borders. It currently has operations in Estonia, Germany, and Russia with 30,000 catalogued SKUs from 8 suppliers servicing 3 retailers. Its mid-term goals include expanding to 15 subsidiaries across Europe, Turkey, Russia, and the Gulf, integrating over 7,800 retailers with a catalog of over 1 million SKUs and achieving $7 million in EBIT. In the long-term, Ricotio aims to become a full-scope e-commerce infrastructure provider offering wholesale aggregation, warehousing, fulfillment, logistics, shopping cart software, and payment processing.

1. Powerful e-commerce
cost-cutting tool
1

2. Resume
Ricotio today:
Cross-border transaction platform providing drop shipping service to e-tailers and remote
brick-and-mortar stores;
Operational subsidiaries in Estonia, Germany and Russia;
Professional team in programming, commerce, business development and strategy;
30'000 SKUs in catalogue, 8 suppliers, 3 e-tailers;
Mid-term goals:
International holding with 15 local subsidiaries (EU, Turkey, Gulf states, Russia and CIS)
E-tailers integrated: 7'800+
SKUs in catalogue: 1'000'000
EBIT: $7'000'000
In a long-term Ricotio is going to become a full-scope distance retail infrastructure
provider:
Wholesale aggregator
Warehousing and fulfillment service provider
Cross-border and local logistics operator
Shopping cart and СRM SaaS renderer
Payment system
2

3. Wholesale
aggregator
Cross-border
and local
logistics
operator
Warehousing
and
fulfillment
service
provider
Shopping
cart and
СRM SaaS
renderer
Payment
system
Our role model is the Standard Oil Company as founded by John D. Rockefeller. It initially owned and controlled
the logistics of the oil traffic routes to the refineries and later developed itself into the vertically integrated company
controlling the entire value chain.
Ricotio is going to become the best in goods traffic routes and cloud retail infrastructure.
Ricotio’s development logic:
Stage 1: We start as a wholesale aggregator.
Stage 2: Using defined at a Stage 1 most profitable traffic routes we build a logistics operator.
Stage 3: Having built the logistics operator we develop our own warehousing and fulfillment network.
Stage 4: Along with logistics business development, we start building a web-based retail platform, including
CRM and shopping cart solutions among other features.
Stage 5: When we control retailer's assortment and order processing tools, it is relatively easy to motivate him/her
to use our own payment processing system, which will be duly developed and implemented in a right time.
Ricotio: full scope e-commerce infrastructure
3

4. Corporate structure
Ricotio OÜ
RicoRus LLC
RicoDe UG
Mr. Belinskiy
chairman
Mr. Meshalkin
CEO
Mr. Boas
CEO
Mr. Boas
Mr.
Belinskiy
Mr.
Meshalkin
10%
90%
100%
90%
10%
Rico--
Mr. X
Mr. Y
Existing legal entities
Future legal entities
Shareholders and their
shares10%
Executives
4

5. E-commerce market: key indicators
Russian e-commerce market growth rate is
20%-40% per year.
Nowadays e-commerce sales is about 2%-
3% of total Russian retail turnover.
“Datainsight”* agency forecasts that market
will grow by 50% to 2015, and Russian
annual e-tail turnover will reach $20 bn.
3,8 5,4 7,1 10,312,7
Russian e-commerce market growth, $ bn
RUSSIA EU
Rate of increase of EU e-commerce market
is 17%-19% per year**.
Online retail has a 5% share in the
European retail market**.
**http://www.retailgazette.co.uk/articles/44043-european-ecommerce-market-valued-at-198-billion
http://www.retailresearch.org/onlineretailing.php
2008 2009 2010 2011 2012*
128
150
175
2010 2011 2012*
European e-commerce market growth, $ bn
Russia is a relatively small, but rapidly growing market.
Europe has the largest e-commerce market in the world with a 17% annual growth rate.
International drop-shipping service Ricotio has a potential to be the major provider for goods and
modern e-commerce technologies from EU to the growing Russian market.
* http://www.datainsight.ru
5

6. E-commerce in Russia
213
153
123
83
80
utkonos.ru*
ozon.ru
komus.ru
quelle.ru
svyaznoy
Russian e-commerce in figures:
Total amount of e-stores is about 25 000.
Top-50 e-tailers have only 16% of annual e-
tail turnover
Total turnover of TOP-5 Russian e-tailers in 2011, m. USD
* Ricotio has the agreement with Utkonos on joint project for non-
food assortment.
Russian e-customers in facts:
Russia has a largest Internet population in
Europe (70 m.)
Total population is 141 m. people
Internet penetration is about 50%
High level of population before 30 yrs old,
having active consumer behavior (29.2%)
38.3% 14.7% 29.2% 17.7%
100%
0 – 29 yrs.
30 – 40 yrs.
41 – 59 yrs.
60 and more
Russian population structure
6

