Steve Thomas - IT Consultant

Small to medium-sized enterprises contribute 60% of Indonesia’s gross domestic product. But companies in the D2C space still struggle to compete against bigger brands. Praktis wants to put them on a more level playing field.

The startup, which handles everything from raw material purchases to order fulfillment for D2C brands and suppliers, announced today it has raised $20 million in Series A funding. The round was led by East Ventures (Growth fund), with participation from Triputra Groiup and SMDV.

Praktis co-founder and chief executive officer Adrian Gilrandy told TechCrunch that even though 60% of Indonesia’s GDP comes from SMEs, many experience difficulties while scaling up their business operations. These include finding reliable suppliers, getting fair pricing, the cost of labor and high exposure to fixed costs.

Praktis' team

Praktis’ team

Through its platform, Praktis’ customers are able to manage this business operations, including raw material purchases, production, fulfillment and logistics. Gilrandy said Praktis also aggregates purchasing and processing for economies of scale. This leaves D2C brands free to focus on other parts of their business, including brand building and marketing.

The startup plans to scale up by growing alongside the D2C brands it serves. Gilrandy said its ecosystem can easily be applied to other verticals—for example, it started in fashion before moving on to the beauty industry. Praktis claimed 12x growth year-on-year from 2020 to 2021 as the COVID-19 pandemic accelerated adoption of its services, and 4x growth year-on-year from 2021 to 2022.

Praktis will use its new funding for technology development for both brands and suppliers, building its team and expanding its end-to-end supply chain ecosystem.

The startup also announced today it has appointed Leonard Pontoh as its chief financial officer. Pontoh is also joining its board of directors.

In a statement, East Ventures co-founder and managing partner Willson Cuaca said, “We are thrilled to double down our investment to Praktis as they strive to empower D2C brands in Indonesia and hit profitability much faster than we expected.”

Praktis lands $20M to help Indonesian D2C brands handle their supply chains by Catherine Shu originally published on TechCrunch

eBay announced today that it has appointed Vidmay Naini as its general manager for global emerging markets, a role that covers the company’s growth in Southeast Asia, India, Eastern Europe, Israel, the Middle East, Africa and Latin America. Before his new position, Naini led eBay’s Southeast Asia and India businesses.

Naini has been with eBay for 18 years and his previous projects include eBay’s strategic investment in Flipkart.

In a statement, Naini said, “the digital economy is exponentially growing in these markets, with small and medium-sized businesses propelling its growth. Global e-commerce platforms such as eBay can revolutionize export opportunities and expand the reach these businesses can achieve.”

In its announcement about Naini’s appointment, eBay highlighted its 2022 Southeast Asia Small Online Business Trade Report, which found that 99% of all small businesses on eBay currently export items to an average of 25 different international markets on an annual basis.

In Southeast Asia in particular, 68% of “eBay-enabled small businesses” in six countries—Indonesia, Thailand, Vietnam, Malaysia, the Philippines and Singapore—export to 10 or more international markets.

Naini told Tech Wire Asia last July that he expects to see strong growth in Southeast Asia and that eBay’s business in the region was just beginning to take hold. “We’ve seen significant growth in our business, especially with the SMBs selling from this region to the world. The truth is, we are just scratching the surface because we see eBay as a very nascent business here still, and we expect it to grow multifold.”

eBay appoints new head of emerging markets, covering regions like Southeast Asia and India by Catherine Shu originally published on TechCrunch

Easyship, the New York- and Singapore-based startup that enables e-commerce sellers to integrate with more than 250 courier services, announced today it has expanded its partnership with eBay to support eBay International Shipping, a newly-launched program. This means that buyers can now access more regional and express shipping solutions for international destinations through eBay’s platform.

Easyship’s API has already been used in several services on eBay, including label generation, cross-border compliance and tracking in the U.S. It’s also supported domestic and international shipments in Canada and Australia since 2019.

TechCrunch last covered Easyship when it joined the Shopify Plus Technology Partner Program in 2020, at that time making it the only shipping app in Asia for Shopify Plus.

The startup was founded in 2015 by Lazada veterans Tommaso Tamburnotti and Augustin Ceyrac, and former banker Paul Lugagne Delpon, and its backers include Lazada founder Maximilian Bittner and former Richemont CEO Richard Lepeu.

According to the Business of Apps, eBay made about $9.7 billion in revenues in 2022, half of which came from outside the United States. Seven million of eBay’s 25 million sellers are based in the U.S., and eBay’s partnership with Easyship will enable them to start shipping internationally.

In a statement, eBay US vice president Adam Ireland said, “With eBay International Shipping, we’re making global connections more accessible, affordable and profitable, significantly increasing the volume of items available to 200+ countries. Our partnership with Easyship makes it even easier for our sellers to tap into a universe of a new business opportunities.”

Easyship strikes agreement to support eBay’s new International Shipping program by Catherine Shu originally published on TechCrunch

Apple today is announcing a new way to shop for iPhones. The company is introducing a new service, “Shop with a Specialist,” that will offer customers in the U.S. a live video shopping experience directly on the apple.com website. With the free service, customers will be able to browse the latest iPhone models, compare features, and have an Apple Specialist answer their questions and help them find the best deal through the Apple Trade In program or their carrier.

