Torba.Ua - international marketplace, hypermarket

Project summary

The Internet market is changing, if 10-15-20 years ago it was possible to make a simple online store and actually promote it for 3 kopecks and receive orders - the present time and great competition force us to move towards budgets and large budgets.

One of the main goals of the project is to provide a very simple opportunity to display any goods online, without knowledge of site building, advertising, Internet marketing, programming and multiple factors including significant budgets.

There is a shoe manufacturer, for example - he knows his business better than others, his product is almost perfect. But instead of further improving his product, he needs to sell it, sell it online - look for a team, invest $ 10,000 or more to develop online sales. But what about entering foreign markets? Markets in Europe, USA - what to do? How to do? Build everything yourself?

The Torba.ua project is designed not only for the sale of goods from various suppliers, but first of all, it is designed so that the goods are placed on all sites. This is one of the innovative marketing moves in which it is expensive and ineffective to compete with market leaders, but by delivering the product card to the end consumer at the expense and together with the resources in which there is already formed traffic and a regular customer, we generate stable sales as for your own products, as well as for products of marketplace sellers.

One of the values for the seller is the ease, the simplicity with which he can get started. All you need is the product - our system will form the "correct" card, our operators will process the order, bring the product to the masses of consumers - we will also make and make a turnkey sale.

This has a great advantage for the end consumer - we, for our part, can proganat excelent customer experience, - deliver exactly on time, - do all the actions on order so that the consumer gets a high-quality pleasant story and a vivid positive emotion. And besides her - to build a "living" history of the consumer together, thanks to one of the goals of the project - to completely replace all the needs for the product, including the delivery of products to the home - we can completely replace his need. When his mother has a holiday and needs a gift - we are close, when he needs new socks for a date - we are also close, this is the story of one person - a story that he builds with us and does not even know about it.

But that's not all, Ukraine is a big, beautiful country, a market, but any seller wants to get more - to bring their goods to America, Europe, Asia. For this, just a store is not enough - it is a difficult task, large resources. We have more than 15 years of experience with major platforms such as Amazon, WalMart, BestBuy - we introduced new products to the market, all processes are fine-tuned. And now, having experience, we have digitized it and we want to provide an additional opportunity for any entrepreneur through us and together with us, through our automatic platform, to bring goods to the USA, Canada, Europe and Asia.

Logistics is fine-tuned to the smallest detail, previously we worked in partnership with several international logistics companies that delivered parcels between the USA, China and Ukraine - thus we close the turnkey logistics issue for the seller, for the buyer in the USA we guarantee a short time and quality of execution order. The product is digitized and ready for work and further movements.

The project is not at the stage of idea, thought - the project was started more than 4 years ago, - for more than 3 years the platform, processes were prepared, hypotheses and ideas were tested, a team was selected and reworked to provide a really strong and high-quality product. The software product and processes were reworked 3 times and now it is a platform ready for scaling. A very powerful software package, for example: a separate software product for updating price lists is capable of processing up to 20 million product cards in 50 seconds, the artificial intelligence system links product cards from the price lists of sellers and suppliers automatically and digests any format of the price list. The system of automatic unloading by marketplace, including Google tools, is able to automatically set up and optimize advertising campaigns to optimize costs, increase conversions and increase sales. Based on algorithms and artificial intelligence system.

At the current stage, the project has a hybrid management model: an averaged structure between the corporate model and a startup, the main ("parent company") was registered in New York, USA. The platform was launched and the team assembled in Ukraine.

Briefly on the numbers, plans and goals:

The current team is 18 people (in December and January there were 78 people, but after the restructuring of the operating system - the size of the team was optimized to improve operational efficiency). With any increase in the number of orders, the expansion of the team will not negatively affect operational efficiency, that is: with 10,000 orders per day, the required number of employees will be processed without a decrease in profitability. All processes were digitized in detail, the input of any employee takes 1-3 days, control is carried out in an automated system with prompts.

The project has passed the break-even point, excluding subsequent growth, the return on investment will be from 5 to 8 months.

Investment required:

1. further improvement of the marketplace and its technical components, taking into account the expansion of the it-team.

2.expansion of the direction of courier delivery and fullfilment

3. scaling to the following countries: Belarus, Poland, Czech Republic, Azerbaijan, Georgia, Lithuania, Latvia. Scaling takes a relatively short period of time, from 3 to 9 weeks per country, and allows you to operate simultaneously across multiple countries.

The system is built in such a way that for any country the visual part and processes are adapted to the local market, which takes very little time. The team that works within the country works according to detailed procedures and standards, thus we essentially clone the project to any country, set up local management and make technical unions both with external platforms and with a common one. All metrics are digitized, and we receive online analytics from any country. The expertise and assessment of the market with competitive advantages for each country has been worked out in detail and adapted to the current needs of the market, so we come with a specific understanding of those key points that will be emphasized in a particular country. Plus one of the very strong sides of the project is its quick adaptability to market trends or trends. For example, a completely separate product delivery model was implemented in 7 days, compared to foodex24.com - which took about 14 days to build - our budget came out 30-40 times lower than that of a competitor - and efficiency in terms of the number of orders and profitability many times higher.

4. Refinement and integration with our American platform (MVP) for the exchange of goods between countries.

5. Marketing and brand management. The product is very strong technically, programmatically, but at the same time for the last 2 years no actions have been taken to familiarize the market with the product, and the emphasis was on: a) to make the highest quality product b) to attract the end consumer to a specific product he needs.

In terms of business model and monetization:

the project makes money in the following areas:

1. classic online store (now 500,000 products are presented, the potential to present up to 1.8 million products in Ukraine), marginality from 3 to 120% depending on the category.

2. marketplace: monthly fee + sales commission + advertising + additional. services

3. courier delivery, international delivery (in the project).

4. fulfillment: storage, assembly, packaging, dispatch / delivery - rent of space in the warehouse, payment for assembly, sale of packaging materials + for extra. services.

Over the entire life of the project, there were no goals to attract investments. The project was built and processed using its own funds generated from other businesses, as well as the reinvestment of operating income within the project.

At the moment, due to the crisis, we can no longer finance the project with our own funds. In order not to wait for an income from operating activities for the current development and expansion of the project, it was decided to attract investments in three stages.

The total amount of funds invested, taking into account the reinvestment of operating profit, was more than $ 3.2 million

The first stage is the formation of the budget through small but massive investments.

The total amount of the first "round": $ 380,000, here we consider the consolidated amount with investments from $ 5,000.

The second stage - "long-term financing" by attracting portfolio funds, is a slow process that takes from 4 to 18 months.

the total amount is from $ 1.7 to $ 5 million. This round of investments goes into the development of assets, capitalization and the development of fullfilment centers (commercial real estate in Ukraine, Europe and the USA).

The third stage is an IPO in 2023. This will allow obtaining a real market assessment of the company, attracting additional funds for the further development of the project.

We accept investments and investments in the form of an entry into the share capital of the parent company. The company is registered in New York, USA. It also includes the retail retail business in the United States, which had a turnover of more than $ 2 million in the previous year.