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.

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.