Philp Industries Weekly Summary September 3rd - September 9th Cycle Force Group Prepared on September 12th 2017 Private and Confidential | Philp Industries

A Data-Driven Approach ACTIVITY AMAZON ORDERS AMAZON SALES FAST TRACK AMS CHARGEBACKS CATEGORY PERFORMANCE BRAND PERFORMANCE INDIVIDUAL PRODUCT PERFORMANCE Private and Confidential | Philp Industries

Activity Summary NEW ITEM SET-UPS IN THE SHOOT: Klokov (3 SKUs) - US only US ASINs approved Detail pages, images and videos are live Dropship back-up set-up Needs A+ Content fixed by Dan Bombtrack (42 SKUs) - US only Detail pages, images are live Awaiting variations from CFG team Visibell (1 SKU) - US Only PROJECTS COMPLETED THIS WEEK: 5 Variations successfully created Product description updated for Tour de France product Wald keyword test: test keywords pulled for 'Rear Bike Basket', 'Front Bike Basket', 'Rear Bike Rack', 'Bike Training Wheels'. Keywords with 1K-100K hits submitted for 12 ASINs being tested Mantis Highlight ASIN with long-time replen code showing as Non-Replen flipped to New Product MSRP updates for 7 Stitch bikes approved Product description and variation updates made to KHE Affix Mid BB Bushing Cup Set for 19mm Bullet Point updated for 6 Viva ASINs Inquiry made about whether any ASINs are not in Innetwork fulfillment: All ASINs with innetwork fulfillment ONGOING PROJECTS (AWAITING AMAZON): 3 Variations pending with tickets continuing to be filed M-Wave QR bottle cage: Inquiry made into why list price is showing differently on detail page than in cost spreadshseet, 2 replacement images submitted and pending. Working on getting Amazon to replace incorrect UPCs. They are saying they have inventory with these incorrect UPCs on them, I have requested photos of this. ONGOING PROJECTS (AWAITING DAN): New Klokov ASINs needs A+ Content fixed M-Wave QR bottle cage: Troubleshooting list price showing incorrectly Strida ASIN with conflicting title and image sent to vendor to clarify. Vendor reports image and title are correct, however Amazon is disputing this and has placed selling restriction on this product (ASIN:B01HIY7O7C). Drophship added as back-up to all ASINs Selection Opportunity email from CFG ONGOING PROJECTS (AWAITING CFG): Awaiting new Bombtrack ASIN variations List of 6 products with wrong UPCs in Amazon sent to Vendor on 8/30 to verify UPCs 74 ASINs with duplicate vendor SKUs sent to CFG to clarify on 8/16 ASINs with Hazmat restrictions: 24 MSDS submitted to Amazon, waiting of the rest of MSDS reports from CFG team Requested UPC clarification for ASIN B001EVAYFK on 8/3 Private and Confidential | Philp Industries

Catalog Maintenance Updates Activity # POs not accepted Partial Case Purchase Orders Missing Images Unowned ASINs Replen Codes Mismatched ASINs Missing from Cost Spreadsheet Vendor Code Missing from Cost Spreadsheet UPCs Missing from Cost Spreadsheet Model #s Missing from Cost Spreadsheet Name Mismatches UPC Mismatches Brand Name Mismatches Brand Code Mismatches Mfg Model/Catalog # Mismatches GL Mismatches Category Mismatches Subcategory Mismatches ITK Mismatches Mismatched Parent ASINs Merging Submissions Manufacturer Mismatches Missing Product Detail No maintenance this week Private and Confidential | Philp Industries

Amazon Orders Amazon PO Dollars SKUs Ordered Confirmation Rate Fulfillment Rate Private and Confidential | Philp Industries

Amazon Sales Shipped COGS Shipped SKUs Average Sales Price Inventory Weeks of Cover Private and Confidential | Philp Industries

Fast Track Fast Track Replenishable Out of Stock Non-Replenishable Out of Stock Lost Buy Box Private and Confidential | Philp Industries

AMS Sales Spend Average Cost of Sale Conversion Rate Private and Confidential | Philp Industries

Chargebacks PO - On-Time Non-Compliance PO On-Time Accuracy Oversized Carton Prep - Bagging Private and Confidential | Philp Industries

