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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
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 | Technology and Expertise for the Digital Content Ecosystem
   Elastic Path Software provides software and services to help the world’s most
   innovative digital companies transact and interact online
 Key Customer Verticals




    Software                             Media & Publishing   Telecommunications        Online Services
    • Consumer                           • Magazines          • Handset Manufacturers   • Subscription Content
    • Enterprise                         • Online Content     • Operators / ISP’s       • Digital Marketplace
    • Security                           • Entertainment      • Cable Companies         • Digital Retailers




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




    Frictionless                                Social                          Everywhere

   • Transactions are                           • The primary source of         • Products come from
     accomplished in the                          consumer information about      anywhere
     context of life                              products is other consumers
                                                                                • Sellers come from anywhere
   • Buyers are presented with                  • Consumers drive how,
                                                                                • Transactions can occur
     more relevant offers                         when, and where they buy
                                                                                  anywhere




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



           Shoppers                                         Store Operator


                                                Ecommerce




Planet of the Apps, London, UK Oct 4-7th 2011
Marketplace
                                                                            Single-Vendor
                           Shoppers                                         Store Operator




                                                e-commerce




                                                Marketplace
                                                                                                     Multi-Vendor
                                                                                                    Store Operator



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



Planet of the Apps, London, UK Oct 4-7th 2011
Marketplace : AppStore, SuperStore ….



                                                 Online               Vendor
                                                Channel               Portal
                                                          Market
                                                          Place



                                                          Approvals




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

Planet of the Apps, London, UK Oct 4-7th 2011
Profile Mgmt
                                                                            Vendor registration
  Marketplace | Capabilities                                                Application process
                                                                            Vendor profile
                                                                            Manage users (accounts)
                                                                            Vendor agreement
                                                                            Payment types       Order Mgmt
                                                                                             Outstanding orders
                                                                                             Completed orders

            Standard                                                                                  Community
                                                                                                       Read product reviews
            Storefront                                                                                 Comment on reviews
            Functionality                                                                              Knowledge base / forums
             Search
             Browse
                                                   Store                           Vendor
                                                                                                          Product Mgmt
             Faceted Navigation                   Front                           Portal                  Product creation
             Shopping Cart                                                                                Product information
             Checkout
             Payment
                                                                  Market                                   Pricing
                                                                                                           Markets
             Self Service                                        Place                                    Offer opt in
             Customer Reviews                                                                             Approval workflow (state)
             etc                                                                                          Remove / suspend products

                                                                                                      Reporting
                                                                                                       Financial
                                                                                                       Revenue

                         Catalog Mgmt                            Marketplace
                          New product approvals                  Manager
                          Completed orders
                                                                                            Vendor Portal Configuration
                                                                                             Vendor registration fields
                                                                                             Approvals process
                                       Vendor Mgmt                                           Branding & URL
                                        Vendor approvals         Reporting                  Terms & conditions
                                        Application feedback      Vendor performance       Permitted payment types
                                        Review vendor profile     Commission payments      Commission rates
                                                                   Taxes



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
                                                                                Single-Vendor Store
                                    Shoppers                                          Operator




                                                   e-commerce                                                                             5. Revenue
                                                                                                                                           (70-80%)

                                                3. App approved                                                              2. App
                                                 and uploaded                                                                Reviewed
                                                   Marketplace
                                                                                                                Multi-Vendor
                                                                                                               Store Operator

                                                  App Store                                                                  1. New App
                                                                                                   …                         Submitted
                                  4. Purchase
                                                                  App Developers, Publishers (books, videos, music, games)




                                                                                                                                  Developer


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                                       Wish lists
        Loyalty programs                          Gift cards
        Better navigation and                     Social commerce
         product discovery                         Community ratings and
        Subscriptions                              reviews
        Promotions                                Personalized
        Bundles                                    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


Planet of the Apps, London, UK Oct 4-7th 2011
The Power of App Stores
A free application downloaded with not-so-free subsequent transactions…
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




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

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Ecommerce and Digital Marketplaces - Planet of the Apps

  • 1. 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
  • 2. 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
  • 3. Elastic Path | Technology and Expertise for the Digital Content Ecosystem Elastic Path Software provides software and services to help the world’s most innovative digital companies transact and interact online Key Customer Verticals Software Media & Publishing Telecommunications Online Services • Consumer • Magazines • Handset Manufacturers • Subscription Content • Enterprise • Online Content • Operators / ISP’s • Digital Marketplace • Security • Entertainment • Cable Companies • Digital Retailers Planet of the Apps, London, UK Oct 4-7th 2011
  • 4. 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 Frictionless Social Everywhere • Transactions are • The primary source of • Products come from accomplished in the consumer information about anywhere context of life products is other consumers • Sellers come from anywhere • Buyers are presented with • Consumers drive how, • Transactions can occur more relevant offers when, and where they buy anywhere Planet of the Apps, London, UK Oct 4-7th 2011
  • 5. General Online Store Shoppers Store Operator Ecommerce Planet of the Apps, London, UK Oct 4-7th 2011
  • 6. Marketplace Single-Vendor Shoppers Store Operator e-commerce Marketplace Multi-Vendor Store Operator … App Developers, Publishers (books, videos, music, games) Planet of the Apps, London, UK Oct 4-7th 2011
  • 7. Marketplace : AppStore, SuperStore …. Online Vendor Channel Portal Market Place Approvals • Create marketplaces for 3rd party vendors • Sell add-on apps or services for your products • Create new online revenue streams Planet of the Apps, London, UK Oct 4-7th 2011
  • 8. Profile Mgmt  Vendor registration Marketplace | Capabilities  Application process  Vendor profile  Manage users (accounts)  Vendor agreement  Payment types Order Mgmt  Outstanding orders  Completed orders Standard Community  Read product reviews Storefront  Comment on reviews Functionality  Knowledge base / forums  Search  Browse Store Vendor Product Mgmt  Faceted Navigation Front Portal  Product creation  Shopping Cart  Product information  Checkout  Payment Market  Pricing  Markets  Self Service Place  Offer opt in  Customer Reviews  Approval workflow (state)  etc  Remove / suspend products Reporting  Financial  Revenue Catalog Mgmt Marketplace  New product approvals Manager  Completed orders Vendor Portal Configuration  Vendor registration fields  Approvals process Vendor Mgmt  Branding & URL  Vendor approvals Reporting  Terms & conditions  Application feedback  Vendor performance  Permitted payment types  Review vendor profile  Commission payments  Commission rates  Taxes Planet of the Apps, London, UK Oct 4-7th 2011
  • 9. 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
  • 10. Application Store Single-Vendor Store Shoppers Operator e-commerce 5. Revenue (70-80%) 3. App approved 2. App and uploaded Reviewed Marketplace Multi-Vendor Store Operator App Store 1. New App … Submitted 4. Purchase App Developers, Publishers (books, videos, music, games) Developer Planet of the Apps, London, UK Oct 4-7th 2011
  • 11. 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
  • 12. Applying Ecommerce Techniques  SEO  Wish lists  Loyalty programs  Gift cards  Better navigation and  Social commerce product discovery  Community ratings and  Subscriptions reviews  Promotions  Personalized  Bundles recommendation engine Planet of the Apps, London, UK Oct 4-7th 2011
  • 13. 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 Planet of the Apps, London, UK Oct 4-7th 2011
  • 14. The Power of App Stores A free application downloaded with not-so-free subsequent transactions…
  • 15. 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 Planet of the Apps, London, UK Oct 4-7th 2011
  • 16. 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