The executives behind online retailer Wantitall and e-commerce fulfilment platform Parcelninja have launched a “global sourcing” e-commerce website promising half a million branded goods to South Africans at cheaper prices than available through other retailers.
“Allsale Club is a members-only online shopping business that aims to save consumers money on everything from everyday branded items from batteries, razors and cleaning products to luxury items such as fashion, fragrances, cosmetics and watches,” the founders said in a statement on Wednesday.
Allsale Club is led by Wantitall’s Justin Drennan and Parcelninja’s Michelle Lehrer, who also serves as the new company’s CEO.
It has leveraged existing Wantitall and Parcel Ninja processes, infrastructure and IT development to facilitate the launch.
“Allsale Club works with suppliers around the world to bring more than half a million products to South Africans, many of which are not currently available on local shelves,” said Lehrer. “With a members-only approach, the business model is driven by membership fees and not margins. This means we pass great prices on to our members and we have developed internal incentives based on decreasing margins.
“We believe we are launching at a great time for consumers, as value businesses thrive in a recessionary environment.”
Membership fees
The company said it won’t “bombard” members with promotions but will rather “build trust that our best prices are always what members pay”.
“We plan to disrupt retail sales in South Africa by using a business model similar to that of Costco, the American multinational corporation that operates a chain of membership-only warehouse clubs around the world,” Lehrer said. “They stand for quality at great prices, and this is what we will deliver to Allsale Club’s members.”
Membership starts at R79/month, with no lock-in periods or cancellation fees. “Many of our members will save more than the monthly fee in just one purchase,” Lehrer said. “As our membership base grows, the better our purchasing power to seek out great offers and exclusive buys for members.”
Success metrics for the business will be membership growth and margin deflation, contrary to normal business models, the company said in the statement. Shopping categories include health and beauty, baby and toddler, toys, fashion, homewares, household, and consumables.
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