Surrey Chamber Of Commerce Online Trading Slides

CONFIDENTIAL & PROPRIETARY 2009

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Contents

• Who are PayPal, Venda and Webjam? • Why is 2009 the right time to get trading online? • What to consider with online payments• Setting up your online store• Building your social network • Questions and answers


» More than one in two UK Online Shoppers are a PayPal Customer *

» 35% of UK online shoppers say they prefer to use PayPal online **

Founded in December 1998, PayPal is a leading global online payment company

» Over 184 million registered accounts globally including more than 20 million in the UK

» Available in 190 markets and supports payments in 19 currencies

» Most visited Financial Services destination in the UK – “Almost 5 times more unique users compared to the next online payment provider” †

† Source: Alex Burmaster, European Internet Analyst, Nielsen Online, Feb 2008* Source: Jupiter research, PayPal UK ** Source: Forrester’s Online Media, Marketing, and Retail Study Q3 2006 Survey

Who are PayPal?


Global leaders in on-demand eCommerce

Who are Venda?


Who are Webjam?

Media

vLondon based, with 18 staff (10 different nationalities)

vOffering a solution to build your own website with unique social media functionality

vgrowing roster of clients (i.e. Random House (Publishing) to JWT (Advertising Agency)

vBeta in March 2007, full launch in January 2008

v2009 Tech Media Invest Top 100 company

Awards


• The UK is the largest online market in Europe worth £36 billion in 2008.

• Online sales in the UK rose 15.7% in July compared to June and 16.7% compared to July 2008 – up to £4.2bn in the month.

• Online shoppers are less sensitive to adverse economic conditions than the average European consumer

• The multi-channel customers research as well as buy online

• Retailers in the UK are waking up to the fact that the web channel is their biggest opportunity

SourcesIMRG Capgemini e-Retail Sales Index, Forrester

Why 2009 is the right time to get transactional online….


• The strength of the Euro means that Europe is a great opportunity for UK businesses

• Total European market expected to reach €128 billion in 2009

• Key markets for UK retailers are ROI, Germany, France, Spain and the Netherlands

• In 2008, 37% of European adults regularly shopped online

• Europeans will spend an average online of €942 per person in 2009

Source: Forrester

Why 2009 is the right time to get transactional online….


The future of online….

• Nearly 9 million* adults already shop online at least once a week

• Shoppers are expected to spend at least one in every 14 pounds online by 2012

• UK online retail spend forecast to grow by as much as £12.3 billion to £21.3 billion by the end of 2011

• Non-store (catalogue and online) sales will increase by as much as 49 per cent• The biggest driver behind ‘catalogue and online’ sales success will be online,

with sales forecast to increase by up to 137 per cent

Source: PayPal UK Online Retail Report, conducted by Experian 2009


• Consumer spending might not be increasing but the channels where they choose to spend are changing– Online is a key component within the purchase decision

Store

CatalogueOnline

Channel-interaction % of shoppers new to a company

% of offline sales influenced by web

% of site visitors interested in offline info

% of orders placed online and picked up in-store

% of orders placed through catalogue quick-shop option

38%

22%

23%

30%

12%

Source: Shop.org

The influence of the web is increasing

CONFIDENTIAL & PROPRIETARY 2009 10

• As online techniques get more sophisticated online customer value increasing

• Share of multi-channel customers wallet 1.4x higher than nearest single channel customer

Source: Analysis of loyalty card data for grocery & luxury high-end retailer

The multichannel customer is of more value to you



•PayPal’s estimated share of consumer internet payments rose to 21% in 2007 (from 16% in

2006)

•Correspondingly, the share of payments made by credit card has been falling

•Continued growth in the shares of payments made through PayPal and by debit card

Source: Payments Council: UK Payments Markets 2008 Report

Consumer online payment preferences are changing


Website Payments Standard

Express Checkout

Website Payments Pro

Virtual Terminal

Email/Send Money

§ No set up costs, gateway fees, hidden fees, or cancellation charges. § You Maintain Control of the checkout and your customers from start to finish

•PP button on payments page

•Hosted by PP

•HTML setup

•No PP acct necessary

•PP button on checkout page

•Hosted by PP

•API setup

•Auto fill buyer information

•No PP acct necessary

•Express Checkout plus Direct CC & Virtual Term.

