never shop alone again…. management sagi richberg, co-founder and president –held various...
TRANSCRIPT
Never Shop Alone Again…
Management
• Sagi Richberg, co-founder and President– Held various development positions both in Israel & US– Founder of start-up companies in e-commerce, social
networking and CATV spaces• Sefi Merkel, co-founder and CTO
– Extensive development experience– Previously CTO of NRG Maariv, largest and most
influential portal in Israel• Derek Skaletsky, Consultant B2B & Retail exp• Advisory board
– CFO,Neil Closner, internet entrepreneur and former CEO of Baby Universe, industry leader in online baby products
– Other advisors from various e-commerce backgrounds(E-tailing Group, Professors etc.)
The Problem
• Bid Shilling -Who’s behind the deal?
• Bid Snipping – Man or Machine?
• The Wait, one @ a time
• Lonesome experience
The Basics
• New online marketplace that enables:-Sellers to sell in larger volumes to lower customer acquisition costs and
achieve stronger margins-Individual buyers to join forces &consolidate purchases to receive “bulk” rates
• Inherently VIRAL : Provides platform for a new social shopping experience• Group Psychology – Power in numbers• Rule Engine (Stock Market= efficient market), Gaming Theory, Vshake
Concept (“Buckets”)
Price offered…
…if this many buyers commit…
…within this time frame.
Seller Benefits
• GG ideal for any seller than can benefit from selling in “bulk”:
-Manufacturers selling direct to consumer
-Wholesalers, Liquidators & Surplus, Online Merchants
• Concept works in both B2C and B2B space (cola)• Works for services as well as products• Risk Free Market Place:
- Payment Processing (no dead bids)
- No Listing Fee
- Forecasting Demand
- Marketing Arm & Ambassadors of product
Seller Experience
• Several e-commerce mechanisms
• Sellers empowered to select their own deal
Buyer Benefits
• GG’s goal to eliminate the solitary online shopping experience
-By nature, auction sites dissuade collaboration
-GG concept naturally viral
• Risk Free Market Place – Professional Merchants (Tax Id)
• Fun, non-traditional shopping experience• Lower prices• Nothing Hidden-
All Info Disclosed
Buyer Benefits
• Contact management
-Key to viral marketing
-Ability to upload all contacts from various email applications
-Send emails to single person or everyone you know!
- Forums around products
-Ease of use
-Fun, social shopping tool
Vision: BuyerPower
• New online commerce tool (GG owns trademark)• Allows buyers to create deals for products not currently offered on site• Buyers aggregate demand• Sellers invited to bid on business• Crystal ball of demand• Vision: Savings in raw material, elimination of inventory overhead• Services & Goods (Credit Card, Insurance, Fuel)• Buyers have the power!
Revenue Model
Value of Bucket Commission Rate
Under $1,000 9.00%
$1,001 to $5,000 8.25%
$5,001 to $25,000 7.50%
$25,001 to $50,000 6.75%
$50,000+ 6.00%
• GG takes commission off of successful deals – No listing/insertion fees
• Tiered commission structure based on total value of bucket
• Addition revenue opportunities in future– Money Markets– Ad revenue– Licensing– Etc.
Competition
• Little direct “group-buying” competition – eSwarm.com, Letsbuyit.com, Jellyfish, Woot– Tumpang, ebay
• Indirect competition from any all e-commerce marketplace models
• Large, established brands have competitive advantage• GG competes on:
– Competitive pricing– Unique shopping experience– Social shopping– Loyal, motivated sellers
Marketing
The BuyersThe Sellers
• Site development completed (v1) – Social Networking almost finalized• Raised seed financing• Site went live on August 13rd -- out to friends and family for usability
feedback (apx 250 registered users)• 40+ deals on site for launch – great response from sellers (currently 70+
deals) and manufacturers• Closed 6 deals to date, few more pending• Hired SEM/SEO firm• Closed partnership deal with channel management software provider• Hired experienced PR firm for initial launch• Established accounts with shopping aggregators (Shopping.com &
Shopzilla)• Established affiliate marketing network relationship (Share-a-Sale)• FaceBook Application• USPS, Fedex etc. API• Patent pending application and trademarks
The Current Status
Challenges & Opportunities
• Current challenges:– Driving early traffic in cost-effective manner (sellers and buyers)
– Channel Conflict /MSRP Lock
– Prompt Shipping/ Sufficient Manufacturer Inventory
– Educating users to GroupGain shopping experience
– Building corporate infrastructure to support growing traffic
• Opportunities:– Trend : Manufacturers going direct
– Leveraging Social Networks for a tangible benefit
– B2B - Drive new registered users
– GG in strong position to take advantage of large, growing online shopping market
– Online sellers continuously seeking alternative online channels
– Online buyers looking for alternative ways to shop online
Questions?http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/ChinasNewShoppingCrazeTeamBuying.aspx
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