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SOURCING THE KEY TO INFINITE ISLE SUCCESS David Verette Vice President, Partner Sales

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Presentation on theme: "SOURCING THE KEY TO INFINITE ISLE SUCCESS David Verette Vice President, Partner Sales"— Presentation transcript:

1 SOURCING THE KEY TO INFINITE ISLE SUCCESS David Verette Vice President, Partner Sales

2 SPS COMMERCE ANNUAL RETAIL BENCHMARK, RSR RESEARCH What are your top investment priorities in 2013? 1.Expand product assortment 2.E-Commerce advancements 2

3 INCREASED COMPLEXITY Omni channel & e-commerce strategies requires more complex levels of technical integration from vendors. –Live inventory feeds –Rich product data –Carrier integration –Return processes 3

4 INCREASED VELOCITY Endless-isle retail initiatives demand exponential growth in online assortments. –Typical business goals: annual SKU growth of % –Reliance on drop ship due to capex limitations –Traditional retailer sourcing & merchandising organizations are difficult to scale 4

5 SESSION SPEAKERS Justin Stevens, Quirky Jim Sustar, President, Trademark Global

6 QUIRKY

7 TRADEMARK GLOBAL Supplier to the Internet Retailer

8 ABOUT ME President, Trademark Global 8

9 OUR MISSION 9 Brand Development Manufacturing Instant Drop Shipping Supplying Top Brand Name Products to Internet Retailers

10 TOPICS OF DISCUSSION Product Development Sales Channels Opportunity for Independent Web Stores Pricing Strategies 10

11 THE EARLY YEARS Sell Everything to Everyone! 11

12 NOW WERE BRINGING PRODUCTS INTO FOCUS Brand Development Create Defined Product Lines Create Brands 12

13 TRADEMARK BRANDS TOYSGAMESSPORTING GOODSCONSUMER ELECTRONICS 13

14 TRADEMARK BRANDS KITCHENHEALTH & WELLNESS HARDWARELAWN & GARDEN 14

15 TRADEMARK BRANDS WALL ARTPET SUPPLIESHOME ACCESSORIES TEXTILES 15 The Trademark Home Collection

16 TRADEMARK BRANDS LICENSED GAME ROOM PRODUCTS 16 Bar Stools, Pub Tables, Neon Clocks, Dart Cabinets & Much More!

17 We Create Exclusive Brands for Internet Retailers 17 Same Textile Products sold from Shared Inventory and re- branded for the retailer with their exclusive brand

18 SELL EVERYTHING TO EVERYONE? Improved Products Still a wide assortment with a much more focused approach. So we did find a way to still SELL EVERYTHING! but… 18

19 Can we still…. SELL TO EVERYONE? 19

20 NO! 20

21 OVEREXPOSED Our Products and Prices were all over the Internet BUT…. NOT with the INTERNET RETAILERS that were experiencing the HIGHEST GROWTH RATE. Our Products were over-exposed and our retail prices were compromised. 21

22 E-COMMERCE SALES CHANNELS 3rd Party Marketplace Sellers Independent Web Stores Mass Market Dot Coms Flash Sale Sites 22 T-shirt Frenzy – OCProducts – Rikki Night LLC

23 3RD PARTY MARKETPLACE SELLERS In the early years Trademark sold through 3rd party marketplace sellers –Fast To Market –Massive Exposure on Amazon & eBay and other Marketplaces –Use Product Data Feed 23

24 MASS MARKET DOT COMS Late to the Party Rapid Growth with no end in sight 24 This became our Targeted Sales Channel Mass Market Dot Coms Would NOT take a Data Feed of all of our products If Products were overexposed and retail prices compromised, in most cases the Mass Market Dot Com buyers would either refuse to list it or would be undercut by Marketplace Sellers limiting revenue and/or profitability. ISSUES TO OVERCOME:

25 DECISION TIME! Taking our talents to the mass market dot coms 25

26 ACTION Stop Selling to 3rd Party Marketplace Sellers Start Selling to Mass Market Dot Coms 26 Example: Our products sell to Amazon directly, so the Amazon Marketplace is covered and we no longer needed 3 rd Party Sellers. Amazon tries to undercut their own 3 rd Party Sellers so the message was clear to us: Sell to Amazon directly!

27 BUILT FOR GROWTH The Mass Market Dot Coms… –Reach more customers –Preserve Retail Margins –Expose our Brands in a high profile way which helps to build brand awareness. 27

28 INDEPENDENT WEB STORES Lost in the Shuffle –Niche Websites, Specialty Shops where Service and Selection are king and not necessarily all about prices. –Mimicking the Real World, Internet Specialty Shops have found a home with a very loyal customer following. –These online retailers that are very important to Trademark. –What are we looking for in an Independent Web Store? 28

29 WHAT ARE WE LOOKING FOR IN AN INDEPENDENT WEB STORE? NOT…. (NOT Retailers with a LOW COST motif) Low cost retail compromises our pricing model So the SELL EVERYTHING discount store niche is DEFINITELY NOT what we are looking for in an INDEPENDENT WEB STORE. 29

30 INDEPENDENT WEB STORES LOOKING FOR SPECIALTY SHOPS: –Specialize in One Product Category –Service Over Discounted Price –Loyal Customer Base –Follow MAPP pricing 30

31 PRICING STRATEGIES M.A.P.P. Pricing (Minimum Advertised Pricing Policy) –Trademark is Moving To MAPP PRICING –Most Retailers Favor MAPP –MAPP eliminates 4th Party Sellers –MAPP Enforcement must be swift and severe 31

32 PROMOTIONS With MAPP in play the landscape is clear for promotional pricing to be successful –Daily Deals –Private Sale Events –Full Product Line Promotions –Front Page Banners –Category Banners – Blasts –Top Search Engine Position on Retailers Site 32

33 RULES FOR PROMOTIONS 1. Limited Time – Limit the promotional period for the Retailer. –Daily Deals, 3 Day Events, even 1-2 Week Sales are OK –Do NOT Allow long events which will hurt MAPP unless Liquidating Inventory 2. Increased Visibility – Barter Promo Discount for Increased Visibility –Supplier Discount is effectively paying for extra visibility so find out EXACTLY what and where the promo will take place. Banner, Blast, etc…. 3. Lower Retail Price – Retailer Should Participate in Discount –If Supplier gives a 15% Discount on Wholesale Price then ask the Retailer to participate by matching to make it a 30% Sale off the Retail Price. 4. Track Promo Sales – Was it Successful? –Keep Track of sales performance and leverage that information to run similar promos with other Retailers and to repeat that promo at a later date. 33

34 SUMMARY Product Development Sales Channels Opportunity for Independent Web Stores Pricing Strategies 34

35 SELL EVERYTHING TO EVERYONE? As suppliers & retailers we need to: –Know who we are –Know our role Everything To Everyone? No. Instead, we can be... everything to someone! 35

36 Q & A Justin Stevens Jim Sustar 36


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