7. Our clients and our offers
buyer
supplier
manufacturer
wholesaler
ability to promote a product
internationally
cheap tool for new product
market test
aggregated fast growing e-
commerce sales channel
safe and quick access to
new markets
growing orders
delivery demand
small or medium
e-tailer
starting
e-enterpreneur
auctioneer
up-to-date items prices and q-ty in stock
ability for buy-it-now mode trading
transparent logistics tariffs
full assortment for a new e-store
full logistics service for a new e-store
ready-to-use solutions for sopping carts
freedom to choose assortment and
regional niche
free additional assortment of local or
imported goods
up-to-date items prices and q-ty in
stock
automatic data exchange with Ricotio
custom logistics solutions
logistics company
e-store and shopping
cart developer
“Push to…” solutions
“Ready for Ricotio”
solutions
general cargos fulfillment
light bulk shipment
brick-and-mortar
stores
7

8. Benchmarking
Ricotio will develop and implement feature till this year
2014
2013
2017
20XX
2015
They have it, but Ricotio believe it’s not good for customer
Feature Ricotio WorldWideBrands Alibaba DOBA
Registration and additional fee no
Additional drop ship fee no no no
Location of suppliers worldwide USA, Canada worldwide USA
Location of buyers worldwide worldwide (50-60%) worldwide USA
Wholesale pricing
Single item and bulk purchasing
Tech support
Buyer sells goods right from dropshipping catalog
Returns according to suppliers' policies
Affilate (referral) program
Integration features (XML, CSV etc.)
Custom integration solutions
API solutions for shopping carts
Own sertification system for suppliers
Buyer is contacting supplier directly and independently
Buyer makes deals on his own with every wholesaler
Instant market research option
Mobile application
Possibility of buyer restriction by supplier
Inspector service
"Request for supplier" service
Own payment service
Multi-currency catalogue
Buyer selects shipping method and tariffs
Affilate e-store application
8

9. Key features
Simple working environment: catalogue search and filters, 2-click items upload and download,
transparent orders management system, various communication tools (tickets, notifications,
messages).
Automatic data exchange between ricotio.com and client's website or ERP in most popular data
formats (XML and CSV)
Design and implementation of a custom data exchange format and procedure according to any
specific client's need.
Custom legal document formats (invoices, bills, agreements, etc.) according to client's local laws.
Safe transactions: clients pay to Ricotio local branches only. Money-back guarantee in case of
shipment denial.
Fair deals: prior to integration into the system Ricotio carefully selects wholesalers and checks their
ability to drop ship.
Single source procurement solutions for remote brick-and-mortar stores: general cargos fulfillment,
light bulk shipment.
Various ways to pay: wire transfer, PayPal, Visa/Master card.
9

10. Drop-shipping Ricotio: how it works
Adopting the drop shipping business model makes traditional remote sales scheme easier and cheaper:
E-shop doesn’t need warehouse;
E-shop doesn’t deliver goods to consumer: it means no deals with logistics companies and reduced
demand for own delivery staff;
All the activities of e-store are online (offline operations are reduced dramatically);
Wholesalers and manufacturers deal with big integrator of e-stores, not a single e-store;
Manufacturers and wholesalers open new markets fast and for free;
All the participants have easy-to-use and safe cross-border transaction environment.
Internet
e-store
suppliers and
manufacturers
shipping
customers
order order order
10

11. Drop-shipping Ricotio: how it works
Supplier Buyer
There are a few simple steps any Client has to perform within his personal account to be able to start earning money
with us.
Online activity: fIll In a company's profile (to help Ricotio issue invoices and any other documents correctly).
Offline activity: coordinate and sign contracts according to local regulations.
Then Ricotio's support arranges scheduled automated data exchange with Client's site or ERP system
Usually only 5 sections in personal account (they are marked above) matter to manage almost all customer's
needs. Some auxiliary functions are offered to facilitate Client's work and interaction with Ricotio.com: statistics,
communication tools, saved searches, subscriptions, etc. 11

12. downloads selected items from Ricotio catalogue to
Buyer’s site
uploads to Ricotio documents that Buyer wants his
Client to receive along with a parcel
places orders in Ricotio
Inserts warehouse address data
Adds items into Ricotio catalogue
Coordinates with Ricotio changes in catalogue’s structure (creates
categories and sub-categories for supplier’s goods)
Coordinates with Ricotio commercial terms and conditions, as
well as logistics companies able to work with supplier, terms of shipment
Drop-shipping Ricotio: how it works
Buyer
Supplier
12