Customers can also learn more about the iPhone’s specific features, switching to iOS in general, and can get help comparing the different phones, colors, sizes, and more, Apple says. The service is going live starting today just as the new yellow iPhone 14 and iPhone 14 Plus go on sale.

Though live video shopping has struggled to take off in the U.S., with even Facebook and Instagram recently exiting the market, the move to put Apple retail specialists online is part of a larger shift at the company to direct more consumers to its e-commerce website to complete their sales. These days, it’s no longer the norm for customers to line up at Apple stores on the iPhone launch day, as many consumers now shop and place pre-orders online. But without going into the store, Apple is losing out on one of its key specialties — the high-touch customer service its retail specialists provide.

Apple says its new live shopping experience will be available on its Apple.com store website at apple.com/shop/buy-iphone and will be open every day between the hours of 7 AM to 7 PM PT in the U.S. During the live video session, the Apple specialist will be on camera and sharing their screen, but they won’t be able to see the customer. They’re able to help with a range of questions, from tech specs to deals to the various financing options Apple offers, and more. At launch, U.S. customers will be able to get an up to $600 credit toward the new iPhone 14 if they trade in an iPhone 11 or later through the new service, or from the Apple Store app or an Apple Store location.

The new service expands on other existing Apple customer support technologies, which include the ability to talk to a real person to get help with troubleshooting tech problems through the Apple Support app, as sort of an online extension of the Apple Genius Bar.

Image Credits: Apple

The launch arrives at a critical time for smartphone makers as new reports indicated that last year’s sales were the lowest in nearly a decade, or 11% below 2021. Though Apple held the top spot in the fourth quarter in terms of shipments, Samsung beat it for the year with 257.9 million shipments and a 22% market share, versus Apple’s 232.2 million and 19% share.

In addition, Apple ended the fourth quarter with its first-ever double-digit decline in sales caused by Covid restrictions on its Chinese manufacturing facilities and weaker demand, the same report by Canalys said. It’s no surprise then that Apple is now not only juicing sales with the introduction of a new color iPhone in the middle of the iPhone 14’s selling cycle, but also with a new way to shop for iPhone.

Further down the road, Apple says it will expand the Shop with a Specialist to its other flagship products beyond the iPhone.

 

Apple launches a new way to shop online for iPhone with help from a live specialist by Sarah Perez originally published on TechCrunch

Walmart recently introduced a new way to shop: via text. Last month, the retail giant launched its “Text to Shop” experience which allows mobile consumers across both iOS and Android devices to text Walmart the items they want to purchase from either their local stores or Walmart.com, or easily reorder items for pickup, delivery, or shipping. However, the chat experience as it stands today does not come across as fully baked, our tests found. The chatbot said confusing things and the user interface at times was difficult to navigate, despite aiming to be a simpler, text-based shopping experience.

Conversational commerce, or shopping via text, is an area that’s been seeing increased investment over the past couple of years with numerous startups entering the market. Walmart, too, has connections with this space, as its former head of U.S. e-commerce Marc Lore backed a conversational commerce startup, Wizard. And Walmart itself acquired assets from a design tool called Botmock which had built technology that allowed companies to design, prototype, test and deploy conversational commerce applications.

The new “Text to Shop” feature, meanwhile, was built in-house using internal IP in partnership with Walmart’s Global Tech team and was tested with customers ahead of its launch. The beta version was available for around a year’s time before December’s public debut, but had only been accessible on an invite-only basis.

At launch, the “Text to Shop” feature ow customers to shop Walmart’s entire assortment via chat, whether that’s your weekly grocery order from a nearby store or an e-commerce order you want shipped to your home.

Image Credits: Walmart

Customers more recently began receiving emails to alert them to the fact that “Text to Shop” was newly available, which prompted our tests. The feature was also highlighted in Apple’s announcement of its new Apple Business Connect dashboard, which allows businesses to manage and update their information on Apple Maps. Here, Walmart partnered with Apple so customers who visit the Walmart business listing card on Apple Maps could tap on a “message us” button to get started with a “Text to Shop” session.

In theory, chat-based shopping is supposed to simplify online shopping by bringing it into a more familiar texting interface. But in practice, Walmart’s chatbot made some missteps when we tried it, making for a more cumbersome experience compared with a traditional order placed through the Walmart website or app.

The initial steps in getting started with “Text to Shop” was easy, however, as you just sign into your Walmart account and agree to its terms. The bot then sends you a helpful introduction and some tips on how the system works. It tells you that you can just type in the names of items you want, like “Great Value Oatmeal” and explains how to set your local store, among other things.

Image Credits: Screenshot of Walmart Text to Shop

But already, it was clear the system would have a few quirks, as it informed you that items you typed in single quotes would serve as commands.

For example, typing ‘Reorder’ with quotes would allow you to buy things again. This seemed like an odd requirement, given that the word “reorder” wouldn’t likely match a product a customer wanted to buy through text-based shopping — or at least, it should be assumed that a text with that word is a command. Plus, it puts an unnecessary burden on the end-user at a time when they’ve just started trying to learn a new system.

In my tests, I ordered a few basic items, like milk, eggs, bread, and water. The system didn’t immediately warn me that I had lingering items in my cart from an online order I had abandoned weeks ago.

