Dutch startup WeMarket, a physical goods marketplace that connects retailers and suppliers, launches globally today, after two and a half years of development. Both international brands and small businesses can trade with wholesalers, distributors and retailers on the platform.
Gijs van den Broek, COO of the startup, said: “WeMarket is the first marketplace where brands themselves will be actively trading through new and existing relationships.” WeMarket will also provide retailers with the ability to sell excess stock back to wholesalers and distributors through the platform. Van den Broek added: “Estimates show that more than $1.75 trillion is lost annually due to retail inventory distortion: overstock, out-of-stock and returns,”
Van den Broek hopes the online marketplace will provide an expedited route to distribute products, where brands can choose to announce special mid-season promotions on slow moving products. Members pay a $500 yearly fee for unlimited trading on WeMarket, and the startup does not take a cut of deals or charge any additional fees. WeMarket members are expected to trade over $500 million in the first twelve months, and has already nabbed customers like T-Mobile and Philips. Current WeMarket service provider partners include Dun & Bradstreet, IDchecker, PayPal, UPS, SGS, Bird & Bird, offering credit and identity checks, payment services, clearance, quality inspections and commercial contracts if needed.
To ensure efficiency and a cycle of reliability, WeMarket also provides a reliability score for all users called WeMarket Karma. The algorithm analyses both the ‘good’ and ‘bad’ behaviour of members, hence the irony of the term ‘Karma.’ For instance, “if a stocklot trader doesn’t adhere to a brand’s restrictions its ‘Karma’ will go down”, explains Van den Broek.
WeMarket was founded by Dutch serial entrepreneur Bas Beerens. It currently employs a team of 20, including a management team of five individuals, among which include Van den Broek. Beerens previously founded Oy Communications and WeTransfer, which recently raised $25 million at a valuation between $100 million and $200 million. Interestingly WeMarket doesn’t have a CEO yet; Beerens serves as the founder or ‘coach’ guiding the management team on design, simplicity and ‘being smart’, and is currently the sole investor of WeMarket.
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