Upload
mark-murphy
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
www.uSell.com
2
Who we are2
Deep Consumer Internet, Technology, and Analytics Expertise
Nik Raman
CEO
Mike Bregman
Analytics
Christian Croft
Creative
Akshay Singhal
Product
Vijay Ganapathy
Technology
What we do
uSell has built a technology driven marketplace that enables consumers to sell high demand second hand electronic goods to a distributed base of professional buyers
Reverse CommerceMarketplace
Individual Sellers
Professional Buyers
for individual sellers• Get the highest price for the
least amount of effort
for professional buyers• Get easy access to diverse
inventory
Benefits of our approach:
3
Individual Sellers
eCommerce Market
Individual Buyers
Our vision for the future
Original eCommerce Model Evolved eCommerce Model
eCommerce + reCommerce
Individual Sellers
eCommerce Market
Individual Buyers
Professional Sellers
Re-CommerceMarketpalce
eCommerce & Wholesale Markets
Individual Buyers
Professional Buyers/Sellers
4
Shift towards power seller model
“Sell Now”/ instant gratificationOnline
garage sale/auction model
Individual Sellers
5
Marketplaces win when they can …• Leverage the power of a distributed base of merchants
while controlling the customer experience through technology
• Build liquidity for both buyers and seller
• Grow customer loyalty and repeat transactions over time
Successful marketplaces reach a tipping point where they …• Become self propagating
• Monopolize the market
• Bleed into new verticals
Why a reCommerce marketplace will win
$10 B valuation
$40 B valuation
$143.2 B valuation
Some marketplace success stories:
6
How uSell works operationally
CustomersPayment
4PaymentsProcessed
$318
uSell Customer Service
uSell Payment Giveaway
BuyerBenefits
• uSell manages more efficiently due to scale
SellerBenefits
Buyer Platform
2Buyers Compete for Products
• Buy inventory on demand
• Focus on select SKUs
• Price Competition
• Wide assortment/all conditions
Consumer Facing Site
1Consumers See Offers
• No need to build technology and optimize messaging
• Point and click search
• Instant offers• Easy fulfillment
ProductLogistics
3Products Shipped & Inspected
3rd Party Fulfillment
3rd Party Inspection
• uSell handles more effectively due to internal controls
• Standardized fulfillment and inspection
• Guaranteed fast processing
• Customer service is centralized and responsive
7
How we got here
Priceaggregatio
n
Integrateonsite
experience
DevelopBuyer’s Platform
Integrateshipping logistics
Integratepayment process
Integrateinspection services
EcoSquid/uSell
Merger
Evolution of uSell Business Modelfrom Lead-generation to Marketplace
Feb. 2012
March 2012
Jan. 2013
Jan. 2014
Oct. 2014
8 months
1 year
10 months
1 month
8
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
15,495
64,542
$44
$16
2013 20142012
Steep increases in volume and efficiency
420% growth in the volume of devices
65% reduction in cost to acquire a device
Since 2012 we have seen…
Took over onsite experience
Shifted from lead gen to marketplace model Paid devices
Device Acquisition cost
9
Consistent improvement in send-in rate
2013 2014
4/1 7/1 10/1 1/1 4/1 7/1 10/1 1/1 4/1 7/1 10/125
30
35
40
45
50
55
60
30%
55%
2012
10
Rapidly growing customer loyalty
9/1 10/1 11/1 12/1 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/110%
15%
20%
25%
30%
35%
% Repeat Customers % Organic Traffic
Customer loyalty and positive feedback have grown exponentially over the last year
% Repeat Customers and % Organic Traffic
2013 2014
9.36 / 10
10/8/1
3
11/7/1
3
12/7/1
3
1/6/1
4
2/5/1
4
3/7/1
4
4/6/1
4
5/6/1
4
6/5/1
4
7/5/1
4
8/4/1
4
9/3/1
4
10/3/1
4
11/2/1
4
12/2/1
44.5
5
5.5
6
Gazelle MozRank uSell MozRank
Despite a 5 year head start, Gazelle’s lead in search has declined substantially
Keyword uSell Search Rank Competition
sell my cell phone 1 94%
sell iphone 2 91%
cash for phones 2 94%
sell ipad 3 76%
uSell.com ranks prominently in search for highly competitive keywords
Tactical SEO Experience: • On-site optimization • Off-site Linkbuilding • Content Strategy • Reputation Mgmt
Ever-increasing leadership in organic search11
NextWorth
Glyde
uSell
Gazelle
0 5000 10000 15000 20000
# External Links
12
Authoritative position in the media
“My favorite of the selling sites.” - Jean Chatzky | NBC Today Show
“Find the best prices for your used tech.” - Roy Furchgott | The NYT
12
Authoritative position in the media
Recurring Apple and mobile industry expert on CNBC’s Fast Money and WSJ’s The News Hub
“How to make the most money from old gadgets” - Lexy Savvides | CNET
Regularly featured in press roundups focused on consumer trade-in options
“uSell connects you with its network of buyers.” - Tim Stenovec | Huffington Post
Cultural trend stories prompted byuSell surveys & re-commerce data
13
Total Investment
Vs.