The system also doesn’t prompt you upon your first text to choose whether you want to start an order for delivery, pickup or shipping. Instead, it returns a selection of options that match your request. But the way it did so was confusing.

In my test, I typed “2% milk,” and it responded twice with possible options. “OK! 2 % milk, 3 choices coming down” the bot said, followed by a link that takes you to a list. But then it replied again, “These are the closest options I found for 2 % milk,” and offered another list.

After picking an item, you’re instructed to “select one of these options next” which offered choices like “search for pickup,” “search for shipping,” or “search for delivery.”

It would seem that asking the customer how they were shopping should have been the first step, especially if product availability varies by order type. In this test, I chose delivery.

That’s when the bot texted me that I now had 6 things in my cart — a surprise, since I hadn’t remembered my earlier abandoned choices.

That one was on me, though, I admitted. I tapped “View cart” to delete the weeks-old selections. The bot didn’t immediately display the cart. Instead, it responds with your item count and total. You then have to tap a link that follows to view the cart, which pops up in another screen. I expected this to operate like a web version of a Walmart checkout page, the screen was missing obvious tools to delete items or change the quantities, which you would normally find on an e-commerce shopping cart page.

In fact, the interface instructs you to “tap to view, select or remove,” but presents radio buttons to tap and then a “Send” button at the bottom to…well, I don’t know.

How would it know if I was instructing it to show me the item or remove it?, I wondered. And why would I even need to view the item elsewhere, when its full name, photo, quantity, and price are shown here?

Still, I tapped “Send” to remove the old items (which were not the newly-added milk), only to be returned to the main chat screen where I was informed, inaccurately, “Ok, all milk taken out!” Now my cart had 5 things, it said. It had only removed one of my selections.

I tried again, tapping the other 5 items to be removed, and again, the bot responded, “Ok, all milk taken out!”

In reality, the milk was the only item that remained. The bot was wrong.

Image Credits: Screenshot of Walmart Text to Shop

Now, with only the milk remaining (despite the texts to the contrary) the bot asked me what I wanted to do next — maybe view cart or checkout?

This is a very dumb bot, I thought. Does anyone get just milk delivered and nothing else?

I wasn’t ready for that so I tried another query. “Eggs,” I typed. The bot only returned three choices: all Walmart brand large white eggs but in different sizes. Odd, since I know Walmart, like most retailers, has a much larger egg selection.

Image Credits: Screenshot of Walmart Text to Shop

“Organic eggs,” I texted, hoping for better egg options. This worked, and I added Pete and Gerry’s eggs to the cart without hassle. The bot now updated me on my total. My cart had two items, milk and eggs, and my subtotal was $10.40. (I’m not sure it’s a good idea to tell the customer the running price if they don’t ask! Yikes!)

Then I tried something to intentionally confuse the system. Knowing that end-users often don’t play by the script, I scrolled back up to tap “Pickup” instead of “Delivery.” This is the kind of thing a customer might do if they think choosing pickup would offer them a different selection of eggs. But the bot didn’t make that logical leap, asking “sure, what product would you like to search for pickup?”

“Never mind,” I texted. “No problem. Talk to you later,” the bot replied.

I then went to add the next item on my list. “La Croix,” I texted.

“These are the closest options I found for la croix organic eggs for pickup,” the bot answered. Uh? What?

 

I had clearly confused this bot quite a lot, it seems.

It texts me a list to view and asks me to select the delivery method, and then texted the list again. It only returned three La Croix options to choose from. A search in the Walmart app returned 10, however.

This system isn’t useful at all, apparently, unless you enter a very specific choice.

That realization made me dread my next item: bread. I didn’t have a brand in mind, as I usually browse and look for sales on favorite types and brands. I ask for “multigrain bread” and I only have three options shown to me alongside another message telling me I can “search for pickup” or “shipping.” I understand now these delivery choices are apparently texted every time you request an item, rather than the system building you a cart for a particular delivery method. (I didn’t tap these options because I was going to have the items delivered.)

“Checkout,” I then texted — without the single quotes, just like an everyday user would likely do, having forgotten the earlier command syntax that involved using quotes.

And, it worked. You could then select to view the cart or checkout, and through a separate screen, you could book a delivery time. So you didn’t need the quotes?

There were other odd user interface choices here, as well though.

For instance, this screen presented you with an option to change the “quantity” of the selected items, when earlier that wasn’t possible. I tapped the “Change quantity” button (as I’m now rethinking those expensive eggs!). This sent an automated command, to which the system replied “Can you please rephrase that?”

Image Credits: Screenshot of Walmart Text to Shop

I wonder if some of the issues with the bot are because it didn’t know my local store, somehow, even though this is already configured under my Walmart account — which I had authenticated with to start.

“Set store,” I typed, even using the single quote format.

The bot told me to choose my location and texted me two options. Both were my home street address, without the house number. Both were identical options.

At this point, it felt like the process of ordering a few basic things has become an ordeal and has taken a lot longer than the traditional method of searching in Walmart’s app and adding things to the cart. If conversational commerce like this is the future, I’d say this is very much still a work in progress.

I abandoned the cart and didn’t complete the order.

When I asked Walmart about some of the issues I encountered, wondering if this was all still a beta test, a spokesperson said the company would “continue to refine and optimize Text to Shop to ensure we’re providing the best experience possible for our customers.”

