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Capstone g750 capstone project hypertension jmu fsl grade report university kathryn haake joins us catherine is in from Toronto she's here for a conference going on a startup conference for web and web two point oh and entrepreneurial companies thanks for Cody encounter thanks for having me now Catherine you have your own online site called shop locket that get already don't like which is an online shopping site where people can create their own listings and manage their own listings and promote their products that they're selling in a variety of ways and how long have you been doing this for we started working at the end of last year now we've been fully launched for about four months now so you're only four months into startup Wow yes how many hours the DB work um how many hours whenever we're awake we're basically working it's you're absolutely right now because you're a young entrepreneur fairly young yes so now I wanted to ask about because it's a compelling product I really like the design and so tell me how you went about starting the product then we'll get into the details what the product doesn't a few minutes but what was it what was the genesis of this yeah so my background is in business and marketing and I've always loved startups and always in part of the startup community and about a year and a half ago my good friends that found company called Shopify launched this new thing called a theme store for Shopify and I tried to get involved naturally launches theme on that theme store now Shopify is it I guess it's a cassette the success story in Canadian high tech I think based in Ottawa primarily yeah and they are a shopping cart provider so they are a website provider or an internet provider who gives you the architecture the backend you need in order to launch a web store if I kind of captured it properly yeah exactly so when you decide you know I want to launch a new storefront just tell a bunch of different products from you can use Shopify and it'll give you a new website that you can have all of your different product listings people can browse and what the theme store was was the ability to pick you know what does that store look like and you can pick from you know 100 different themes and you know what are the colors I want what's the orientation I want so if i was a fly fishing store it had a retail location I would look on the i would say i'm gonna i want to bring my store online i would go to Shopify i would sign up for an account which I can then tie into my accounting system my inventory system i can do they've got all those yeah labra hugs but now for the look and feel of my store online i might look at some of the themes i'll be looking for ones that are in hunter green and maroon yes cuz i know that's really gonna fit for further for the for the fly-fishing efficient at all exactly and my theme was actually mad men inspired so the first one was madison avenue and then we had fifth avenue and hole into New York themed Oh missing after the hit TV series yes okay so so very thin ties then black ties so the first one is sort of you know very you know maroon and very subtle colors cocktail inspired so how long did it take you to develop the theme the theme actually i did with a good friend of mine who's an amazing designer he built it in about two weeks and I sort of took on some the financial risk and some of the marketing side of things and we actually broke even in about three weeks after we launched the store wow so you started building the themes in in that so that became a business a business direction for you why did you stop building themes and decide to to step out of the Shopify world well I love doing and actually we made about 16,000 in profit just in the year that we first launched the theme and I just really good for first doing work yeah it's pretty good and I didn't even do that two weeks or so I loved working with all the store owners and start brainstorming you know there must be other cool apps cool things that I can build for this and um really realize that you know there's this huge opportunity there and then I had my own product and just some fun t-shirts that I had made and I want to sell them and say okay great i can finally start a storefront but i realized that you know for someone like myself that has a blog that has a website and they're really only has one product that they're trying to sell from that it doesn't make sense to create an entirely new storefront redesign it you know one product can kind of look a little bit silly in a store yeah for kill for sure exactly so what could i use that would still make me look professionals and they'll be proud to share and i found myself quickly going to amazon ebay on craigslist even craigslist paypal buy buttons it just after working something as awesome as Shopify it just seemed so unprofessional and why was this problem that seems so simple I have one product and I want to sell it why was it actually just so complicated and that's really where shop lock it was born and we wanted to make really selling a product just as easy as sharing a YouTube video okay and that's and that's really the theme as I look at your site in it I did sign up and start to play with it it does have the feel at least from the from how you how you manage your listing of kind of like a YouTube video so you sign up for an account and your sign up your barriers for entry are pretty little I think they asked me for my email address and that was yeah well so is so there was no whipping out my credit card and charging so we'll get into the the financial relationship a little bit later so I signed up for the account and then it says what do you want to sell it's basically the way that your site work so as I create a listing walk me through what happens is I create my listing and then what my options are as far as selling something and we should point out this is probably not for selling your you set of snow tires yeah that's that's sitting otherwise this is for more boutique items something that's unique something that has some intrinsic value or or maybe some a craft that you're making something that's unique from that person yeah something you'd be proud to show off so we have a lot of self-published authors we have lot of companies that have merchandise events that have t-shirts and selling their first record their first CD so it's really things that you want to share with your network you're proud to put on facebook or on your blog or things that other people would want to continue to share as well okay so it's going to be quality product boutique type product what happens now I create a listing I import a photograph or into my listing and yeah so you next step yeah you literally just name your product right description upload a photo you can pick the style for what you want your product actually look like when it's embedded in a blog post or on a website and that's what the wrapper around the Shopify ad looks like yeah so it's basically the wrap around your shop pocket widget and it will just cover sorry yeah a lot of people do that too many things are shot the beginning here again but basically you pick the color basically that's wrapping up your product listing you hit publish and basically you put in a pay I'll email address and you're done and whenever someone actually purchases your product the money is going to go straight to your paypal account if you're in the states you also the option to sign up something called stripe which is in beta and Canada it's one of the coolest