Meet the Entrepreneurs
REcommerce
Access to Markets
November 2013
CONTACT INFORMATION
recommerce
Creation and management of e-stores made simple
Minsk, Belarus
+375 (44) 5556240 mail@recom.by
www.recom.by
Igor Kuryanovich, CEO, Belarus
CHALLENGE With the advent of technology, the barrier between online and offline sales has become increasingly permeable. However, creating an online store that is functional, generates traffic, and adds value to retail stores is not as easy as it might seem. This is particularly true in a globalized world where competition is not only generated from other competitors in the same geographic area, but possibly from companies located in other countries or even continents. Recommerce aims to offer an easy-to-use online platform to create storefronts that will help manage this influx of international competition.
IDEA Recommerce is a web-based platform that assists individuals and small businesses in creating and managing an e-store. The software gives customers the possibility of selling their products online through three main services: the creation of an online store, the implementation of online payment solutions, and access to online marketplaces. Recommerce was founded in Belarus in April 2012 in response to the increasing demand coming from retail storeowners who wanted to expand online. While developing the web platform to serve as an e-store, the team decided to improve the initial model by integrating a customer relationship management system that boosted the functionality of their platform. A demo version was launched in September 2012 in Belarus, and the site went live officially in February 2013.
BUSINESS MODEL The company’s e-commerce service offers many strong sales advantages for its customers: a clean and simple design for the client companies’ storefronts, a back-end interface that will help small business owners navigate and update with ease, a cloud-based customer relations management system, and a seamless online payment system
using PayPal or major credit cards. The pricing system is based on the number of products the businesses promote on their online stores, as well as the features they require. Prices run from USD10 to USD99 per month. A key milestone in the growth of Recommerce was the support received from HappyFarm, a popular American-Ukrainian business incubator, following Recommerce’s participation in a top-perfomer competition in Belarus in May 2013. Beyond the USD70,000 seed investment facilitated by HappyFarm, the business is not seeking external funding, preferring to grow organically. When targeting a new country, the first step is thorough market research to take all local intricacies into account. If the market research phase is conclusive, a new domain is registered and a customized beta version is created. If the beta version works well and customers are responsive, the live version is finally launched. Belarus, Russia, and the Ukraine now have a live version. The US webpage was launched in July 2013 under the name of CommerceRun, but it is still in the beta stage as the cultural gap and risk levels are higher. In terms of marketing, Recommerce relies on word of mouth, and articles and blog posts in publications that focus on entrepreneurs rather than heavy investments. Recommerce is aware of two of its largest competitors: Insales (http:// www.insales.ru) in the Commonwealth of Independent States (CIS) market, and Shopify (www.shopify.com) in the US market. Recommerce’s competitive edge is apparent in their product; namely, the simplicity of use, clean and easy templates, and better design of their stores for product placement. What’s more, the team believes the unserved market is large and growing, both in the US and in the CIS, so that there is not only room for them, but also for competitors to serve small businesses who want to have their websites available online. Recommerce’s model is greatly scalable, enabling them to potentially serve thousands more clients.
“BEING PART OF THE HAPPY FARM INCUBATOR HAS BROUGHT US MUCH NEEDED FINANCIAL AND OPERATIONAL SUPPORT.” www.infodev.org
twitter: @infoDev
ENTREPRENEUR’S INSIGHTS
NEXT STEPS
WORKING WITH infoDev
Monitor performance of beta version in the US and decide the next move accordingly
• Passion is the key to success for entrepreneurs; if you do what you like, everything will be much easier.
Intensify international expansion in CIS (Commonwealth of Independent States) countries
• Having a skilled team and well-identified partners is essential for growth.
Always look for means of increasing system’s functionality
• The financial plan should be as realistic as possible, as money mismanagement can lead to quick failure.
PROGRAM: Internationalization services from Mogilev’s Technology Park SUPPORT PROVIDED: Access to the Mogilev Technopark (MTP). infoDev’s project with the MTP made the connection with HappyFarm possible. Recommerce participated in an internationalization workshop and 2-day bootcamp in Moldova. MAIN BENEFITS FROM ENTREPRENEUR’S VIEW: • Technical support from mentors in the MTP • Legal and marketing advice on accessing internal markets and elaboration of contracts for foreign economic activities • Promotion of the company (PR professional services) • Tax and accounting administration • Participation in negotiations with partners and internationalization activities(Ukraine, Happy Farm, Moldova, infoDev activities)
KEY OUTCOMES VALUE FOR USERS An affordable and easy-to-use solution that assists store owners in opening an online shop Customers can purchase online products offered by their preferred retail shops
BUSINESS FACTS REVENUE GENERATED
USD24,000 (2013)
NUMBER OF EMPLOYEES INVESTMENTS
AWARDS
4
SALES
USD70,000
Supported by:
www.infodev.org
twitter: @infoDev
- Top 15 Belorussian IT Start-ups in 2013 Over one thousand e-store fronts in four markets