Let’s hope!

Hands on with Walmart’s new (but buggy) ‘Text to Shop’ feature by Sarah Perez originally published on TechCrunch

Wallapop, a peer-to-peer marketplace based out of Barcelona that made a splash at the peak of the Covid-19 pandemic with consumers who were looking for more localized, less wasteful, and more eco-friendly routes for buying and selling items, has raised more money to continue its expansion in Europe.

The company has picked up €81 million ($87.4 million), which it will be investing into its operations in Spain, Italy and Portugal after seeing its 2.4 million downloads in the first half of the year in Italy (a newer market for the app) and a 600% increase in cross-border activity between Spain and Italy in that period. The company also plans to put more into data science and other areas of R&D — critical given that discovery, personalization and other tools to connect buyers with items they want is critical to people coming back and using Wallapop again and again.

The company is describing this as an extension to its Series G — a $191 million round that it raised in February 2021. That was before the bottom fell out of the tech market (and investing dropped along with it), so it is notable that Wallapop has raised here. Its valuation is up, but only in line with the amount being put in. It says that the figure now stands at €771 million, compared to €690 million previously. (In terms of USD, that works out to $832 million at current rates, which is actually lower than its previous dollar-value valuation, because the euro is significantly weaker right now against the dollar.)

This is an inside round, meaning all investors were already backers of Wallapop, which is not uncommon at the moment: the market is tough right now and so it makes sense to turn to existing investors to shore up capital. The latest investment is being led by Naver, the Korean internet company, and Naver’s European investment partner Korelya Capital, which were both in the original Series G. Accel, 14W and Insight are also participating. Naver — the company behind messaging app Line and other holdings — has been making efforts to expand its reach beyond Korea, most notably buying second-hand apparel player Poshmark in the U.S. for $1.2 billion last year.

Spain is Wallapop’s home market, but it’s been gradually using that as an anchor to go into adjacent countries, with Italy launching in 2021 and Portugal in September 2022.

The company’s growth is a useful barometer of just how enduring circular economy marketplaces can be: buying and selling items from other private owners took on a new profile when Covid-19 was in full bloom: people did not want to go to stores as much, and some couldn’t because stores were closed; but also consumers were becoming more conscientious of how they were spending their money (not least because many were losing jobs or getting furloughed), and the swing away from the normal pace of modern life left many thinking about how they could potentially live life to a different, perhaps less wasteful way.

Fast forward to today, and we’ve seen consumers shifting back into their old patterns: lots of single-passenger car traffic on roads; people flocking to physical stores (and using less e-commerce services); and in many cases less community engagement than they were willing to have during lockdowns and urgent requests to stay close to home.

There are signs that Wallapop is sustaining its growth, despite those shifts. It said that its 2022 financial year had revenues of €72 million, up 40% on FY 2021. Meanwhile, Wallapop Envíos, its end-to-end shipping service (versus users seeing to sending off packages themselves), grew to €32 million from €17 million in that period. Subscription services — a service that it offers to professional sellers — brough in €10 million in revenes, up from €6.7 million in 2020. They are signs not just of the maturing of the platform, but also of how the company is also trying to diversify how it makes money.

“In the past years, Wallapop’s expansion efforts have allowed more and more people to benefit from our fundamental purpose -facilitating a more conscious and human way of consumption that creates economic opportunities for people- which in today’s socio-economic environment remains as relevant as ever,” said Rob Cassedy, CEO of Wallapop, in a statement. “We are focused on driving the reusing revolution within Southern Europe, prioritizing a healthy growth model that allows us to increase our impact while we scale and create a unique inventory ecosystem that can continue expanding further in our future. Our investors, NAVER and Korelya as well as others, share our vision.”

Nevertheless, there is an argument to be made that circular economy remains niche for now. It’s been 10 years since Wallapop was founded, and currently it only sees traffic of 15 million monthly active customers across 100 million listings (that is the number in aggregate over the year, not at any given time). I’ll also point out that the 15 million figure was the same number of users it had in 2021 when I covered the original Series G.

The company did not provide any comment from its investors. We’ve reached out to ask for this and will update when and if we get more. More generally, Naver is a strong player in e-commerce and apps in its home market and it has been making a number of moves to increase its holdings internationally, including with that Poshmark acquisition.

Wallapop, the circular marketplace out of Spain, raised $87M more at a $832M valuation led by Korea’s Naver by Ingrid Lunden originally published on TechCrunch

Before founding The Edit LDN, Moses Rashid frequented sneaker festivals and exhibitions to buy limited edition shoes. But Rashid, who describes himself as a “huge sneakerhead,” was often disappointed by the shopping experience. “I found it crazy that I was dropping $850 on a pair of sneakers but I wouldn’t even get a bag to bring them home in!” he said. He started The Edit LDN out of his home two years ago to give other sneakerheads the kind of premium experience they’d expect from luxury brands like Louis Vuitton or Dior.

Now Rashid says The Edit LDN’s revenue is growing 525% year-over-year, hitting $12 million in 2022. The London-based platform, which carries sneakers, streetwear and collectibles from pre-vetted resellers, announced today it has raised $4.8 million in seed funding. The round will be used to expand into the United States and the MENA region, and was led by Regah Ventures, with participation from sports players like New York Giants captain Xavier McKinney, the Philadelphia 76ers’ P.J. Tucker and Premier League club Nottingham Forest’s Jesse Lingard.

