Sramana Mitra: So you calculate duties based on data that you have. You collect that duty when you deliver the goods and pay the duty after the fact.
Brian Dhatt: We show it to them right during checkout. If you’re checking out on J.Crew, you’ll see the duties that would be assessed and pay for them right then. Anything above and beyond that, we actually get billed by the government or by the carriers. We will pay no matter what that duty comes in as.
Sramana Mitra: If you have under-assessed the duty, then you’re going to be taking responsibility for that?
Brian Dhatt: Exactly.
Sramana Mitra: How often does that happen?
According to market reports, the global games market is expected to reach $86.1 billion by the year 2016. The growth in the market will be dominated by the free-to-play model, which attracts new gamers and allows them to try new things without getting them to pay upfront. Billion Dollar Unicorn club member Kabam is hoping to keep cashing in on that trend.
Sramana Mitra: It sounds like there are three or four different aspects that are issues. One is the payment and the whole currency management aspect. The other is shipping and who is considered as a trusted source for shipping.
Brian Dhatt: On the shipping and the compliance side, that’s a big deal to folks. The typical experience was you would either receive a notice from a customs body that says they’re holding your package until you pay more, or you would actually receive the item and then some weeks later, receive a bill from the government. That’s a horrible experience especially when you don’t know in advance what that bill is going to look like. We moved to a model where we moved that pricing right up front. You see it as part of the transaction. The item shows up on your doorstep just like it should without any additional problems. It’s the same for restricted items. >>>
The Census Bureau of the Department of Commerce recently reported the fourth quarter retail e-commerce sales for the US. E-commerce sales during the quarter are estimated to have grown 2.3% over the year to $79.6 billion and accounted for 6.7% of total retail sales. For the full year 2014, e-commerce sales increased 15% to $304.9 billion and accounted for 6.5% of retail sales compared to 5.8% in 2013. Billion Dollar Unicorn club member JustFab.com is a fast-growing member among e-tailing vendors.
Brian Dhatt: From a personalization perspective, you can go down to the complex individualized personalization. In the first stage, a lot of times, we can do a lot of personalization as part of the site experience based on things like different seasons globally. For example, in Australia you might be looking for a bikini whereas in New York, you don’t have any desire to do that. We actually think that will play a big role for global merchants.
Sramana Mitra: WebLink has a lot of customers in the apparel space. Personalization based on size is one of the big drivers of lift in terms of financial metrics.
Brian Dhatt: Absolutely. You can only imagine that in the global space, it gets more complex. >>>
According to a research study conducted by BigCommerce, e-commerce sales will grow to $2 trillion in 2015 with the SMB segment in the US alone accounting for over $100 billion in sales. Billion Dollar Unicorn club member Shopify is helping retailers make their mark in the dot-com space.
Sramana Mitra: Because you’re at Borderfree, your angle is on the international. We will explore that angle, but I just want to anchor this discussion by pointing out a few other things that I see in e-commerce. We started covering these quite extensively actually. Very recently, we have covered two companies that are each furthering the evolution of high-end e-commerce systems—0ne from the dimension of personalization and another from the dimension of content-driven commerce. Both are massive trends.
I don’t know if you’re familiar with this piece that I wrote in 2007 defining what I see as the formula for Web 3.0. The formula was Web 3.0 = 4C + P + VS. The four Cs are defined as context, community, commerce, and content. P is personalization and VS for vertical search. Now eight years later, we are starting to see systems that address not all of it but >>>
According to IDC, the global Big Data market will be worth $16 billion in 2016. While the market is still dominated by SQL-based databases, there is also a rapidly growing demand for non-row and column-based databases – the NoSQL databases. Researchers at 451 Research estimate that the NoSQL database market will grow from $184 million in 2012 to over $1 billion by the year 2016. Billion Dollar Unicorn club member MongoDB is a big player in the NoSQL database market.