The Changing Face of ecommerce: From Growth Opportunity to Business Necessity.

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1 The Changing Face of ecommerce: From Growth Opportunity to Business Necessity. Increasing mobility and changing online shopping practices are creating shifts in the role ecommerce plays in overall retail operations. Are your ecommerce strategies in line with today s online shopping trends? Introduction: the mainstreaming of ecommerce Payment processing that builds business Strengthen ecommerce through security How ecommerce opens the door to more targeted marketing... 4 Preparing for an ecommerce future Summary: The importance of an integrated ecommerce solution

2 the changing face of ecommerce: from growth opportunity to business necessity 2 Introduction: the mainstreaming of ecommerce Few people remember, or have ever heard of the online retailer, NetMarket. Yet on August 11, 1994, the Nashua, New Hampshire-based company conducted the first secure retail transaction on the web. According to its founders, a Sting CD was the first item purchased via a website protected by commercially available data encryption technology. 1 Almost 20 years later, ecommerce has not just flourished; it is a necessary component to most business models. The U.S. Census Bureau ( U.S. Census Bureau News, published by the U.S. Department of Commerce, February 16, 2012) reports that retail ecommerce sales for the fourth quarter of 2011 were $51.4 billion, representing 4.8% of total retail sales. Forrester projects that online retail sales in the U.S. will grow to $197.3 billion by the end of 2011, an almost 12% increase from the $176.2 billion reported in 2010 (as reported in Online sales will average 10% growth over next five years. Online Retailer. January 26, 2011). During the first two decades of ecommerce, most business models were based on the assumption that ecommerce was a substitute for brick-and mortar retail. While for some shoppers and categories that is true, the next phase of ecommerce innovation is the idea that there is a strong integration between online and offline shopping. Consumers are using online tools to compare pricing, research functionality, and secure discounts such as Groupon, only to make the final purchase in-store. Or, they may do all the shopping online, even order it online, but choose to pick it up in a store rather than paying for shipping or waiting several days to get the merchandise. As shown in the chart on this page which is based on data published by RetailNet Group (as reported in Why Online-to- Offline Integration is the Next Wave of E-Commerce Innovation. Connected. August 8, 2011) consumers are making a clear shift from traditional retail shopping to an integrated approach that combines digital technologies with the physical environment. The web browser will be only one of many touchpoints that merchants will need to support in order to maximize transactions with customers. Already, an average of two percent of ecommerce revenue is coming from smartphones such as the iphone and Android powered devices, according to a report from Forrester. 2 In addition, mobile is only one of many established and emerging touchpoints that leverages the ecommerce system. Already today, we see call center applications and in-store kiosks powered by the ecommerce system, as well as ecommerce tablet applications, such as those on the ipad, in stores or in the hands of direct salespeople working with customers. Tomorrow, we will see emerging customer experiences such as in-car navigation, home appliances and many other items connected to the web open up future commerce opportunities. These trends are not strictly confined to retail sales; they are also playing an important role in B2B sales. For example, a large auto parts company recently capitalized on mobile technology to streamline ordering and payment options for its independent operators. Before, when an auto care center mechanic needed to place an order, he or she would go to one computer to check 1 Gilbert, Alorie. CNET News. ECommerce turns 10. August Walker, Brian. Forrester. What Every Exec Needs to Know About the Future of ecommerce Technology. August 27, inventory and confirm part numbers, then go to another computer across the store to ring up the sale and put it on their account. Today, the same process can all be done using an ipad. Without ever leaving the garage, the mechanic can access inventory, process charges and run an efficient business. There is no question that ecommerce is here to stay as an integral component to a successful retail sales strategy. However, we are in a highly transformative time as changing customer expectations, commerce capabilities and technology evolve rapidly. Initiatives that seemed like science fiction just a few short years ago, such as mobile commerce, app stores or shopping on Facebook, are now realities that are shaping what merchants need to do to keep their ecommerce initiatives current and competitive. As the ecommerce marketplace continues to evolve, it is critical for merchants to make the right choices in technology and operational capabilities. This paper looks at the latest developments and key elements that are important to any ecommerce solution, including payments, security and marketing. Shifting patterns in retail sales Digital only 7% Digital influenced 30% Traditional retail 63% Digital only 21% Digital influenced 65% Traditional retail 14% Payment processing that builds business The internet is the great equalizer. Online, the smallest retailer can compete with big box merchants using sophisticated tools and promotions. Consumers have more access points than ever before, demanding convenience, choice and variety in their shopping experiences. In order to help meet these customer demands, retailers are turning their attention to a frequently overlooked component of ecommerce: payment processing. Enhancing payment strategies is a smart way to boost online services, open new markets, and protect the bottom line. Here are some strategies that merchants can use to reinvigorate their ecommerce channel. Strategy 1: Offer consumers more ways to pay Payment options can be a key factor in the decision to purchase online. Traditional credit cards and debit cards are the two primary ways online shoppers pay for purchases. However, Javelin research (Javelin Strategy & Research. Online Retail Payments Forecast February, 2010) shows that online payments other than debit or credit cards (e.g., PayPal, Bill Me Later, prepaid cards and gift cards) are expected to grow to 30 percent of purchase volume by 2014, making it critical for merchants to enhance their online payment options in order to take advantage of this consumer trend.

