Sramana Mitra: What are the dynamics on the logistics side? Rob Keve: There is quite a lot there for two reasons. One is consumers have expectations. We’re all sensitized by what the domestic experience is. We all want cheap or free shipping, and we want it to be quick. A lot of that expectation translates
Sramana Mitra: How do you charge? Rob Keve: We charge a subscription. We’re a software platform. We should not be a pure revenue share. You pay the subscription and can use it for one country or 200 countries. We have many different modules and you can access all of them as much as you like.
Cross-border commerce is cumbersome. Rob explains why, and how he is addressing the issues. Sramana Mitra: Let’s start by introducing our audience to Flow Commerce and to yourself. Rob Keve: I am the Co-Founder and CEO of Flow Commerce here in Hoboken, New Jersey. Flow Commerce is a turnkey solution to help any online merchant
Sramana Mitra: Can you give me a sense of how much people are paying for things like that? What’s an average deal size? What ballpark is the pricing? Barry Adika: A company like Adidas has 77 people that’s doing price monitoring every day. They have two lawyers on staff. With our software, they can have
Barry Adika: Amazon decided to freeze some accounts that don’t have proper documentation. For these sellers, to photoshop an invoice is not a big deal. There’s no enforcement on Amazon’s side. That’s why they have six million members currently. Long story short, those guys got smarter. Let’s say you have a big Amazon account. It’s
Barry Adika: The second algorithm we built was for counterfeit detection based on image recognition. We teach the AI what to look for. There is such diverse information that we teach this AI to look for and bring us results. On some occasions, because search is built by many elements like price, quantity, and reviews,
Barry Adika: We didn’t just look for seller information on Amazon. We looked for counterfeit products, quantities that people post online that can raise a red flag for brands.
Sramana Mitra: What is the business model for you? Are you on a marketplace commission business model? Talha Sattar: We have a few different revenue streams. One is, we charge service fees or convenience fees. The average consumer might pay somewhere between $2 and $5 per transaction. That’s one revenue model we have.