Will Your Site Performance Be Naughty or Nice This Holiday Season?

eBags’ Journey to Record Sales with Improved Scalability and Performance

Keynote Systems and eBags, Inc.

Today’s Speakers

Dave Karow Mike Frazzini

Dave Karow is a Senior Product Manager for Internet Test and Measurement at Keynote Systems. Dave drives the innovation and development of Keynote Test Perspective and Keynote LoadPro products. Prior to Keynote Systems, Dave held Product Management Positions at BMC Software, Marimba, and Remedy Corporation. And when he’s not building better Web Load Testing solutions, you can find Dave helping his son build Star Wars Legos, play soccer or earn a karate orange belt.

Mike Frazzini is vice president at eBags.com, where he has spent 14 years honing the online-only retailer’s Web presence. Prior to eBags.com, Mike worked at Kenan Systems/Lucent, PricewaterhouseCoopers and elsewhere in software development, IT operations, transaction processing, security, and e-commerce infrastructure. He holds degrees in Computer Information Systems and Business/Finance from Regis College. Mike has logged over 150,000 miles with his Trager brief and laptop case, and he’s is a loyal Denver Broncos fan through good times and bad.

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eBags Overview

eBags Overview

Broadest

Selection

Competitive

Prices

Exceptional

Service Rich Content

Proprietary

Products

Vital

Statistics

#103 on Internet Retailer Top 500

48% of revenue from repeat customers

Accelerating financial performance

26.1% year-over-year growth in CY 2011; ~17% YTD growth in 2012

Led by team of retail, ecommerce and bag industry veterans

~120 employees located in Greenwood Village, Colorado headquarters

Market Leader

in Attractive

Category

Leadership position in the $20 billion bag market and is taking market share

Core Demographic: Female (68%), 36-55, $85k+ annual income

Singularly focused on bags and related accessories

Multiple categories (Luggage, Handbags, Business Cases, Sports and Backpacks) enable cross-selling

570 brands; greater than 43,000 SKUs

Barriers to

Entry /

Defensible

Bag Category

Ownership

Award-winning site with over 2.4

million customer-generated product

reviews, over 400 videos, and rich

content fostering “customer

stickiness”

Proprietary products are highly-

rated, have higher gross margin, and

can’t be comparison shopped

Drop-ship fulfillment capabilities allow for

market leading-selection of brands and

SKUs

Extensible ecommerce platform allows for

easy searching and navigating across

thousands of products

Deep relationships with 570+ brands

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Award Winning Website

● Won Website of the Year in 2011 (Multichannel Merchant)

● Named Internet Retailer’s Hot 100 E-Retailers in 2011

● Ranked 9th of Top 50 Mobile Sites by The E-Tailing Group Mystery Shopping Study

Outdoor Magazine “Gear of the Year” finalist 2010, 2012

Consumer Specialty Gold medal winner 10 straight years (Multichannel Merchant)

Named 2010 Navigator award winner for search technology (Endeca)

Named 2nd in Best in Search for Internet Retailer top 100 (Fluid 2009 )

Earned 4th out of 100 top online retail sites in Mystery Shopping Study (E-Tailing 2008)

Rated 9th out of 300 sites for customer experience (Future Now 2007)

Travel Goods Association Community Service Award (TGA 2006)

Award Winning Site and Products

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eBags Offers a Wide Variety of Top Brands and…

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Our deep relationships with these well-

known brands are a significant

competitive advantage

Our breadth of brands is appealing to

brand-conscious and fashion-conscious

consumers

Designer Handbags Brand Launches

eBags Private Label Product (PLP)

is our #1 selling brand

● Currently 12% of sales (targeting 15%

by 2013); 60+% YTD growth in 2012

PLP customers are more than twice

as likely to become a repeat

customer

● 95.3% of customers would purchase

again

● 9.3 Overall Rating (out of 10)

● 75% of styles rated “Best of the Best”

by customers

Best of the Best: 90+% would buy

again & 9.0+ overall customer rating

Over 75 models and 300 SKUs

● 90 new SKUs launched in Q4 2011

PLP is “unshoppable” since only

sold via eBags and partners

EXO Hardside 24” Spinner --

finalist for “Gear of the Year” in

Outside Magazine

The eBags Brand – Private Label Product

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A Shopping Day Invented for the Web Comes of Age

November 28, 2011

eBags…said as of 7 p.m. Eastern time that sales were up 45

percent over last year, the biggest day in its history. “This

will be the biggest day of the season, the year and actually

the history of the company.” [said Mr. Cobb].

eBags Holiday 2011 Press

E-retailers say sales are up as consumers flock online to

snag money-saving deals

November 28, 2011

As of 9 a.m. Central time, specialty retailer eBags.com co-

founder Peter Cobb says sales today were up 33.7% versus

the same time on the Monday following Thanksgiving last year.

