During this session Simon Clarkson, ChannelAdvisor’s Managing Director, Australia, will speak about how to unleash your e-commerce potential and leverage Marketplaces for global growth. During this session you will learn: – Marketplaces: How to drive growth through local Marketplaces like Amazon, Catch & eBay. – Cross-Border Trade: How the Australian e-commerce industry can take advantage of cross-border trading, and how to launch and prepare for this opportunity via Marketplaces.

1. 8/15/2017 1
Opportunities in Domestic and
Global Marketplaces for Australian
Brands & Retailers
Presented by Simon Clarkson, Managing Director Australia, ChannelAdvisor
Copyright 2017 ChannelAdvisor | Confidential 1

2. Safe Harbour
This presentation contains "forward-looking" statements that are based on our management's beliefs and assumptions and on
information currently available to management. Forward-looking statements include information concerning our possible or
assumed future results of operations, revenue visibility, key metrics, business strategies, financing plans, operating model,
competitive position, industry environment, potential growth opportunities, potential market opportunities and the effects of
competition.
Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms
such as "anticipates," "believes," "could,” "seeks," "estimates," "intends," "may," "plans," "potential," "predicts," "projects,"
"should," "will," "would" or similar expressions and the negatives of those terms. Forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. Forward-looking statements represent our management's beliefs and assumptions only as of the date of this
presentation. You should read ChannelAdvisor’s SEC filings, including the Risk Factors set forth therein, completely and with
the understanding that our actual future results may be materially different from what we expect. Except as required by law, we
assume no obligation to update these forward-looking statements publicly, or to update the reasons why actual results could
differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the
future. This presentation includes certain non-GAAP financial measures as defined by SEC rules. We have provided a
reconciliation of those measures to the most directly comparable GAAP measures in our earnings release dated February 4,
2016 available at www.sec.gov and under “SEC Filings” at http://ir.channeladvisor.com.

3. What does ChannelAdvisor do?
3Copyright 2017 ChannelAdvisor | Confidential

4. Who is ChannelAdvisor?
Retail &
Manufacturing
customers
worldwide
Global transactions
Global employees
focused on e-commerce
The Industry's Most Complete Solution to Help Grow Your E-Commerce Business
100+ channels supported
worldwide
Copyright 2017 ChannelAdvisor | Confidential 4

5. Trusted by Thousands of Top Sellers Globally
Copyright 2017 ChannelAdvisor | Confidential
5

6. Opportunities in Domestic
and Global E-Commerce
Marketplaces
Copyright 2017 ChannelAdvisor | Confidential 6

7. Why Marketplaces are Essential to Your Strategy
• Consumers love it! Huge inventory, standardised shopping experience, secure payments, consistent
customer service and shipping, great pricing
• 65% of shoppers prefer purchasing from a marketplace when they’re shopping online
• Ready-made audience of millions of loyal shoppers
• Many marketplaces offer a one-stop solution for retailers in terms of customer service, fulfilment, taxes
• Global marketplaces are predicted to own a staggering 39% of the overall online retail market by 2020
• Marketplace share: 90% of online purchases in China, in the US and UK over 33% of online purchases
• They can play a key role in helping future proof your business around consumer engagement and
technology disruption
Copyright 2017 ChannelAdvisor | Confidential 7
Other Sources: Public reports from eBay, Amazon, Google, Shopping.com and ChannelAdvisor
estimates based on our transactional data

8. App vs Mobile Web Usage
Copyright 2017 ChannelAdvisor | Confidential 8Source: comScore

9. Mobile App Adoption
Copyright 2017 ChannelAdvisor | Confidential 9Source: comScore

10. Australian Marketplace Landscape
10

11. Domestic Marketplaces
• eBay is by far the biggest online shopping website in Australia
• 11.3 million unique visitors per month
• 1 in 2 Australian Online Shoppers bought from eBay AU in 2016
• 90% of the listings are for new products
• Over 80 of the top 100 retailers in Australia are on eBay AU
11Copyright 2017 ChannelAdvisor | Confidential
Source: 3368 eBay infographic Update 11 AW Digital

12. Domestic Marketplaces
• 4 million customers
• Over 10,000 orders shipped per day
• 30,000 branded products
• 450,000 visitors per month
• Sellers can take advantage of Club Catch
• Retailers can take advantage of Catch’s daily promotions events through EDMs, push
notifications and website product positioning
• Different demographics when compared to other Marketplace
• Deals in fashion, tech, beauty, homewares, outdoor and more
12Copyright 2017 ChannelAdvisor | Confidential
Source: http://www.catchgroup.com.au/

