Manchester,%20June%2018th%202008

1
AbeBooks UK Bookseller Roundtable

• Manchester, June 18th 2008
• Edinburgh, June 19th 2008

2
Agenda

• Introduction
• New Products Services introduced in 2007-8
• Company Metrics
• Price Changes Effective as of April 28th, 2008
• Payment Services Update Effective as of June 23rd
  2008
• Break Tea Coffee 315pm
• Marketing New Initiatives
• AbeBooks in the Media
• Product Strategy
• Open Roundtable Discussion

3
New Products Services Introduced in 2007-8

• Completion Rating Bookseller Since Date
• Star-Rating boosts buyer confidence
• Higher completion rate results in more happy
  buyers
• Increased Net Merchandise Value (NMV)
• Bookseller Since date improves buyer trust
• Bookstore Search on .co.uk
• Loyal customers will now find your shop and your
  catalogues more easily
• Infrastructure Improvements
• New hardware and procedures will ensure that
  AbeBooks remains PCI DSS compliant
• What hardware more computers?...

4
180 Servers keep AbeBooks functioning
5
More than 35 kilometers of cabling
6
Over 75 terabytes of storage1 terabyte 1024
gigabytes or 1 trillion bytes
7
What does it take to run a website this size?
Equivalent to the power draw of 35,000 iPods
Each data center consumes 35,000VA of power
8
New Products Services Introduced in 2007-8

• No-Frills Marketplace Gojaba.com
• Marketplace for buyers and sellers in emerging
  markets such as Russia
• Currently available in Russia, Sweden Brazil
  (Poland coming soon)
• Supports foreign alphabets
• No competition to AbeBooks websites
• Testing which markets are ready for the
  introduction of a full-service AbeBooks website
• Low monthly fee - no commission

9
New Products Services Introduced in 2007-8

• Launch of Italian Marketplace AbeBooks.it
• Italian buyer website AbeBooks.it was launched
  April 2nd to target the Italian domestic market
  (population 59 million, 29 million Internet
  users)
• Italian language customer support
• Targeted marketing (online offline)
• Established community of approx. 2,000
  bookstores already 100 Italian sellers listing
  with AbeBooks
• Existing clients from Italy buying mostly rare
  and out-of-print books in French or English
  language
• UK sellers will profit from additional sales
• Italian seller site will launch early summer 2008
• No extra subscription fees, 3.5 payment service
  fee
• TIP Update your shipping rates for shipments to
  Italy
• Most expensive book sold via AbeBooks in April

10
Company Metrics

• Over 13,500 booksellers worldwide (more than
  2,100 from the UK)
• Value of books sold in 2007 on all websites
  190 million US (up from 170 in 2006)
• Gross Merchandise Value (GMV) on AbeBooks.co.uk
  website increased by 15 YOY
• Completion rate by item increased by 1-2
  percentage points

AbeBooks.co.uk nominated for Which? Award Best
Online Retailer 2008
11
Price Changes (effective as of April 28th)

• Subscription Fees
• Will remain unchanged for sellers with up to
  50,000 listings (more than 97 of all European
  sellers)
• NEW Subscription fees increase for sellers with
  more than 50,000 listings

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Price Changes (effective as of April 28th)

• Commission Fees
• NEW 8 commission will apply to book price plus
  shipping plus extra charges (previously book
  price)
• Minimum and maximum commission amounts will
  remain unchanged and apply to total item amount
  ( book price plus shipping incl. any extra
  charges)
• Payment Processing Fees
• Will remain unchanged
• NEW Rate will be discounted to 3.5 on all
  domains for purchases exceeding 500 USD / 400 EUR
  / 275 GBP in value
• Planned All credit card payments will be
  processed by AbeBooks. This means that AbeBooks
  will no longer forward any payment card details
  (Amex, Diners, Switch...) to sellers in order to
  meet the requirements of the Payment Card
  Industry Data Security Standard (PCI DSS).

