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Market

Market

Introduction – A Trillion Dollar Global Market

Billions of consumers wanting access to innovative, hard-to-get USA and European brands at discounted prices!


International Consumer Spending On Cross Border Purchases

  • International customers have high average order values across most regions.
  • Australia, New Zealand, and Canada cross border shoppers have average order values around $200.
  • Australian and Canadian power shoppers make up the majority of worldwide buyers.
  • By providing access to new merchandise into new markets, Coaction can capitalize on growing economies.


Flash Sale Sites Are Growing Exponentially, But Most Keep A Domestic Focus

Site Launch Membership Monthly Volume Daily Tranactions Issue
Fab.com (US) July 2011 Relaunch 750,000 70,000 0.31% Design and US Only
Ozsale (AUS/NZ) 2007 <2 Million 143,000 0.24% Customer Service
Zulily (UK) Dec. 2009 <4 Million 400,000 0.33% US Only
Brandsexclusive (AUS) May 2009 1.2 Million 200,000 0.37% Low End Brands
Beyondtherack (CAN) March 2009 <4 Million 325,000 0.27% Customer Service


Products And Brands To Increase Dramatically As Membership Increases

Short Term Focus
  • Customer Acquisition – Deep market penetration into our existing markets.
  • Brand Expansion – Add additional sales each day across existing product lines.
  • Category Expansion – Add Men’s Wear, Children’s Wear, Home Décor, Electronics, and additional accessories. (e.g. watches and sunglasses.)
Longer Term Opportunities
  • Grow into new markets by adding new distribution channels–South Africa, Hong Kong, Singapore, Europe, China, India, Brazil, and other territories in Latin America.
  • Each new market will have different demands for alternative US and European brands and products (e.g. travel, electronics, or wine).


Coaction Has Positioned Itself With A Strong Infrastructure And Is Ready to Grow Rapidly

  • We have tested sales and distribution with the initial marketing database.
  • We have a proven partnership with AtLast Fulfillment, who has scaled with other domestic sites such as zulily.com.
  • We have established relationships with multiple brands. Including:
    • Relationships with over 100 apparel brands and hundreds of cosmetic brands.
    • Private label cosmetic and beauty product manufacturing.
  • We have an established internal infrastructure:
    • Experience building multiple Magento e-commerce platforms.
    • Call center with 24 hour overflow coverage and the ability to take orders online.
    • Inventory management, accounting, design, and photography.
    • Proven e-mail delivery and analysis platform.


Actively Selling Women’s Apparel and Health + Beauty Products

Category Plan Note
Average Order Value $105 Average Order Value (AOV) assumes the purchase of a apparel and beauty item. This value is well below current AOV of Cross Border shoppers.
Shipping Charge $12 $12 shipping assumes $15/order shipping with free shipping over $200.
Average Gross Sale $117
Product Cost $47.25 Apparel markups are 2x and beauty products have a higher margin at 2.5x product costs
Sales Tax Assumption $4.39 Assume 3.75% sales tax expenses. Above this, assume we will pass along to consumer.
International Fulfillment $12.50
Internet Shipping $10
Credit Card Fees $3.51
Returned Merchandise $21 Assumes we have to expense 20% of returned merchandise. Industry average is 5-10%.
Gross Margin $18.35
Gross Margin % 18%

A trillion dollar opportunity, a global reach.

Contact Us Now