Category Activity Category Shipped COGS September 3rd - September 9th Change over last week 9000 Cycling - 9154 Bike Baskets $9,032.88 $-939.71 9000 Cycling - 9100 Accessories $6,563.11 $-1,067.25 9000 Cycling - 9107 Tires $4,385.85 $-811.57 9000 Cycling - 9312 Balance Bikes $3,841.44 $-173.92 9000 Cycling - 9050 Mountain Bikes $3,506.99 $-1,659.96 9000 Cycling - 9080 Trailers $3,124.68 $-1,101.59 9000 Cycling - 9108 Tubes $3,087.06 $-469.07 9000 Cycling - 9113 Bike Small Parts $2,850.25 $259.73 9000 Cycling - 9204 Drivetrain and Accessories $2,006.34 $309.94 9000 Cycling - 9055 Recumbent Bikes $1,775.00 9000 Cycling - 9110 Helmets $1,766.27 $717.59 9000 Cycling - 9208 Handlebars- Stems- and Seatposts $1,721.76 $272.22 9000 Cycling - 9067 Unicycles $1,640.48 $-826.16 9000 Cycling - 9030 Hybrid Bikes $1,513.33 $1,182.38 9000 Cycling - 9220 Automobile Bike Racks $1,499.31 $-817.75 Private and Confidential | Philp Industries

Brand Activity Brand Shipped COGS September 3rd - September 9th Change over last week Wald (WALE8) $9,169.89 $-1,262.19 Nantucket Bicycle Basket Co. (NANBD) $4,171.62 $-453.15 Trail-Gator (TRAYJ) $2,918.91 $-836.32 Ventura (VENX7) $2,896.95 $-603.42 Panaracer (PANZK) $2,779.91 $-334.22 Kenda (KENE8) $2,609.87 $-331.65 M-Wave (MWAB7) $2,571.68 $-401.95 ByK (BYKA9) $2,447.00 $1,292.00 Mantis (MANVR) $2,351.84 $-3,816.60 Stop-A-Flat (STOXV) $2,102.75 $-156.00 Shimano (SHIAJ) $2,039.86 $264.40 Kawasaki (KAWC7) $2,028.52 $433.64 Minoura (MINVD) $1,884.98 $244.75 PFIFF (PFIFC) $1,775.00 Fun (FUNRS) $1,640.48 $-826.16 Private and Confidential | Philp Industries

Top Products Parent Products Individual Products Product Shipped COGS Change over last week Trail-Gator Child Bike Tow Bar (B074RLP1Y7) $2,847.60 $-885.50 Nantucket Bike Basket Co. Classic Lightship Basket (B0041285Q4) $2,294.18 $175.64 Stop-A-Flat Puncture-proof, Thorn-resistant, No-flat Bicycle Tubes in 12/16... (B0127EGQZY) $2,102.75 $-156.00 Fun Unicycle (B06XSMXHWP) $1,640.48 $-826.16 Steppenwolf Men's Tycoon Sport Full Suspension Mountain Bike, 27.5 inch whe... (B017P7M986) $1,463.99 $0.00 Overade Plixi Foldable Bicycle Helmet (S/M 54-58 cm) (B01MQ5L85J) $1,417.86 $708.93 ByK E-250 Kid's Bike, 14 inch wheels, 6.5 inch frame, for Boys or Girls, fo... (B01275TAOC) $1,242.00 Kawasaki Sumo 4.0 Fat Tire Bicycle (B01MSIK659) $1,155.00 $770.00 Wald 157 Giant Delivery Basket (B00D3SHH0C) $1,064.48 $56.34 Mantis Tri-Rad Folding Adult Tricycle (B01NAJ1OC8) $924.00 $-2,310.00 Individual Products Product COGS Change Out of Stock Wald 1216 Bicycle Training Wheels (12 to 16-Inch Wheels) (B000C128PM / W1216) $2,527.35 $-684.75 0.26 % Wald 10252 Bicycle Training Wheels (16 to 20-Inch Wheels, .75 and 1-Inch Fr... (B000C1YTCW / W10252) $2,063.99 $-566.96 0.45 % PFIFF Adult Scooter Trike S Tricycle (16-quot- -amp- 20-quot- wheels), Blue (B019INP77A / PF09105501S) $1,775.00 100.00 % Nantucket Bike Basket Co Adult Classic Lightship Collection Stained Bicycle... (B004Y2LTKA / C/004/A) $1,622.14 $101.40 0.00 % Steppenwolf Men's Tycoon Sport Full Suspension Mountain Bike, 27.5 inch whe... (B0173GC1UA / SWM415-5001) $1,463.99 Trail-Gator Trailgator Bicycle Tow Bar (Red) (B000KAZUQY / 640020) $1,422.94 $220.31 0.23 % Kawasaki Sumo Fat Tire Bike, 26 x 4 inch Wheels, 18.5 inch Frame, Unisex (B00LUFF6PI / KA2606-1-MT) $1,155.00 $770.00 0.73 % Ventura Universal Bicycle Carrier Rack (B001NGF6AY / 440149) $1,132.84 $-578.32 0.48 % Trail-Gator Children's Black Trailer Tow Bar (B0011HZKI8 / 640022) $1,113.21 $-1,230.39 Mantis Tri-Rad Folding Adult Tricycle, 20 inch Wheels, 16 inch Frame, Unise... (B00FXMIUPW / 67520) $924.00 $-2,079.00 65.46 % Private and Confidential | Philp Industries