3 the changing face of ecommerce: from growth opportunity to business necessity 3 Strategy 2: Engender confidence with iron-clad security A study conducted by Javelin Research (Javelin Strategy & Research. Consumer Online Shopping Fears. Published by First Data 2009) found that when consumers are victims of fraud, they place most of the blame on the merchant. As a result, victims become much more timid in their online shopping habits and may also avoid merchants who have experienced data breaches or have any perceived security weaknesses. The same Javelin research reveals that nearly nine percent of online sales are lost annually due to consumers security concerns. Gain consumers confidence by employing fraud prevention measures that minimize losses while maintaining a smooth shopping experience and limiting the rejection of legitimate transactions. Integrated, holistic approaches to fraud management takes into account all major types and avenues of fraud. Your payment processor, your order management system provider and your security management expert all need to work together to ensure the security of consumer payment information. You can read more about security in the next section. Strategy 3: Expand into international markets Over the past decade, the world has increasingly become a global marketplace. With the proliferation of inexpensive computers and internet connectivity, consumers around the globe have access to products that in the past would have been available only locally or regionally, or possibly not at all. According to a 2010 survey of U.S. online merchants by Internet Retailer ( Web retailers are reaping overseas sales without actively pursuing them. Internet Retailer. April, 2010), threefourths of respondents sell merchandise internationally. However, this same survey shows that U.S. online merchants are doing little to actively encourage orders from consumers outside the domestic market. What can retailers do to encourage international purchases at their online stores? The Internet Retailer survey provides some insights. Respondents were asked to select the major challenges of selling to a global online marketplace. The top six responses were: Customer service and returns (41 percent) Fraud management (38 percent) Legal and regulatory concerns (32 percent) Ability of customers to see the final cost in local currency (30 percent) Language translation (24 percent) Payment type preferences (22 percent) Interestingly, four of the top six issues are all payment related, making payment acceptance a critical factor in building a more favorable consumer experience. Merchants can attract and retain international customers by addressing these issues with tools such as currency conversion displays that show the exchange rate at checkout and give international shoppers the option to lock in the sale amount in a home currency, or global pricing catalogs that present items in the shopper s local currency throughout the site. What is a payment gateway? When a customer has checked out through an online shopping cart, the purchase needs to be verified for payment to the merchant. The merchant s payment gateway is what essentially routes, verifies, processes and accepts (or declines) the payment on behalf of the merchant over secure and encrypted internet connections. When choosing a payment gateway service provider, be sure to select one that accepts flexible payment options, including credit cards, gift cards and alternate payments such as PayPal and Bill Me Later. In addition, the payment gateway provider should have top-notch security and fraud prevention tools along with management tools so you can monitor and control payments yourself. Always verify a service provider s reputation and check for Payment Card Industry Data Security Standards (PCI DSS) compliance. In addition, using a payment processor that allows merchants to consolidate their card processing to a single provider minimizes the effort required to establish a payment presence in local countries. This way, merchants can take advantage of the internet to open new markets, while being freed of the specialized and complex burdens of international payment processing. Strategy 4: Capitalize on detailed transaction reporting One important advantage that online businesses have over traditional brick-and-mortar stores is the ability to collect detailed information about what customers do when they visit the website. Online merchants can see which products individuals purchased, as well as what pages they visited, how long they stayed, and how often they abandon shopping carts. This type of information is invaluable in designing websites and marketing strategies. Merchants also can analyze shopping patterns and payment data to personalize marketing to certain customers, down to the individual shopper. There is a tremendous amount of information contained in each purchase transaction, from preferred payment types to customer spending patterns to promotional effectiveness. Each piece of data can be further broken down by geography, demography, order size or associated products. Combined with the power of payment processor reporting tools and analytics, merchants can conduct sophisticated analysis to gain answers to important business questions. As the ecommerce channel continues to evolve, merchants must find innovative ways to make their online business drive future growth. By implementing the payment-related strategies reviewed here, merchants can create new opportunities for ecommerce to play a significant role in achieving growth and profitability goals.

