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2013.06.19 13:29

Lithuanian idea can change future of e-commerce

DELFI|The Lithuania Tribune2013.06.19 13:29

A team of Lithuanian entrepreneurs has developed an innovative e-commerce platform which enables product suppliers sell products online directly from their warehouses to customers, the CEO of ‘Future retail’ company, Tadas Deksnys has informed The Lithuania Tribune. 

A team of Lithuanian entrepreneurs has developed an innovative e-commerce platform which enables product suppliers sell products online directly from their warehouses to customers, the CEO of ‘Future retail’ company, Tadas Deksnys has informed The Lithuania Tribune.

Deksnys said that the Lithuanian startup has been the first to launch this kind of to trading ecosystem in Europe and has recently received the first round investment of nearly one million litas (290.000 euros).

The new trading platform is called ‘Inside Warehouse’ and its developers claim that it may increase sales by nearly 200 per cent annually.

“We have created the system in 2011. Firstly it was tested in the category of products for pets. Sales started to rise nearly 200 per cent annually. Today about 80 per cent of category suppliers in Lithuania are using ‘Inside Warehouse’ platform. Initial success encouraged us to scale both geographically as well as to other product categories,” said Deksnys, the CEO of ‘Future retail’ that developed ‘Inside Warehouse’.

Product finds the customer

‘Inside Warehouse’ technology places products within related content in the publisher’s websites, and provides functionality which enables visitors to buy products without leaving publishers website. It cuts out e-shop link from e-commerce supply chain consequently providing added value for the remaining participants of online retail.

Product suppliers get instant access to multiple sales points without investing into e-sales development. Content publishers receive an additional healthy income stream from their content and consumers save time by easily picking and buying products right where they read relative information.

“Once we start collaboration with the main news portals, social networks, online forums and communities, people will be able to buy products with a single click of the button in the website where they like to look for and exchange information. For instance, a mother could easily pick and instantly buy a specific baby formula in the website where she is reading about baby allergies. There will be no need to go to a special online shop,” said Justinas Taruška, ‘Inside Warehouse’ business developer.

Scaling to other markets and product categories

‘Inside warehouse’ claims to have already facilitated suppliers to sell around 120.000 items of products. Among users of the platform are distributors of ‘Libero’, ‘Huggies’, ‘Disney’, ‘Hipp’, ‘Royal Canin’, ‘Hill‘s’ and many other popular brands.

It is expected that the sales through ‘Inside Warehouse’ are going total to five million litas (nearly 1,45 million euros) by the end of 2013.

Earlier in 2013 the Lithuanian startup received the first round of investment of almost one million litas (290.000 euros) from local investment company ‘BIP Group’. The investment is going to be allocated to test the concept in other Baltic states and four additional product categories: baby and child, beauty and healthcare, fashion and accessories, household products.

“We are especially interested in the product categories where 80 per cent of buyers are women, as they usually do more much more research on products they intend to purchase. So naturally our ecosystem is most beneficial for female buyers,” maintained Deksnys.

Potential to change future of e-commerce

‘Inside warehouse’ founders believe that their ecosystem may change online retail. It may facilitate rapid growth of e-commerce and monetization of content.

At the moment this platform, the owners claim, is unique in Europe and already has delivered tangible results. The startup founders are now is looking not only for the talents who help to further develop and grow the ecosystem.