13. Amazon is coming…
• Loyal global audience of 310 million
• Amazon operates 11 online marketplaces worldwide
 North America, UK, Germany, France, Italy, Spain, Japan, Indonesia, China & India
• Customers buying in 180 countries
• Amazon Prime membership at over 80 million members in the US
• 55% of all product searches begin with Amazon in the US
• Largest ecommerce site in Europe
• Japan GMV is almost $11bn in 2016
Copyright 2017 ChannelAdvisor | Confidential 13

14. Amazon in Australia
• Nielsen Poll
 18+ y.o. = 3 out of 4 interested in Amazon
 56% of Australians would buy from Amazon
 45% said they would subscribe to Prime
• We buy between $500m-$700m from
Amazon.com
• Converts 49% of AU browsers into shoppers
• Predictions upwards of 15% of all online
spend in the next 5 years
Copyright 2017 ChannelAdvisor | Confidential 14
Source: http://www.afr.com/business/retail/new-data-highlights-amazon-australia-threat-
20170217-gufib8

15. CBT Opportunities
15

16. Opportunities by Geography
• APAC: Online retail sales to reach $1.4 trillion by 2020
 China $681b and is predicted to hit the $1 trillion mark by 2019
• USA second largest ecommerce country led by Amazon and eBay, with
annual online sales of $340 billion
• UK secures third place with Amazon UK helping produce sales of $99 billion
globally
• Japan, Germany, France, South Korea, Canada, Russia, Brazil are the next
e-commerce hotspots
Copyright 2017 ChannelAdvisor | Confidential 16

17. The Top 10 Geographies vs Australia
Copyright 2017 ChannelAdvisor | Confidential 17
China
USA
UK
Japan
Germany
France
South Korea
Canada
Russia
Brazil
Australia
Sources:
https://www.business.com/articles/10-of-the-largest-ecommerce-markets-in-the-world-b/
http://business.nab.com.au/wp-content/uploads/2017/02/norsi-december-2016.pdf

18. Australia vs Top 10 Geographies
18
Top 10
99%
Australia
1%
Sources:
https://www.business.com/articles/10-of-the-largest-ecommerce-markets-in-the-world-
b/
http://business.nab.com.au/wp-content/uploads/2017/02/norsi-december-2016.pdf

19. CBT: Leveraging FBA & Amazon Global Selling
• Pay as you go service
• Amazon warehouse, pick, pack & ship your products
• Amazon also provide customer service & returns
• Your products can be eligible for Amazon Prime (great for acquisition)
• Over 120+ Fulfilment Centers around the globe
• Supports Multi-Channel Fulfilment
Copyright 2017 ChannelAdvisor | Confidential 19

20. International marketplaces for CBT
• 167 million + shoppers worldwide
• 30+ marketplaces – eBay Singapore and eBay Hong Kong very strong
• To sell globally you will need to offer PayPal
• If you list directly on other eBay sites use a proper translator and comply with international
trading laws of each country
Copyright 2017 ChannelAdvisor | Confidential 20

21. CBT: China & SEA
21

22. China: The Opportunity
China is the world’s biggest retail and online market
 Booming middle class
 +400 million Chinese consumers now have smartphones
 Logistics are inexpensive
• 2010: Both the US and China had 140m online shoppers by 2020 they predict 270m in US
and 891m in China
• 2019: 29% of global online shoppers and 55% of all online sales
Copyright 2017 ChannelAdvisor | Confidential 22
Sources:
Understanding the Chinese Consumer eBook by ChannelAdvisor
Keynote Session presented by Lee McCabe, VP, North America, Alibaba Group at Catalyst Americas
2017

23. Popular Chinese Marketplaces
Copyright 2017 ChannelAdvisor | Confidential 23

24. Tmall Global
• Tmall operates in 63 countries, has 14,500 International Brands
• Must have a corporate entity outside of Chinese mainland
• Engage in a TP (Tmall Partner) to facilitate
• Logistics services must start delivery within 72 hours of orders being placed.
• Costs:
 One Time Security Deposit: $25,000
 Annual Fee: $5,000 -10,000
 Commission Fee: Between 2-5%
 Alipay service fee: 1%
Copyright 2017 ChannelAdvisor | Confidential 24
Sources:
Keynote Session presented by Lee McCabe, VP, North America, Alibaba Group at Catalyst Americas 2017
http://ehubnordic.com/actual-difference-tmall-tmall-global-china/

25. South East Asia
Lazada
• #1 online selling & shopping destination in South East Asia – in Thailand, Malaysia, Vietnam,
Philippines, Singapore, Indonesia – reaching 550 million people
• $1.1 billion annual GMV
• 8 million customers
• 30,500 active seller partners
• 60% GMV from mobile
• Fast growing categories fashion, home and living, automotive and sports
• Marketplace sellers use Lazada customer service/couriers
Copyright 2017 ChannelAdvisor | Confidential 25
Source: https://www.slideshare.net/ulilzzz/lazada-online-shopping-selling-in-southeast-asia-july-to-september-
2015

