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"If it can sell a $12,000 a year license to just the top 1 percent of the 2 million U.S. e-commerce market, it could start earning $240 million a year and help

"If it can sell a $12,000 a year license to just the top 1 percent of the 2 million U.S. e-commerce market, it could start earning $240 million a year and help a new wave of commerce entrepreneurs succeed." I thought that the 1% fallacy had been busted well and truly by now. Not sure whether this was added by TechCrunch or was in their presentation.

pg 14y ago
This wasn't an instance, as the word "top" should tell you. They merely meant that they're going after that subset of online retailers, not the small ones.
gav 14y ago
This also ignores reality; the top 500 retailers account for around 75% of the market, the rest make up a really long tail. After the top 1000 or so you're looking at retailers who make around $12,000 in revenue a month. Optimistically you're looking at $6MM a year vs. $240MM. I'd also worry that this data is more valuable if all your competitors don't have it. If you look at the Amazon Marketplace it's commonly a race to the bottom.
- lazyjones 14y ago
  > fter the top 1000 or so you're looking at retailers who make around $12,000 in revenue a month. From our experience as a CSE, these numbers are way off. There's a lot more than 1000 retailers making a lot more than $12,000 per month, even in smaller markets than the US where not the top 500, but the top 20 or so account for 75% of the (e-commmerce) market. There's a huge number of (more than $12,000/month revenue) brick & mortar stores out there with a humble online presence but whose investments are focused on increasing e-commerce revenue.
pbiggar 14y ago
That seems so valuable that $12,000/year seems much too little to charge for it.
agotterer 14y ago
Curious where that 2 million market size came from. All the estimates I've seen put the US market in the low hundreds of thousands. I've also read something that said only 90k merchants make more then $15k a year.
nashequilibrium 14y ago
Wow the premise of this company is working off is on very shaky ground! From my days at Procter&Gamble I had the opportunity to talk to a lot of buyers as well as pushing a new sku to market and I don't see this solving the pain points for retailers/buyers. On a side note, I am currently watching launch conf and these guys are a good example of solving a real problem, within the correct market, http://www.youtube.com/watch?v=HB5-5ee72Ic http://www.youtube.com/watch?v=HB5-5ee72Ic, It is a good niche in the ecommerce space. Thalmic labs seems like the only true original concept here and the others are just iterations of other startups. It reminds me of when reality shows got popular, put them on an island, put them in a house, reality sports, reality jobs, reality parenting, reality wives .......... It just goes on

pg 14y ago

This wasn't an instance, as the word "top" should tell you. They merely meant that they're going after that subset of online retailers, not the small ones.

gav 14y ago

This also ignores reality; the top 500 retailers account for around 75% of the market, the rest make up a really long tail. After the top 1000 or so you're looking at retailers who make around $12,000 in revenue a month. Optimistically you're looking at $6MM a year vs. $240MM. I'd also worry that this data is more valuable if all your competitors don't have it. If you look at the Amazon Marketplace it's commonly a race to the bottom.

lazyjones 14y ago
> fter the top 1000 or so you're looking at retailers who make around $12,000 in revenue a month. From our experience as a CSE, these numbers are way off. There's a lot more than 1000 retailers making a lot more than $12,000 per month, even in smaller markets than the US where not the top 500, but the top 20 or so account for 75% of the (e-commmerce) market. There's a huge number of (more than $12,000/month revenue) brick & mortar stores out there with a humble online presence but whose investments are focused on increasing e-commerce revenue.

pbiggar 14y ago

That seems so valuable that $12,000/year seems much too little to charge for it.

agotterer 14y ago

Curious where that 2 million market size came from. All the estimates I've seen put the US market in the low hundreds of thousands. I've also read something that said only 90k merchants make more then $15k a year.

nashequilibrium 14y ago

Wow the premise of this company is working off is on very shaky ground! From my days at Procter&Gamble I had the opportunity to talk to a lot of buyers as well as pushing a new sku to market and I don't see this solving the pain points for retailers/buyers. On a side note, I am currently watching launch conf and these guys are a good example of solving a real problem, within the correct market, http://www.youtube.com/watch?v=HB5-5ee72Ic http://www.youtube.com/watch?v=HB5-5ee72Ic, It is a good niche in the ecommerce space. Thalmic labs seems like the only true original concept here and the others are just iterations of other startups. It reminds me of when reality shows got popular, put them on an island, put them in a house, reality sports, reality jobs, reality parenting, reality wives .......... It just goes on