Published on March 7, 2014
Transcending the Limits of Legacy eCommerce Solutions Confidential and Proprietary Information
Introductions Today’s Host Matt Winn, Marketing Communications Manager, Volusion, Inc. Presenters Jason Wallis, Chief Technologist and VP of Architecture, Volusion, Inc. Jim Bernardo, Channel Development Director, Avalara Confidential and Proprietary Information 2
Today’s Agenda 1 The History of Ecommerce 2 Challenges and Opportunities for Enterprise Businesses 3 Enterprise Sales Tax Automation with Avalara 4 Questions and Comments Confidential and Proprietary Information 3
History of Ecommerce 1990’s 2000’s 2010’s TODAY ECOMMERCE IS BORN MOBILE RISES MULTI-CHANNEL EXPLODES LIMITLESS COMMERCE Early vendors supplied the basics of ecommerce: listing products and accepting payments Rapid adoption of mobile devices forced retailers to maintain both traditional and mobile-friendly sites Proliferating sales channels require retailers to create a seamless experience both on and offline Today’s business is truly omnichannel, requiring a modern platform that provides limitless extensions Confidential and Proprietary Information 4
Challenge 1: Proliferation of Mobile Purchases • Consumers now demand mobile-optimized experiences • 56% of smartphone owners and 76% of tablet owners use their device to shop online • Most eCommerce platforms were built before the advent of mobile technologies Confidential and Proprietary Information 5
Mozu Solution: Responsive Design & Mobile APIs • • • • • Modern architecture with responsive design for any device Single code base and site for all web experiences Reduction in maintenance risks and release cycle times Consistent and optimized experience across all web-enabled touch points Designed for emerging and future devices Confidential and Proprietary Information 6
Challenge 2: Omni-Channel Shopping Experience • Consumers don’t see channels, only brands • Shoppers expectations are rising: • • • • What products are available Where are they available Why this product When can I get it • Businesses must reflect a seamless, omni-channel experience with no distinguishable channels Confidential and Proprietary Information 7
Mozu Solution: Seamless Shopping Experiences • Brand experience not limited by devices, channels, locations, or operations • Holistic view of product, search, inventory and transactions • Unified and central content catalog • Ability to reuse and override product or content elements from one location Confidential and Proprietary Information 8
Challenge 3: The Limits of Legacy Solutions • Patchwork of systems are expensive to maintain • Legacy platforms don’t support innovation and marketplace changes • Legacy platforms struggle to provide a seamless experience across devices and channels Confidential and Proprietary Information 9
Mozu Solution: Modern and Open Platform • Everyone has access to the same API used to build the Mozu platform • As features are added to the platform, they are available in the public API • Open source SDKs for innovation in the language of your choice Confidential and Proprietary Information 10
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End-to-End Compliance Confidential and Proprietary Information 12
The Problem: Sales Tax is Hard! • • • • • • • • • • 11,000+ distinct tax jurisdictions in North America 100,000+ distinct taxability rules Exempt Products Exempt Organizations Tax Holidays Thousands of changes each year State-provided info often missing, misleading, or wrong Sourcing rules Nexus rules And many, many more complexities Confidential and Proprietary Information 13
Why ZIP Codes don’t help… Confidential and Proprietary Information
ZIP Codes don’t mean zip 6 5 1 4 3 2 LOCATION TOTAL 1 2 3 4 5 6 4.0% 7.5% 5.1% 7.0% 8.1% 6.6% SCIENTIFIC/CULTURAL 0.1% 0.0% 0.1% 0.1% 0.1% 0.1% REGION TRANSIT DISTRICT 0.0% 0.0% 1.0% 0.0% 1.0% 1.0% FOOTBALL DISTRICT 0.0% 0.0% 0.1% 0.0% 0.1% 0.1% CITY 0.0% 3.6% 0.0% 3.0% 3.0% 1.5% COUNTY 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% STATE BUSINESS 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% Confidential and Proprietary Information
Let’s sum it all up • Sales tax compliance is an ever-changing landscape. • Accuracy and solid record keeping are critical. • Keeping up is, for all practical purposes, impossible. • Doing it manually will fail, and failure has real, financial implications for the viability of your business. • You can substantially shift the odds in your favor by taking advantage of the partnership and integration between Mozu and Avalara! Confidential and Proprietary Information 16
10 Tips to Limit Audit Exposure You should: Make sure you: 1. Do a nexus study 2. Stay up-to-date with rate, rule, and boundary changes 3. Report consumers’ use tax 4. Be compliant from the beginning, and always 5. Automate with technology 6. Know your filing requirements 7. Calculate accurately using geospatial mapping 8. Know product taxability 9. Keep comprehensive sales records 10. Automate certificate management More resources available at: www.avalara.com/resources Confidential and Proprietary Information 17
Open API in Action: Integration with Avalara • 1 Hour: Had basic communication running • 2 Weeks: Design to Develop to Certification • Easily passed certification • Integration free to all Mozu customers and partners with an Avalara subscription Confidential and Proprietary Information 18
Challenge 4: Outdated Platforms Limit Innovation • Many retailers are encumbered by their current commerce platform • Building on legacy platforms leads to costly initiatives that fall short of goals • Technology adoption by shoppers is moving faster than legacy platforms can adapt • Majority of retailers cite organizational barriers caused by their current platform as major innovation inhibitor Confidential and Proprietary Information 19
Mozu Solution: Multi-tenant SaaS Platform Benefits of SaaS You Expect On-Premise SaaS + Large upfront capital expenditure + Long lead time between product upgrades + Heavy IT investment in maintenance and integrations + IT resources focused on innovation + Predictable feature release cycle + Vendor managed hosting, hardware infrastructure and security Benefits of Even Smarter SaaS Traditional SaaS Smarter SaaS + + + + + Encourages innovation with usage based pricing + Multi-Tenant SaaS designed to be highly configurable and customizable + Instant access to infinite number of sandbox development environments Punishes success with revenue share On-Demand, or Single-Tenant Inability to customize Locked into vendor’s roadmap and timelines Confidential and Proprietary Information 20
Challenge 5: Falling further and further behind • The cost and time involved in implementations and upgrades on legacy platforms is a major deterrent to innovation • Revenue share-based pricing creates a disincentive to closely integrate all order streams with a single platform Confidential and Proprietary Information 21
Mozu Solution: Empower Innovation • • • • • Easy and frequent updates Extremely open and flexible platform Open source SDKs and reference application to accelerate creativity Unlimited sandboxes Usage-based pricing removes artificial barriers to innovation Confidential and Proprietary Information 22
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Ready to get Started? Visit www.mozu.com or request a demo at www.mozu.com/request-demo Call us at 1-800-965-5040 to speak with a Solution Consultant Continue the conversation on Twitter @mozucommerce Confidential and Proprietary Information 24
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