The document proposes a new e-commerce platform called [NAME] that aims to optimize global markets. It works by matching similar products globally and having sellers commit these products to a virtual 'pool' so that when products are bought, the closest matching product is shipped to the buyer from a local source. This reduces costs for both buyers and sellers by limiting shipping, tax, and warehousing costs. It also allows sellers to access a larger global market. The document estimates the potential market size just within Toronto and outlines the business model, product matching process, pricing strategy, additional offering types, marketing approach, development costs, and competitive landscape for the proposed platform.

1. ______________ presentation:
“A new optimization based e-
Commerce platform for global markets”

2. ___________
THE NEW WAY TO SELL TO THE WORLD

3. What is __________?
In short it is a way to reach many buyers and sellers throughout
the world with your products, and at the same time limit your
costs associated with the following:
 - Shipping
 - Regulatory compliance
 - Import tax
 - Time to Ship
 - Remote Warehousing
 - Distribution
 - Raw materials resourcing

4. Intrigued? Not Yet?
 _____________ is a web channel and app solution that seeks to
get past many of the challenges in logistics and production,
and also speed up the acquisition process for consumers.
 This is done by matching like products globally, and
then having the sellers commit these matching
products to a global virtual ‘pool’ that when bought
from, matches the product located closest to the
buyer with the buyer.

5. _____________ – The Opportunity
 Buyers pay for product and receive their product from a local source, and
they have a more immediate receipt of product with less delays due to
cross border shipping and import tax costs. They also benefit from the
cost savings gained by the seller.
 The sellers pays a lower cost for shipping, and volume sellers avoid having
to warehouse in other countries, dealing with distribution logistics, import
and export taxes and regulations. The sellers also reach a much larger
global market than they might otherwise have access to. Currency risk is
mitigated because the transaction occurs immediately for sold product,
and warehouse inventories do not need to be maintained (essentially this
works as a virtual ‘drop shipping’ model for sellers.).

6. __________– The Opportunity
 Other ancillary benefits to sellers are:
 There is a potentially a substantial carbon tax credit benefit to large volume sellers or
complex product manufacturers that want to direct sell.
 There is also a partial obfuscation of the distribution channels for product sales and
possible reduction in marketing costs, giving an edge to some companies in tackling
overseas markets.
 Sellers can back fill inventory shortages for their local markets quickly and efficiently.
 Sellers can find new buyers for stale/obsolete inventory through this channel to help
boost their income statement.

7. ___________ – The Opportunity
Lets talk some numbers:
As this platform roles out the first target user would be small to mid sized
businesses across a large span of different industries. To illustrate a small
segment of the opportunity I would like to take the next few slides to discuss
obsolete/stale/distressed inventories for companies in the Toronto GTA.
Toronto GTA is a city of a little over 6 million people. As per Gov of Canada
2011 stats, Ontario has a total of 889,621businesses, and an additional
497,301 that exist without payroll deduction accounts. 392, 320 are classed as
“employer” businesses. Of these – 50% are in the Toronto GTA.
For our purposes we will only look at the businesses with payroll accounts
that are employer businesses, so in Toronto there are 191,843 of these.

8. ___________– The Opportunity
Lets still talk Numbers…
According to the www.ic.gc.ca stats, 191,843 of these businesses in the Toronto
GTA have less than 100 employees, 3815 have between 100 and 500 employees,
and 501 are large (over 500 employees).
Industries represented are: Retail Trade, Construction, Professional, Scientific and
Technical Services, Health and Social Care, Wholesale Trade, Manufacturing,
Transportation and Warehousing, Mining, Quarrying and gas extraction, Utilities,
etc, etc. etc… By my estimate about 70% of the industries represented could
easily use the ______________service.
The average GDP per employer in Ontario for 2011 was $1,682,000. Therefore, a
reasonable guess of the total GDP for Toronto GTA is about 330 billion dollars.
We may consider that for all businesses averaging across industries a reasonable
average return is about 35%, so once you take the GDP number and back out the
employee income, taxes, etc. you the approx. business income for Toronto GTA
(based on 2011 figures) would be about 115.5 billion dollars.

