How to Compete in the Era of Free Shipping Presented by DYMO Endicia and GoECart

Manish Chowdhary Founder and CEO GoECart www.goecart.com

Chris Janus Business Development DYMO Endicia www.dymoendicia.com

Overview

Introduction

The Shipping Scene in 2012

The USPS Advantage

GoECart 360 – Retail Platform

Who is DYMO Endicia?

• Leading Electronic Postage provider • Customers have printed over $8 billion in postage

• $1.5B+ in 2011!!

• Over 25 years of experience

• Over 180 integrated partners

• The first company with: • Electronic Delivery and Signature Confirmation for First Class Mail

Parcels

• Automated customs forms & integrated APO/FPO forms

• USPS Priority Mail Flat Rate and Regional Rate boxes

Print USPS Shipping Labels

Prepaid labels

Hidden postage amounts

All USPS® mail

classes

Electronic Delivery

Confirmation™ &

Signature Confirmation™

The Shipping Scene In 2012

Shipping Scene, 2012

• eCommerce on the rise – Q4 2011: 9th straight quarter growth – 5th quarter double-digit growth

• Lightweight dominates ecommerce – Top performing categories (≥ 18% growth Q4 to SPLY):

Digital content & subscriptions Jewelry & watches Consumer electronics Toys and hobbies Computer software

• Trend is free shipping – 52% of sales in Q4 2011 vs. 49% SPLY

Internet Retailer 2012

‘Free’ – The New Price

7

• Nearly 3/4 (73%) of shippers consider free shipping “somewhat important” or “very important.”

• Major decision factor for consumers

comScore data

73%

The USPS® Advantage

The USPS® Advantage

Ship to US territories with domestic rates

Ability to ship to APO’S, FPO’s, and Post Office™ Boxes

No minimums, no certifications or audits

Invisible postage amounts for USPS shipments

Data entry scans on USPS parcels

Integrated customs forms as part of the label for USPS shipments

Free Carrier Pickup™

Reduced rate insurance

Eliminates surcharges for fuel, delivery area, address errors etc.]3

Priority Mail® (2-3 day delivery)

1. Zone-based

– Ideal for shipping lightweight packages

2. Flat Rate Box

– Ideal for shipping dense packages long distances

3. Regional Rate Box

– Ideal for shipping dense packages short distances

Pickup

Delivery Confirmation

Saturday and residential delivery

Packaging from the USPS

FREE

Priority Mail Price Advantage

3lb Package to zone 2 Carrier

Ground

Priority

Mail®

Base Rate (zone averaged) $5.45 $5.24

Residential Surcharge $2.55 $0.00

Extended Delivery Area Surcharge $3.00 $0.00

Fuel Surcharge (8.5%) $0.94 $0.00

Subtotal $11.00 $5.24

Address Correction $11.00 $0.00

Total $22.94 $5.24

High Volume Incentives

Commercial Plus™ Pricing

• Saves avg. 13.6% over retail for Priority Mail® and avg. 24% over retail for Express Mail®

• Lower minimums

Negotiated Service Agreements

Commercial Plus Products:

• Critical Mail

• Commercial Plus Cubic pricing

The Internet Postage Advantage

Internet Postage Saves You Money

Instant savings • Commercial Base Pricing

• Flexible, low-cost monthly subscriptions

Leverage existing hardware and software setups • Minimal up front capital needed

• Faster implementation and ROI

Convenient Support For All USPS services • Integrated customs forms for internationals

• Stealth/hidden postage values

• No permits, daily minimums or USPS audits required

Automated Package Processing • Integration with a variety of business software programs

• Streamlines the USPS shipping process

Use All the Tools That You Have

• USPS services • Rate comparison • Database integration • Batch printing • High speed printing • International/integrated forms • Carrier pick up • SCAN • Partner integrations

GoECart 360 – Multichannel Retail Platform

Serious Ecommerce is Hard!

