Red101, a network for retailers based on a brand new concept of AI-powered open commerce, is scheduled to go live in U.S. markets this fall.
Developed by RedCloud Technology, a U.K.-headquartered company, Red101 could revolutionize e-commerce for thousands and thousands of distributors and other small businesses across the U.S. In response to Justin Floyd, the firm’s CEO, the platform can even provide online retailers with a substitute for the Amazon Marketplace.
RedCloud is a business-to-business platform, unlike business-to-consumer-focused marketplaces — like Amazon. Red101 is already available across Africa and Latin America.
Floyd initially announced the debut of Red101 last October, but transactions have yet to go live. Nevertheless, he told the E-Commerce Times that the RedCloud platform did launch within the sense that over 100 brands already signed up and are going full-scale starting in September.
The intelligent platform differs from the primary generation of e-commerce by leveraging AI-powered technology to mitigate supply chain inefficiencies. Floyd said this permits fairer, more transparent, and safer trading for smaller retailers.
It also defends against counterfeit goods, thereby ultimately alleviating the challenges small-to-medium-sized businesses (SMBs) face when competing with e-commerce giants like Amazon. This open commerce platform connects fast-moving consumer goods (FMCG) brands, distributors, and native merchants in emerging markets.
An open commerce approach enables retailers to instantly trade with any distributor, either of their area or outside of their area, he explained. Retailers can purchase inventory and quality products at the suitable price and time.
“It’s like a giant online money and carry,” he added.
Surpassing Traditional E-Commerce Platforms
Floyd shared that RedCloud’s goal is to democratize online commerce, ensuring that each player, big or small, gets a good probability. Red101 will introduce a transformative tool to the U.S. market to further this mission of creating commerce more transparent and accessible.
RedCloud Technology
“We’re harnessing the ability of AI to transcend the normal challenges in commerce and ensure smoother interactions between sellers and buyers, no matter location or language,” he said.
Besides facilitating online commerce, the RedCloud Intelligent Open Commerce platform provides merchants access to capital to grow their business, manage money flow, and buy equipment or inventory.
In response to Floyd, a big problem U.S. retailers face today is the lack to network with supply chain resources of their area conveniently. Open commerce makes it much easier for them to trade with one another, with financing transactions handled through take rates. Merchants using the platform pay as much as 1.5% on the order value. That’s lower than bank card fees.
“We now have almost one million retailers on our platform in the mean time with about 6,000 brands. They try this because we’ve given them back two-thirds of their time. Secondly, we give them back very clear visibility of their pricing,” he offered.
The merchant platform addresses supply chain issues. SMBs spend half their time coping with different distributors, attempting to get one of the best price. Then they discover that the distributor cannot deliver for the subsequent two weeks.
Acquiring inventory and managing delivery becomes even tougher because not everyone seems to be connected. Merchants who enroll for the platform handle all their arrangements on the Red101 iOS or Android app, which is accessible where the platform is live.
Alternative to Amazon
RedCloud is poised to tackle big brand challenges that make selling online increasingly difficult for mom-and-pop outlets and SMBs. Floyd argues that traditional e-commerce cripples SMBs and individual entrepreneurs.
Third-party sellers, who comprise 8% of all Amazon sellers, face increasing pressure from various fee changes Amazon implemented this 12 months. Over 33% of small businesses are concerned about rising shipping costs, promoting fees, storage fees, and low inventory charges.
In 2023, Amazon generated $140 billion from fees charged to sellers for hosting products and handling storage and shipping, a big 25% of its total revenue. Earlier this 12 months, Amazon increased seller fees, shifting more operating costs to small businesses. Along with inflation, these fees are forcing small businesses to boost prices.
For a lot of businesses, raising prices shouldn’t be a viable solution. Cost-conscious shoppers are resorting to spending less, so brands are cutting expenses to take care of their prices.
Floyd says Amazon’s recent fee structure is simply too complex, especially for inventory management. As a consequence of higher inbound placement fees, businesses are reducing product listings on Amazon.
Last 12 months, ModernRetail reported that the variety of sellers listing just one product on Amazon increased by over 300% in comparison with 2022. The Verge noted that Amazon’s Project Nessie deployed an algorithm to manage pricing by identifying profitable products and raising prices, which forced other online retailers to do the identical.
“This centralized model is eradicating small businesses by restricting access to the tools needed to drive growth,” Floyd reasoned.
Empowering SMBs in Online Trade
Floyd desires to expand his platform to U.S. retailers to grow his open commerce concept. That chance could attract a big variety of adopters from Amazon’s two million third-party sellers.
“Open commerce grants SMBs more autonomy and freedom to have interaction with trusted trading partners who provide authentic, top-quality products, leveling the playing field of online trade,” Floyd said.
His operation in Africa and Latin America shows a 99.8% retention rate of member retailers. The commerce network lets member retailers connect with wholesalers and distribution brands. Moreover, Floyd noted that the open commerce platform offers marketing and financing options, so all the things flows through one platform.
Floyd spent eight years constructing the availability and technology components, dedicating significant time to working with retailers and distributors to grasp their problems. He found much common ground, as their issues were consistently similar. They didn’t know one another and needed a method to market to one another and streamline their operations.