9. ______________ – The Opportunity
Lets still talk Numbers…
This115.5 billion dollars provides a little window into the amount opportunity
within one city, but the numbers I am interested in are not sitting on the income
statement. It is the stale, obsolete, and distressed inventories sitting on the
balance sheets of these companies that I feel are the greatest opportunities for
______________.
The average Return on Assets for many of the industries considered here is
between 8 and 10%, so a reasonable estimate of the aggregate value of the
balance sheets of the Toronto GTA businesses we are considering is between 920
billion and 1.15 trillion Canadian Dollars.
Goal is to convince companies to raise their Gross Margin Return on Investment
–GMROI – by moving their stale, obsolete or distressed inventory. If we guess
that these inventories only take up 1% of the average balance sheet, that is still a
phenomenally large figure ($100 million for the GTA alone, based on 1 trillion
estimate)

10. _____________– last bit of quick
calculations for old inventory
So…let’s say 100 million dollars annually is the pool of obsolete/stale/distressed inventory
we are competing for to have bought, leased, or option acquired (these different
transaction channels discussed later in slide deck) through ______________:
Assumptions for making the estimate of _______’s success with this type of inventory:
-First year market penetration goal is 10 percent of overall obsolete inventory market.
-We would expect the average seller to pay 2.5 percent of their gross proceeds of sale to
___________ for the service.
100 million x 10% x2.5% = $250,000 for the Toronto GTA revenue for _______ in the first year.
Of course this is just one 6 million person city in the world, and this is just discussing
obsolete, stale and distressed inventory and not conventional inventory sales, and it does
not include retail consumers at all, so you can see where the opportunity is exponentially
greater than the example.

11. Is this a retail channel offering?
 While it may seem like this supports a Business to Customer model, the
focus of ____________ is really more B to B, and at it’s full maturity C to C.
 For marketing purposes – all mass marketing would focus on the B to C
functionality
 Marketing teams, however, would aggressively market only to businesses
to help them understand that the channel is a great way to help them turn
over stale inventory within a large pool and with access to a global
audience. This would help ensure that the pools are well supplied.

12. So how does this all work? - Overview
 Basically the matching process is done through UPC identifiers, SKU numbers,
through year/make/model identifiers, or through identifiers such as model
numbers, VIN numbers, freight lot registration codes, part numbers,
photograph comparisons, etc…
 Sellers also have to virtually sign an attestation that their product is the same
as the other products represented in the pool.
 Once the seller signs this they also sign (same form) a commitment to having
their product being in the pool, meaning that they can not sell the product,
destroy the product, alter the product or substitute the product. If they do any
of these things they are required to pay a contract breakage fee (which is a
predetermined % of the value of the product).
 When the product is ‘committed’ through a local purchase, then the seller
must ship to the local buyer at the sellers cost.

13. _________ - Matching
 The matching of buyer and seller would occur through a geographic
distance calculator, such as those offered through companies such as
Informatica, etc… __________ would have to establish many of its own
algorithms to ensure that the shortest distance is always the relationship
chosen.
 _____________ would also have to ensure that once this is identified that the
system initiates the transaction and adjusts the pool accordingly in real
time.

14. __________ – Pricing strategy
 When posting a product for sale the seller also inputs the estimated sale
price in a field. This price is ‘pooled’ with the other prices input by other
sellers, and the Mean price of all these inputs is what the product actually
sells for.
 While sellers have a natural incentive to place a higher value on their
product, they have to balance that individual incentive with the collective
incentive to ensure that those types of products sell through the
_________channel instead of outside of the system. In other words, by
pooling theoretically the price should move more and more towards an
efficient free market price point. To ensure that individuals can not ‘game’
the pricing mechanism in the short term, a daily curb of 25% deviation
above or below the daily Mean price will instituted, limiting the price that
the seller estimate their product value as.

15. Evolutionary strategy- Credits
 Once the basic platform for selling is established and working, a shift to a point credit model
would help ____________ to de-couple the sale transaction from the direct compensation for
the sale, providing further marketing opportunities (through creative use of credits) and also
allowing a ‘clearing mechanism’ that the site could use to defer and manage cash payments
to sellers. This would work similarly to the way gaming web sites presently operate with
respect to credits, and it would allow the credits to eventually act as fiat to real currency
transactions.
 The seller would receive a credit to their _____________ account when their product is shipped
(and the buyer checks off “received” in a box field.) The onus would be on the seller to secure
tracked and signed shipment to reduce the chance of fraud. Seller would only ship this way.
 The seller would receive credit reimbursement as payment in currency via email Interac or
Paypal equivalent payment (not Paypal) at the end of the next quarter, or more quickly if a
qualifying amount of the products of that type have been sold globally. This timing delay in
payments to the seller will ensure that there remains a sufficient supply of virtual products
(and contra funds for payment) in the pool. For companies selling products on ____________
this deferral in payment is much like any other invoice receivable.

16. How is fraud and abuse prevented?
 Sellers and buyers are given access to the web portal on a credit basis.
Similar to other global transactional websites like Alibaba, Ebay, etc…
transaction-worthiness is earned through consistent high performance,
and benefits are provided to sellers as they gain a better track record –
such as allowance for a higher volume of products to be committed,
access to more product categories, discounts in transaction fees, etc…
 Buyers also have discounts in fees provided if they consistently receive
good feedback from sellers, and they gain other benefits – such as access
to the other website offerings of writing options on products they want to
sell, for example. (the other offerings discussed later in this slide deck).

