It seemed that almost everything was said in the e-commerce segment, but the Spanish company Shoppyo does not seem to agree. Its founder, Antonio Martínez Sánchez, He has talked with us to explain how a concept which, a priori, seems to have future: the of the collective purchase.
The objective of Shoppyo is the become an online community that “allows its members together to achieve the best conditions on purchases”. The idea is so simple that it seems lie that initiatives were not known to take advantage of them with the potential that gives Internet, although there are more vertical previous projects.
Online shopping are evolving
In recent years we have been watching how the the online trading boom It has set in among all the users. Online stores allowed merchants ask customers a convenient alternative, but were only the beginning of a type of services that have been polishing it is notable.
It has happened for example with supermarkets, that today have specially oriented to purchase services online. We analyzed this phenomenon in “Mercadona, care: this is the trend in United States of supermarkets online only” recently, but that transformation has been extended to other segments.
Also there were other models that encouraged that purchase online, and these include especially the sites of flash sales or private sales. The French come vente-privee.com pioneered a market which would shortly after be populated with services of other ‘online outlets’ which were both independent – as Privalia – as part of big chains – for example, Amazon and its BuyVIP -.
Joined you this model the “couponing” business with news about daily deals that led companies like Groupon, Groupalia or LetsBonus in our country, and who were surrounded by alternatives both on our borders and outside them. Today it seems that the fever for this phenomenon has fitted, and Engadget partners analyzed the slowdown last year.
But above all these services highlights undoubtedly Amazon, giant electronic commerce which began dedicating itself to the sale of books and that today has expanded its catalog of amazing shape: it is difficult to find a product that Amazon does not sell direct or indirectly – any store can sell through Amazon paying a Commission, and his obsession for the service customer contrasts with its internal policies. And when it seemed that there could be many more alternatives in electronic commerce, comes Shoppyo.
In search of the benefit for consumers and businesses
Antonio Martínez explained to us the origin of the idea, which was forged to catch a lift with a neighbor in the community where there are also offices in which works. That person had to buy an awning for your deck, and given that other neighbors may be interested, put an ad in which highlighted that if several neighbors to unite they could probably get best price the supplier.
Starting from there Martinez began working to develop a service that offered precisely that capacity both to consumers and businesses. The founder of Shoppyo us commented how today we share all sorts of things in social networks. Why not share what you want to buy to try to get the best price?. The idea, which in reality had already implemented in certain vertical markets, is now way open to all kinds of products, businesses and users to serve as a reference in this alternative to conventional e-commerce.
Martinez got funding thanks to the participation of Murcia Emprende and of the supports NEOTEC, and with a team of two developers in Murcia and a sales team in Madrid began to prepare the launch of Shoppyo, which today is already running.
The advantages are clear for both users and marketers. The first have access to a panel open in which add to the demand but which can also act as a recommendation engine for prospective buyers. Stores, of course, have in Shoppyo an opportunity to increase your business in a simple way, to publish offers for those consumers looking for certain products at more advantageous prices. Are those stores that pay the publication of your offers on Shoppyo through a system of credits and bonds including those credits: retailers pay for the opportunity to sell more.
Shoppyo contacted both sides, and it does so thinking at least initially in the small and medium trade and online shop. These stores are often very difficult to compete with more established eCommerce sites, and often do not have the resources or the ability to fight for issues such as positioning or relevance in a few search engines that are already very saturated in this sector.
A very natural purchase process
The operation of the collective purchasing is not at all new, and in fact many users try to take advantage of this mechanism in various fields. Surely many have seen this type of process in user forum dedicated for example to discuss about mobile phones, and precisely the petitions to Chinese stores have been an example of such collective purchases that are organized in the best possible way for users of those forums that are interested in smartphones hard to reach from our country.
This same concept from relationshipsplus can now extend to all kinds of products and businesses that, Yes, they are focused on our country. The operation, as you can see in the video, is very simple: a user points to a buying group or create a new one where it can be more or less specific (“I want a 32 inch TV” or “I want this particular 32-inch TV”).
From there there is a period of five days to the creator of Shoppyo says that it could be modified if there are reasons for this in the future – in which other users can subscribe. The group closes with a number of participants, and This information is passed to retailers, which in turn pass their offers. Those offers are managed with a pure auction mechanism: these shops offer a price of Group (always stating the original price, in case a user wants to buy directly at that price), but at all times a few shops compete with others and can go changing those prices to attract those groups of buyers. As stated by Antonio Martínez, “it is a completely transparent process”.
At the end of the process of “auction” users interested initially confirm or not its interest on that purchase. Do it, There is a referral of the charge on the credit cards of buyers, but the charge is not performed unless you reach the minimum group of people, established by the trade (for example, “If there are at least 3 people confirming the purchase, offer to the group price invalid”).
See complete gallery» Shoppyo (11 photos)
However, even if the group needed for example five people and the process closes with three, It gives you the opportunity to trade keep group offer, so users could end up taking advantage of offer even without meeting the minimum group.
From that moment each buyer of the group, which You must take care of shipping costs, decide if you prefer to send it is home or to a delivery address, and closes the process except at the last moment, explains Martinez, not commit to anything to the buyer, which is only demonstrating its intention to purchase.
In fact, he explained to us the entrepreneur, the privacy of users is maintained at all times: “there is no spam, only receive the offers that you request”, and as Martinez explained, this system of collective purchase is a “natural evolution of couponing models”. Services such as Groupon, for example, have finished saturating the market, and in them the users end up receiving many messages that end up being annoying because they correspond to offers that do not interest them. Shoppyo “the process is reversed,” explained Martinez, “you tell us what you want and from there offers are received, but when the term of the group you stop receiving mail”. Rather than the service you bombard indefinitely, clarified, “you just bombed at that time, in a personalized way and for what you want”.
Can Shoppyo compete with giants like Amazon?
Shoppyo is another one of those examples of these ideas It seems lie that it had failed to implement before, but obviously there are doubts about the future of the same. The most important is probably that affects the business model common in which online store Giants appear to have many ballots to stay relevant.
Martinez explained us how in fact the idea is to start with small and medium-sized online store. The large, explained us, “you have resolved the problem of Internet. They have their campaigns, their public, they have it more or less resolved with the offer that there is”. Although at the moment focusing on those stores with fewer resources, they are open to trades of greater significance in the future.
But of course, the threat of Amazon, which seems to dominate this market in an astonishing way. The founder of Shoppyo admitted his dimension, but denied that Amazon or other services would be “charged it all”. Trade on the street is still in the “top of mind”, in those first references of people when it comes to access to products that interest them. And precisely with Shoppyo want to go into that “top of mind”, because among other things, highlighted by Martinez, They allow to compete more and better to the small trade, He just wants to find a customer interested in your products.
In that battle with the Giants, there is another fundamental factor, which is that of the prices. Can small business compete in their offerings with someone like Amazon?, We wondered aloud. Martinez is clear: small businesses can always compete in some product or other. We will see if this proposal shows it, but certainly Shoppyo presents a promising alternative for users and merchants.
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