Flyp wants to provide resellers with enterprise-grade e-commerce tools

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There is no shortage of platforms to sell your old stuff. From ThredUp and TheRealReal to Facebook Marketplace and eBay, the tech world has long sought to capitalize on the generally wasteful attitude to consumption over the past half century.

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But lurking among these platforms is a group that isn’t often thought of, and certainly rarely served: resellers.

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Flipstartup founded by serial entrepreneurs James Kavas and Dani Arnautwants to provide machine learning tools to these stay-at-home salespeople.

The startup’s main income-generating product is an algorithmic matching platform that pairs a regular consumer, liquidation company, or donation center with a reseller to offload their stock of used goods. The user lists their items in the Flyp app and is matched with a reseller that typically sells this type of inventory. They negotiate a commission split, Flyp takes a 5% commission and handles the logistics involved in transferring the inventory.

Flip

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Image credits: Flip

Perhaps more important is Flyp’s free product, built specifically for resellers. Big ecommerce brands have sophisticated automation software to help them sell and track their inventory. Flyp offers similar technology to home-based sellers who manage dozens of listings across multiple platforms, all for free.

Kavas explained to TechCrunch that building trust in the electricity reseller community was integral to building a platform that could handle a much larger amount of inventory.

The startup estimates that there are about 350,000 electricity merchants in the United States, with most of them working part-time. The goal is to turn part-time workers into full-time workers and get people who have never been resellers to try it.

“This group is so important to the Internet that even the largest fintech company in the world, PayPal, was built around resellers,” Kavas said, referring to the eBay payment platform, which was created in the early 2000s. “This group of people is not new. But now that you have so many marketplaces, and you have all Gen Zers and others looking to buy used items, this reseller group is the only group that can handle the offer. In centralized companies, it is very difficult to recycle used goods because each item is unique and has its own drawbacks. This can only be done by a decentralized network of random people.”

Flyp’s thesis seems to be confirmed: in March 2022, the platform handled $7 million worth of inventory, compared to about $1.7 million at the same time last year, and more than $1 million in inventory flows into the platform every month. dollars.

On the heels of this success, the startup just announced a $10 million round led by Asymmetric Capital Partners, with participation from existing investors NextView, Afore, Interlace Ventures, Alante Capital, BAM Ventures, 1517 and GroundUp, as well as new investors Gaingels. and tectonic enterprises. Ryo Ishizuka, co-founder and CEO of Mercari, also took part in the round.




Credit: techcrunch.com /

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