17. __________ - The other offerings:
 _________________ site will not offer just one selling and buying solution for
customers, but rather, this ‘virtual pool’ approach to selling and buying will
be the primary channel for transactions.
 Secondary ways to transact products on the site will be through the ability
to outright buy and sell, ability to write the option to sell your product,
ability to put in an offer price to buy a product, or the ability to structure a
lease to own agreement for your product.

18. ___________ - Options to buy
 The process is the following:
 1) The seller Registers their product on the website or through a mobile
app. For first time registrants seller information is obtained and retained.
 2) Seller choses the product category, uploads pictures of product and
provides specific product information (and adds a description).
 3) Seller sets price, option price and option term (time in which buyer can
exercise the option).
 4) Buyer of option (and potentially of product) registers on website or
through mobile app. (buyer information is also obtained and retained.

19. ________ - Option to Buy (cont.)
 5) Buyer views categories and makes selection of product.
 6) Buyer agrees to option terms by clicking on the selection and ‘digitally’
signing the contract.
 7) Seller is informed of sale of option via email, and legal certificates for option
agreement are exchanged digitally.
 8) Term of option passes and through that time it is either exercised, or it
expires.
 9) If option is exercised seller ships product. If option expires seller can relist
product, and buyer only loses the option amount committed.
 10) Tracking and signing service for shipment of product is necessary, and
would work the same as all the shipping processes for _____________.

20. ____________ - Lease to Own
 Lease to own agreements would work similarly to the option agreement
process, in that both buyer and seller would agree the terms of the
transaction through a digital contract. The product would have to be
shipped to the buyer immediately upon completion of the digital
agreement, and payments would be administered in the terms agreed
upon by the parties through the __________ platform, with ____________
charging a small transaction charge per payment based on a pre defined
schedule, and the ownership title would transfer to the buyer once all the
agreed payments are complete.
 __________ would have limited liability against non-payment, as both buyer
and seller would have to sign waivers of ___________’s liability. Buyers and
Sellers engaging in this process would also have their credit-worthiness
vetted prior to participation.

21. _________ -Put offer on Product
 As with most online selling platforms _________ would also incorporate the
functionality of allowing prospective buyers to communicate to the sellers
and place an offer on the product. This offering process could only occur
for those sales channels where the breach of the initial commitment would
not affect a product pool (Such as the offering the product directly for sale,
offering of an “option to buy”, or the offering of a “lease to own”).
 An e-mail or messenger type communication tool would be used for this
(Likely licensed from a third party, rather than being developed in house).

22. ____________ - Marketing
 The key to success of ____________ is the marketing process/approach.
What allows large market participants to dominate online retail channel
space on the internet is really two things: Mammoth Marketing Campaigns
as well as aggressive litigation strategies.
 Recognizing the challenge of going up against Goliath players such as
Alibaba, Ebay, Amazon, QQ, Baidu, etc…, the marketing approach for
achieving successes has to be both independently innovative capitalizing
on social media channels, and highly strategic in partnering with global
organizations that can make very symbiotic gains from the market
partnering relationships.
 One way to do this, for example, is to identify industries that can most
easily utilize this channel to create cost and process efficiencies, and/or
increase the reliability of their supply chains.

23. ____________ – Industries that can
obviously benefit from this channel
An un-inclusive list is:
 - Automotive/mechanical parts assemblers
 - Health care supplies distributors
 - Seasonal products sellers
 - Masonry sellers, or any large builders
 - Sellers of any heavy products
 - machinery resellers
 - Book and hard media sellers

24. Development approach and cost pg 1
 E-Commerce website :From scratch (50-100 pages)
- Flash intro, online forms, content management, photo gallery,
shopping cart, database management, multimedia functionality.
$5000-8000
- logo development, domain name and hosting, services.
$3000
- search engine optimization (SEO), and search engine marketing (SEM)
Variable, but initial ballpark is $4000 – 6000
- Fully functional Web App development $50,000 - 100,000

25. Development approach and cost
(cont.)
 Ongoing maintenance of website, including a full time security analyst, content
development person, front end programming (Java,Html) Algorithm programming
(Python, Ruby) and Back end and database (C++,JavaScript and SQL) - for
troubleshooting, version upgrades and scaled functionality of website.
$240,000 (4 x $60,000)
- Primary bricks and mortar marketing, including development of marketing program,
establishment of contractual co-marketing and promotion agreements with synergistic
global companies, and roll out of global marketing team in English, Spanish, French,
German, Mandarin, Cantonese and Japanese. (15 to 20 person core marketing team,
with consulting support from a global marketing firm).
Initial: $2,000,000
- Legal council, including the development and maintenance of
beneficial tower legal structures, and location sourcing for head office activities.
$100,000

