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Mammoth e-commerce partnership

A proven successful low-risk business model for market entry or increased online revenue

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Introduction

Who are we? How does it work? Risk assessment Cost & resourcing Case study 1 Case study 2 Summary

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Who are Mammoth?

Mammoth is an e-commerce business established in early 2006 predominantly focusing on the resale of Construction and Surveying equipment online.

In subsequent years Mammoth has developed their own e-commerce websites* and unique Search Engine Optimization (SEO) building an impressive portfolio of e-tail outlets and significant revenues.

In late 2009 Mammoth changed its business model to pure sales generation and partnered with sole distributors per market sector for sales fulfillment.

*Mammoth do not build or optimize websites for any 3rd party

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How does it work? Without cost to its partner, Mammoth builds e-commerce

websites which are marketed online, especially through SEO and other online media.

The partner organisation stocks the virtual shelves with their goods or services

Volume sales are generated through these sites Customers pay online directly to the merchant account of the

partner with their bankers. No sales proceeds go to Mammoth The partner sources, packs and ships the order direct to the

customer – Mammoth never touches the goods At month end the partner business pays Mammoth an agreed

margin against all completed orders attributed to sales generated though the Mammoth site

Any subsequent sales returns result in a refund of margin from Mammoth to the partner business.

Full process explanation at Easiweb site

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Risk Assessment Mammoth does not require its partner to invest in any

part of the site development nor does it make any charge for SEO or web marketing..

Mammoth neither sees nor handles any of the proceeds of sale, these are routed directly to the partners merchant account.

The supply of goods or services is carried out directly from the partner business to the end customer, without any involvement of Mammoth. This implies that the partner has robust arrangements with a recognised national carrier and is in a position to augment their inventory as required in anticipation of, or reaction to, demand.

Mammoth carries the risk in terms of investment in the process and site build & marketing

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Cost & Resourcing If there are no sales, there has been no cost to the partner

business, no stock has been transferred and no margins or commissions have been paid.

However the partner business is directly responsible for the fulfilment and delivery of all orders and will pay a sales commission to Mammoth, in the same way that it might remunerate a traditional distributor or retailer.

The value of the service offered is not to be underestimated. To reach similar levels of e-commerce exposure through Pay Per Click (PPC) advertising, SEO, development, marketing, ongoing administration and redesign is significant.

In Mammoths first year with 1 site we invested £100,000+ in PPC alone, and £75,000+ in external SEO, development and consultancy.

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Case study 1 Survequip.com

Launched April 2006 as a full e-commerce site specialising in surveying equipment. Delivered revenues of c£500,000 ($750,000) (2006 – 2007) & £725,000 ($1,100,000) (2007 – 2008). During 2009 Mammoth partnered with a major plc to undertake the fulfilment. The partner receives all sales revenues to their merchant account, they pack and ship goods and within 5 days of the month end figures being agreed, rebate the margin share generated to Mammoth.

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Case study 2Nationaltoolhireshops.co.uk

Website built as a virtual rental partner with a national tool hire company in the UK, in mid 2009. The site generates tool rental enquiries online and via inbound phone calls – both of which are attributed to the Mammoth account. Since inception, rentals and revenues have continued to grow month on month, each month, by 30%

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Summary Mammoth builds a full e-commerce online store with

highly competitive SEO, a great design, look and feel. It carries a brand generated by us, with our name on it, but it only sells our partner’s goods or services.

We switch the lights on, staff the shop, man the phones, add chat boxes, call back facilities, terms of business, privacy policies and the ability to process purchases online.

We put this shop in the best position within the biggest shopping mall in the world.

For further information contact 0800 142 2127