Can a factory-consumer experience be quality? – RetailWire
Dec. 30 2021
The CEO of Browze, who organized the cross-border online marketplace, sees shipping from the factory to the consumer as a way around the supply chain issues of the pandemic era and has implemented a model of sourcing which he says eliminates the quality issues often associated with it. this method of accomplishment.
In an interview with Forbes, Browze CEO Izzy Rosenzweig said the Browze Marketplace has both minimized consumer wait times and kept trade costs low through the use of airmail. While the cost of shipping ocean freight has skyrocketed, the cost of air mail has remained constant for months.
At the same time, Browze claims to solve problems often associated with direct factory markets overseas. Products sold on the website undergo quality control testing, there is a no-frills refund policy, and customers can return the products in their country to Browze’s warehouse rather than having to face up to it. on a return abroad.
Browze has also taken other steps to improve its customer experience (and customer service score). It recently implemented a 24/7 live customer support chat and enhanced self-service customer experience platform, according to a Press release.
In June, Browze has received An additional $ 5 million in Series A funding. The company also has the backing of investors and advisers from a former vice president of Chinese marketplace Aliexpress.
Browze isn’t the only newer company that sees promise in lowering supply chain costs by using a factory-to-consumer model.
Fifteen, an eco-friendly factory-direct clothing company, sees not having to hold inventory as a way to create more affordable clothing using high-end organic materials, according to Forbes.
While these marketplaces aim to overcome the shipping and quality control issues that have long plagued this type of online retailing, the most popular marketplace leveraging this model in the United States , Wish, continues to face these challenges.
Wish customers always complain about long wait times and receiving counterfeit or low-quality products, according to The motley fool.
Wish also does not appear to have allayed concerns about the viability of its business model with investors. I want an IPO in December 2020 with a price per share of $ 23.55, and is currently trading about $ 3.
DISCUSSION QUESTIONS: Do you consider that Browze is able to realistically address the challenges of quality control and other issues that cross-border factory-to-consumer markets like Wish and Aliexpress would face? Will we see the factory-consumer model expand beyond niche / novelty / buyer’s attention and become a mainstream business model?
“The credibility of these second or third tier markets has an uphill battle to compete with the giant markets. “
“… this is a huge hurdle that requires extensive experience and training to provide expertise in any market, let alone several.” “
“The factory-to-consumer will gain in popularity as sustainability, personal carbon footprint and product longevity become more important values to consumers.”