Rashid compares The Edit LDN to designer clothing and bag platform Farfetch because both work with premium resellers, and have an audience of shoppers who are willing to spend a lot of a lot of money on fashion. The Edit LDN’s services include same-day shipping in the United Kingdom, which it plans to expand to five more countries this year, and a personal shopping team that helps customers find sneakers, put together outfits and pre-order items. Rashid said that The Edit LDN is able to source hard-to-find items, like Off-White X Air Jordan 1 High Chicagos signed by designer Virgil Abloh and Louis Vuitton Air Force 1s, which it got access to three months before they were released.

The Edit LDN founder Moses Rashid, sitting against a wall of shoeboxes with sneakers

The Edit LDN founder Moses Rashid

In 2022, The Edit LDN sold 20,000 pairs of sneakers and had 3,500 active sellers, who usually have more than 50 units for sale at a time and are able to get early access to products, Rashid said. The Edit LDN’s key demographic is aged 18 to 40 and split evenly between male and female. Customers buy up to five times a month, with an average order value of $425 per transaction. The startup’s goal is to double revenues in 2023 and grow to over $100 million over the next three years, with a partial exit proposed for 2026.

To enable The Edit LDN to scale, and resellers to sell faster, the platform has a proprietary tech stack, including a feature that automatically applies margins to products. When resellers use The Edit LDN’s selling app, it suggests prices based on historical sales data and market tracking through AI algorithms. It also performs attribution tracking to increase sales, and suggest products a reseller should carry. The performance of resellers is tracked, including sales, shipping time and fulfillment levels, and depending on how they are doing, they can unlock new benefits like lower seller rates, free storage and fulfillment and access to The Edit LDN’s concession stores in high-end department stores.

As with other high-value collectibles, an important part of selling premium sneakers is authentication. The Edit LDN’s in-house authentication team uses techniques like visual inspection, material and packaging checks, smell and UV/blacklight. Rashid said they can authenticate a product every one to three minutes.

The platform’s competitors include StockX and GOAT, other designer sneaker and streetwear marketplaces that have raised venture capital funding.

“The battleground for customers is providing a premium retail environment, user experience, product curation, speed and service,” said Rashid. He added that resellers are able to make a 10% to 20% higher pay out per product on The Edit LDN then other platforms, because it gives them administrative support, storage and fulfillment options and marketing through its personal shopping service.

The Edit LDN’s plans include expanding its product range and working with more retailers for physical locations. It currently has concessions in Galeries Lafayette, Harvey Nichols and Harrods.

In terms of geographical expansion, the U.S. was picked because items can be sent there from the U.K. in 24 hours for a $30 shipping fee. Rashid said the platform has gained traction among celebrity clients there and about 15% of its revenue now comes from the U.S. despite little marketing. MENA is its target for expansion because it has emerging markets that are growing quickly. The Edit LDN will launch next month in Galeries Lafayette in Doha and Harvey Nichols in Riyadh.

The Edit LDN raises seed round to serve sneakerheads around the world by Catherine Shu originally published on TechCrunch

When Constantin Robertz was working at Zalora, he was involved in moving warehouses six times as the e-commerce company outgrew its logistics infrastructure. This inspired him to co-found Locad, a logistics provider for omnichannel e-commerce companies that connects its network of third-party warehouses and shipping carriers with a cloud-based platform referred to its “logistics engine.”

Founded in Singapore and Manila by Robertz, fellow Zalora alumni Jannis Dargel and former Grab lead product manager of maps Shrey Jain, Locad announced today it has raised $11 million in Series A funding led by Reefknot Investments, a joint venture between Temasek and logistics company Kuehne + Nagel. Returning investors Sequoia India and Southeast Asia’s Surge, Febe Ventures and Antler also participated, along with new backers Access Ventures, JG Summit and WTI.

TechCrunch last covered Locad when it raised its $4.5 million seed round in 2021.

Locad can handle almost every part of the delivery process, from inventory storage and packing to shipping and tracking. So far, Locad has provided order fulfillment for 200 brands, including Havaians, Levi’s Reckitt Benckisder and Emma Sleep. Its customers are spread across Singapore, the Philippines, Thailand, Hong Kong and Australia, and typically ship about 25 to 5,000 orders a day. Last year, Locad was used to ship more than two million orders and it claims a 99% same-day order fulfillment rate.

Its new funding will be used to add more warehouses and transport operators to Locad’s network and on hiring in Southeast Asia and Australia, with the goal of building the region’s largest network of warehouses over the next five years.

Robertz said helping Zalora scale up its logistics infrastructure “planted the seed of how a cloud approach to supply chain, with a scalable logistics infrastructure as a service, would be a better way.” During their time at Zalora, Robertz and Dargel also worked with brands that had to set up their own e-commerce fulfillment capabilities and tech stack in order to support multiple sales channels.

Legacy logistics infrastructure, originally created for B2B wholesale distribution, couldn’t keep up with direct-to-consumer brands as their sales channels multiplied. It also meant they could no longer rely on “walled garden” fulfillment networks run by e-commerce platforms, like Fulfillment by Amazon (FBA), as they scaled up.

