Four Reasons Retailers Would Choose Natural Commerce
The Endless Aisle
Giving a retailer the ability to offer significantly more products to meet more consumers’ needs with better margins to the retailers and better prices to consumers without having to buy or store products, deal with breakage, fulfillment, or shipping and logistics.
Natural Commerce takes an old school offline co-op model and brings it to online. In addition only group buying offers the sell through rate to break apart case packs and pallets.
Natural Commerce is one of the largest aggregators of pictures, descriptions, ingredients, and nutritional information all in one repository.
Tools to compete with Amazon and Walmart
Only the Natural Commerce Platform pulls together everything and “everybody else” (source to outlet) all in one place to provide best price, lowest shipping cost, & minimal delivery time.
The Math For All The Right Reasons
Taking a segment and scale approach, Natural Commerce delivers both sides of this coin with better profit margins to the e-commerce and grocery retailer (15%) as well as lower prices to the consumer. Getting the 15% profit margin- Without the Natural Commerce Endless Aisle, a retailer would typically be looking at 3-5% profit margin, if the price per product is competitively priced. This is due to the costs of storing products, dealing with breakage, fulfillment, as well as shipping and logistics. If a retailer were to choose to not have a product competitively priced their sell-through rate or conversion rate on those products would decrease 90 to 95%. Natural Commerce's Endless Aisle guarantees retailers both the 15% profit margin, which is something no retailer can do on their own, as well as competing on a consumer price per unit against Amazon and Walmart.
Getting a per unit product price to compete with Amazon and Walmart- As any retailer adds new products, they start with a minimal purchasing volume resulting in higher costs to consumers. Makers of products only offer reduced prices if the retailer can deliver volume. High volume can never be reached unless the retailer is selling the products in a price competitive way. Thus no individual retailer has the purchasing power to compete with Amazon and Walmart while maintaining a 15% profit margin.