26. Development cost Total:
 Approx $2,402,000 to $2,457,000

27. Competitive landscape
 No specific competitors identified that offer the same model as this proposed pool approach. In particular,
there are no channels that offer varied options for transactions of these types (Option construction, Lease
to Own, Sell through a pool, direct sell).
 The closest comparable global websites are traditional direct sale or auction sites such as e-Bay, Auto
Trader and Alibaba. More closely related to the _______approach is an integrator like
http://globalcatalog.com, which connects suppliers to other suppliers and promotes communication
between independent participants in the supply chain. This site does not offer conventional transactions
though, and global catalog is more a page based marketing tool akin to eBay’s virtual store channel.
Another site that offers loosely similar functionality is www.carsdirect.com , though this site connects
dealerships to customers, rather than providing a pool approach to complete buyer and seller transactions.
There appear to be no examples of direct buyer seller matching through global product pools anywhere at
the moment. No sites appear to offer the seller the ability to create their own option to buy criteria either.
 Product matching has been a source of frustration for websites because there is no unique product
identifier that is consistently used by retailers and suppliers, and this has been a challenge that has caused
many sites to focus on development of simpler platform offerings.

28. Patent, Copyright and Trademark
applications
 Global Trademarks would have to be secured, and this would cost
approximately $15000 - 40000 to complete (price of this is partially buried
in the legal cost estimate in earlier slide).
 Copyright of the website and web app will have to be secured first through
the Canada and the US Patent and Trademark office. This would then
need to be completed globally on a per country basis. Retained legal
council will work to complete this in a timely fashion (this was also part of
the initial legal costs estimate).
 These steps would be taken in concert with the development effort, rather
than prior to the development effort. ___________ has partnered with
___________ Law firm which has expertise in roll outs such as this to ensure
that the proper steps are taken.

29. Timing and roll out steps
 After first round private placement of about 2.5 million:
Identification and retention of technology resources/expertise
1 month
Initial web site development of primary Jump2Bee services as described in
this slide deck. Concurrent copyright and trademark securing, and development of
legal structure.
3 to 5 months
Development of strategic and operational marketing and promotion plan, and
sourcing of global marketing firm partner.
2 months
Retention of top notch marketing team and execution of global roll out
4 to 6 months

30. Multi year channel strategies:
 The first evolutionary step would be a move to a point credit model, as
described in an earlier slide in this deck.
 A future consideration, given successful roll out of the web platform, would be
the possibility of developing ‘bricks and mortar’ evaluation hubs in major city
centres. These hubs would only act conceptually similar to ‘weighing stations’
in that they would provide an extra stamp of legitimacy for volume sellers to
help the buyer confirm that the product they will be receiving is in fact actually
the same as what has been presented online on the website.
 This additional legitimating of the products will come at an additional cost to
the seller, as it is a value added service.
 The evaluation hubs would be part of a long term strategy for ____________ to
help reach new customers that otherwise might not be aware of the services of
the site.

31. Ownership
 Private placement of 2.5 million will own 20% of the enterprise
(this is assuming an initial valuation of 12.5 million dollars).
The investment would only be allowed with accompanying
expertise in global web site roll-outs, as it is imperative that
the investor(s) are fully aligned in the expectation of
____________ achieving the strategic aims and timelines set out
in this plan.
 The remaining 80% will be retained for the time being to be
strategically allocated through either the identification of an
exceptionally strong strategic partner(s), or for the purpose of
allowing for the raising of seed funds through a future public
offering.

32. ____________
Key Success Factors:
 Securing first round private placement
 Securing intellectual property – Trademarks and Copyright globally
 Identification of proper technology resources/skill sets for quick, efficient
and effective roll out of fully functional web site and apps.
 Effective negotiation with strong and experienced strategic global
marketing partner, and alignment with proper organizations for co-
marketing.
 Strong management of new cohesive global marketing team and efficient
execution of developed strategic and operational marketing plan.
 Effective legal council

33. Other Considerations:
 Competitive landscape, while fairly clear at the moment, will change
quickly.
 Many global market participants will be threatened by successful roll out
of the ________ platform as described. These include the following:
 -Established online marketplaces such as e-Bay, Alibaba, TaoBao, Baidu,
Amazon, etc… that will have a percentage of their customers adopt this sales
channel over theirs.
 -Shipping and logistics companies, as this sales model serves to reduce
shipping activity overall.
 -Governments that may gain tax revenues from import and export activities.

34. Thank-you.
Questions?