Overview

Zippi™ Networks, Inc. (publicly traded: ZIPI.PK), headquartered in San Jose, Calif., has created a revolutionary business process (patents pending), together with the ease of hand-held mobile technology that empowers a new generation of online sellers. Founded in 2006, Zippi promises to re-engage consumers in the online auction market by addressing the shrinking margins and competition that is currently threatening the existence of the eBay seller community. Zippi offers a new way to accumulate and sell unique products, turning each and every sale into a commissionable opportunity for online sellers.

With over 200 million people looking for items to buy online and with annual revenues of over $44 billion in sales each year, eBay has become a significant force in the global marketplace. Zippi’s goal is to increase the currently diminishing seller base by giving “everyday” people an opportunity to sell their clutter and earn the cash they deserve. The old axiom “One person’s junk is another person’s treasure” is a truth played out every day on eBay. With Zippi’s simplified process, anyone can sell merchandise quickly. Zippi provides the professional tools and training necessary to support those who wish to build a business.

Zippi Networks simplifies a typically complex process putting ease into the online auction selling system. Those who wish to sell merchandise—the clutter most people have stored—just call 1-877-Go-Zippi. A Zippi Affiliate will pick up the merchandise for listing on eBay, and when the item sells—the seller receives a check and the Affiliate receives a commission.

Zippi’s commission-based business model incentivizes Zippi Affiliates who build sales teams. As more people are trained and become part of a team, the greater the financial rewards. Zippi eliminates the competitive nature of selling merchandise in the marketplace and helps everyone benefit—from the seller, to the Affiliate handling the transaction, to the Zipster independent marketing and sales representative.

The Internet Seller’s Roadblocks

Zippi’s introduction into the online auction market is predominately a reaction to the loss of online auction seller motivation and the rising motivation to be free from the salary limitations and independently control income through a self-started business.

The latest figures show that the eBay seller community makes up less than ten percent 10% of the eBay community, a staggering decline from the once dominant eBay seller community. On one hand, these figures suggest the existence of a huge pool of potential sellers who may simply be afraid or unwilling to turn unwanted possessions into money because of perceived “hassle.” On the other hand, with fewer sellers, the number of unique items offered for sale naturally is reduced. A decline in margins – a squeeze on revenues – and increased competition has increasingly chased sellers away from online auctioning.

Concurrent with the decline in online auction sales is the rise of home-based businesses now spreading to the Internet and motivating many employees to become entrepreneurs. Economic growth stems from individual entrepreneurs and one-person or two-person businesses. Corporations continue decentralizing and dismantling themselves, giving way to an environment of independent contractors. One source, American Chronicle.com, reports that 33 percent of new millionaires are home-based businesses.

Tearing Down the Barriers

In his article “The Perfect Storm of Opportunity,” economist Paul Zane Pilzer describes phenomenon made possible by network marketing; “even for people starting out right out of school, the best opportunities are not to go to work for some big company (unless it’s a company that makes tools for individuals) but to go into business for themselves, as entrepreneurs.” Zippi empowers a new generation of online sellers by providing the processes, tools, and technology to gather products through the ease of 1-877-GO-ZIPPI, gather sellers through its Zippi Affiliate offering, as well as the ability to teach others to do the same, by becoming a team-building Zipster.

At the consumer level, Zippi is the first to offer online auction outreach to anyone who calls the 1-877-GO-ZIPPI service. Once a consumer with an item (or garage full of items) calls this service, Zippi dispatches a company “Affiliate” who handles the entire sale of the item – from pickup through auction to a final check in the mail, less a commission. To date, only drop-off online sales fronts have been available to consumers. With 1-877-GO-ZIPPI, the consumer never needs to leave home to make a sale.

Zippi Tools and Services

Zippi has introduced the online sales industry’s first handheld computing and sales device that centralizes information, photos, communications and even bar-code input for all online sellers. With the Zippi hand-held device the Affiliate can achieve freedom, mobility, and the ease of picturing, pricing, and posting an auction, from the palm of their hand. The handheld device, produced through Zippi’s partnership with Motorola, provides a variety of features to give each Affiliate a distinct competitive advantage in the online seller and auction communities. The latest smart phone and remote email capabilities allow affiliates to receive and service leads from anywhere. A two-megapixel digital camera and wireless Internet connection make it simple to get items up for online auction as quickly as possible. An application that permits the digital exchange of signatures further eases sale completion.

Zippi’s partnership with Extra Space Storage further provides Affiliates with the low overhead support of drop-off points and storage of items to be sold on eBay. Items are left in secure storage lockers at Extra Space Storage locations by Affiliates that choose to utilize this infrastructure, should an individual seller decide to drop off an item (or consign merchandise from an existing on-site storage locker) the seller may simply register their contact and sales item information at a nearby Zippi Kiosk (located on the Extra Space Storage premises) for an Affiliate to sell for them. These Drop-Off Stations act as a further incentive and cost savings for Affiliates by creating “warehouses” for processing merchandise, freeing garages from clutter and liability when selling consigned merchandise.

Zippi’s partnership with PayPal gives Affiliates a safe way to conduct online credit card transactions with consumers. Besides an expansive set of compensation and bonus opportunities, Zippi supports its network of Affiliates and Zipsters with a business kit that helps educate, recruit, and motivate. This kit includes DVDs, CDs, company information, product brochures, and other sales collateral.

Zippi has brought an element of the garage sale into a formalized business process with tools, technology, and a structure that allows people to work toward financial independence by joining the Zippi community.

Expressing the Zippi Brand

Zippi is exploring new territory in the eBay marketplace, namely network marketing. Adopting the internal slogan “Free Yourself,” the company has made significant and thoughtful investment in technologies, tools and processes that represent the opportunity embodied in its vibrant brand. Inviting consumers to “Turn Clutter into Cash,” Zippi Networks sets the stage with a simple yet powerful value proposition that it is committed to support a new experience in online selling.