Ecommerce and Digital Marketplaces

“Is there room in the future for more apps stores? “

Oct 5th 2011

Sal Visca Chief Technology Officer

Elastic Path Software

Planet of the Apps Royal Garden Hotel

London, UK Oct 4-7, 2011

Planet of the Apps, London, UK Oct 4-7th 2011

Agenda

Quick introduction to Elastic Path Software

B2C e-commerce

Evolving single-vendor digital ecommerce to multi-vendor AppStores and Marketplaces

AppStores and Digital Marketplaces

Summary

Planet of the Apps, London, UK Oct 4-7th 2011

Elastic Path Software provides software and services to help the world’s most innovative digital companies transact and interact online

Software • Consumer • Enterprise • Security

Telecommunications • Handset Manufacturers • Operators / ISP’s • Cable Companies

Media & Publishing • Magazines • Online Content • Entertainment

Online Services • Subscription Content • Digital Marketplace • Digital Retailers

Key Customer Verticals

Elastic Path | Technology and Expertise for the Digital Content Ecosystem

Planet of the Apps, London, UK Oct 4-7th 2011

Elastic Commerce | Frictionless, Social, Everywhere

Elastic Path’s vision is “Elastic Commerce” – ecommerce that turns new ideas into profitable systems, and is adaptable to diverse, dynamic needs

Everywhere

• Products come from anywhere

• Sellers come from anywhere

• Transactions can occur anywhere

• The primary source of consumer information about products is other consumers

• Consumers drive how, when, and where they buy

Social Frictionless

• Transactions are accomplished in the context of life

• Buyers are presented with more relevant offers

Planet of the Apps, London, UK Oct 4-7th 2011

General Online Store

Shoppers

Ecommerce

Store Operator

Planet of the Apps, London, UK Oct 4-7th 2011

Marketplace

e-commerce

Marketplace

Multi-Vendor Store Operator

… App Developers, Publishers (books, videos, music, games)

Single-Vendor Store Operator Shoppers

Planet of the Apps, London, UK Oct 4-7th 2011

Marketplace : AppStore, SuperStore ….

• Create marketplaces for 3rd party vendors • Sell add-on apps or services for your products • Create new online revenue streams

Vendor Portal

Online Channel

Approvals

Market Place

Planet of the Apps, London, UK Oct 4-7th 2011

Marketplace | Capabilities

Vendor Portal

Store Front

Marketplace Manager

Market Place

Vendor Mgmt Vendor approvals Application feedback Review vendor profile

Reporting Financial Revenue

Profile Mgmt Vendor registration Application process Vendor profile Manage users (accounts) Vendor agreement Payment types

Product Mgmt Product creation Product information Pricing Markets Offer opt in Approval workflow (state) Remove / suspend products

Order Mgmt Outstanding orders Completed orders

Community Read product reviews Comment on reviews Knowledge base / forums

Vendor Portal Configuration Vendor registration fields Approvals process Branding & URL Terms & conditions Permitted payment types Commission rates

Catalog Mgmt New product approvals Completed orders

Reporting Vendor performance Commission payments Taxes

Standard Storefront Functionality Search Browse Faceted Navigation Shopping Cart Checkout Payment Self Service Customer Reviews etc

Planet of the Apps, London, UK Oct 4-7th 2011

Digital Marketplaces

Application Stores (“AppStores”)

Software Stores

Online Music Stores

Online Video Stores

Online eBook Stores

Online Game Stores

(e) Commerce-as-a-Service

Planet of the Apps, London, UK Oct 4-7th 2011

Application Store

Marketplace

e-commerce

Multi-Vendor Store Operator

… App Developers, Publishers (books, videos, music, games)

Single-Vendor Store Operator Shoppers

3. App approved and uploaded

4. Purchase

Developer

1. New App Submitted

5. Revenue (70-80%)

2. App Reviewed

App Store

Planet of the Apps, London, UK Oct 4-7th 2011

Attracting Vendors

Lower barriers to entry to monetize your intellectual property

Marketplace takes care of:

Payments

Taxes

Billing

Marketing

Distribution

Store operation

Customer support tools

Planet of the Apps, London, UK Oct 4-7th 2011

Applying Ecommerce Techniques

SEO

Loyalty programs

Better navigation and product discovery

Subscriptions

Promotions

Bundles

Wish lists

Gift cards

Social commerce

Community ratings and reviews

Personalized recommendation engine

Planet of the Apps, London, UK Oct 4-7th 2011

Ecommerce Solution for Digital Marketplace

Advanced ecommerce functionality modified for a Marketplace environment Product discovery

Promotions

Bundles

Pricing

Approval process

Multiple ways to monetize Intellectual Property

Multiple communication channels between vendors, users, and operators

Vendors’ portal

Revenue remittance and reporting

The Power of App Stores A free application downloaded with not-so-free subsequent transactions…

Planet of the Apps, London, UK Oct 4-7th 2011

Summary

An ecommerce platform is the foundation of a Marketplace/AppStore

Digital single-vendor e-commerce stores can be expanded into AppStores

Marketplaces provide a venue for digital publishers (vendors) of all sizes to market and sell their digital wares

Vendors can benefit from the economies of scale and access to markets provided by digital marketplaces and commerce-as-a-service infrastructure

Questions

For more on-demand digital commerce resources

www.elasticpath.com/resources

info@elasticpath.com

1.800.942.5282 (toll-free in North America)

www.elasticpath.com