This product was initially thought for ShopFrogs goods stocks. We realized we had tons of money circulating from manufacturer -> picking warehouses -> end customer -> back to us.
As most of ecommerce companies core is marketing, customer care, digital payments and technology, we saw it made no sense having our money sleeping in shelves.
We exposed the idea to sell our stocks to investors and the response was overwhelming. In less than 7 days we had all the stocks sold.
- ¿How it works?
We present to our pull of investors the brands we bring in to our portfolio, always with a background of rotation in terms of sales. This means, first order is made under ShopFrogs risk.
Investor has full access of previous sales of the brand s/he’s interested, so s/he knows the rotation and can easily make predictions of profit. If deal is closed s/he keeps full access of sales data.
We give investors between 1% to 3% of sale price of product.
All goods are in independent warehouses, fully insured against theft and fire. Investor is welcomed to visit his / her products.
In worst cases profit is around 7% of investment. We put a ceiling of 50% profit of investment. When that amount is reached, following profit is considered 100% investment return.
No brand/stock is sold to one sole investor. Every brand is owned by 2 different investors at 50%.
- ¿Which stocks/brands are we trading which are owned by third parties (investors)?
Taste of The Wild
- ¿How do we benefit from this and how investor benefits from this?
1.- We have a stronger position when negotiating with brands, and most of the time we get bigger discounts and offers when being able to place bigger orders. This results in having more competitive prices than our competitors.
2.- We can reach a wider catalog allowing us to have stronger long tails, this, again, makes us different from our competitors.
Are you an ecommerce company willing to sell your stocks? Drop us a line!
Are you an investor, fed up of low bank interest rates? Drop us a line!