Retailers Tweak Sites to Spur Sales

December 23, 2011

eBags spent months fine-tuning its site for the key end-of-year

shopping quarter as it tried to nail down the science of getting

people to buy more stuff.

Over the summer and fall, the Denver-area retailer tested a version

of its site with stars against one without them. After eBags found

sales on the new website were 8% higher than on the star-free site,

the company decided to make the ratings system permanent.

Buyers click away as Cyber Monday sales jump 18%

November 28, 2011

Online luggage and handbag site eBags also did testing ahead of time to make sure its site

could handle Cyber Monday traffic. It saw a record sales day, up 42.5% over last year, says

Peter Cobb, the site's co-founder.

Sales on Cyber Monday Jump by Double Digits

November 29, 2011

Handbag and luggage store eBags Inc. said sales on Monday were up 45% as

of the early evening. "It will be a pretty substantial increase over last year's all-

time record," said eBags co-founder Peter Cobb.

U.S. Web Sales Sparkled for Holiday Season

December 30, 2011

Online luggage-seller eBags, Inc. said sales were up 32%

year over year, but didn’t disclose the underlying numbers.

Bringing its call center in-house and back to the U.S. helped boost

eBags’ holiday business

January 19, 2012

To eBags’ surprise, the shift actually allowed the retailer to shave about

34% off its customer care expenses because the U.S.-based customer

service representatives were able to resolve customer complaints more

efficiently.

A Shopping Day Invented for the Web Comes of Age

November 28, 2011

eBags…said as of 7 p.m. Eastern time that sales were up 45

percent over last year, the biggest day in its history. “This

will be the biggest day of the season, the year and actually

the history of the company.” [said Mr. Cobb].

eBags Holiday 2011 Press

E-retailers say sales are up as consumers flock online to

snag money-saving deals

November 28, 2011

As of 9 a.m. Central time, specialty retailer eBags.com co-

founder Peter Cobb says sales today were up 33.7% versus

the same time on the Monday following Thanksgiving last year.

Retailers Tweak Sites to Spur Sales

December 23, 2011

eBags spent months fine-tuning its site for the key end-of-year

shopping quarter as it tried to nail down the science of getting

people to buy more stuff.

Over the summer and fall, the Denver-area retailer tested a version

of its site with stars against one without them. After eBags found

sales on the new website were 8% higher than on the star-free site,

the company decided to make the ratings system permanent.

Buyers click away as Cyber Monday sales jump 18%

November 28, 2011

Online luggage and handbag site eBags also did testing ahead of time to make sure its site

could handle Cyber Monday traffic. It saw a record sales day, up 42.5% over last year, says

Peter Cobb, the site's co-founder.

Sales on Cyber Monday Jump by Double Digits

November 29, 2011

Handbag and luggage store eBags Inc. said sales on Monday were up 45% as

of the early evening. "It will be a pretty substantial increase over last year's all-

time record," said eBags co-founder Peter Cobb.

U.S. Web Sales Sparkled for Holiday Season

December 30, 2011

Online luggage-seller eBags, Inc. said sales were up 32%

year over year, but didn’t disclose the underlying numbers.

Bringing its call center in-house and back to the U.S. helped boost

eBags’ holiday business

January 19, 2012

To eBags’ surprise, the shift actually allowed the retailer to shave about

34% off its customer care expenses because the U.S.-based customer

service representatives were able to resolve customer complaints more

efficiently.