At the same time, consumers want faster and cheaper delivery, and offering multiple options like same day, next day or economy shipment is important for conversions at checkout. Robertz said that to deliver more quickly without paying more, retailers need to store products closer to customers to enable shorter and faster last-mile deliveries. This requires a network of warehouses and integration between sales channels, warehouses and shipping carriers. That is what Locad’s tech enables.

Locad’s logistics engine syncs inventory from multiple sales channels, including Shopify, Lazada, Shopee and TikTok Shops, and manages storage and delivery through its network of warehouses and shipping carriers. Many of Locad’s customers first approach the startup while phasing out their inhouse logistics operations. Brands often start with one warehouse to consolidate their inventory and order fulfillment across sales channels, before putting inventory into additional warehouses based where its customers are located.

As it expands across Southeast Asia and Australia, Locad also plans to increase the number of warehouses in Tier 1 to Tier 3 cities in the region, with the goal of enabling same-day delivery in all of them.

In a statement about the funding, Reefknot Investments vice president Ervin Lim said, “Locad’s unique operating model of localizing warehouses into the cities ensures that inventory is kept close to the customers thereby enabling significant cost and time savings for both brand and consumer. We believe that Locad’s logistics engine will spur greater participation in the digital economy as consumers outside of Tier-1 cities can now receive their orders 2-3x faster at a fraction of the usual cost.”

Locad lands Series A to expand its “logistics engine” across Southeast Asia and Australia by Catherine Shu originally published on TechCrunch

E-commerce in Southeast Asia is very fragmented, with consumers having their choice of marketplaces, e-commerce sites and social commerce. Many prefer to buy from large marketplaces, says FLIK co-founder Ahmad Gadi, because those platforms offer promotions and cashback deals. But for direct-to-consumer brands, marketplaces aren’t the best way to get consumer data or foster brand loyalty. That’s where FLIK’s unified payment solution comes in. It saves buyers’ checkout information across retail sites in FLIK’s merchant network, making buying easier and leading to higher conversion rates. For brands, it means more control over consumer data and less platform fees.

Based in Jakarta, FLIK announced today that it has raised $1.1 million in pre-seed funding from East Ventures, with participation from Init-6, GMO VenturePartners and Saison Capital.

Before founding FLIK, Gadi’s previous startups included Pawoon, a point-of-sale platform that enables businesses to accept digital payments.

FLIK co-founder and CEO Ahmad Gadi

FLIK co-founder and CEO Ahmad Gadi

Gadi told TechCrunch that FLIK’s team is experienced in the payments and merchant business, both offline and online. “We thought that checkout is a very strategic area to build products on, because it is actually the point of entry for money into the business,” he said. “As online sellers in this region are becoming more savvy, they would want to be able to optimize their online business more deeply. We see an opportunity to unify checkout experience because this has always been an area that is difficult to solve outside the typical centralized platforms such as marketplaces.”

Because e-commerce and checkout methods are currently so fragmented, it’s hard for brands to consolidate data, Gadi added. By using FLIK, they can gain access to information like potential product upsells that can be offered at checkout based on shoppers’ browsing behaviors, and what types of discounts and promotions they are most interested in.

FLIK works with e-commerce sites built with platforms like WooCommerce and Magento, plus social media channels like Instagram shops and chat applications. It can also be embedded into blog articles to turn them into mini e-commerce sites.

FLIK plans to add more services, including product discovery, price comparison, rewards and post-purchase services like refund and returns processing. Shoppers can download its app to keep track of their purchases and offers.

Gadi says FLIK is currently positioned in a blue ocean space because other players in the D2C enabler space focus on Shopify-like storefront builders. FLIK, on the other hand, focuses on the checkout layer and building a network of shoppers. “Unifying all the fragmented checkout experiences on the web means we could work with all these D2C enablers out there to provide a consistent and optimized checkout layer on top of their existing platforms.”

FLIK’s unified checkout solution gives Southeast Asian sellers more control over data by Catherine Shu originally published on TechCrunch

Primer, a U.K. startup founded by alums of Braintree and PayPal that provides a drag-and-drop framework for merchants to build online payment stacks, last year raised $50 million at a $425 million valuation from investors like ICONIQ, Accel, Balderton Capital and Seedcamp– a round the came amid a bullish period for e-commerce, with record-levels of buying activity in the midst of the Covid-19 pandemic. This year, that activity has cooled down, and so have things at this e-commerce startup. TechCrunch has learned and confirmed that Primer has cut a big swathe of its staff as part of a restructuring, as it looks to adjust to current market conditions and extend its runway amid what many believe will be a tough year ahead.

Sources tell us that some 85 staff have been let go — around one-third of the company, we understand.

“We can confirm that we did have a reduction in staff,” a spokesperson said. “Like many other firms right now, we have course-corrected heading into the new year given the economic environment and we have taken what we think are appropriate steps to account for the uncertain times ahead.”

The story of what is going on here bears spelling out because the same thing is likely hitting a number of startups (and bigger companies) in the industry.

The long and short of it is that the wider e-commerce market has seen a major drop in activity this year as the peak of the Covid-19 pandemic — or at least the acute response that involved masking, social distancing and staying away from crowded physical spaces — has subsided. That activity was not what many had predicted: many had presumed that after large numbers of people had shifted to buying online, they would “never go back” to the old way of doing things.

