AI-Powered Open Commerce Network To Democratize Ecommerce

Red101, a network for retailers based on a new concept of open commerce using artificial intelligence is due to appear in US markets this fall.

It is developed by U.K.-headquartered RedCloud Technology and could revolutionize e-commerce for millions of distributors and other small businesses across the USA. According to Justin Floyd, the firm’s CEO, the platform will also become an alternative to the Amazon Marketplace for online retailers.

RedCloud is a business-to-business platform, unlike business-to-consumer-focused marketplaces like Amazon. Red101 is already available across Africa and Latin America.

The intelligent platform leverages AI-powered technology to mitigate supply chain inefficiencies, which differs it from the first generation of e-commerce. Floyd said this enables fairer, more transparent, and safer trading for smaller retailers.

It also defends against counterfeit goods and ultimately alleviates the challenges small-to-medium-sized businesses (SMBs) face when competing with e-commerce giants like Amazon. This open commerce platform connects fast-moving consumer goods (FMCG) brands, distributors, and local merchants in emerging markets.

Floyd shared that RedCloud’s goal is to democratize online commerce, ensuring that every player, big or small, gets a fair chance. Red101 will introduce a transformative tool to the US market to fulfil this mission of making commerce more transparent and accessible.

Besides facilitating online commerce, the RedCloud Intelligent Open Commerce platform provides merchants access to capital to grow their business, manage cash flow, and purchase equipment or inventory.

According to Floyd, a significant problem US retailers face today is the inability to network with supply chain resources in their area conveniently. Open commerce makes it much easier for them to trade with each other, since financial transactions are carried out at fixed rates. Merchants using the platform pay up to 1.5% on the order value. That’s lower than credit card fees are.

Acquiring inventory and managing delivery becomes even more challenging because of lack of connection between the parties. Merchants who sign up for the platform handle all their arrangements on the Red101 iOS or Android app, which is available where the platform is live.

RedCloud is created to tackle big brand challenges that make selling online increasingly challenging for family outlets and SMBs. Floyd argues that traditional e-commerce is detrimental to small and medium-sized businesses and individual entrepreneurs.

Third-party sellers, who comprise 8% of all Amazon sellers, face increasing pressure from various fee changes Amazon implemented this year. Over 33% of small businesses are concerned about rising shipping costs, advertising fees, storage fees, and low inventory charges.

For many companies, raising prices is not an acceptable solution. Cost-conscious shoppers tend to spend less, so brands are cutting costs to maintain their prices.

Floyd says Amazon’s new fee structure is too complex, especially for inventory management. Due to higher inbound placement fees, businesses are reducing product listings on Amazon.

Floyd wants to expand his platform to U.S. retailers to grow his open commerce concept. That opportunity could attract a significant number of adopters from Amazon’s two million third-party sellers.

His operation in Africa and Latin America shows a 99.8% retention rate of member retailers. The commerce network lets member retailers connect with wholesalers and distribution brands. Additionally, Floyd noted that the open commerce platform offers marketing and financing options, so everything flows through one platform.