With the fast-paced emergence of online e-commerce activities in India, there is a lot of change in the way products are being distributed and funneled to the end customers today. Technology is playing a critical role in distribution today and is enabling new age distribution concepts such as distribution of unsold products.
Overcart has created a niche for itself in being an alternative channel and I the platform is providing manufacturers innovative opportunities to liquidate directly to end users and other channel partners.
The company’s unique flash sale model started with Xiaomi has now done lot of interesting sales with them as well as One Plus One and ASUS.
Saptarshi Nath Co-founder and Managing Director, Overcart.com speaks with Zia Askari from TelecomDrive.com about the kind of innovations that the company stands for how it is moving ahead.
What is the Overcart’s mode of operation?
We provide service where returns and unsold inventories are being managed by Overcart.
Once the products reach our warehouse we perform a quality check on the products with our in house android application and all the details are stored on our server.
The application is added with parameters on a regular basis and currently it can check up to 70 different parameters – involving a device’s health.
It is a very complex process as there are so many categories within the refurbished segment. We are the first entrants in providing these services and first to coin the name unboxed for the industry.
How many people do you have? What are your plans on funding?
Right now we have 70 – 75 people spread across Delhi and Bangalore
Fund raising is an ongoing process for start-ups and we are no different. Our aim is to expand in all areas where all our clients need us. Currently we have 2 warehouses and we are looking at expanding our warehouses and returns processing centers.
Our main aim is to recruit across all positions – Tech, Business Development. Etc. By the end of this year we are looking at 120 people in total. We are looking at getting a few investment bankers on board. We have raised two rounds of funding so far.
What are some innovations we can look forward to?
At the core, we are a technology and services company. Our customers expect the highest quality of product and service—hence, ensuring high quality of each device is a key business priority and most of our innovations will be in this area. We already have an in-house Android application that acts as a CT scan for mobiles and identifies any functional issues. We will continue to expand on this space and design more innovative solutions to ensure that our customers don’t have to compromise on quality while buying an unboxed or refurbished device.
As of now how do you define the universe of refurbished products?
We work with large format retailers, ecommerce companies, manufacturers, and service providers to help manage their returns and excess stock. Further, refurbished products need not just be mobile phones (although they do receive the most attention), there are white goods, consumer products, and more such categories that lend themselves well to this segment.
What drives the pricing policy?
It is very easy to determine prices for new products, but not as easy for unboxed devices.
If the product is not sealed we have the liberty to determine the price—Our algorithm looks at various parameters to identify the right selling price.
What is the differentiation between the refurbished product pricing?
Depending on the brand and demand for the product, typical discounts range from 15% to 70%. When we run sales, discounts may go up to 90% for some categories.
What is the customer base you have?
We are very prudent about how we build our customer base—mainly because a lot of education needs to happen around what unboxed products are. The top metros represent about 40% of our customer base. The rest is mainly from Tier II and Tier III cities where our products and pricing are especially attractive. Every month, we see anywhere from 20% to 50% growth in the number of new accounts created with us. In a recent survey, we found that 95% of our customers make an online purchase at least once a month.
What are your plans for customer acquisition?
We have to balance out our marketing with the supply of products available. So, we are focused on targeting the right customers to maximise our conversion.
Currently, we leverage digital media extensively for our marketing efforts. We are also expanding to other offline media slowly. Given that our customer base comprises early adopters already comfortable with online shopping, we feel that online channels will give us the required boost for the near future.
As of now what products are available on Overcart?
Mobile phones, accessories, books, laptops, etc. Books was the first non-CEPC category launched on Overcart.
We are constantly planning to expand to newer segments by running pilot tests. Recently, we have launched TVs in Bangalore.