•Hosted by merchant

•API setup

•More control

•Take payment by phone, fax, and email

•No integration necessary

•For businesses with no website

•Send/Request money by email

•PP Acct Required

•Aimed at novices

PayPal Offers a Range of Payment Solutions



PayPal Express Checkout has a cart conversion rate of 72%, compared with an industry average of 51%

PayPal Express Checkout – As little as 3 clicks 72% Conversion **

Traditional Checkout – 8 Steps, 4 to 8 minutes to complete 51% Conversion *

* 2007 MarketLive study – The MarketLive Performance Index: Key Benchmarks and the Tactics that Drive Results** Based on survey of ~1m PayPal transactions among top 100 UK and US online merchants using Express Checkout

PayPal Express Checkout has a cart conversion rate of 72%, compared with an industry average of 51%


» Website Payments Pro provides all the benefits of a merchant account and gateway in one solution plus PayPal Express Checkout.

» Website Payments Pro allows you to accept PayPal and card payments directly on your website, through Express Checkout or card payments by phone, fax and mail using the included Virtual Terminal package.

Website Payments Pro Payment Flow Virtual Terminal Payment Flow

Customer Merchant Payment steps with Virtual Terminal

1. Customer orders by phone, fax or post with debit or credit card.

2. You enter order into Virtual Terminal.

3. PayPal processes the transaction and you get paid.

The one-stop-shop


* Forrester Research, Q3 2006 Online Retail Survey** Forrester Research, April 2007, UK Merchants Should Consider Accepting PayPal


PayPal users are loyal and high spending users, spending on average 35% more

per month online than non-PayPal users

Verbatim user responses to “Why Use PayPal”?

“Because PayPal is the only payment method I trust online”

“I only use PayPal for online payments”

“I love PayPal. I know I am buying in a very safe and secure way and only buy on the internet if PayPal is offered, it is the greatest. I have never had any problems with my account and recommend it to every one I know. Well done”

“I like to use PayPal because I know if there is a problem they are very helpful”

Safe way to purchase online

Easy way to purchase online

Continue to use PayPal

Best way to make purchase online

Recommend PayPal

Source: Quarterly PayPal Customer Relationship Assessment. Sample size 1,691. Most questions are asked on a 5-point rating scale (such as Excellent, Very Good, Good, Fair, Poor). The percent of customers giving Excellent and Very Good ratings is shown. This is referred to as ‘Top-2 box’.


Only 51% of online shoppers make it past the website payment process. The rest just give up.*

PayPal Express Checkout moves buyers through your checkout more quickly, reducing cart abandonment and increasing sales conversion.

* 2007 MarketLive study – The MarketLive Performance Index: Key Benchmarks and the Tactics That Drive Results


Build An online Store


Social Media becoming a significant traffic source

• Within a couple of weeks of setting up a simple Twitter account and starting to post on relevant Facebook groups around 10% of the traffic coming to this small store is from those sources



Webjam helps you to connect with your customers by providing you with an easy way

to build you own web site, add an online shop and include social media features.


The benefits of Social Media

http://www.whitepapersource.com/socialmediamarketing

Generated exposure for my business

Increased my traffic/subscribers/opt-in list

Resulted in new business partnerships

Helped us rise in the search rankings

Generated qualified leads

Reduced my overall marketing expenses

Helped me close business

900 marketers where asked for the benefits of social media

And what social media tools they use most often


What can you do with Webjam

Create your Own website

With built-inSocial Media features

Enabling youto make money

Easy , drag and dropInterface to createyour own website

Blend of publishing, bloggingand social networking

tools

Full integration with Venda e-commerce

and Paypal

Wide variety ofDesign templates

Ability to foster your ownCommunity

Incremental subscription and ad revenues

Premium versionto remove ads and maximise branding

Unique search, ranking and reputation allowing discovery and

ad serving

Easy integration with other advertising or affiliation

platforms


Create your own website

http://www.webjam.com/steves_clothing/home


Built-in social media features

1 Invite members

2 Your own blog

3 Subscribe to your own newsletter

4 Twitter feed

5 Photo or video link

Social Media FeaturesSocial Media Features1

2

3

4

56 LINK TO VENDA SHOP

6

http://www.webjam.com/steves_clothing/shop


1 Product listing

2 Terms and Conditions

3 Promotion

4 Shopping cart

Online shop Online shop -- FeaturesFeatures

1

2

3

4

Enabling you to make money


Online shop – Build your community

1 Members/Customers list

2 Members - chat

3 Facebook integration

4 Advertising

Community FeaturesCommunity Features

12

3

4


Your benefits

vGet started today, with no upfront investment. Build your website, add your online shop, add social media functionality

vUpgrade to premium to maximise your branding opportunity (own domain name mapping, remove adverts)

vGrow your customer base by using the social media tools provided(member invites, blogging, facebook, newsletter)

vStart generating revenue through online shop

vWidening your geographic reach and differentiating you from your(local) competitors