Multi-Channel Ecommerce: Critical Success Factors

Web Content Management

Product Catalog Management

Merchandising

Site Search & Guided

Navigation

Shopping Cart & Checkout

Con

tinuo

us In

nova

tion

Rol

e-B

ased

Sec

urity

& P

CI C

ompl

ianc

e

99.9

% R

elia

bilit

y &

On-

Dem

and

Sca

labi

lity

SEO & SEM

Online Marketplaces &

CSEs

Social Networking

Mobile

International (Markets & Customers)

Contact Center

Payment, Shipping &

Taxes

Personalization

Email Marketing (Targeted 1:1)

Transactional E-mails

Order Entry & Processing

Inventory Management

Fulfillment (Pick/Pack/

Ship/Drop Ship)

Purchasing and Returns

Reporting & Analytics

Too Many Systems to Manage & Integrate

Storefront

Solutions

Order

Management

System (OMS)

Shipping and

Fulfillment

CRM Finance /

Accounting

Yahoo Stores! $ Dydacomp $

(M.O.M.)

ShipWorks $ Sugar CRM $

QuickBooks $

Magento $$ StoneEdge $ ShipRush $ Salesforce.com

$$

PeachTree $

Marketlive $$$$ CoLinear $

TrueShip $ Sage $$ (ACT or

Saleslogix)

Sage $$

Demandware

$$$$

OrderMotion $$$ Harvey Soft. $$ Microsoft

Dynamics $$$

Microsoft $$$

(Additional) Best of Breed Storefront Technologies

Site Search and

Guided

Navigation

Transactional

Emails

Search Engine

Optimization

Marketplaces

Integration

Ratings and

Reviews

Personalization

Search Spring $

MailChimp $

WordTracker $ Channel

Intelligence $$

PowerReviews

$$

4-Tell $$

Nextopia $$

SilverPop $$

Keyword

Discovery $

Channel Advisor

$$$

BazaarReviews

$$$$

Baynote $$$$

SLI Systems $$$

BlueHornet $$$

Mercent $$$

MyBuys $$$$

Endeca $$$$

StrongMail $$$$

MonsoonWorks

$$$

Certona $$$$

Introducing GoECart360° The Ultimate All-in-One SaaS Ecommerce Suite

Free Shipping Combat Strategies

• Include Shipping Charges in the Price of the Product

• Free Shipping Threshold

• Free Shipping Membership (e.g. ShopRunner, Amazon Prime)

• Ship a Subset of Items for Free

• Flat Rate Shipping (e.g. $9.95 per order)

• Other Options • Explore all potential carriers and services including hybrid shipping

(e.g. FedEx SmartPost, InXpress, UPS Mail Innovations)

• Ad supported shipping (e.g. AdShip)

• Vendor discounted shipping • Pick up from store • Drop ship • Free upgrades • Audit your carrier bills or outsource it • Eliminate double shipping

GoECart’s Thriving Partner Ecosystem (partial list)

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Comprehensive Shipping Support

• Flat Rate (custom tables based on total or weight)

• Free Shipping

• Real-time Carrier Rates – UPS, FedEx, USPS (via DYMO Endicia), DHL, Canada Post

• Dimensional Weights and Multi-Piece Items Supported

• Support for Domestic and International Shipping

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GoECart’s Endicia Integration

• Service Selection and Rate Calculation

• Address Verification

• Purchasing Postage

• Shipping Options Selection

• Generating/Printing USPS Shipping Labels

Best-in-Class Persistent Shopping Cart

New Customer Checkout

Preemptive Address Verification

Award-Winning One Page Checkout

Online Order Confirmation

GoECart 360 Administration Panel

Sales Orders – List View

Sales Order Details

Generate Shipping Label

Print USPS Shipping Label

Prepaid labels

Hidden postage amounts

All USPS® mail

classes

Electronic Delivery

Confirmation™ &

Signature Confirmation™

Fully Integrated Order Fulfillment Process

Built-In Rich Transactional Emails

Why GoECart 360?

1 All-in-One Ecommerce Suite that Empowers you to Manage Your Entire Business.

2 Same Powerful Tools and Rich Features used by the Top 500 Internet Retailers.

3 Enables True, Multi-Channel Ecommerce.

4 On-Demand SaaS solution – No IT Required!

5 Drives Growth on the Front-End and Efficiencies in your Back Office Operations.

6 Provides an Intelligent, 360-Degree View of your Business.

Questions?

Manish Chowdhary Founder and CEO GoECart www.goecart.com 877-243-3612 sales@goecart.com

Chris Janus Business Development DYMO Endicia www.dymoendicia.com 800-576-3279 x140 sales@endicia.com