4 the changing face of ecommerce: from growth opportunity to business necessity 4 Strengthen ecommerce through security It s unfortunate, but online fraud collectively costs merchants billions of dollars each year, and it is not going away. A recent Internet Retailer survey ( Fraud rates increase for 24% of web retailers over the past year. Internet Retailer. August 25, 2011) shows that 24% of respondents say that fraud rates for online transactions have increased over the past year. Meanwhile, fraud rates have stayed the same for 63% of respondents; just 12% say fraud rates have decreased. Further, just as merchants find ways to bolster protection in one area, criminals soon find new weak spots, triggering another round of costly fraud and detection measures. Operating a secure online store is challenging, to say the least. Yet, by minimizing losses due to fraud and using security to build business through customer confidence, merchants can increase the profitability of their ecommerce initiatives. So what can you do to improve security and cut fraud losses? Fraud detection at checkout High-level fraud protection means more than just obtaining an authorization from a card association. Shoppers overall purchase habits and shopping patterns can and should be regularly examined for abnormalities. That s why the leading payment processors offer comprehensive solutions that detect fraud even before cardholders report their cards have been lost, stolen or compromised. For most internet retailers, in-house development of fraud management solutions is not practical. Your payment processor should be able to offer you robust fraud detection capabilities that include an array of anti-fraud tools: Automated, out-of-wallet challenge/response questions that can authenticate a shopper s identity Tools that monitor website behavior and detect abnormal usage patterns Customizable filters that automatically screen for transactions that fail certain defined parameters and flag them for special attention Geolocation tracking that uses a shopper s IP address to identify from which country an online order originated Device fingerprinting tools that identify the PC or mobile device interacting with your site and placing orders Tools that enable you to set parameters and monitor velocity of critical transaction data, including card number bill to/ship to address, , phone number, IP address, device ID and even product SKUs Protect transactions with tokenization In recent years, merchants have been required to follow the PCI DSS guidelines to help reduce the risk of loss or theft of sensitive cardholder data. Yet vulnerabilities still exist, and if determined to be out of compliance with PCI DSS rules, merchants pay the price. Among other things, they can be charged higher processing fees, fined or even have their transaction rights suspended. PCI DSS compliance practices vary in stringency, and it can become complex to track all of the requirements. A merchant can reduce the scope of PCI DSS compliance simply by eliminating on-site cardholder data storage. Sophisticated technology is now available to help merchants securely keep payment card data isolated while allowing access when needed. For example, tokenization eliminates the need for merchants to store card data at all. Tokenization changes consumers payment card information into randomized codes, so that even if criminals steal the data, they can t use it to commit fraud. Implementation can be simple even seamless in many cases if the tokenization provider had designed its solutions around merchants common needs. Ideally, the tokenization provider should deliver a solution that minimizes the impact on a merchant s existing environment by offering the following services: Data discovery Legacy data conversion Token composition and format Business rules modifications Encryption process A comprehensive approach to risk management can reduce your costs of fraud and compliance while at the same time strengthening customer confidence and loyalty. Leading payment processors use a variety of best practices to aid in both fraud detection and PCI DSS compliance. Look to your payment processor to deliver fully integrated solutions that work seamlessly with your transaction processing system. How ecommerce opens the door to more targeted marketing There is no doubt that consumers use online media when researching products or services. In fact, a recent study shows that 97 percent of consumers use online media before making a trip to the store. The RetailNet Group (RNG) calls this trip capture, and says that the online-to-offline integration is the next wave of ecommerce innovation. 3 RNG also reports that mobile devices such as smart phones and tablets will play an integral part in this shift of shopping habits. Industry statistics 4 show that consumers are relying more and more on their smartphones to perform traditional shopping tasks : 67 percent will use their smartphones to find store locations 59 percent will use them to compare prices 51 percent to obtain product information 46 percent to check product availability 45 percent to read reviews 41 percent to find coupons 35 percent to access social media 3 BIA/Kelsey and ConStat. User View Wave VII. March 10, Deloitte s 2011 Annual Holiday Survey.

