ONLINE ORDERS FULFILLED BY DISTRIBUTION. Shopatron Online Order Management: Using Distribution Partners in Fulfillment



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ONLINE ORDERS FULFILLED BY DISTRIBUTION Shopatron Online Order Management: Using Distribution Partners in Fulfillment

MULTIPLE-TIER DISTRIBUTION The #1 ecommerce Solution for Distributed Manufacturers Shopatron is the only solution in the world that enables you to sell more both online AND in stores. Flexible ecommerce Retailer order fulfillment Ship from Distributor(s) Ship-from-store In-store pickup Payment processing Fraud management Consumer order support Online and affiliate marketing Multi-country and currency Proven Capabilities 40+ Industries 1,000+ Manufacturers 20,000+ Retailers Millions of Items Fulfilled

MULTIPLE-TIER DISTRIBUTION Shopatron History Founded in 2001 HQ in San Luis Obispo, CA Offices in United Kingdom Privately Held >30% Annual Growth 200+ Employees Worldwide Industry Leadership Pioneered Ship-from-store in 2001 used by >1,000 brands In-store pickup used by thousands of retailers since 2008 World s first SaaS multi-tenant order management solution World s first ecommerce channel conflict solution #1 ecommerce solution for branded manufacturers Level 1 PCI Certified SOC 2 Certified

SHOPATRON MANUFACTURER Shoppers are Searching for Your Brand and Your Competitors Brand Online Retail locators have gone the way of fax machines. Brands can no longer afford to send a customer to a competitive environment where you do not control content and messaging. You don t just lose a sale you lose a customer for life. 80% The Percentage of shoppers who research products online before buying in-store or online 1 1. PWC Demystifying the Online Shopper: 11,000 Shoppers

SHOPATRON AND ALLIED COMMERCE: OVERVIEW Shopatron: Helping manufacturers adapt faster to rising customer expectations while delivering an exceptional brand experience. The world's leading provider of cloud-based, multi-tenant ecommerce order management solutions. Pioneering SaaS multi-tenant distributed order management since 2001. Ship-from-store used by over 1,000 brands and over 20,000 local retail stores since 2001. In-store pickup and ship-to-store used by over 500 brands and thousands of retail locations since 2008. Low implementation fee and monthly customer support cost. Seamless integration with existing systems. 1-2 month break-even. Simplifying cross-channel complexity with a frictionless customer experience. 10

SHOPATRON AND ALLIED COMMERCE: OVERVIEW Distributed Order Management: Matches Online Orders to the Fulfillment Partner Ship to Home, from Retailers, Distribution Partner or Manufacturer. In-store pickup using on-hand inventory. Ship-to-Store for In-store pickup using distributors or manufacturer s inventory. Used for products that might require dealer engagement for final fitment; product that requires set-up & delivery/installation or any other custom requirements. Optionally, a manufacturer can control through their front-end, our Advanced ISPU solution. For example: show Pick up in Store if product is available locally (optional, with local pricing and quantities). If product not available locally, it shows Ship to Home as only form of fulfillment option. Ability to assign any order to any business partner is in your control. 12

MULTIPLE-TIER DISTRIBUTION How Shopatron Works for Online Consumers Order placed on Brand s Website. Manufacturer controls methods to deliver product (STH, ISPU, STS). Consumer chooses option how to receive product. Order Routing Rules are then applied. (ex: STS selected, send to Retailer) Order is then assigned to authorized fulfiller, who then either 1) ships to consumer or 2) the consumer picks up at fulfiller. 1. Sale is made on brand website, such as www.acme.com. 2. Order is assigned/made available to the authorized designated fulfillers by the Shopatron Order Exchange system, once orderspecific routing rules are applied. 3. Customer receives the order by post or picks up locally, fulfilled by designated fulfiller partner. 4. Shopatron manages post-sale consumer experience and disburses dollars appropriately.

MULTIPLE-TIER DISTRIBUTION Distributed Order Management: Matching online orders to the fulfillment Partner. Shopatron manages the logistics: (Order status management, consumer notifications, payment processing, fraud management and operational support) Payment processing and distributions are centralized at Shopatron. Shopatron becomes merchant of record and then distributes funds to fulfiller (retailer or distributor) for the order. Shopatron fees applied once order is fulfilled. Shopatron enrollment must occur for a dealer to be paid. A dealer can fulfill orders from their own stock or through Ship to Store, where product is shipped by manufacture to store for ISPU. Promotes customer interaction with local, authorized dealers. Ability to assign any order to any partner is under brand control!

