Section 16 Filings Only
PFSWEB INC filed this 8-K on 08/15/2011.
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<A — Mark Layton — Chairman & Chief Executive Officer>: No, that’s coming about because the world’s changing in terms of the way, I mean, the simple thing you can look at today 99% of these eCommerce transactions originate from a PC today. As we sit back and look at this over the next several years, that number is, we believe will decline significantly. And as mobile transactions come to play in other electronic widgets, if you will, come about whether that might be a seat-back device at a stadium or something in a cab, an electronic billboard, a shelf talker various ways the consumers can interact with brands and potentially purchase products.
What we see is that an ability to facilitate electronic commerce transactions if you will across channel partners. Some of which will continue to result in shipments from our own facilities and interactions with our own call center others of which might facilitate transactions between various retail locations out there in order to be certain that the brand still captures the sale and doesn’t lose it to a competitor.
So this is several years out, but with that, then you sit back and say well how does our revenue model evolve around that and there will be things more oriented around potential rev-share agreements and things along that basis and there that would go, this is a perfectly — a hypothetical example I’ll give you here but let’s assume for a minute that we moved $2 billion of overall commerce — facilitated $2 billion in overall commerce. Today, almost all of that moves through — would move through one of our facilities and the customer interactions would be with one of our call center agents. Fast forward five years, let’s just say that we may facilitate $10 billion of commerce and $3 billion of that moves through our facilities and $7 billion of that is facilitated across various channels will mean we might not actually hold the inventory for the client at all or handle the interaction there may not be an interaction required.
But we might be able to gain a rev share of that other $7 billion because we facilitated through our technologies and our, both proprietary and our technology interface relationships that I described earlier in there — those particular transactions. So it’s a new revenue source for us, if you will almost a new product area that we can offer that we see the opportunity for going forward.
<Q — Glenn Primack — Broadview Advisors LLC>: So your return on invested capital looking out I don’t know, sort of three to five years goes up dramatically, if that kind of takes place?
<A — Mark Layton — Chairman & Chief Executive Officer>: If that hypothetical example takes place, that would — we would assume that would happen, yes.
<Q — Glenn Primack — Broadview Advisors LLC>: Okay. Last one with Barron’s writing that piece couple of weeks ago on Amazon, I don’t know if you saw it or not, but the whole. Yes, they’re growing revenue, but they’re having to put that much more into infrastructure. Can you just kind of compare and contrast on what you’re going through, I mean you guys started as big distributors, they kind of started as not. And so, is there something that’s similar or you won’t even kind of view that as a comparable-type company?
<A — Michael Willoughby — President & Chief Information Officer>: So, I don’t — I’m not familiar with the piece that you’re referring to. When we look at Amazon we look at them in two different ways, one is as a potential competitor because they have a fulfillment by Amazon type of a product.
They aren’t really a competitor to us because their infrastructure and their go-to-market strategy is really targeted to small and medium businesses with a pretty generic fulfillment and eCommerce offering whereas our vertical markets demand a highly customized, very robust offering across the touch points.
So if you look at their sort of outsourced business, we don’t see them as a competitor and the infrastructure that they built is really built for this large volume of products across a large number of small-to-medium businesses.

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