Helping Brands Succeed Online
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- Neal Black
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1 Helping Brands Succeed Online
2 Introduction This presentation describes our service range and pricing structure for Russian SMEs. All displayed service modules and pricing can be adjusted to a clients needs. Feel free to contact us regarding your specific requirements for Russian operations anytime: [email protected] 2
3 Full-Service-Ecommerce Solution allows brands to focus on their brand management. Out of One Box! Our proposal consists of certain modules. The combination of all proposed modules allows our clients to run an online store without any additional requirements. Enable clients to effortlessly benefit from the growing online market and to easily and cost effectively start selling online. Profitable and successful internet sales channel Turn key solution. 3
4 Pricing Services Service Modules Overview Services and Pricing Web Shop Design Development Hosting Maintenance New Feature Dev. Shop Management 4
5 Service Module: Web Shop Development Customized shop design for your brand Customer brand Individual design Individual photo concepts Customized layout Individual web shop design based on client s preferences! 5
6 Service Module: Web Shop Development Otto is an expert in fashion E-commerce Powerful brands with over 14 million transactions per year. 6
7 Service Module: Web Shop Development New features come with every release. They are FREE. Shop Suite All clients benefit from future feature releases. Client s specific feature requests can be performed as a special development project and should be paid for by the client. 7
8 Service Module: Web Shop Development Shop IT connects all relevant E-commerce actvities Performance Tracking Stock Reporting Order Reporting Reporting Web Shop Order Generation and Reporting Buyer Registration Content Production Product Description Product Photos/Videos SEO Optimization Transaction data processing Document processing Data transfer Accountin g ERP Product Management Stock Management Order Management Customer/Buyer Management Shop Management Marketing Database Marketing Campaigns Marketing Logistics Stock Management Order Processing Delivery Integration Returns Processing Order Management Call Center Management Customer Care Center Acquirer Management Partner Integration Transaction Monitoring Payment Systems Delivery Partner Order Tracking COD Payment Processing Insurance Processing 8
9 Service Module: Web Shop Development Low investement required to launch an Online shop Individual Proposal for Client Web Site Development The client has to pay only for the expenses for Graphic design & programming. We charge a flat fee for this service RUB (one time fee) Web Shop Hosting and Maintenance To launch an online shop with the features described in release version 1.0 OGR eservices needs 8 weeks. The exact start date can be planned once both sides agree generally on terms and conditions. All standard features are covered by the general service fee we charge for IT & Hosting. All standard functionality in future releases is already covered by our service fee. For example Product Listings, Wish List, Free-Text-Search etc. 3% (of Net-Sales) FREE All Non-Standard features like implementing individual business logic, mobile store applications etc. will be estimated by our IT department and the client will get an offer with a fixed price. Actually, we recommend to follow our general release plan which covers the requirements of the local market and is augmented periodically by the feature requests of our internal / external specialists! Nevertheless we are ready to develop & implement any individual feature on client s request. 9
10 Pricing Services Service Modules Overview Services and Pricing Web Shop Design Development Hosting Maintenance New Feature Dev. Shop Management Inbound Mgmt. Stock Mgmt. Order Processing Pick + Pack Delivery Returns Call Center Accounting Data Exch. RUB One time investment includes design specification and development, programming and hosting. 3% of Net AOV 10
11 Service Module: Operations Management m 2 of high efficiency fashion handling We send 15 million parcels to all regions per year. 11
12 Service Module: Operations Management Specialized distance selling operations E-Commerce logistics is different compared to the usual requirements of a retailer or distributer. The challenge is the management of a big number of small shipments. In addition, many sub processes like 3 rd party service providers have to be integrated and controlled. Our logistics provides the following services: Inbounding & Labeling: Items need to be labeled appropriately. Each item should be individually packed and barcoded. This can be performed by the supplier, or by OGR. Quality control: Random quality controls will be performed on delivered goods. Packaging Materials: Standard packaging included. If the client wants a personalized packaging the price will raise by the production expenses of the materials. Order-Processing: Includes the labeling per parcel and the registration and tracking of the delivery by the unique ID of the order (real time tracking is not possible due to technical capabilities of the delivery companies). Denial-Processing: According to our experience, approximately 16% of all shipped orders are denied, which means these orders are transported back to logistics. They are treated like an inbound but require more work because of unpacking and sorting of single products (non batch). Return-Processing: According to our experience, about 4% of all shipped orders are returned after the payment is done. Returns are getting the same procedure as denials but require more work because of renewing packaging, accounting documentation for pay back etc. The most powerful logistics in Russia! 12
13 Service Module: Operations Management Professional call center management State of the art infrastructure In-house training Professional Features include: 1. Availability: 7 days per week from 9 am to 9 pm (12 hours) 2. Unique shop phone number 3. Mail response within 24 hours Service Scope: General information about store. Support for order placement and customer account. Order tracking. Friendly staff Besides our standard service, we can offer a dedicated team, 24/7 service, product consultancy, order collection by phone etc. For an individual offer you should provide us with a description of the required features. 13
