Startup Model – Mobile Ecommerce Marketplace

THE MODEL: A C2C mobile only ecommerce marketplace. Buyers can search for products, chat with sellers to get the best deals and make a purchase by paying online itself. The money is transferred to the seller only after the buyer receives the product.

STARTUP: Shopee (Singapore startup)

WHAT I LIKE

Core Idea – An ecommerce marketplace focusing on mobile hold s good value for users.

High User Engagement – Being on the mobile, the app uses features like personalized recommendations and a chat to enhance user experience and engagement.

Buyer Protection – Payment is only transferred to the seller once the buyer receives the goods purchased.

Seller Support – Sellers can set up shop within a few minutes by simply creating an account and uploading products. There are no listing fees/commissions. Also the startup has started offering logistics support by offering a delivery service for sellers at a minimal charge (of $2).

CONCERNS

Competition – Competing with the apps of established ecommerce players like Amazon will be a big challenge for the startup. 

Startup Model – Platform for Ecommerce Support

THE MODEL: A platform for entrepreneurs looking to start an ecommerce store. A bundle of back-end services are provided to ensure smooth functioning of the store. Services include legal formalities, sales and promotion assistance, payments and security infrastructure, customer service modules and an accounting system.

STARTUP: Incir (Turkish startup)

WHAT I LIKE

Core Idea – With a rapid rise in ecommerce stores, a support platform is a good business model.

End to End – Providing a comprehensive list of services is key to ensure the best experience for the customer and higher retention for the startup.

CONCERNS

Competition – Established players pose a big threat to local players like Incir. Certain services like legal and accounting formalities cannot serve as a sustainable differentiator.