Startup Alphatise empowering consumers to drive retail prices
Co-founded by Australian entrepreneurs Paul Pearson and Richard Frey, Alphatise is set to bring the power back into the hands of consumers, with retailers to also benefit from higher conversion rates. Launching in May this year, Alphatise creates a unique marketplace in which consumer drive deals on items they want and suppliers sell items based on market demand.
First, let’s look at capitalism. Essentially, capitalism is the existence of a free marketplace where people can set their own prices for their services; and the market will determine whether or not a product is worth that price. The philosophy behind the system is that products and services will naturally balance itself due to supply and demand.
But more often than not, price becomes a barrier for consumers ogling over products they want to purchase; and retailers face difficulty in assigning appropriate pricing due to lack of real-time data on market demand. Up-and-coming mobile app Alphatise solves both these problems with poise, and has the hallmarks to disrupt eCommerce globally.
Consumers simply browse through products of interest via the app and communicate the price they would like to pay for them. If enough consumers agree with the new price point, retailers can push the deal and start accepting orders.
The inspiration behind the startup, Pearson says was his struggle with finding the best price point for products he was selling on Gumtree. He was trying to avoid selling too cheaply, but found that there was no way to accurately assess market demand.
“All retailers face this challenge – particularly in the online space, where competition is tough. I was inspired to find a solution, so began designing an app that was based on market demand, to connect buyers and sellers – and Alphatise was born,” he says.
Pearson adds that Alphatise is a win-win for both consumers and retailers. Consumers save time and effort on shopping around and searching for retailers that sell the product at a better price, while retailers benefit from higher conversion rates.
Initially, the founders bootstrapped the concept and patents. But as Alphatise grew, they raised an impressive round of funds – totaling $1.5 million within the borders of Australia – from approximately 50 friends, families and investors who also had synergies to add to the business.
“Our shareholders are a committed bunch of forward-thinkers. They believe in the Alphatise concept, understand its potential, and have contributed not only money but also commercial expertise to turn Alphatise into a reality,” says Pearson.
According to eMarketer, the global B2C ecommerce market is currently valued at $1.2 trillion and growing every year at 11 percent CAGR (Compound Annual Growth Rate). Pearson says their five-year target is to achieve 5 percent of that market share.
Their biggest achievement to date has been the speed in which they’ve been able to bring the concept to life, helped by the $1.5 million they raised in investment capital. The Alphatise team has also been fortunate with minimal obstacles in their way. Pearson says building the platform was “a breeze” and was helped by the fact that he’s been “extremely transparent with shareholders and have built good relationships with all of them”.
This year, the team will be embarking on an aggressive marketing campaign across a range of media closer to Alphatises’s launch date. They’ll also be raising a Series A round of venture funding – with several US entities having communicated their interest in taking part in Alphatise’s global expansion.
On a final note of optimism, Pearson says, “Alphatise is a revolutionary platform, just like eBay and Facebook. It is going to disrupt the world of eCommerce by changing the way buyers and sellers interact. With its scalability and unique value for both buyers and sellers, Alphatise is going to be a huge success – and we’re not stopping until we take this global!”
For more information, visit www.alphatise.com.