Launched within the Philippines, social commerce startup Resellee needs to recreate the success of Pinduoduo, one in all China’s fastest-growing e-commerce corporations, in Southeast Asia. A serious a part of Resellee’s enterprise is grocery deliveries, together with contemporary produce, and it has struck partnerships with the federal government and farmers’ teams to satisfy demand throughout the COVID-19 pandemic.
The startup introduced this week it has raised $1 million in seed funding from Mintech Enterprises and Hofan Capital to construct its expertise and increase into new nations. Resellee was co-founded final yr by chief government officer Marc Concio, former head of e-commerce at Voyager Innovations, guardian firm of PayMaya, one of many Philippines’ largest on-line cost companies.
Concio informed TechCrunch that there are at present about 40,000 resellers on Resellee’s platform, and every has a mean of about 20 consumers. Resellee sellers sometimes make about P5,000, or US $100, a month.
Like Pinduoduo, India’s Meesho and different social commerce platforms, Reselllee doesn’t require sellers to hold their very own stock. Instead, it maintains a community of suppliers, together with producers and farmers, and lists out there merchandise on a market. Then sellers selected what they wish to add to their shops, which they market to potential consumers by means of their social media networks.
Resellee provides a variety of merchandise, together with electronics and trend objects, but it surely at present focuses on grocery deliveries and pay as you go credit score for cellphones and on-line video games, that are all in excessive demand due to the COVID-19 pandemic.
Concio’s curiosity in social commerce was piqued after observing Pinduoduo’s astronomical progress in China, the place it turned the second-largest e-commerce firm within the nation lower than 5 years after launching in 2015. Pinduoduo’s group shopping for mannequin leverages customers’ current social networks, particularly on WeChat, to tug collectively consumers for merchandise at discounted costs, and has achieved nicely in smaller cities and rural areas.
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“Resellee hopes to be taught from this and be the Pinduoduo of Southeast Asia by pioneering social e-commerce and group shopping for within the Philippines, then increasing to Vietnam, Myanmar, Thailand and Cambodia, the place social commerce has not began but or remains to be in its early stage,” Concio stated.
Social commerce is well-positioned to take off within the Philippines for a number of causes, he added. One is the large period of time spent of social media platforms there: 4 hours per day, versus two and a half hours in India, and two hours in China. The Philippines has one of many youngest median ages in Asia, round 23.5 years outdated, and that’s the demographic most probably to make use of social commerce, Concio stated.
Another cause is that many individuals wish to begin their very own companies, or must make aspect earnings, particularly throughout the pandemic, however have little entry to working capital. Since Resellee’s sellers don’t want to hold their very own stock and might depend on the platform’s provide chain and logistics community, which means they will launch a retailer with out spending any cash. Most of the work they should do is convincing individuals on their social media networks, like Facebook or Viber, to purchase from their Resellee shops.
“We imagine the identical hypergrowth for social commerce will occur within the Philippines given the entire above, with Resellee pioneering each social e-commerce and group shopping for right here,” Concio stated.
Resellee’s rivals embrace a few of the largest e-commerce platforms within the area, like Lazada, Shopee and EZBuy, which have added social commerce options. Concio stated one in all Resellee’s benefits is its give attention to serving to sellers earn a living, and partnerships with farmers teams and the Philippine authorities. This features a venture to construct a web based platform that may combination provide info from farmer’s cooperatives throughout the nation, and match them to Resellee’s sellers and consumers, eliminating center males within the provide chain.
Resellee initially outsourced its logistics, however Concio stated its deliveries weren’t prioritized by carriers, which led to buyer complaints, particularly for contemporary produce. As a consequence, Resellee arrange its personal logistics arm, referred to as Resellee Riders, in Metro Manila, the place most of its grocery prospects are. This enabled Resellee to launch next-day deliveries within the space this week (orders in different places are nonetheless carried out by third-party logistics suppliers).
While Resellee accepts on-line funds, together with on-line wallets and financial institution playing cards, most consumers favor to make use of its money on supply choice. Sellers earn a living by means of commissions, which they will switch to their on-line wallets or financial institution accounts. Resellee’s platform additionally offers them the choice of utilizing the funds to purchase discounted cellular or gaming pay as you go masses, or top-ups, which they will additionally provide of their shops. Along with contemporary produce, pay as you go masses are one of many key elements of Resellee’s enterprise technique. The platform ensures the very best commissions and reductions for cellular pay as you go masses from a few of the Philippines’ high suppliers, together with Smart, Sun and TalknText.
“The cellular pay as you go market is a US $four billion annual market versus complete e-commerce within the Philippines of solely US $2.three billion,” Concio stated. “This is one in all our key methods to personal the cellular pay as you go market, aside from vegetables and fruit like Pinduoduo.”
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