4 Social Media tips for small businesses

vCreate your own blog or social hub - Give your customers a reason to visit your website. Why push your consumers to connectwith you on other sites?

vLocal Social Network sites – Directory networks allow you to create listings with all the necessary information for a consumer to find you, while other customers can review and comment on your business.

vUse Twitter – Connect with your consumers in real-time via the web, desktop applications, and even mobile. This will lead to a stronger following and increased word of mouth marketing

vCustom wiki - Use your customers to give information to other consumers. Create a wiki for your FAQ or Customer Service knowledge base.


More Details On:

Fast Launch for all sizes of business – site examplesThe Best Practice from the Large Retailers, on a small business budgetEverything you need to set up and run your online storeEase of Use – No Technical Skills RequiredMarket Leading Support ToolsStore owner feedback

Appendices


Fast launch for all sizes of business………

Baby OomphBaby clothes, toys, accessories.

www.babyoomph.co.uk2 employees – no technical skills

SmallBusiness


Romani JewelleryHandmade Jewellery, previously sold at craft fairs

www.romanijewellery.com1 employee – no technical skills


SmallBusiness


Fifteen (Jamie Oliver’s Restaurant Chain)Charitable foundation selling Fifteen merchandise

www.fifteenshop.netNo technical skills, no previous trading experience.


SmallBusiness


My Ideal BuyOnline sales site for leading logistics firm

www.myidealbuy.comSite live in a week, limited technical skills


MediumBusiness


Dyson 24-7Suppliers of genuine Dyson spares

Site built and operational within 3 days with over 3,000 partswww.dyson24-7.co.uk


MediumBusiness



LargeBusiness

Climate Justice (Global Humanitarian Fund)Site built by digital agency on customised template in 3 weeks

Orders in first 24hrs from UK, Brazil, Denmark, Dubai, etcTarget to raise £1m in 6 months

http://tck.shop.venda.com



LargeBusiness

Universal MusicMicro-sites for some of their artists

Customised design template by their agencyHundreds of orders in the first few days

Katherine Jenkins Online


• Setup and trade within minutes• Instant credibility for businesses - the sites look professional,

have a great user experience and are very fast.• Full PayPal Integration – deep integration includes functions like

refunds, branding and fraud tools that save administration time• No technical skill required to setup or run shop• All the functions you need to run a successful online shop• £49.99 inc VAT per month - no hidden charges and no long term

contract, just month to month

The best experience from the large platform…on a small budget


• Automatic domain (website name) setup 2 domains included• Unlimited email addresses and management• Unlimited products, categories and pages• Product ‘bulk uploader’ to enable fast load of full catalogue• Selection of templates customisable to fit your brand• Full Search Engine Optimistation (SEO) structure• Merchandising through featured products, cross sells and up-sells• Incremental traffic from free inclusion in PayPal and Googlebase• Deep and comprehensive eBay integration• Website and content management• Product and promotions management• Order management including customisable invoices• Email support, live customer service chat, 24/7 helpdesk. video

tutorials, user manuals, comprehensive online knowledge baseand much more………

Everything you need to run your online shop……


State of the art ‘drag and drop’

and ‘point and click’ controls

Really, no technical skills required


In addition to tickets and live chat for help, there are lots of online learning resources

• Knowledgebase• Downloads• Flash video

training• News• Regular webinars• Best Practice

Market leading support


“The site was incredibly easy to set-up. Now, there is less requirement for me to travel across the country to see my ever-growing customer base as they can purchase online”. Joanna – Romani Jewellery

“Out target for 2008 was to get online quickly and establish our online shop in time for the Christmas period. Venda has been critical in helping us achieve this, providing us with an ecommerce system that is reliable, easy to use and ready to trade within hours of setting it up”.Richard - MyIdealBuy.com

“Venda Small Business is the ideal alternative to the high-cost custom-made site”.Angela – Fifteen

Store owner feedback