14 Service Module: Operations Management Accounting Data Management Our shop system runs standard with a data exchange interface for all common accounting systems (1C, SAP): Warehouse-Accounting & Data-Transfer This service provides all relevant accounting data due to documentation requirements of product movement and the transfer of all raw data (orders, returns, etc.) to the client. Accounting runs entirely on the client s side. optimal data exchange 14
15 Service Module: Operations Management No-risk pricing. Only a percentage of Net AOV. Cost for Operations Management eservices charges clients a flat fee based on a client s Net Order Volume. Net Order Volume is calculated: -Total Orders (Demand) -Returned Orders -Denied Orders (Postal Returns) -VAT Precise percentage value needs to be calculated based on each client s actual and expected Net AOVs. 15
16 Service Module: Operations Management etraction works with all leading delivery companies at best prices and services. Условия доставки До ближайшего отделения связи Курьером по указанному адресу, лично в руки Курьером по указанному адресу, лично в руки Курьером по указанному адресу, лично в руки Постоматы (ПВЗ) Курьером по указанному адресу, лично в руки Пункты выдачи заказов Москва RUB RUB RUB RUB RUB RUB RUB СПб RUB RUB RUB RUB RUB Зона 1 RUB RUB RUB RUB RUB Зона 2 RUB RUB RUB RUB RUB Зона 3 RUB RUB RUB RUB Зона 4 RUB RUB RUB RUB Зона 5 RUB RUB RUB ПВЗ - RUB RUB Стоимость доставки при возврате Москва (@ 20% возврата) 50% от тарифа 30% от тарифа RUB % от тарифа тариф на доставку RUB RUB RUB RUB RUB RUB \3 от тарифа Страховка нет ограничений 1.2% до руб заказ 0,25% до страхование РПО по желанию, свыше обязательное. 0,5% Включена в агентский тариф Включена в агентский тариф Стоимость Агентских услуг 2,2% 3,5% 3,5% 2,5% 1,5% 3% 16
17 Service Module: Operations Management etraction works with leading electronic payment providers. 17
18 Pricing Services Service Modules Overview Services and Pricing Web Shop Design Development Hosting Maintenance New Feature Dev. Shop Management Inbound Mgmt. Stock Mgmt. Order Processing Pick + Pack Delivery Returns Call Center Accounting Data Ex. Product Photos Product Descriptions RUB One time investment includes design specification and development, programming and hosting. 3% of Net AOV XX% of Net AOV Final commission will depend on the estimation of average Net Order Value of client s project. 3 rd party costs are not included: Delivery COD fees 18
19 Service Module: Content Production Product photo development and management eservices manages 2 fully equipped photo studios, but also works with external service providers. We offer object and model shootings. Model shootings are of course a bit more cost extensive. Photo production may include: Preparation of photo rulebook Photo shooting of multiple photos per item 360 degree photos for rotation Video presentation Photo/Video editing (in Photoshop) Photo uploading to product database Photo Session Photo Retouching In addition, we offer photo editing services for existing pictures. This service makes it possible to use pictures with imperfect sizes, backgrounds, etc. in the online store without having to shoot them again. Photo Rulebook The price for Photo Production will be provided in a separate document after discussing client s specific production requirements. 19
20 Service Module: Content Production Product descriptions should support SEO Marketing efforts Our standard service includes: Article Short Description Long Description Material information Feature description on hardline products. During the project phase we will create together with the client a standardized content definition per product category. Big tables of technical features (required for example for consumer electronics products might raise the price). The price for Text Production will be provided in a separate document after discussing client s specific production requirements. 20
21 Pricing Services Service Modules Overview Services and Pricing Web Shop Design Development Hosting Maintenance New Feature Dev. Shop Management Inbound Mgmt. Stock Mgmt. Order Processing Pick + Pack Delivery Returns Call Center Accounting Data Ex. Product Photos Product Descriptions Online Marketing RUB One time investment includes design specification and development, programming and hosting. 3% of Net AOV XX% of Net AOV Final commission will depend on the estimation of average Net Order Value of client s project. 3 rd party costs are not included: Delivery COD fees Content: per item fee Pricing can only be provided once content requirements have been specified. 21
22 Service Module: Marketing Services Even the best brands need customers Marketing: Introduction It s all about Traffic Marketing determines your level of traffic. Even the best designed store will not generate sales if no one can find it. Recommended Marketing activities after launch: Search Engine Optimisation (SEO): SEO helps improve your search engine ranking on the un-paid result page. The un-paid results have more trust and therefore provide better conversion. Search Engine Marketing (SEM): SEM means buying advertising places on Google and Yandex. These places are regulated by auctioned keywords. SEM is today one of the most powerful tools to drive traffic. Banner & Affiliate: Finally, the first and most common tool in online marketing. The secret of success is to target your customers by gender, age or interest. eservice charges 10% fee on monthly marketing spending. (Standard Agency Fee). Client is free to work with any Marketing agency. 22
23 Pricing Services Service Modules Overview Services and Pricing Web Shop Design Development Hosting Maintenance New Feature Dev. Shop Management Inbound Mgmt. Stock Mgmt. Order Processing Pick + Pack Delivery Returns Call Center Accounting Date Ex. Product Photos Product Descriptions Online Marketing RUB One time investment includes design specification, design development and hosting. 3% of Net AOV XX% of Net AOV Final commission will depend on the estimation of average Net Order Value of client s project. 3 rd party costs are not included: Delivery COD fees Content: per item fee Pricing can only be provided once content requirements have been specified. Marketing: commission 10% agency fee is charged on the basis of monthly marketing spending. 23
24 Service Module: Web Shop Development We invest in you, so you can focus on success. RUB One time investment Systems Shop Backend Logistics Management Delivery + Payments Monitoring and Reporting Call Center Expert Staff Warehousing Shop Management Operations Management Call Center Staff Accounting Infrastructure Warehousing Warehousing Tech Call Center Supplies Value of all systems, infrastructure and expert staff for the first 3 years is equal to: RUB
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