Startup Model – Discount Ecommerce

THE MODEL: A platform which offers its users the best prices on fashion and lifestyle merchandise by tying up directly with the best producers and manufacturers all over the world. It sources in demand products from factories and provides the same to customers at discounted rates.

STARTUP: Lesara (German startup)

WHAT I LIKE

Core Idea – Providing users with better prices by cutting the middlemen.

Benefits for Customers – Customers get the best prices and a secured transaction platform. Also the startup offers easy returns within 30 days.

Curation – The startup select the best products offered at the best prices and offers them to customers.

CONCERNS

Business Model – Ecommerce is a difficult model to sustain. Also buying directly from factories will require more capital and will tend to increase logistics costs in purchasing.

Competition – Big ecommerce players have existing relationships with a lot of companies and can implement this as an extension of their existing businesses.