© 2000-2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 1

www.MarketingSherpa.com

(877)895-1717

Research drawn from:

Annual Teleconference:New Ecommerce Research: 2006 Ecommerce Issues & Trends

Stefan Tornquist, Research Director, MarketingSherpa

Anne Holland, Publisher, MarketingSherpa

May 2, 2006

Questions about this presentation?

Email:feedback@MarketingSherpa.com

© 2000-2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 2

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Research drawn from:

Facts not opinion: MarketingSherpa Methodology

1. Primary ResearchMarketingSherpa’s Ecommerce Eyetracking StudyMarketingSherpa’s Ecommerce Benchmark Survey MarketingSherpa 100 Ecommerce Site Study

2. Partnered StudiesMarketingSherpa & Directions Research Shopper Survey

3. ‘Best of’ Secondary Research from 94 Sources, including:Atlas, Inceptor, AWeber, Informz, comScore, The Kelsey Group, Coremetrics, Lyris, Demandware, Nielsen/NetRatings, Doubleclick, Pivotal Veracity, EmailLabs, Return Path, eROI, ExactTarget, Silverpop, Fathom Online, Hitwise, and Truverse

4. Anecdotal Evidence from MarketingSherpa’s Own 3,300 Case Studies & Interviews

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Research drawn from:

Ecommerce Growth

6.0%7.2%

23.4%24.6%

0%

5%

10%

15%

20%

25%

30%

Q4 retail sales Total retail sales Q4 online retail Sales Total online retail sales

% Growth for 2005 retail and online retail sales from same period 2004 © 2006 MarketingSherpa Inc.

Change in total orders 2004-2005

5.9%12.3%

20.2%16.4%

44.9%

0%

10%

20%

30%

40%

50%

Dow n in 2005 Flat in 2005 Rose 1%-10% Rose 10%-20% Rose more than 20%

© 2006 MarketingSherpa Inc.

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Research drawn from:

4.8%

9.5%

10.8%

9.3%

9.4%

36.1%

23.1%

6.7%

11.7%

12.1%

12.9%

16.1%

30.9%

31.0%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Comparison shoppingengines

Web ads (banners, portalplacements, paid keywords)

Affiliate programs(management, commissions,

etc.)

Search engine optimization

Email marketing (retentionand acquisition)

Website

Paid search ads (notincluding comparison

shopping engines)

High growth inordersFlat/decliningorders

Budgeting for Online Marketing Tactics

© 2006 MarketingSherpa Inc.

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Research drawn from:

Eyetracking – Bombay

© 2006 MarketingSherpa Inc.

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Research drawn from:

Eyetracking – Wal-Mart

© 2006 MarketingSherpa Inc.

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Research drawn from:

Internal Search Conversion Rates

7.54%

2.79%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Search box users Average site users

% conversion rate

Source: WebSide Story, January 2006

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Research drawn from:

Performance of Site Tests/Tweaks

36%

36%

43%

50%

66%

57%

60%

47%

46%

30%

7%

4%

6%

4%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Product display tools(zoom, video, 3D, etc.)

Multi-variate testing of pageelements

Product/featuredescriptions/copy tests

Tweaks of internal searchresults pages

Shopping cartdesign/functionality tests

Very effective Somewhat effective Not effective

© 2006 MarketingSherpa Inc.

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Research drawn from:

59.8%

50.2% 49.9%

41.9%

0%

25%

50%

75%

Average (productmarketers)

Shopping cartdesign/function tests

Persona baseddesign/site usability

Single screen checkout(note: limited sample)

Shopping cart abandonment rate

Abandonment – What Can You Do About It?

© 2006 MarketingSherpa Inc.

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Research drawn from:

7%

32%37% 38%

0%

10%

20%

30%

40%

Email from amerchant you didn't

know

ShoppingComparison Site

Search Inquiry Email frommerchant you know

and trust

All Consumers - Top 2 Answers (5 point scale)

What’s Motivating Consumers?

© 2006 MarketingSherpa Inc.

Source: MarketingSherpa / Directions Research, January 2006

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Research drawn from:

1% 1% 1%2%

4%

12%14%

17%

22%

26%

0%

5%

10%

15%

20%

25%

30%

Sale Product Newsletter Acct Sign Acct Reg Thank You Confirm CustService

Welcome No Reply

Percentage of all welcome messages

What’s in a Welcome Message?

© 2006 MarketingSherpa Inc.

© 2000-2006 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Research drawn from:

www.MarketingSherpa.com

(877)895-1717

For more information or to order call 877.895.1717 orhttp://Sherpa-Ecommerce.MarketingSherpa.com

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(877) 895-1717

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Our research team welcomes feedback and/or questions.

Stefan Tornquist, Research DirectorStefanT@MarketingSherpa.com