1. eBags is an online retailer specializing in bags and luggage. It sells over 30,000 products from 500 brands and has sold over 6.7 million bags. 2. eBags uses two supply chain models: a drop-ship model for 85% of orders and an inventory model for 15% of orders stored in a Texas warehouse. 3. eBags is considering expanding into the European market and footwear category but faces challenges with international expansion, developing footwear expertise, and managing multiple supply chains. Expanding carefully into these areas may provide new growth opportunities.

1. Presented by: Rachel Romano Kathleen Barbosa Lydia Cooper Jasmine Shavers Monika Kerby

2. The Organization Jon Nordmark President and CEO, eBags Mike Frazzini VP of Technology and Operations, eBags Peter Cobb VP of Global Merchandising, Customer Acquisition and Awareness, eBags

7. Fragmentation Fashion Designers Coach, Vera Bradley Luggage companies Samsonite, American Tourister Prices $20 to $1500 Styles Suitcases Handbags Briefcases Messenger bags Carry-on’s Wallets Clutches Backpacks eBags brings all of these options together to give their customers one stop shopping for all of their luggage and bag needs.

9. Drop-Ship Model Customer places order on eBags.com -> eBags electronically transmits the order to the vendor -> Vendor ships order to the customer directly, using the eBags shipping account -> eBags pulls tracking information and sends to customer in confirmation email -> Vendor invoices eBags for the product -> Ebags issues a payment to the vendor ■

10. Speculative Inventory Product comes from Asian manufacturers who sends the bags to be stored in Texas warehouse -> Order placed gets forwarded to the warehouse -> Warehouse picks and ships the order to the customer ■

12. Footwear “ 6pm.com quadrupled in size during the three years we owned the website. We feel confident in our decision to sell 6pm.com to an outstanding company like Zappos.com as this move will allow eBags to concentrate our energy towards continuing to be the Internet's premier luggage and handbag e-tailer. ” Jon Nordmark, CEO and co-founder

14. Record Sales Fiscal year ending June 30, 2010 Estimated Annual Sales $500,000 to $1 million Sales up 13% Leading sales of messenger bag and luggage categories 26% and 23% Brands showing strong growth: B. Makowsky, Timbuk2 Samsonite Baggallini. Fiscal year ending June 30, 2010 Estimated Annual Sales $500,000 to $1 million Sales up 13% Leading sales of messenger bag and luggage categories 26% and 23% Brands showing strong growth: B. Makowsky, Timbuk2 Samsonite Baggallini.

16. Supply Chain Management Business Model Challenges Language barriers Shipping requirements Brand awareness Web page administration Relationship between vendors and online retailers Must satisfy drop-ship method Challenges Managing at Distribution Level Functionality versus Style/Value Communication

20. Presented by: Rachel Romano Kathleen Barbosa Lydia Cooper Jasmine Shavers Monika Kerby