Direct-to-Consumer Financial Management. For DTC clients, we offer secure credit card processing related services for orders made via a client web site or through our customer contact center. We offer manual credit card order review as an additional level of fraud protection. We also calculate sales taxes, goods and services taxes or value added taxes, if applicable, for numerous taxing authorities and on a variety of products. Using third-party leading-edge fraud protection services and risk management systems, we can offer high levels of security and reduce the level of risk for client transactions.

Professional Consulting Services

     As part of the tailored solution for our clients, we offer a full team of experts specifically designated to focus on our clients’ businesses. Team members play a consultative role, providing constructive evaluation, analysis and recommendations for the client’s business. This team creates customized solutions and devises plans that will increase efficiencies and produce benefits for the client when implemented.

     Comprised of industry experts from top-tier consulting firms and industry market leaders, our team of professional consultants provides client service focus and eCommerce, customer care, logistics and distribution expertise. They have built solutions for Fortune 1000 and Global 2000 market leaders in a wide range of industries, including multi-channel retailers, apparel, technology, telecommunications, cosmetics, aviation, housewares, high-value collectibles, sporting goods, pharmaceuticals and several more. Focusing on the evolving infrastructure needs of major corporations and their business initiatives, our team has a solid track record providing consulting services in the areas of interactive marketing eCommerce, supply chain management, distribution and fulfillment, technology interfacing, logistics and customer support.

SELLER SERVICES FINANCIAL MODELS

Enablement Financial Model

     We refer to the standard PFS seller services financial model as the “Enablement” model. In this model, our clients own the inventory and are the merchants of record and engage us to provide various business outsourcing services in support of their business operations. We provide ecommerce website services, inventory and order management, customer service, payment processing, and operations reports such as product sales, sales tax, and inventory management reports. In this model, we provide infrastructure and services and the clients are responsible for all financial operations and reporting related to the sales transactions.

     The Enablement model should generate net margins for our clients consistent with other retailers in our clients’ product category and the bottom line financial results for our clients should be similar to other retailers in their space. Service fee revenues in this model will be reported in our traditional PFSweb service fee segment.

Agent (Flash) Financial Model

     As an additional service, we offer an “Agent” model, or “Flash” model, in which our clients maintain ownership of the product inventory stored at PFSweb as in the Enablement model. When a customer orders the product from our client, a “flash” sale transaction passes product ownership of each order to a PFSweb subsidiary that, in turn, immediately re-sells the product to the customer. The “flash” change in ownership establishes the PFSweb subsidiary as the merchant of record. This enables us to use our existing merchant infrastructure to process sales to end customers, removing the need for clients to establish these business processes internally, but permitting clients to control the sales process to end customers. We accumulate the inventory ownership transactions and settle them with clients on a mutually agreed upon schedule.

     The costs of many of PFSweb services normally billed on a transaction basis under the Enablement model as well as certain administrative fees and credit risks are covered by the selling margin under the Agent model. The bottom line financial results for our clients should be similar to the Enablement model. In this model, the selling margin for product sales will typically be reported in our traditional PFSweb service fee segment although in certain situations the product revenues will be reported in our PFSweb Retail and Business Connect segment.