Startup interview: Nancy Shenouda, Founder and CEO, Tradesnest
RTIH gets the lowdown on Tradesnest, which has developed a platform connecting brands with distributors and retailers.
RTIH: Tell us about Tradesnest
NS: Tradesnest is an online B2B platform bringing together quality innovative products, distributors and retailers globally where they can showcase or find products and conduct business directly in a single location.
We help companies expand internationally in a much more time and cost-efficient way by putting them in contact with the right business partners in their target market.
Through our exclusive B2B platform brands can present their products directly to the retail and distributor buyers and if there is a good match the buyer lists their products and the partnership begins.
Next to connecting with buyers our platform allows them to receive orders directly. With the advantage of our escrow system both parties can securely start the partnership.
In addition, we also offer account managers to guide the companies with their sales and pricing strategy, set the best trade agreements and help with presenting their products.
RTIH: What was the inspiration behind setting the company up?
NS: The idea came up when out CEO and founder joined a startup company where her task was to get the company’s new product innovations on retailers’ shelves and that proved to be a huge challenge.
Retailer buyers don’t have time to sit down with smaller players, even if their product is successful and won multiple innovation awards.
Retailers preferred to work with local distributors that could present several new products in one meeting, saving them lots of time and energy.
Moreover, distributors can reduce shipping time, as the products are available in their local warehouse, and they can handle product returns.
For smaller players, the only option to list their products at the retailers is to find a distributor with whom they can partner. Unfortunately, finding a good distributor can be as challenging as finding a retail buyer.
You can go many ways to find distributors, from cold calling, trade associations to trade shows, but it is either inefficient, very time consuming or very expensive.
There had to be a better solution for brands to connect with distributors. A solution that would help companies save a lot of time and money. This is how the idea for Tradesnest came to life.
RTIH: What has been the industry reaction thus far?
NS: From experience, it became clear that the problem was significant from the brands side to find a quality trusted distributor with whom they can build a successful long-term partnership.
On the other hand, for many distributors, travelling frequently around the globe from one trade show to the next, hoping to discover new innovations, became a burden.
Tradesnest initially started offering this solution only for distributors and brands. However, retailers started reaching out directly to us, asking if we could present new innovations to them, while still buying from a local distributor.
This proved to be a recipe for success. The retailer buyer can select the product they are interested in and we find them a distribution partner to list the items. This is a win win win situation for retailers, distributor and innovative products makers.
RTIH: What has been your biggest challenge/setback?
NS: The biggest challenge has been to develop the platform to a level that we are completely satisfied with.
We have a roadmap that we are very excited about and we believe our customers will also love, but that requires time and resources and as a startup we have to tackle these challenges.
On top of that, we continuously receive tremendous feedback from our members and we are trying to implement their ideas and recommendations as fast as possible with our limited resources.
RTIH: What are the biggest challenges facing the omnichannel retail sector right now?
NS: I spoke to an investor recently who told me the situation in which one of their brands found themselves in.
This brand, that I will not name, is only doing business to consumer and they hit their max growth online, so they need to get on retail shelves now to keep growing their sales.
This is a problem for many companies nowadays who start building relationships with national retailers and distributors too late.
Selling products directly to consumers is great, you can control better the pricing, you have higher margins and the marketing budget can be smaller.
However, bricks and mortar stores are not going to disappear anytime soon. Nowadays 70% of consumer electronics products are sold in-store, and limiting a company to online channels only does not always work.
We believe these companies are leaving a lot of opportunities on the table until it’s too late.
RTIH: What's the best question about your company or the market asked of you recently by an investor and/or a customer?
NS: I think the best question I received from an investor was: what is the impact of your business?
Introducing a product in a new market brings many challenges and finding the right partner is critical for a business’ success.
Tradesnest offers SMEs a cost and time-efficient solution to find the right business partners in their target market who helps them get their product listed at the best retailers, taking care of contracts and negotiations, handling product returns and most importantly: being able to supply the retailers in a shorter time, which is crucial to avoid out of stock situations.
Most companies can sell their products online through marketplaces like Amazon, Bol.com or through their own websites. However, more than 70% of all consumer electronics products are still bought in-store today.
Not all companies are able to get on the national retailers’ shelves and that’s where Tradesnest comes in. We’re putting these companies in contact with businesses that already have those established connections.
Growing in new markets has never been this easy. We save companies tens of thousands of dollars attending international trade shows just to get their product in front of the right buyer.
This is a big financial risk for a small to a mid-size companies, as they have no control on who will attend the shows and if their target retail buyer will attend or if he/she will pass by their booth.
It doesn’t help if the company with a lower budget gets a very small booth at the end of the hall where there is no traffic.
Most companies end up spending large amounts of money for the booth, the space, setup, flights, food, hotel, shipping their products back and forth and then finally realise that it didn’t pay off.
Sending your top three sales reps for a week to a far destination also comes at a, often neglected, high cost since their current clients are not taken care of until they return.
RTIH: What can we expect to see from Tradesnest over the next 12 months?
NS: Onboarding our clients and network on our platform and helping innovative startups and SMEs grow their business internationally.
We are currently focusing on onboarding consumer electronic brands and distributors and then move horizontally to other industries like food and beverage and beauty and personal care, where we are already receiving inquiries for.
At the same time, we want to offer a 360-degree solution for brands and distributors by making all transactions, shipping, and contracts set up as easily as possible through Tradesnest.
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