26. CBT: USA
26

27. USA
Copyright 2017 ChannelAdvisor | Confidential 27

28. USA
• One of the biggest names in retail
• 100 million unique visitors a month on Walmart.com
• New app has over 27 million users
• Retailers must have US Entity, Tax ID & Mailing address
• Must have eBay and Amazon ratings higher than 95%
• Amazon order defect rate of <1%
• E-commerce websites in 10 countries
Copyright 2017 ChannelAdvisor | Confidential 28
Source: https://www.slideshare.net/comScoremarcom/comscore-2016-us-mobile-app-report

29. CBT: Europe
29

30. Europe
Copyright 2017 ChannelAdvisor | Confidential 30

31. Europe
• Europe’s biggest fashion retailer
• Outpacing sales in online fashion market in Europe
as a whole
• Strong base in clothing, shoes and accessories
• 1500 leading brands, 200,000 products
• Ships to 20 million customers in 15 countries
• Have to offer ‘free shipping, free returns’ (and put up with a very high return rate)
• Has brand recognition in Germany of 90%
Copyright 2017 ChannelAdvisor | Confidential 31
Source: https://corporate.zalando.com/en/facts-and-figures-p#fc-752

32. How to get started…
Copyright 2017 ChannelAdvisor | Confidential 32

33. How to Get Started with CBT on Marketplaces
• Do your research:
 Look for countries and marketplaces likely to be receptive to your products
 Review your competition in the Marketplace
 Be aware of taxation, import costs & implications, returns, translation and currency conversion
 Make sure your product complies with laws and standards i.e. voltage
 Ensure your product matches local expectations i.e. sizing
• Utilizing Marketplace resources is a great way to start:
 Logistics, Customer Support & Translation services
 Knowledge base
• List as broadly as possible - not just a few products
 Provide as much information as possible
• Take advantage of promotional offerings or Marketing Services
Copyright 2017 ChannelAdvisor | Confidential 33

34. Dominate your category through technology
partners
• Invest in the right technology platform
 Easy management (Automation)
 Optimization
 Data and Insights
 Repricers
 Marketing Support
 Competitive Information
 Industries & Category Benchmarking
 Services experts
Copyright 2017 ChannelAdvisor | Confidential 34

35. Amazon
Retailer
vs
Brand Manufacturer
Strategies
35Copyright 2017 ChannelAdvisor | Confidential

36. Getting the Buy Box
Copyright 2017 ChannelAdvisor | Confidential 36

37. Amazon Sponsored Products
Copyright 2017 ChannelAdvisor | Confidential 37
• Sponsored Products is a pay-per-click (PPC), keyword-based
advertising solution
• Select your products and keywords then decide how much you
want to spend on your campaigns
• Amazon determines which pages your ads will appear on based
on both relevance and the bid amount

38. Where do they show up?
Copyright 2017 ChannelAdvisor | Confidential 38

39. Where do they show up?
Copyright 2017 ChannelAdvisor | Confidential 39

40. Where do they show up?
Copyright 2017 ChannelAdvisor | Confidential 40

41. Key elements for success on Marketplaces
• Understand the data requirements for each marketplace
• Is your data optimised for success – do you have keyword-rich titles, detailed descriptions,
correct categories, high quality images, product features such as size and colour, GTIN, etc
• Consider how you will post to the marketplace and manage listing in a
way that keeps you competitive
• Ensure you have a good process in place to manage your orders and
buyer needs
• Have the resources to deliver a good operating environment
41

42. What to avoid
• Breaching marketplaces policies – understand what is expected of you as
a seller
• Overselling or selling items you don’t have
• Dispatching outside of the stated handling time
• Poor customer service
• Not understanding the marketplace - managing multiple marketplaces in
multiple geographies comes with a host of regulations and requirements
as well as different buyer expectations.
42

43. To Sum Up
• Marketplaces offer you a great opportunity to expand your business – both
domestically and overseas
• Identify the best geographies and Marketplaces to list you particular products on &
evaluate what is involved and resources that are available to you
• Invest in the right technology and partners to help make this happen
• Use data to help you make the right decisions and strategy
• Obey the rules
• It doesn’t happen overnight, make sure you have a short, mid and long term plan
Copyright 2017 ChannelAdvisor | Confidential 43

44. Thank You!
Simon.clarkson@channeladvisor.com
1300 887 239
44Copyright 2017 ChannelAdvisor | Confidential