Increasing Products Increasing Parent Products Shipped COGS Change over last week ByK E-250 Kid's Bike, 14 inch wheels, 6.5 inch frame, for Boys or Girls, fo... (B01275TAOC) $1,242.00 ByK E-450 Kid's Bike, 20 in wheels, 10 inch frame, four Boys and Girls, Blu... (B01F26XR5G) $875.00 Kawasaki Sumo 4.0 Fat Tire Bicycle (B01MSIK659) $1,155.00 $770.00 Overade Plixi Foldable Bicycle Helmet (S/M 54-58 cm) (B01MQ5L85J) $1,417.86 $708.93 Viva Juliett 7 City Bike, 28 inch Wheels, Women's Bike, Red, 47 cm Frame, 5... (B00LGZNZA0) $670.95 Bombtrack Hook 1 700C Cyclocross Bicycle, Grey (B071VBFTXW) $558.24 Klokov Olympic Weightlifting Barbell (B01MTCGP24) $486.50 Head Road Bike (B06XTKWPPM) $310.00 Panaracer Gravel King Folding Tire, several sizes available, black with bro... (B072XXBGHG) $374.01 $201.39 Vuelta ZeroLite Road Comp 10sp Wheelset (B01M3Y45M9) $400.00 $200.00 Increasing Individual Products Product COGS Change Out of Stock PFIFF Adult Scooter Trike S Tricycle (16-quot- -amp- 20-quot- wheels), Blue (B019INP77A / PF09105501S) $1,775.00 100.00 % Steppenwolf Men's Tycoon Sport Full Suspension Mountain Bike, 27.5 inch whe... (B0173GC1UA / SWM415-5001) $1,463.99 0.00 % Kawasaki Sumo Fat Tire Bike, 26 x 4 inch Wheels, 18.5 inch Frame, Unisex (B00LUFF6PI / KA2606-1-MT) $1,155.00 $770.00 0.73 % ByK E-450 Kid's Bike, 20 inch Wheels, 10 inch Frame, for Boys and Girls, Bl... (B00Y0POMCS / BY2002-1-JV) $700.00 Viva Juliett 7 City Bike, 28 inch Wheels, Women's Bike, Red, 47 cm Frame (B00K8T2AT2 / VIV-002-7A) $670.95 19.00 % ByK E-250 Kid's Bike, 14 inch Wheels, 6.5 inch Frame, Boys' Bike, Blue (B00Y0PNUBM / BY1402-1-JV) $628.00 Bombtrack Hook 1 700C Cyclocross Bicycle, Grey, Large (B0189M0TCO / 1125090416) $558.24 Viva Legato 7 Mustache Bar City Bicycle, 700c wheels, 56 cm frame, Men's Bi... (B016MNI7RG / VIV-011-2B) $502.38 Klokov Men's 20 kg Olympic Weightlifting Barbell (B074ZHJPWX / 0101-BA01-2001) $486.50 Cycle Force Handle Bar Mount Gun N' Bow Rack, Black (B00UIZK9CG / CF-002) $783.76 $459.47 12.45 % Private and Confidential | Philp Industries