13. Locale:
language+country+Ricotio’s
legal entity
Commodity
group
1 2 3
A
B
C
Partner
Team leader
Managing
partner
Managing
partner
Partner
Team leader
Partner
Team leader
Front office
Locale 2 customer
acquisition
director
Managing director
of
commodity group
C
Finance
Dept.
Managing director
of
commodity group
B
Locale 3 customer
acquisition
director
IT
Dept.
Legal
Dept.
Tech
support
Site
Development
Back office
Managing
partner
Development office
E-commerce
services
integration
New
features
Operational structure
Example: distribution of responsibility among
both product categories and geographies
13

14. Responsibilities within a Ricotio value chain
Development office
Development officeFront office
Back office
Search for a client
Client’s integration
into Ricotio
Contract is
signed
Client is
working
with Ricotio
Order processing Analysis of client service
promo
Legal
expertise
Technical
realization
Commercial
conditions
Consulting
Customer base
development
Search for 3rd
-party E-
commerce services
integration opportunities
Development and
technological
implementation
Cooperation
terms and
conditions
are approved
Application is
ready to start
Prospective
E-commerce services
demand research
Implementation
effect analysis
Site and features
development
Testing with
clients
Legalexpertise
Technicalsolution
Technicalsolution
Market
demandfor
technologie
s
Potential
effects
Commercial
conditions
Client’s
satisfaction
Market
effects
Needsurvey
Control,
logistics
Supervision,
transactions
Statistics,
accounting,
economics
Consulting
Economiceffects
CRM
Consulting
Acceptance
Consulting,
training
Consulting,
techsupport
Project’seconomic,
investments
Improveme
nts
14

15. Target incentive mechanism
Logistics
Market
innovations
External E-
commerce
services
ricotio.com
Supplier
E-tailer
20%
50%
30%
Back
office
Front
office
Development
office
100%:
Ricotio’s commission fee
Order processing
100%:
Front office funds
Clients and commodity
marketing
Referral bonus (connections
to Ricotio)
E-tailer of
Locale 2
Suplier of
Locale 1
ricotio.com
order order
Case: Supplier and E-tailer belong to different teams of Front office
50%50% Sharing bonus between the teams
Processing of the
order is carried out
by team of supplier’s
locale
Taxes,
transactions,
joint-stock profit
50%
50%
Supplier hunter’s bonus
Buyer hunter’s bonus
10%
40%
50%
Local Partner’s
share
15

16. Finances
units Х yr Х+1 yr Х+2 yr
Basic revenue assumptions
Number of visitors (unic IP's per 24h) visits 300 300 300
E-tailer's conversion rate % 1,5% 1,5% 1,5%
E-tailer's average check (avg order's price), USD $ 100 110 121
Ricotio goods share in e-tailer's turnover % 20% 20% 20%
E-tailer's mark-up for Ricotio goods price/cost 1,25 1,25 1,25
Ricotio average fee % 10% 10% 10%
Ricotio fee per average e-tailer, USD/month $ 216 238 261
Ricotio Revenue
Cold contacts per month done by 1 manager nr 100 100 100
'Cold call' to 'integration' conversion rate % 5% 7% 9%
Number of E-tailers integrated per month by 1 manager nr 5 7 9
Overall number of sales managers in regions nr 7 22 52
Russia 3 6 10
Germany 1 3 6
Ukraine 1 3 6
Poland 1 3 6
Turkey 1 3 6
Gulf States 1 3
France 1 3
Italy 1 3
Swiss 1 3
UK 1
Netherlands 1
Spain 1
Portugal 1
Czech Republic 1
Austria 1
Number of countries in the network 5 9 15
E-tailer integrations into Ricotio within a year 420 1 848 5 616
Overall E-tailers integrated nr 420 2 268 7 884
Ricotio sales (total gross fee) $ 1 088 640 6 466 522 24 726 747
Costs
Back-office $ (162 000) (273 600) (412 200)
Local offices $ (254 000) (446 000) (741 000)
Earnings before sales and marketing expences 1 504 640 7 186 122 25 879 947
Front office and marketing $ (1 182 032) (5 081 226) (16 704 698)
Total costs $ (1 598 032) (5 800 826) (17 857 898)
EBIT $ (509 392) 665 696 6 868 849
16

17. Contacts
Alexey Belinskiy
Christian Boas
Alexey
Meshalkin
Ricotio OU, Estonia
+372 602 7307
RicoDe UG, Germany
+49 (0) 1522 434 0996
RicoRus Ltd., Russia
+7 921 723 6418
a.belinskiy@ricotio.com
christian.boas@ricotio.com
avm@ricotio.com
Skype: Ricotio
English
Russian
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Deutsch
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