Efficient use of capital
Customer Acquisition Cost
$12MM $60MM
$16 $45
Our view of the trade-in market: supply-side
Collect devices at Point of Sale
Dictate supply chain
Capture disproportionate value
Individual Consumers Wireless Carriers Processing Partners
Awareness of trade-in options
Price sensitivity as awareness of device value grows
Margins
Control of Inventory
Continue to expand presence across supply chain
Develop alternate device acquisition channels and
determine how to maximize device monetization
Seek outhighest prices
Past
Present
Future
Our view of the trade-in market: demand-side
• Depend on retailers and distributors to direct inventory to consumer
• Must move inventory quickly so cannot capture prices
• Leverage niche markets• Do not have bargaining power or
alternative volume sources• Will work for small margins• Are not operationally demanding
• Increasingly interested in buying used handsets
• Expensive to acquire and service
Cost
of d
oing
bus
ines
s
Willingness to pay Higher Prices
Low
Hig
h
Low High
Med
ium
Medium
Bulk Wholesaler
Small Buyer
Individual Consumer
• Consumers would rather get paid a higher price in 30 days than be paid a lower price on the spot:
• When it comes to selling online, traditional auctions are too difficult and time consuming:
Provides Data Wipe
Free Shipping
Immediate Price Quote
User Friendly Website
Provides Risk Free Transactions (Returns)
Provides a quote in under 1 minute
76%
76%
75%
74%
72%
67%
% Answering Very and Extremely Important
Impact Radius Study 2014
uSell’s unique positioning with consumers
Want a higher price even if I need to wait 30 days for compensation
Would not mind a lower price as long as I receive compensation immediately
11% 47% 42%
• Across the board, uSell users are more satisfied with their selling experience than the average Reseller population60%
65%70%75%80%85%90%
% Answering Very & Extremely Satisfied
uSell Avg.
5% 10% 15% 20% 25% 30% 35% 40%0%
5%
10%
15%
20%
25%
30%
35%
Clear path to scaling consumer device acquisitionM
arke
t P
ote
nti
al:
Sha
re o
f In
tend
ers
Market Share: Share of uSell Consumers
45-54
Invest Harvest
MaintainDe-emphasize
34-44
25-34
18-24
55-64
• 34-44 Currently underpenetrated
• Media Test conducted in January 2015 points to significant scale-up opportunity
• 25-34 Continue to invest and optimize
• 18-24 Currently optimized, need to maintain market share
Volume#
Volume#
Volume#
Volume#
Volume#
uSell’s unique positioning with buyers
200 buyers over 4 years with varying: buying capacity, inventory turnover times, margin requirements, grading requirements, SKU specializations, disposition channels
Operational knowledge across spectrum of buyers
Over 300 product iterations informed by rigorous in-market testing
Systems evolved through validated leanings
50+% Avg. Share of Wallet, 67% Buyer NPS score
Increasing trust + dependence
• 7-10 inbound leads/week
• 600 Buyer Leads in pipeline
Organic Brand Pull
Path to scaling buyer demand and maximizing price
_x0002_Q1 _x0002_Q2 _x0002_Q3 _x0002_Q40
10000
20000
30000
40000
50000
60000
70000
80000
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
33,539
67,43072,308
64,542
Paid Devices vs. Price (2014)
Paid Devices
Y1 Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y2 Q1 Y2 Q2 Y2 Q3 Y2 Q4 Y3 Q1 Y3 Q2 Y3 Q3 Y3 Q40
500
1,000
1,500
2,000
2,500
110195
293406
536686
857
1,054
1,278
1,534
1,827
2,159
Platform Device Capacity (000s)
Assumes
- Current pipeline of 600 buyers, and 7-10 weekly inbound leads- Additional 20 buyers/month, growing at 2% monthly- 400 devices monthly average/buyer, growing at 25% annually- 10% annual attrition rate on total buyer base
Activating current pipeline will lead to exponential capacity growth
uSell has a proven ability to scale volume without any degradation in price
Next evolution of the uSell business model
20
Leveraging operational synergies with Hyla
uSell can help Hyla diversify its device acquisition strategy while selling an increasing percentage of devices to small buyers and end consumers for higher margins
Efficiency gains across acquisition & disposition22
Device Acquisition
2015 2016 2017 2015 2016 20175% 8% 10% 0% 5%
10%
95% 92% 90% 90%
75%65%
0.1
0.2
0.25
Device Disposition
Current Buyers
Small buyers
Direct to Consumer
Carrier Programs
uSell Consumers
Increasing % of Devices are sold at higher margins
Increasing % of Devices are acquired via consumer channels