That hasn’t played out: people are going back to shopping in stores, but more importantly, the global economy has cooled down, inflation has gone up, and people are spending less. So companies that expanded to meet demand are now retrenching.

That has led to layoffs and restructuring even at some of the very biggest companies in the space that you might have thought would be best equipped to handle economic ups and downs. Amazon, for example, warned in its last quarterly earnings that sales would be lower than originally expected in the critical holiday period. It has been cutting thousands of employees and rationalizing some of its most costly product areas.

You may have recently seen that some of the gloomiest predictions were not borne out during the bellwether Black Friday and subsequent first weekend of holiday sales. But a good part of that activity has been attributed to retailers offering large discounts to spur buying, so margins will be hit longer term.

This is not just playing out at larger end of the retail market: smaller sellers and the many providers of tech to the industry will also be feeling the drop.

Primer’s unique selling point is that it has built a very simple, no-code interface that reduces what is usually a very complicated, fragmented process — building a payments stack and flow around online purchasing, which includes not just the basic transaction but potentially different payment options, adding in loyalty or discount codes, upselling to other products, managing customer information, verifying against fraud and much more — into a set of drag and drop boxes for its customers both to call in more features and visualize how they would work together. It offers integrations for dozens of different services, underscoring just how fragmented the space is.

“We are building out a whole suite in the next year to aid merchants with operations and the observability of the payment stack,” said Paul Anthony, Prime’s co-founder and CEO, in an interview with TechCrunch last year.

However, a source tells us that while the process was seamless to order up, implementing it was not quite as automatic and quick.

“They are signing merchants but getting them live is a long process,” they said. “They do not generate revenue until they are live. Hence, they reduced teams until they solve this bottleneck.”

Given the pressures many startups are seeing with fundraising right now, the first thing to do is not to raise more money to extend runway, but to cut costs to extend what you already have in the bank, and that’s what Primer has done here. Sources tell us that Primer’s aim with this restructuring is to extend its runway to more than two years (which it believes it has done). Its plan now is to continue investing in product with expansions on that front planned for next year.

As in any downturn, there is an argument to be made for more automation in any process to cut down costs and — especially in the case of e-commerce — put more efficient tech in place to speed up and close more sales. But that only stands if the tech is up to the challenge, and if target customers are in a position to invest in improvements themselves. That’s the opportunity but also curse of working in any ecosystem.

Primer’s aim is to come out as one of the helpers (and winners) in that process.

“Given the challenging economic environment, we believe Primer is more valuable to merchants and partners than ever before as they look to increase efficiency within their organisations, lower costs, build greater customer loyalty, and launch in new markets – and do this in a no-code/automated fashion,” the spokesperson said. “While these are always difficult decisions to make, we feel confident this recalibration will not affect the level of service we offer to our current and prospective merchants and partners.”

Primer, the UK e-commerce tech startup, has laid off one-third of its staff by Ingrid Lunden originally published on TechCrunch

Amazon is bringing a TikTok-like shopping experience to its app. The company today announced the launch of Inspire, a new short-form video and photo feed that allows consumers to explore products and ideas and shop from content created by influencers, brands, and other customers. The feature is designed to draw consumers’ attention away from apps like TikTok, where brands can directly market to consumers, in order to drive sales on Amazon.com instead.

The retailer said the shopping feautre will initially roll out to select customers in the U.S. in early Decmeber, and will become broadly available to U.S. customers in the months that follow.

The launch follows tests earlier this year when Amazon had been spotted experimenting with a TikTok-like shopping feed in its app, which then had its own navigation button at the bottom of the Amazon mobile app. In the version launching now, that high-level placement in the main navigation remains the same, however the Inspir feed will now be accessible with a tap of a light bulb icon instead of the diamond icon that was seen in tests.

Image Credits: Amazon

To get started with Inspire, customers will open the Amazon Shopping app and tap Inspire’s icon. Upon first launch, they’re prompted to choose from over 20 interests, including things like makeup, skin care, pets, gaming, plants, hiking, interior design, travel, running, and more in order to personalize their Inspire feed.

While Inspire focuses on short-form video content, it also offers support for photos, making it something of a hybrid between TikTok and Instagram. Like Instagram, you can double-tap anywhere on the screen to “like” the content with a red heart. However, you scroll through the Inspire experience much like using TikTok’s vertical video feed, where you swipe up from the bottom to see the next video. Engagment buttons are also off to the right side of the screen, as on TikTok.

Image Credits: Amazon

When you see something you like, you can tap on small buttons at the bottom of the window which link to the product on Amazon. Initially, a tap on these buttons will pop-up the product in an overlay window on top of the video, but a tap on “See all details” will take you to the item’s product page where you can read more, make a purchase, or add it to a list.

Over time, Amazon says the feed will better customize itself as Inspire learns more about the user’s interests by tracking their engagement. Longer-term, the retailer plans to add more shoppable features to Inspire, as well as additional in-app functionality and content, to further improve the product.