13
Sample Calculation
¹ Only where applicable 5.5 on orders via
AbeBooks.com and .co.uk. 3.5 on orders via
AbeBooks.de, .fr, .it, IberLibro.com.
Book Price 20.00 Shipping 2.50 Total Item
Price 22.50
Old Pricing Model Processing Fee¹ 22.50
3.5 (5.5) 0.79 ( 1.24) Commission
20.00 0.08 1.60 New Pricing
Model Processing Fee¹ unchanged Commission
22.50 0.08 1.80
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What is this PCI DSS?
Q What does PCI DSS stand for? A Payment Card
Industry Data Security Standard Q What is the
PCI Data Security Standard? A It is a security
standard developed by the major credit card
companies to prevent credit card fraud, cracking
and various other security threats. As a company
collecting and processing large amounts of
payment card data, AbeBooks must be PCI DSS
compliant. Q What are the PCI DSS control
objectives and requirements for merchants? A
Build and Maintain a Secure Network, Protect
Cardholder Data, Maintain a Vulnerability
Management Program, Implement Strong Access
Control Measures, Regularly Monitor and Test
Networks, Maintain an Information Security
Policy.
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Payment Services Update (effective June 23rd 2008)

• New Payment Cards
• As part of the on-going requirements for PCI DSS
  compliance, we have to discontinue the
  transmission of all credit card information to
  our booksellers. 3 new cards added to the
  AbeBooks Payment Service
• American Express
• JCB
• Carte Bleue
• The new cards will be processed by AbeBooks as
  with Visa and MasterCard - the same payment
  service fees will apply and the same fraud checks
  will be made.
• Maestro/Switch - We are looking at possibility
  of implementing this in the future.

16
Marketing New Initiatives

• New Brand Slogan and Refocused Brand
  communication
• Strengthening the AbeBooks brand with a strong
  and simple message
• Newsletter Marketing
• Segmented buyer newsletters
• Email marketing
• Abandoned Shopping Basket Emails
• First Time Buyer Emails
• Coupon Emails
• Coupons Testing has started
• Activating loyal buyers
• Homepage Redesign
• User friendly and easy to navigate
• New FREE Promotional Toolbox Material For UK
  sellers
• New FREE Promotional Toolbox Material For UK
  sellers
• Daily orders possible
• FREE packaging material bags packing tape

Jiffy Bags
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Marketing Strong Online Marketing Channels

• Search Engine Optimisation (Natural Search on
  Google Co)
• 89 YOY growth in orders via AbeBooks.co.uk
• Affiliate Marketing
• Over 5,000 partner websites link to
  AbeBooks.co.uk
• 52 YOY growth in orders via AbeBooks.co.uk
• Search Engine Marketing (Pay-Per-Click)
• Highly efficient bidding strategy, maximising
  revenue while maintaining the best possible
  Return on our investment (ROI)

Pay-Per-Click
Natural Search
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Marketing New Strong Partnerships
coming soon
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UK PR hits June 2007 to June 2008
Number of times mentioned in major daily
newspapers The Times 8 The Guardian 7 Daily
and Sunday Telegraph 13 Financial Times 3 The
Independent 2 Daily Express 2 Also Daily
Mail, Scotsman, Edinburgh Eve News, Brighton
Argus, Belfast Telegraph, Irish Times, Bristol
Eve Post, Yorkshire Post, Oxford Mail, Irish
Independent, etc. The Associated Press - Sex and
the City Story was picked up by over 160 media
outlets including The Guardian, CNN, Washington
Post etc. Magazines Good Housekeeping, Time Out
London, Easy Living Magazine, The Business, Times
Literary Supplement, Rare Book Review,
Bookseller, Design Week, etc. Which? Magazine
Customer Service Survey In March 2008,
AbeBooks.co.uk tied with Play.com for top spot in
a Which? Magazine customer satisfaction
survey. Coming in June AbeBooks.co.uk was
nominated for Online Retailer of the Year award
by Which? Magazine. (Play.com and Amazon are also
shortlisted Play.com won)
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Product Strategy 2008

• New Search Web Services
• Better exposure of your books on partner websites
  and meta searches
• Continued Infrastructure Improvments
• Addressing on-going requirements to remain PCI
  DSS compliant
• Adding French Italian ISBN Data Cover
  Pictures
• HomeBase 3.0 - Beta-Testing has started
• Multi-editing
• More search attributes
• Categories
• New quantity weight fields
• Mapping wizard
• HomeBase 3.0 will continue to be distributed as
  freeware

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Homebase 3 Alpha
Categories
Quantity
New Search Attributes
Multi-editing Feature
22
Product Strategy 2008

• New Inventory Tools (Mapping Tools)
• Greater stability for our inventory upload
  pipeline
• New process scalable and more efficient
• Books will be put online faster as time goes by
• Usage of Mapping Tools has started already and
  will be extended over the next months
• Search Engine Optimisation Initiatives
• URL rewrites (changing dynamic links to static
  links)
• Additional landing pages
• Content updates to our Product Landing Pages to
  make them more relevant
• Google Sitemaps
• GOAL Expose your inventory more efficiently on
  Google Co