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SG_FI Online Retail Formula (16/7/2013)

SG_FI Online Retail Formula (16/7/2013)

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Published by: Founder Institute on Jul 18, 2013
Copyright:Attribution Non-commercial


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Online retailing site formula

Treating patients is similar to online retailing business If a patient is able to walk away from ER, this is a success

If a site is generating profit while growing, it is a success.

Doctors have proven methodology: medication, equipment, decades of data accumulated, etc

What if we have such a formula for success?

Online retailing Business

Paid ADs

Creative, Disruptive, Innovative or clever…

Direct Visit

Recurring Visit Zero cost?? Good product Royalty program Smooth and Fulfilling UX

Sales Force, Development cost

Conventional thinking flow

Paid ADs

Do you have any creative idea to drive in traffic with less cost? Social Media? Or What?

Creative, Disruptive, Innovative or clever…

Direct Visit

Recurring Visit
Business Model: 1. How are you going to bring in good products continuously? Eg. Open market, Listing business, etc 2. How are you going to make customer to come back and check the site on going?

Product strength Royalty program Smooth and Fulfilling UX

How can I make it free or less cost?

Sales Force, Development cost

Marketing Product Effectiveness attractiveness
Zalora Groupon Bad but big It was good before as it used SNS. Good It was good but…. Good good OK

Product sustainability
Not sure Not sure

Development agility
Agile Simple but rigid Simple Simple and light Good but high cost

Reebonz Nomorerack. good com Qoo10

OK Ok at the moment OK

Company X





If you have answers to all these areas, it is highly likely that your business will succeed to certain level.

Marketing cost and ROI simulation

Starting with simple thought, “Let’s make $20K per month!” and we can survive!!

GOAL: $20,000 profit/Month With 10% profit, You need $200,000 transacted amount  If your product is priced arnd $20, you need 10,000 transactions/M  “300~400 transactions per Day”

“GOAL: 300 Transactions/day”


Paid ADs Cost??

Creative, Disruptive, Innovative or clever… Direct Visit

Recurring Visit

Product strength Royalty program Smooth and Fulfilling UX Assumption $0 Sales Force, Development cost

Qoo10.Sg’s internal data

> Average 607 Transactions per day > Marketing cost: $3333/Day For, 300 Transactions per day, Advertisement cost will be around $1500/day ($5 per transaction)

Assumption: For 6M period, 100% transactions from external channel

1 month

Earnings $20,000 Sum

Cost $45,000 -$25,000

Description 1 day Ads cost $1500*30days Around $150,000/6Month

For 6 months business, you need Min. $150,000 or more to make a site with 300 transactions per day (w/o cost for many other various areas)  If you make 166TX (=$25000) comes from direct visit, you reach BEP.  How? Product, Marketing, Tech, etc


BPV: $73542/week Profit: $4125/week $$ Spent: $10000/week Assumption: 1 Mil users, 300K items, 2 year long investment in YSBX

$40K per month and getting $300K BPV…Is this right choice?

7 days PV YSBX: 500K PV, new member 346. Mobile App: 3.78Mil PV

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