Red101The U.S. will launch a network for retail based upon a new concept in AI-powered open trade this fall.
Red101 is a new e-commerce platform developed by RedCloud Technology. This U.K. based company could revolutionize the e-commerce industry for millions of small businesses and distributors in America. Justin Floyd is the CEO of RedCloud Technology. According to him, the platform offers online retailers a viable alternative to Amazon Marketplace.
RedCloud is a business-to-business platform, unlike business-to-consumer-focused marketplaces — like Amazon. Red101 has already been launched in Africa and Latin America.
Floyd announced the launch of Red101 in October last year, but no transactions have been made. He told the E-Commerce Times, however, that the RedCloud platform had launched in the sense of over 100 brands having already signed up. The full-scale launch will begin in September.
The intelligent platform is different from the first generation of online commerce because it uses AI-powered technology in order to reduce supply chain inefficiencies. Floyd said that the platform enables smaller retailers to trade in a fairer and more transparent way.
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 links fast-moving consumer products (FMCG) brands with distributors and local merchants from emerging markets.
He said that open commerce allows retailers to instantly trade with any supplier, whether they are in or outside their locality. He explained that retailers can purchase inventory and high-quality products at the best price and timing.
“It’s like a large online cash-and-carry,” he said.
E-Commerce platforms are no longer the only option for online shopping
Floyd said that RedCloud’s goal was to democratize the online marketplace, giving every player a fair shot. Red101 is introducing a new tool that will transform the U.S. marketplace to help further their mission to make commerce more accessible and transparent.
RedCloud Technology
He said: “We are harnessing AI to overcome the traditional challenges of commerce and ensure smoother interaction between sellers and customers, regardless of location or languages.”
RedCloud Intelligent, Open Commerce Platform facilitates online shopping, but also gives merchants capital to expand their business, control cash flow and buy equipment or inventory.
Floyd states that a major problem for U.S. retail is the difficulty of connecting with supply chain services in their locality. Open commerce facilitates trade between retailers, as financing transactions are handled via take rates. The platform charges merchants up to 1.5% of order value. This is lower than the credit card fee.
“We currently have about 6,000 brands and almost a half a million retailers using our platform. This is because we have given them two-thirds back of their time. “We give them very clear visibility on their pricing,” he said.
The merchant platform tackles supply chain issues. SMBs spend the majority of their time trying to negotiate with distributors and get the best possible price. They then discover that the distributor is unable to deliver within the next two week.
The lack of connectivity makes it even harder to manage inventory and deliveries. Red101’s iOS and Android apps are available to merchants who register for the platform.
Amazon Alternative
RedCloud will tackle the challenges of selling online for SMBs and mom-and pop shops. Floyd argues traditional ecommerce is crippling to SMBs and entrepreneurs.
Amazon has implemented a number of fee changes that have put increasing pressure on Amazon third-party vendors, which make up about 8% all Amazon sellers. Over 33% small businesses are worried about increasing shipping costs, storage fees, advertising fees and low inventory charges.
Amazon’s revenue in 2023 will be $140 billion, or 25%, from fees that it charges to sellers who host their products, manage storage and shipping. Amazon raised seller fees earlier this year. This increased the operating costs for small businesses. These fees, in addition to the inflation rate, force small business to raise their prices.
Raising prices isn’t a viable option for many businesses. As consumers cut back on their spending, brands have to reduce costs in order to maintain the same price.
Floyd claims that Amazon’s fee structure has become too complex, particularly for inventory management. Businesses are reducing their product listings on Amazon due to the higher inbound placement charges.
ModernRetail reported last year that the number sellers who only list one product on Amazon has increased by 300% since 2022. The Verge reported on Amazon’s Project Nessie, an algorithm that controlled pricing by identifying products with high profits and increasing prices. This forced other online retailers do the same.
Floyd argued that “this centralized model is eradicating the small business by restricting their access to tools required to drive growth.”
Empowering small businesses in online trade
Floyd is looking to expand his platform into U.S. retail to help grow his open commerce idea. This opportunity could draw a large number of Amazon’s 2 million third-party vendors.
Floyd said: “Open trade gives SMBs the freedom and autonomy to engage with trading partners that provide top-quality, authentic products. It also levels the playing fields of online commerce.”
In Africa and Latin America, his operation has a retention rate of 99.8% for its members. The commerce network allows member retailers to connect with wholesalers, distribution brands and other retailers. Floyd also noted that the platform allows for marketing and finance options.
Floyd spent eight years developing the supply and technological components. He also spent a lot of time working with retailers and distributers to understand their issues. As their problems were always similar, he was able to find a lot in common. They didn’t know each other, and they needed to find a way to streamline their operations and market to one another.
