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SingleShop, Inc. Executive Summary
Confidential
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SingleShop provides a next-generation e-commerce platform for content and destination sites that allows them to quickly monetize their traffic, increase customer satisfaction and stickiness, and maintain direct ownership of the customer relationship. The platform has three configurations: (1) an embedded eshopping service with a pre-screened merchant network (see graphic below); (2) a contextual commerce service that enables buying opportunities to be embedded directly into content; and (3) a private-labeled marketplace service that enables web site aggregators such as hosting providers and domain registrars to build a shopping environment which features their merchant customers. All three configurations enable buyers at a site to search for, compare, and purchase products from multiple retailers at a single location, with a single checkout. The company delivers the service as an outsourced, fully-managed, end-to-end solution, including management of merchant relationships, content, transaction processing, customer service and all necessary back-end infrastructure, translating into lower investment for destination sites.
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The SingleShop platform enables buyers at a destination, content or community site to search for, compare, and purchase products from multiple retailers with one checkout, without leaving the site. Since launching the beta embedded e-shopping service in July, SingleShop has signed seven clients, five of which are live. Additionally, the company has verbal commitments or is in late-stage negotiations with 13 prospects and has over 100 strong prospects in the sales funnel. A full release of the embedded eshopping service launched on September 1, 2000. The pre-screened merchant network includes formal agreements with over 60 of the web's leading retailers. SingleShop's VAR program was initiated in August, and has already resulted in two solution integration agreements (i.e. List Integration and iSawix) for embedded e-shopping and context commerce services. SingleShop is also in negotiations with several Tier 1 hosting companies and domain registrars to deliver private-labeled marketplaces that will incorporate their merchant customers. Proprietary & Confidential 2 of 4
500
HUNTMAR PHONE:
PARK DRIVE 703.234.1700
° HERNDON • FAX:
/ VA
• 20170
703.234.1701
singteshop Target Market
To date, SingleShop has focused its direct sales efforts on selling its embedded e-shopping and context commerce services to the more than 3,000 sites with over 110,000 unique monthly visitors. SingleShop will compliment these efforts by pursuing indirect channel partnerships with hosting providers and solution integrators to target the eight million mass-market sites (less than 110,000 unique monthly visitors) with the entire suite of SingleShop's services.
Business Model
The business model includes a set-up fee that ranges from $10,000 - $20,000 and a monthly rental fee that ranges from $3,000 to $15,000, depending on number of unique monthly visitors Key features of the SingleShop service include ShopKeeper sin, a Web-based tool that enables destination sites to deploy and reconfigure their e-shopping sites quickly and efficiently. ShopKeeper's functionality greatly reduces product deployment costs and time, allowing sites to launch their commerce initiatives within days and to perform ongoing maintenance via web-based, self-service tools. SingleShop also offers enhanced reporting, end-user customer support, and advanced content and merchandising tools to enhance 'look to buy' conversion rates.
Market Trends
SingleShop is positioned at the center of several important market trends, including the growing number of people online, the number of online buyers, the diminishing impact of merchant brands, the competitive nature of Internet pricing, and the growing link between contextual commerce opportunities and higher conversion rates. The addressable market for SingleShop's services is projected to be $10.8 billion in 2003, which includes three major components: (1) the application services market for e-commerce applications which will grow to $4.7 billion in 2003; (2) commissions on e-tail transactions, projected to be $1.3 billion in 2003; and (3) the market for e-commerce services such as customer support, content management and data mining, which will grow to $4.8 billion in 2003. (Source: Forrester Research)
Technologies/Special Know-How
SingleShop has designed a scaleable, stable platform leveraging the strengths of JAVA, Oracle, Sun Microsystems and UNIX. The SingleOrdel _m transaction engine incorporates unique domain expertise (billing, reconciliation, shipping calculation) within our patent-pending architecture (agent programming, XML merchant interfacing, asynchronous transaction processing). In addition to the current fixed-priced retail model, SingleShop's platform can be extended to offer a wide range of e-commerce services. Planned product expansion includes integration with third-party dynamic pricing (e.g. auctions, group buying) and bundled consumer services (e.g. bill pay, online brokerages). A third party review of the company's technology was completed in August 2000 and is available upon request.
Proprietary & Confidential
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500 HUNTMAR PARK DRIVE • HERNDON / VA • 20170 PHONE: 703.234.1700 - FAX: 703.234.1701
sing[eshop
Financial Overview
SingleShop received its initial funding in July 1999 from an investor group led by Draper Atlantic. In December 1999 the company raised additional financing from an investor group led by the Columbia Capital Corporation. SingleShop began generating revenue in the third quarter of 2000 and projects that revenues will be driven by growth in its target markets and the broadening of its product line. The company expects to become profitable in the third quarter of 2001.
FY00-03 Forecast
FY 00
FY 01
FY 02
FY 03
Revenue
$0.32M
$6.63M
$18.49M
$31.17M
Gross Profit (Loss) % margin
($.95M) N/A
$4.80M 72%
$14.16M 77%
$24.94M 80%
Operating Income (Loss) % margin
($10.77M) N/A
($0.43M) N/A
$5.33M 29%
$12.05M 38%
The company is seeking to raise $5-10 million. The capital will be used to build sales and support organizations, to support commercial rollout of the SingleShop platform, and to continue product expansion. Competition SingleShop is the first company to market with a multi-vendor, end-to-end solution (search, compare, universal cart, single checkout, CRM, hosting). Current product substitutes and potential market entrants include e-commerce engines (Inktomi), comparison sites/universal carts (RedCart, Snaz) and privatelabeled shopping services (Escalate, iVendor, Cross Commerce). The e-shopping service provider market is rapidly growing but highly fragmented. No company currently owns more than 1% share and no dominant player is emerging on the horizon.
Based in Herndon, Virginia, SingleShop (www.singleshop.com)
employs 35 full time persons.
Proprietary & Confidential
4 of 4
500
HUNTMAR PHONE:
PARK DRIVE 703.234.1700
• HERNDON • FAX:
/ VA
• 20170
703.234.1701