MULTIPLE-TIER DISTRIBUTION Responsive Dealer Fulfillment Model Allows Brands to Adapt and Respond to Changing Priorities: Order Management ecommerce Website, Mobile, or Official ebay Store 1. Ship to Consumer from DC or Online Partner. If product is not available, then the order can get assigned to retailers who then Ships to Consumer (NOTE: Rules engine applies: execute assignment logic if conditions are met) 2. Ship to Consumer from Store Fulfillment Location Retail/Installer Distribution Center / Online Partners Manufacturer Shipped 3. Ship to Consumer from MFG *Can either A) Assign all $ to MFG or B) Assign to local Dealer (Certified fulfiller program) 4. Same Day In-Store Pickup, from Store Inventory 5. Ship to Store from Distribution Partner for In-Store Pickup/Delivery Fulfillment Method In-Store Pickup/ Delivery Ship to Consumer 6. Ship to Store from Manufacturer for In-Store Pickup/Delivery

MULTIPLE-TIER DISTRIBUTION Manufacturers Can Adapt Fulfillment Strategies as Business Needs Change Common Goals Increase Sales & Dealer Stocking Reward Dealers Fast Delivery/Good Consumer Experience Increase Market Presence/Recognition Fulfillment Considerations for a Manufacturer Do you sell custom products or need install/delivery/local support? Is a Distributor involved in logistics (visibility of dealers?) Can I Ship Single Items versus case quantities? Priorities will drive the method to fulfill orders and can change over time:

SHOPATRON MANUFACTURER How Shopatron Drives Revenue Online and In Stores Sales increase, Total company: Avg 8%. (Impact due to increased dealer stocking, more aggressive marketing initiatives led to better online conversion, and dealer recruitment). Brands using Shopatron see an average of 49% increase in online sales, while 10% see online sales more than double. 57% of your existing dealers will increase spend with you! NEW RETAILERS OPEN ACCOUNTS EXISITING RETAILERS STOCK MORE BETTER CONVERSION FROM WEBSITE Total Revenue YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Program Duration

SHOPATRON MANUFACTURER A Global ecommerce Solution Local Dealer Fulfillment Supported International Shipment Supported Shopatron Offices Customer service teams in North America and Europe Multi-language call center Multi-currency support, including USD (US Dollar), CAD (Canadian Dollar), EUR (Euro: Netherlands, Germany, France, Austria, Britain), GBP (British Pound), CHF (Swiss Franc), NOK (Norwegian Krone), SEK (Swedish Krona) Support of in-country dealer fulfillment

SHOPATRON MANUFACTURER Shopatron Flexible Implementation Options

SHOPATRON MANUFACTURER Shopatron Complete ecommerce and Order Management Website/Store Product Manager Online Marketing Product Features Reporting Website Management Content Management Product/Site Search Custom Branding International mcommerce VIP/Pro Stores Web Design & Production Services Content Delivery Network (Limelight) Merchandising Integration Product Catalog Category/Navigation Promotions Recommendations Product Reviews Gift Certificates Traffic & Conversion Optimization Payment Support SEO Features Email Marketing Online Marketing Services Payment Processing Fraud Management PayPal/BillMeLater Gift Certificates Multiple Currencies PCI Security Detailed Reporting Custom Reporting Site & Store Analytics Shopatron Integration Toolset Marketplace Integration Integration Commerce APIs Shipment Carrier Integration Store Operations Support Consumer Order Support Merchant Support Customer Self-Service Shopatron Order Exchange Solutions Submit Order to Exchange Request Order from Exchange Distributed Order Management Order Flow Controls Inventory Management Order Assignment Logic Ship-to-Store Ship from Store Tax Calculation Order Tracking Shipping Management Vendor Drop Ship Order Management Systems Pick & Pack Optimization Returns & Exchanges Mobile Order Management In-Store Pickup Order Messaging Complete Fulfillment Solutions (ITS)

MULTIPLE-TIER DISTRIBUTION ecommerce goals will change over time, as will customers expectations. If you can t meet or exceed these new expectations, expect to be replaced. Customers won t compare you to your competitor, they will compare you to Amazon. Shopatron s responsive dealer fulfillment model allows brands to adapt and respond to changing priorities, like In-Store Pickup, and Local Pricing: Meet unexpected or unforeseen developments in industry or organization. Your business priorities change, so should your ecommerce strategies. Meet changing customer expectations head-on. Be the leader in your Industry with ecommerce trends, don t follow the pack. We provide a multi-year plan to meet changing priorities!

Questions? Sergio Viramontes Director of Sales, Manufacturer Email: sviramontes@shopatron.com Phone: 805-269-5153