Perth-based technology startup iiSnap is bringing China’s manufacturers closer to the world, establishing an online business-to-business marketplace to aggregate retailer demand, giving them access to higher sales margins and new cutting-edge products.
The iiSnap platform directly connects manufacturing companies with retailers across the globe, minimising the need for distributors or other middlemen.
Chief executive Ami Barda said iiSnap’s technology automated the long and complicated process of sourcing new products and networking with suppliers, while it also removed one of the biggest barriers to retail growth, particularly for smaller companies – minimum order quantities (MOQ).
“In every production line, you are running an MOQ to make a production line efficient,” Mr Barda told Australia China Business Review.
“When a person approaches a factory or supplier, usually an MOQ doesn’t make sense, because they are looking to diversify their offering and essentially sell multiple products but in smaller quantities.
“As a retailer, you have HR costs which are fixed, you have rents which are fixed, the only thing you can really save on is your cost of goods.
“But obviously with a limited cash flow it is very hard to commit to high quantities and it doesn’t always commercially make sense.
“The way that we solve this problem is we have software that consolidates and groups demand from multiple buyers across the globe for one specific product in any given time.
“Once we are able to group enough orders for the one product, we then realise the order, collect the funds and send the order to the supplier.”
Mr Barda said by removing distributors from the equation and aggregating demand to realise lower prices from suppliers, retailers could save up to 70 per cent on the cost of their goods.
The iiSnap portal will be officially launched in coming weeks, however, Mr Barda said development of the platform had been ongoing for the past two years.
In the past two months, Mr Barda said around 500 suppliers had been added to the network, with the platform focusing on consumer electronics and ‘independent’ technology, with its manufacturer base predominantly in China.
Products will be available across a wide range of categories, including lifestyle tech, outdoor technology, wearables, sleep technology, fitness and leisure, as well as audio and entertainment.
Potential suppliers are handpicked by the iiSnap team at the world’s largest trade shows, including CES Asia, CES Las Vegas and Global Sources Hong Kong.
iiSnap also works with quality assurance agents and runs a thorough screening process before allowing suppliers on to the platform.
“Our vision is to allow every small trader in the world and every retailer to actually go out and find exciting products, source them directly with ease, shop them with ease and bring them directly onto their shelves to keep the customer excited,” Mr Barda said.
“It’s the idea of empowering the smaller guy, because the smaller guy is actually the big guy.
“Around 80 per cent of the buying force in the market of purchasing is actually small to medium enterprises.”