5 the changing face of ecommerce: from growth opportunity to business necessity 5 Mobility connects shoppers on the go and in the store in powerful new ways It is not unusual today to see consumers whip out their iphones to do some comparison-shopping while they are in the store. They can compare brands within a store (one printer brand is offering a $200 rebate, while another includes a free toner cartridge); or they can see what the price is for the same merchandise at competitors that are 5, 10 or 20 miles away. There are a number of barcode reading smartphone applications that allow consumers to look up a product by scanning it or typing in the bar code. These apps then return a list of prices for the same item at nearby stores or through online retailers. Then they can make the decision if it s worth the extra drive time to save a little or possibly a lot. Further, shoppers can quickly access social media and review sites to find out what others have to say about certain products or brands. Unfortunately, while mobile shopping is connecting merchants and consumers, it also is breaking down the walls of traditional brick-and-mortar stores by giving consumers the ability to easily find a cheaper price in a store down the street. Retailers can overcome this competition with targeted ecommerce marketing strategies. As location-based shopping applications, such as daily deals and providers offering locationspecific promotions, gain in popularity, there will be increased experimentation with in-store marketing efforts enabled by ecommerce platforms. Consumers will be encouraged to load applications that tie to store beacons via free Wi-Fi or their cell networks. These applications will detect their location in the store and tie to their cross-channel purchases and browser histories, shopping lists, social networks and marketing response to deliver highly targeted and personalized coupons, offers and even pricing, all while helping the customers to navigate to the products. The value of trackable coupons and incentives Many mobile users want retailers to reach out to them by sending store loyalty coupons and messages directly to their devices. Yet while consumers say they want coupons, a survey of U.S. mobile phone users reveals that more than half of mobile phone users claim never to have seen an advertisement on their phone. The same survey revealed that of the many ways consumers use their phones, sending and receiving text messages is at the very top of the list, but receiving coupons and promotions is at the bottom. 5 These findings are likely due to the fact that many retailers have yet to adopt mobile marketing as a core component of their strategy. One reason for this is that until now, there have not been any methods for reliably tracking the effectiveness of these types of promotions. As with all advertising investments, marketers need a gauge for measuring mobile marketing success. There is also the issue of control: most retailers do not want an incentive to be in circulation indefinitely, with potentially unlimited use by customers. Fortunately for merchants and marketers, there is a new type of mobile coupon now in use that addresses the issue of coupon accountability. In fact, it does significantly more it provides How mobile voucher coupons work Consumer request a mobile voucher coupon through a banner ad, short code or loyalty program, or receives a voucher as a special promotion. The voucher coupon comes with a unique code. Consumer visits merchant and purchases an item. Cashier enters voucher coupon code or scans barcode from the consumer s phone. The coupon is validated during the transaction process. Once approved, the voucher coupon can be expired or used later to send additional promotions. far greater control and analytical capability than traditional paper coupons or interactive online advertising. A new kind of mobile coupon based on a mobile voucher couponing system makes this possible. In this type of system, each and every voucher is treated as an account something like a gift card with a unique coupon number. This unique voucher can be tracked from origination through redemption. This mobile voucher approach allows for a complete view of individual consumer behavior and detailed aggregate program data. Using mobile vouchers, marketers can solve previously uncontrollable budget issues and easily track results. For example, a consumer using his or her smart phone to browse a website might see a banner ad featuring their favorite coffee shop that says, Come into our store and get $5 off your next purchase. The customer clicks on the banner, enters a mobile phone number and receives the coupon via a text message. In an uncontrolled model, that consumer could forward the coupon to unlimited people and use it over and over until it expired. However, if the coupon is a mobile voucher, it is issued with a unique number. Every consumer who receives a mobile voucher actually receives a unique coupon. When they present it at the point of sale, their coupon is redeemed and marked as used on the backend database as part of the transaction process, and that coupon cannot be used again. Even if someone else tries to use the coupon on a different device, the coupon would no longer work. 5 Pugh, Matthew. Mobile Marketing Survey: Adoption of Mobile Marketing Slow for Lack of ROI and Implementation Know-How. R2integratored, 2010.

