COWEN COLLABORATIVE INSIGHTS February 25, 2019 s Figure 109 Share Of U.S. eCommerce Sales '13 vs. ‘18E vs. ‘23E 9 Office Equip/Supplies 100% 3% | eaeeewecenn== 3% nae teeReeEEE RYA Garden Equip/Supplies Renna i Toys 90% _— eT Sporting Goods 80% lean casaee geen Media Nenana aerators aor Auto 70% . _ eee Food & Bev 60% eee ——— —_ Furniture & Home Furnishings 50% —=—= = _-—~—<S~S~S ————— sl 1 40% pom | 13% | Consumables en | a, 30% 19% 17% 16% Electronics & Appliances 20% wececeeeesnen cette eee e eee. 10% Clothing & Accessories 0% 2013 2018E 2023E Source: Cowen and Company; U.S. Census Bureau Analyzing Two Key Verticals for CBD Adoption As part of our monthly survey of 2,500 US consumers, we ask Amazon.com purchasers to indicate which categories (out of a list of 30) they purchased on Amazon in the past 30 days. Our data shows that Personal Care Products and Vitamins & Supplements were more likely to be purchased (vs. the average across all categories) by both Prime and Non-Prime members throughout 2018. Taking a closer look at 4Q18, in each month (on average) 19% of all Amazon Prime Purchasers bought at least one personal care product and 15% purchased a Vitamin or Supplement, while the average purchase rate across all 30+ categories was only 12% of Prime purchasers. We noted a similar trend among Non-Prime Purchasers in 4Q18, with 13% who bought Personal Care Products and 10% who bought Vitamin or Supplements, compared to the average purchase rate across all categories of 8%. Figure 110 Prime Member Purchaser % By Vertical, 1Q18-4Q18 Figure 111 Non-Prime Purchaser % By Vertical, 1Q18-4Q18 25% 23% 16% 21% 22% P 14% oF 13% 20% tee 19% 14% 12% 13% 17% 16% : 15% 12% 11% 11% 10% 10% 15% ; 10% 8% 11% 11% 11% ie 8% us 7% 7% 10% 6% A% 5% 2% 0% 0% 1018 2Q18 3Q18 4Q18 1018 2Q18 3Q18 4018 Personal Care Products mVitamins & Supplements Average Across All Categories Personal Care Products mVitamins &Supplements Average Across All Categories Source: Cowen proprietary Consumer In