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EXP eCommerce Proposal - Auctions411 Business Plan

EXP eCommerce Proposal - Auctions411.com Business Plan. Horace Lin EXP. Overview. An ASP(Application Service Provider) for serious Auction sellers who are doing the auctions at C2C auction sites like eBay, Yahoo, Amazon, Cnet, MSN…. etc.

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EXP eCommerce Proposal - Auctions411 Business Plan

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  1. EXP eCommerce Proposal - Auctions411.com Business Plan Horace Lin EXP

  2. Overview • An ASP(Application Service Provider) for serious Auction sellers who are doing the auctions at C2C auction sites like eBay, Yahoo, Amazon, Cnet, MSN…. etc. • To help samll or middle size companies to do the auction in major C2C auction sites, not only the server hosting service, we do trainings, consultings, even the virtual warehouse.

  3. History of Online Auctions • Auction has become a very important business model since the booming of the internet. For example, eBay, the biggest C2C internet auction site has more than 10M registered members, 4.2M items on auction everyday(Mar. 2000), 20,000 people are make a living as a power seller in eBay. eBay went public in 1998, now is a 30-billion dollar company.

  4. Why Auction? • New product marketing testing • Clean obsolete inventories • Directly deal with end-users - save distribution cost • Get money fast - Prepay only • Easy to control quantity • Advertising

  5. Background • EXP has been a Lotus Business Partner(Consultant level) since 1998, EXP employees have very strong Lotus Domino experience since we set up our first Notes server in 1994. Currently, we have a CLP, would like to recruit one more CLP(administrator) and train 2 CLS in house. The purpose to upgrade our level to Premium BP.

  6. Current Status 1 • Currently Domino hosting service for 6 individuals, will increase the number to 10 by end of April. The first two – ezupgrades.com and 1dollarauctions.com are our beta testing sites. The monthly sales is around 50,000, the gross profit margin is around 30%

  7. Current Status 2 • T1 line in two offices – NY and LA. Domino servers hosting. Dedicated servers for monthly revenue over $50,000. A main server can host up to 20 individuals, Windows 2000 with Dual Pentium/650 CPU, a AS/400 will be considered if host more 50 companies.

  8. Beta Sites • Ezupgrades.com (Apr. 1999) – Steve(Full time), Helen(1/2), Warehouse(1/2 man power) • 1Dollarauctions.com (Jan. 2000) – Peter Eng(Full time), Mindy(1/2), Warehouse(1/2)

  9. Services 1 • Images hosting, templates design, auto posting, auto closing, auto acknowledge emails, secure payment, sales orders export to accounting system, invoice system, auto feedback, shipping tracking system, database searching, statistic analysis, ezSHOP for people want to buy instead of auction…etc.

  10. Services 2 • Consulting, Training • Virtual Warehouse

  11. H/W Facilities • T1 line in two offices – NY and LA. Domino servers hosting. Dedicated servers for monthly revenue over $50,000. A main server can host up to 20 individuals, Windows 2000 with Dual Pentium/650 CPU, a AS/400 will be considered if host more 50 companies.

  12. Equipments Cost Analysis • Advanced W2K server w/20 users + server Domino installed $6,000( lease $60/mon) • Dedicated W2K server w/ 1 designer + server Domino installed $3,500 (IBM Netfinity) (lease $35/mon) • AS/400 server w/50 users + server Domino installed $15,000 (lease 150/mon)

  13. Equipments Cost Analysis • Firwall $10,000 • Accounting S/W Navision 4 users $35,000 • T1 line $1500/mon.

  14. Pricing • Revenue comes from 6% of the sales including the sales from auction and ezSHOP. 24-hore technical support will be offered to power sellers.

  15. Monthly Expenses Analysis (mid-2000) • Salary – 3 developers, 2 administrators, 2 sales, 1 web designer, 1 assistant $31,000 • Equipments lease(10 dedicated servers + 2 Advanced servers + 10 stations) $900 • 2 T1 line $3000 • office rental $4000 • Marketing $20,000 - $50,000 • Total 40,000 w/o marketing

  16. Monthly Income Forecast (mid-2000) • 10 $50,000 monthly sales customers – 30,000 • 20 average $10,000 customers – 12,000 • total $42,000

  17. Monthly Income Forecast (end-2000) • 30 $50,000 customers – 90,000 • 100 $10,000 customers – 60,000 • Total $150,000

  18. Monthly Income Forecast (end-2000) w/250,000 mkt fund • 50 $50000 customers – 150,000 • 300 $10000 customers – 180,000 • Total $330,000

  19. Human Resource • NY: Developer 2(Horace, Steven C.), Administrator 1(Kim), Sales/Administrator 1(new) • CA: Developer 1(new), Administrator 1(Tay), Sales/Administrator 1(new), web/graphic designer 1(Andy)

  20. Competitors • Andale - www.andale.com founded in 1999, charge customers 2.95% of sales, no autopayment and tracking service • Auction Rover - www.auctionrover.com

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