Dear Yahoo! Store Merchant,

2002 was a great year for Yahoo! Store and our merchant customers, and we're proud to have supported your success. Last year, you provided important feedback through polls, surveys, and interactions with the Store support team -- and we've listened carefully. This year, we plan to offer new features and services, and the increased support that you've requested. Our expanded offering in 2003 is designed specifically to improve the way you do business.

Although we don't have a schedule with precise roll-out dates yet, we want to let you know about the development priorities for Yahoo! Store this year. We think you'll be pleased!

New Packages and Greater Flexibility
We look forward to rolling out a collection of Yahoo! Store packages that combine features and pricing in ways that work better for your business and your budget. Whether you're a mom-and-pop shop selling out of your garage or a high-volume merchant shipping from multiple warehouses, you'll find a package that includes even more of the great features and value you rely on from Yahoo! Store.

Better Customer Care - and More of It
We're moving toward offering around-the-clock customer care that works when you do. We understand that you might be working on your storefront at any time of day or night, in every possible time zone, based on what works for your business schedule. And, we're taking steps to make sure our customer care team is thoroughly prepared to offer the level of service -- and depth of information -- that you require.

And if you prefer to help yourself, you can look forward to improved documentation, that will explain how to unlock our advanced functionality, gain greater control over your site appearance, and run a world-class online business. Overall, you'll be able to get even more of the help you need, when you need it, and the way you want it.

More Control Over Your Store Design
We're developing more ways to make your business stand out. Soon, we'll be launching Store Tags, a new feature that allows you to insert catalog data into your own HTML code. In the coming year you'll also see more FTP options, better integration with the page-building power of Yahoo! Web Hosting, and new ways to implement advanced site design projects.

Enhanced Shipping and Tracking
To help you save time and give you comprehensive control over your orders, we'll provide access to additional shipping features as part of the order management process. You'll be able to print shipping labels and generate tracking numbers automatically. You'll also be able to track shipments within your current order management processes.

Improved Fraud Protection
Fraudulent transactions are a huge headache and expense, and we're developing more ways to combat online fraud. Our team is creating tools to automatically flag and block orders with billing address errors and to utilize credit card verification numbers (the additional numbers printed on the face or back of a credit card).

Advanced Catalog and Inventory Management
Many of you have requested the ability to track your inventory in more detail. You want to know, for example, not just how many units you have of a particular item, but also how many units you have of that item in a specific size or color. Our new Catalog Manager tool will give you this capability and more. Other catalog enhancements will simplify adding and editing items and managing your inventory -- whether you're working online or offline.

Stay tuned for more detail on these and other new features this year. We aim to give you even more flexibility in the way you do business and offer you the respect you deserve as a valued Yahoo! Store customer.

Doing Business Better
We are committed to being more proactive and responsive in our interactions with you as we move forward. Expect more frequent and timely product updates and plenty of opportunities to communicate with our team. We're striving to eliminate frustrations that may have gotten in your way in the past, and to make success even easier in the future. Finally, as described in our December newsletter, you can expect more choices about how and when to implement changes that affect your store. In short: We're committed to delivering better service and more satisfaction, starting now.

As always, it's our mission to make online success simple. Your feedback helps us support your business needs and we always appreciate your suggestions. On behalf of the entire Yahoo! Store team, we look forward to building an even stronger partnership with you in 2003.

Best wishes,



Tim Roberts
Director of Product Management
Yahoo! Small Business Services