Image Credits: Amazon

“We invent every day to make shopping easy and fun,” noted Amazon Shopping director Oliver Messenger in a statement about the launch. “Inspire is our new shopping experience that connects Amazon customers with shoppable content created by other customers, the latest influencers, and a wide range of brands. In just a few taps, customers can discover new products or get inspiration on what to buy, all tailored to their interests, and then shop for those items on Amazon,” Messenger said.

The company has already lined up a handful of Amazon Influencers to post on Inspire, including Mae Badiyan, Practically Pursia, and others. The creators will be able to earn money from customers’ purchases via the Amazon Influencer Program.

“My audience wants engaging videos that introduce them to new products, which is why I’m excited to use Inspire to spotlight my favorite everyday essentials with the convenience of shopping those items immediately on Amazon,” noted Badiyan.

Amazon has a long history of taking a popular format from social media in order to engage shoppers and inspire purchases. In previous years, it offered a Pinterest-like feature called Interesting Finds after first testing the idea in other variations, including as Amazon Collections in 2013, then Amazon Stream in 2015. In later years, it hosted an Instagram clone called Amazon Spark, but it finally wound down that program in 2019 after only a couple of years. Spark’s primary stakeholder, Amazon VP of Consumer Engagement Chee Chew had also departed at the beginning of 2019.

Elsewhere on the site, Amazon has drawn inspiration from live-stream shopping with Amazon Live and even once tried a YouTube copycat where anyone could upload videos.

Unfortunately, most of Amazon’s takes on social media tended to be fairly bland, as the content only exists to push products. Meanwhile, people browse social sites for more than just ideas about things to buy. They want to engage with creators, learn new things, laugh, and be entertained. It’s not clear if Inspire will be able to deliver on these factors, despite the shift to video.

Amazon Inspire is currently only available in the Amazon mobile app on iOS and Android, initially to select customers.

Amazon launches Inspire, a TikTok-like shopping feed that supports both photos and videos by Sarah Perez originally published on TechCrunch

Expectations for this year’s holiday spend online were lukewarm, but initial activity — driven by deep discounts — has bucked predictions. Cyber Monday pulled in $11.3 billion in sales online according to figures from Adobe Analytics, which tracks seasonal e-commerce activity. This is 5.8% more than consumers spent on the same day last year (when $10.7 billion was recorded in sales, a drop on 2020’s $10.8 billion), and sets a record both for the day and the year so far.

The day is typically the biggest of the long weekend — in part because sales continue but people have returned to work — and it rounds out five days that overall exceeded estimates. As we reported, Thanksgiving saw $5.29 billion in sales and Black Friday had $9.12 billion in sales — both also up on earlier forecasts. The weekend between had $9.55 billion in sales. Altogether, “Cyber Week” — the period including those holidays and the days back at work as people continue to shop online — will reach $35.27 billion in sales online, up 4% over last year and accounting for 16.7% of all sales in the months of November and December.

Adobe expects $210 billion in sales for the two months, and so far in the season mobile has accounted for 44% of sales.

Salesforce separately released its own preliminary figures of $6 billion for Cyber Monday in the evening Monday. We’ll update these as we get more complete results.

Notably, although inflation is definitely being felt in the U.S., Adobe said that these figures were based on more transactions overall. At the peak, people were spending $12.8 million per minute on Monday, and Adobe said that its digital price index, which tracks prices across 18 categories, said that prices have been nearly flat in recent months.

Deep discounts — retailers perhaps anticipating needing to have something more to lure shoppers — have played a big role, too, as have the sheer availability of goods after shortages of the years before.

“With oversupply and a softening consumer spending environment, retailers made the right call this season to drive demand through heavy discounting,” said Vivek Pandya, lead analyst, Adobe Digital Insights, in a statement. “It spurred online spending to levels that were higher than expected, and reinforced e-commerce as a major channel to drive volume and capture consumer interest.”

Discounts on electronics were as strong as 25% off (they were 8% in the same period last year), and the biggest sales were in toys with average discounts of 34%.

Adobe says it calculates its data based on one trillion visits to U.S. retail sites, covering 100 million SKUs, and 18 product categories.

A lot of the buying was being done in preparation for the holidays, and that’s reflected in most popular categories. Top products included games, gaming consoles, Legos, Hatchimals, Disney Encanto, Pokémon cards, Bluey, Dyson products, strollers, Apple Watches, drones, and digital cameras, it said. Toys as a category saw a 452% boost in sales versus a day in October.

In other trends, buy-now-pay-later transactions (BNPL) continued to be force in how purchases are being made, although they appeared to be down slightly on Monday compared to Black Friday and the weekend: part of the reason has to do with shopping-cart sizes, Adobe said: people are more likely to use BNPL when totals are higher. Overall Cyber Week BNPL orders were up 85% over last week, with revenues up 88%.

Mobile also continues to account for a big proportion of buying, although Cyber Monday’s 43% of all online sales when people are back at their desks, was definitely down from the 55% of purchases on Thanksgiving.

The big question now will be whether online retailers, and shoppers, sustain this activity or whether this was an outsized push around discounts that will settle down in the days and weeks to come. Layoffs that we’ve been seeing in the e-commerce sector, and depressed valuations for companies in the space, are two indicators of more challenging times to come.

Cyber Monday online sales hit a record $11.3B, driven by demand, not just inflation, says Adobe by Ingrid Lunden originally published on TechCrunch