6 the changing face of ecommerce: from growth opportunity to business necessity 6 Targeted promotions that increase activity With the right kind of customer data, advertisements or special promotions can be highly targeted and customized in a way that maximizes the possibility of influencing a buying decision. It also means mobile marketing provides opportunities for new ways of communication that are less like advertising barrages and more like conversations. Here are some examples: Promoting a new store opening A large retail chain is opening a new store near an older one it is closing. It knows that when a store location moves, it loses a predictable percentage of its regular customers. The goal of this campaign is to build awareness of the new store and minimize loss of existing customers. The strategy consists of an advertising campaign across a variety of media, and the heart of the incentive campaign is a simple voucher coupon offering a $10 discount on any purchase made in the new store location during its opening week. The campaign targets residents of zip codes within a specified radius of both stores as well as a list of shoppers who visited the old store location in the past six months. The retailer tracks all coupons accepted and redeemed by customers. It is able to determine the comparative effectiveness of the different media for coupon distribution. It can also track which voucher distribution channel resulted in the highest redemption rate. Additionally, it tracks how many customers in the old neighborhood redeemed coupons at the new store. Not only does the campaign collect useful data about customer behaviors related to the new store opening; it proves to be very effective in driving business to and awareness of the new location and furthermore, the marketing team is able to predict the cost of the campaign upfront, with a high degree of accuracy. Building customer loyalty A pizza chain knows that if it can entice a new customer into its stores three times, that customer will continue ordering its pizzas thereafter. The chain decides to run a major campaign to gain more market share in a large urban region. The campaign features a multi-coupon mobile voucher campaign targeting an 18- to 28-year-old customer demographic. The set of coupons distributed to each recipient is designed for three redemptions within an eight-week period. The promotion is deployed by distributing one $6 voucher to each recipient. If that voucher is redeemed by a specific date, the second voucher is delivered; once the second voucher is used, a third voucher is sent to the recipient. In addition to capturing information about how the vouchers are picked up by customers, the pizza chain is able to send message-based reminders to customers whose coupons have not been redeemed. The pizza chain is able to decide when the campaign will end, at which point all outstanding vouchers are turned off. Building customer lists with coupon registration A specialty retailer seeks to augment its existing customer list in preparation for a targeted marketing campaign later in the year. The retailer decides to offer a mobile voucher via mobile web banners, but customers need to register with a few pieces of basic information to receive the coupon. This endeavor enables the retailer to cost-effectively enhance its customer list. By tracking how and where the vouchers are redeemed, it is also able to make some additional refinements to a large-scale follow-up campaign later in the year. Essential emarketing capabilities emarketing capabilities such as mobile vouchers let merchants close the loop on mobile marketing starting with where customers first see an ad and ending with redemption at the point of sale. With meaningful data, marketers can more effectively influence consumer behavior and more accurately measure the return on a campaign. Mobile vouchers not only make mobile marketing campaigns more measurable, they also provide a vehicle for launching highly varied and flexible campaigns. Merchants should look to their ecommerce service provider to support essential tools such as mobile vouchers and other emarketing capabilities, like those listed below, that enhance ecommerce marketing strategies. egifting. An egift, also known as an item-level gift, is a voucher for an item that an individual sends electronically to anyone else a family member, a friend or a colleague. The gift is sent through or a message on a social networking site. The recipient typically receives the egift as a code or electronic voucher, and then redeems it in person at a retail location. An egift might be a food item (a sandwich, an ice cream cone, or a latte), an event (a movie or museum ticket) or something that exists in digital form (a song, mobile app or an ebook). It can also be something more substantial, like a meal at a restaurant or an airline ticket. echecks. An often-overlooked payment option, the transaction processing fees for fully warranted echecks, are typically less than comparable credit card processing expenses, which include interchange fees, charge-offs and fraud prevention services. So what are the overall potential bottom-line impacts that could accrue from adding the echeck option? Online merchants can expect a sales increase of 1.5 percent to 4 percent. 6 In addition, for the portion of existing sales converted from bank card payments to echeck payments, the merchant can potentially save money on processing fees, depending on its average interchange rate and the terms of its echeck acceptance service agreement. Prepaid mobile-enabled programs. Prepaid mobile payments allow consumers to make purchases using fobs, stickers, wristbands or other items that are linked to a prepaid account. One of the greatest advantages of mobile payments is flexibility: issuers can turn virtually anything into a prepaid mobile payment method. 6 CyberSource, Insider s Guide to epayment Management, 2008.