“…sales on (Cyber) Monday

were up 45%…”

“Holiday season…sales were

up 32% year over year…”

2011 Holiday Performance & Scalability Results

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99.99+%

Availability

Scaled to handle

3X projected

peak load

Beat internal

performance

goals

32% increase in

sales YR/YR

2011 Holiday Performance & Scalability Results (continued)

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0.66 sec

2.01 sec

2011

2010

<HTML>

4.93 sec

2.69 sec

2011

2010

Base Page Download

(HTML only)

2.01 0.66 sec

Full Page Download

(including 3rd party/

dependent requests)

4.93 2.69 sec

Weekly average

2011 Holiday Performance & Scalability Results (continued)

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Performance and Scalability Task Force

● Weekly meetings with rotating focus

● Cross functional

Systems and infrastructure

Web applications architects and developers

Web designers

Marketing

● Extensive Keynote report analysis

● Weblog and other monitoring systems report analysis

● Steve Souders books and tools very helpful

● Performance and scalability shared responsibility

Most significant aspect of departmental bonus plan for CY11

Prepping for Holiday 2011: How We Got Results

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External Load Testing with Keynote LoadPro

● Multiple iterations starting in June

● Multiple iterations after lockdown in late October

What makes Load Testing most effective?

● Iteration, and iteration *after* lockdown

● Building scripts with breadth, depth, and reality

Extensive weblog mining to create scripts

● Simulate and/or create full back-office load

Batch processing

Customer Care

ERP

● Analysis and correlation across all monitoring systems

● Assess and test failures on each tier

Prepping for Holiday 2011: How We Got Results (continued)

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Where did the biggest gains come from?

Systems and Infrastructure: ~40%

● Servers – Bug in our default BIOS power management settings

● DB Tier Upgrade

Web Application: ~35%

● Overhaul of session management

● Continuous Load Testing integrated into SDLC

● Other application optimizations

Web Design: ~15%

● Graphics optimizations/CDN upgrade

● Javascript optimizations and minification

● Sprites

Marketing: ~10%

● “Partner Pixel” clean-up and optimization

Biggest Gains in 2011 Performance & Scalability

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Observations on Mobile

Mobile and Tablet are

growing fast

● 3X and 2.5X YOY

Visits/Rev

12% of mix 2012

Big investment area

● Mobile optimized site

● Application and

infrastructure

Mobile performance

target +1.5 second

over desktop

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Repeating focus of 2011

Deeper monitoring

● Broader and deeper coverage of monitors

● Streaming Perspective

● Doubled our Keynote monitoring budget

Continued platform investment and upgrades

Extensive mobile investment and testing

● Improved capabilities to segregate, tune, and scale mobile

back-end infrastructure

● Continued partnership with mobile optimization specialist for

front-end/usability

Keynote behind the firewall

Deeper usability/responsive design focus

Additional Preparation for 2012

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Holiday season 2012: Are you ready?

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User performance expectations and mobile commerce forecast

48%

26%

11%

8%

7%

31%

29%

18%

12%

10%

21%

23%

20%

18%

18%

2 seconds or less

3 seconds

4 seconds

5 seconds

6 seconds or more

Laptop / desktop computer

Tablet

Smartphone / touch phone

Source: Keynote Mobile User Study, 2012

Anticipated page load wait

times by device

Mobile site traffic and

sales percentage trends

Source: IBM 5th Annual Online Retail Holiday Readiness Report, 2012

Holiday season 2012: Are you ready?

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Mobile user performance expectations—a closer look

Source: Keynote Mobile User Study, 2012

About Keynote

• Founded May 1995

• Public, NASDAQ: “KEYN”

• 4,000 customers

• On-demand infrastructure of over 4,000 measurement computers and mobile devices in more than 275 locations around the world

• $25 billion in online sales trusted by the Internet’s top retailers to Keynote testing and monitoring

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The global leader in Internet and mobile cloud testing & monitoring.

Keynote Web and Mobile Performance Monitoring

Web Mobile Web

True User Experience

Transaction Perspective Mobile Web Perspective (over air)

Real Internet Explorer, Firefox browsers 35 mobile networks

Uptime Monitoring

Application Perspective Mobile Web Perspective (over LAN)

Emulated browser 2,100 smartphone and tablet device profiles

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True user experience, from real Web browsers, mobile devices & networks

Complete monitoring

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Real-time visibility, immediate notification, diagnostic insight, trend analysis

Keynote Web Load Testing

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Real-world Internet traffic, realistic tests. Fully outsourced or on-demand.

Test Perspective

Self-service, point-click script recorder, guided workflow

4 dedicated, top-tier load delivery locations

Flexible on-demand subscription

LoadPro Managed service; SaaS platform + expert consulting

20 dedicated, top-tier load delivery locations + additional scalability through public cloud resources

Pay-as-you-go

Thank you. Q&A

Drawing: Stay with us to win a $50 eBags.com gift card!

Contact us to set up a free trial, or personalized demo. www.keynote.com

1-800-539-6683 / +49-(0)4106-1280112

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