Decreasing Products Decreasing Parent Products Shipped COGS Change over last week Mantis Tri-Rad Folding Adult Tricycle (B01NAJ1OC8) $924.00 $-2,310.00 Steppenwolf Men's Tycoon LTD Pro Full Suspension Mountain Bike, 27.5 inch w... (B017P7LZZO) $0.00 $-2,075.99 Strida Folding Bicycle, five different styles, several colors available (B06XHNCB6Z) $-1,967.00 Trail-Gator Child Bike Tow Bar (B074RLP1Y7) $2,847.60 $-885.50 Fun Unicycle (B06XSMXHWP) $1,640.48 $-826.16 ByK E-350 Kid's Bike, 18 inch wheels, 8.5 inch frame, for Boys and Girls, f... (B01F26XMEC) $330.00 $-825.00 Mantis X20 Drift Trike (B01MFFXEG3) $299.85 $-799.60 Klokov Olympic Weightlifting Bumper Plates (B0731YG1LC) $101.25 $-621.25 Mantis Maya 16 Kids Bicycle (B01N3P1GHY) $285.00 $-513.00 Kawasaki K26 Hardtail Mountain Bike (B01MSIK3T5) $-378.00 Decreasing Individual Products Product COGS Change Out of Stock Mantis Tri-Rad Folding Adult Tricycle, 20 inch Wheels, 16 inch Frame, Unise... (B00FXMIUPW / 67520) $924.00 $-2,079.00 65.46 % Steppenwolf Men's Tycoon LTD Pro Full Suspension Mountain Bike, 27.5 inch w... (B0173GC740 / SWM435-4201) $0.00 $-2,075.99 0 % Steppenwolf Men's Tycoon Sport Full Suspension Mountain Bike, 27.5 inch whe... (B0173GC222 / SWM415-5301) $-1,463.99 Trail-Gator Children's Black Trailer Tow Bar (B0011HZKI8 / 640022) $1,113.21 $-1,230.39 0.00 % Mantis X20 Drift Tricycle, 20 inch front wheel, drift rear Wheels, for Boys... (B00MFTCQSS / MA2006-1-JV) $299.85 $-799.60 Strida EVO folding bicycle, internal 3 speed hub, folds to 45x20x9-quot-, Brushe... (B01LYOASF5 / ST1814-1-MI) $-769.00 78.73 % Strida EVO folding bicycle, internal 3 speed hub, folds to 45x20x9-quot-, Blue (B01D0B0K3M / ST1810-1-MI) 100.00 % Wald 1216 Bicycle Training Wheels (12 to 16-Inch Wheels) (B000C128PM / W1216) $2,527.35 $-684.75 0.26 % ByK E-350 Kid's Bike, 18 inch Wheels, 8.5 inch Frame, Girl's Bike, Pink (B00Y0PO4Y4 / BY1803-1-JV) $330.00 $-660.00 Ventura Universal Bicycle Carrier Rack (B001NGF6AY / 440149) $1,132.84 $-578.32 0.48 % Private and Confidential | Philp Industries

Appendix Private and Confidential | Philp Industries

Services Review Using a Data-Driven Strategy Catalog Data Quality Compare Amazon data sources and purchase orders to identify and set up missing catalog items Continuously compare replenishment codes to all available data sources to maintain fidelity Create new listings for missing items and set up new products in advance of line changes Scrape Amazon content to detect and correct changes in variations or suppressed products Detect and consolidate duplicate listings Forecasting Provide digestible format of Amazon forecasts and supplementary planning recommendations Analyze historical recommendations for accuracy and improve forward forecast Operations Monitor fulfillment to proactively spot data issues Update catalog data to ease fulfillment problems Educate your team on fulfillment practices to improve fulfillment rates International Expansion: Sell on Amazon Globally Promotions/Marketing Update Amazon content to improve search relevance and conversion to sale Execute comprehensive marketing strategy across Amazon promotional tools “Own” critical keywords in search results Add premium content to qualified listings Monitor and update targeting, balance of promotions to maximize ROI Profitability Negotiate with Amazon on COOP terms Improve Amazon pricing strategy over time Analyze metrics to find opportunities for margin improvement or increase sales volume through margin reduction Monitoring Continuously compare Amazon data to consolidated vendor “Reference Data” Correct data issues on a weekly basis Analyze key metrics to provide high-level feedback Flexibility: What does your company need? Private and Confidential | Philp Industries

Contacts Dan Philp Sage King Managing Partner dan@philpindustries.com 206-300-2141 Sage King Vendor Support sage@philpindustries.com Private and Confidential | Philp Industries