7 the changing face of ecommerce: from growth opportunity to business necessity 7 Preparing for an ecommerce future The future of ecommerce is not as a standalone channel, but one of many working together to deliver content and capabilities to the customer to maximize business opportunities. As ecommerce continues to mature, merchants have the opportunity to take advantage of new technologies that will help them meet the growing demand of the mobile and social revolution. By investing in and adopting emerging technologies that enable commerce across channels, merchants can attract customers who are ready to interact in new, tech-savvy ways. Here are some emerging technologies that will become as integral to ecommerce capabilities in the future as online shopping carts are today. Mobile wallets Mobile wallet applications are readily available from popular app stores, and some financial institutions offer mobile wallets to their customers for use in managing their credit, debit and prepaid accounts. Many mobile wallet applications also have a coupons container. This feature enables consumers to store, locate and manage their coupons. The mobile voucher lets merchants control the lifecycle of coupons in the ewallet, enables users to view their coupon balances and makes it possible to build coupon alerts into the wallet. Merchant-specific mobile applications. Most well-known merchant brands have their own branded mobile apps available for download by their customers. When a consumer downloads a branded mobile application, she is doing so because she wants to be aware of products and promotions offered by that merchant. Through these mobile applications, customers can register with their favorite merchants. Consumers monitor the merchant apps for particular products or offers that interest them. Eventually, merchant apps and mobile wallets will connect so that customers can initiate a purchase even if they are not in the store, and then pick up their paid-for items later. Time- and location-based strategies Mobile marketers will one day be able to implement locationbased services that use GPS to send coupons and promotional messages depending on where a customer is located and the time of day. For example, a fast food chain could send a timeand location-triggered promotion to a customer who happens to be in the right place (near a particular store) at the right time (lunchtime). Mobile voucher technology would enable marketers to measure the effectiveness of these kinds of campaigns with a high degree of accuracy. Cameras in mobile devices working as barcode scanners Applications are readily available now that enable consumers to take a picture of a barcode and then receive price comparisons for that product at stores within a specified radius. This same barcode scanning capability is another way marketers can distribute vouchers to customers. Print advertising or billboard ads could have a scannable barcode that when photographed by a customer would be recognized by the mobile merchant application which would immediately download and register the voucher to that customer. Near field communications Several phone manufacturers are beginning to equip smartphones with near field communication (NFC) technologies that enable very short distance communication between mobile devices and other items equipped with NFC chips. This will be used for contactless payment at the checkout. Customers will complete a purchase by simply waving their phone near NFCequipped point-of-sale equipment. Enhanced predictive analytics Many mobile marketing strategies enable merchants to collect granular data about the effectiveness of campaigns and gain a broader and deeper view of customer behavior. This new generation of predictive analytics and real-time behavior modeling allows merchants to design and successfully run programs with very specific marketing and sales objectives. Merchants will also be able to more accurately forecast the effects of economic changes on their customers behavior, and more quickly execute marketing campaigns designed to respond to those changes. Summary: The importance of an integrated ecommerce solution While ecommerce has been around for almost 20 years, in many ways it is still in its infancy. In most countries, ecommerce still represents less than 10 percent of all retail. And yet today, we see a very clear shift from ecommerce as a standalone entity, to an ecommerce model that is integral to retail operations, one that is increasingly globalized, and one that supports a more targeted, intimate conversation with customers. As the ecommerce channel continues to grow and evolve, merchants need to find innovative ways to make their online business an important driver of future growth. These strategies include: Enhancing payment platform capabilities essential to strong ecommerce payment solutions, such as offering a wide selection of payment types, having iron-clad security, including global payment options and accessing detailed transaction reporting Preventing fraud and protecting transactions in order to minimize losses, and bolstering consumer confidence to increase sales and profits Using targeted marketing strategies, such as mobile vouchers and other mobile marketing solutions, to capitalize on the social and mobile revolution to attract and retain new customers Preparing for the future by identifying emerging technologies that are shaping the next decade of ecommerce In implementing these strategies, merchants will set the stage for ecommerce to make the transition from sideshow to a profitable component of retail operations that is integral to the success of the business. For more information about how to build an ecommerce strategy that is integral to your business, contact Bank of America Merchant Services. The information in this document does not constitute legal advice and does not create any attorney-client relationship. The information provided may not apply to your business, should not be treated as legal advice, and should not be acted upon without specific advice from your legal counsel based on the facts and circumstances of your particular situation. Bank of America Merchant Services makes no representations or warranties as to the accuracy or completeness of this information Banc of America Merchant Services, LLC. All rights reserved. All trademarks, service marks and trade names referenced in this material are the property of and licensed by their respective owners. Merchant Services are provided by Bank of America, N.A. and its representative Banc of America Merchant Services, LLC. 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