payment processors out there so oh so we're gonna see competition for paypal well yeah it's definitely already happening in a very big way down in the states with stripe and now just about four weeks ago they launched their Canadian beta so we're excited to be some of the first people using that so keep your eyes peeled first I'm not again I'm making a note as we speak so go so okay I think that for some of our day and so we skipped by a really important part which is okay you're saying that I'm gonna sell stuff first of all how do I know that it's been sold be where am i selling it where is this listing you magically suddenly people are looking at this ad so let's walk let's walk through first of all procedurally how is the notification in the transaction handle tell me that so what happens is once you actually made a sale will notify you by email and then you can also log back into your shop pocket account to actually see a listing of all the orders that have come in a few more details about each of those transactions but the way that you would have actually gotten the word out after you publish it is we give you just like when you publish a YouTube video you can either link directly to the YouTube video or you can embed that video on your facebook page or on a blog post or on an existing website so it works the exact same way with shot block it you can either share a link to where we host it or you can actually embed it directly on any existing site that you already have so the embed code in in for people who haven't ever played with YouTube or play with working with embed codes it creates a little snippet of code which you if you have a blog such as we were talking last week well or a wordpress site if you've got a blog your own wordpress site you can instead of using the the WYSIWYG editor where you're basically looking at your text bolded and your graphics as they're in place you can look at the underlying code behind that and within that an underlying code you can embed this piece of code that you've created in in shop locket and you in it then as soon as you look at the the and then when you post that posting it will appear as a nice rafiqul that widget we will yeah widget where you can just the people see the nice rapper they see the ad they click on it click here to buy and it takes you into your payment processing system exactly and she I just make trying to keep it really simple and not have to deal with any of the complexities you know what photos how am I going to arrange the text you know what do i do if i have different colors or different variants of what this product is and taking all the complexity out of that and just wrapping it into this one little widget that you can just share anywhere how are you going to be paid how are you going to make your money out of this generally so we don't actually make any chance someone makes a sale and then we have a two point five percent transaction fee which is just a split payment off your paypal transaction fee I'm so we're paid every time there's a sale for our 2.5 percentage fee so as if I'm selling something it's paypal I think takes about three percent is a 3.7 or 3.9 37 plus thirty cents so I paypal is going to take that you're going to take two and a half percent off not of the net but uh not of the the subtracted total but of the grand total so you're gonna lose about five five point four thirty or plus thirty cents that's what they're gonna cost you for the transaction which it really isn't too bad I mean well no I mean so really on any store front platform you're going to have to pay some sort of transaction fee whether it's on etsy whether it's on Shopify whether it's on ebay actually ebay fees are much closer to you know nine percent by the time you're actually done um so yeah we're just trying to keep it really simple and make sure that all of our sellers are you know not taking huge monthly commitments and risk that they can just you know as you succeed will succeed as well so eBay and Amazon who both sell products use products take on the responsibility of reaching the market place people go to search for your product on ebay that's a powerful that's a powerful marketing tool yeah that's you've decided to complete your shoe that model and say you're responsible for you reaching your customers yourself we're just going to be a transactional processing engine for you making sure that the transaction happens clearly easily we lower the barriers for your customers to purchase and we're going to give you some nice powerful tools allow you to create ads that are fairly compelling yeah so we're ideal for the person that you know whether it's just your friends or whether it's your company or whether it's are following but I already have some sort of networking you want to sell to and it's very similar to see if you launch your own website that's a storefront you have to drive your own traffic and you build up your own audience but you know why should that have to take you a couple weeks or a couple months to launch will let you be just as professional as that but in just a few minutes and a lot of people see you know those marketplace solutions being a little bit unprofessional and I don't necessarily want to direct someone where they're going to see hundreds of thousands of other products as well as mine that's that's that's the challenge that you face in those areas so you've been going for four months now and were you in beta before that it was that including your beta time we're still in beta before that we were in closed beta so you had to have a special invite to get in now you're an open book maybe we should point out that google i think is still considered so you might never get other beta so you so it's free to sign up now are you limited to just canada or are you worldwide at this point so people are actually using us from all around the world in terms of currencies however we support an ad in USD and GBP yen and euro okay and so tell me what's so where are you on your road map now you're four months into it do you have enough users that you're starting to create some critical mass that you're getting lots of really positive feedback or lots of useful feedback from your user base and you can see a solid growth curve happening yeah we're definitely seeing you know more pick up every single day and we've having some great success stories we had a self lova shawty you days ago that sold out you know all the pre copies of his book in about 24 hours and it's just so great to see it helping something like that I think he'd spent you know three days trying to set up other solutions and just got so frustrated and just you know less than an hour he was already selling with us so hearing things like that is just great for us and we just closed a major round of funding about four weeks ago so finally we're settling back into work flow and having progress it's been nice to get back to work well I we're certainly going to keep an eye on I keep an eye on your success there's so many there's so many places that we could take the conversation I'd love to know what's happening with around the crowdfunding model if they're starting to embrace what you're doing but but we've kind of run out of time already catherine hague her website is shop locket calm if you've got something cool to sell it's well worth your time to check out shop lock it thanks Catherine thanks so much I'm Steve dotto am Steve dotto and you're tuned into dottotech whats a capstone course for money Union Theological Seminary, Morningside Heights (Columbia University area).