Online shopping has created many benefits for retailers, including expanded reach, 24/7 accessibility, streamlined operations, improved inventory management, and reduced labour costs.
However, many B2B retailers lack the tools to set up their own digital platforms, while their counterparts rely on outdated tools and complex workplace management.
Inspired by his experiences in B2C e-commerce startups in Turkey and London, Ihsan Diskan saw an opportunity to streamline the B2B ordering process and enhance the customer experience. The solution is Simplisales. I spoke to Diskan, its founder, to find out more.
The idea for UK startup Simplisales emerged from a side project by Diskan in 2019. A London food wholesaler approached Diskan seeking a B2B retail e-commerce app. “I didn’t realise at first how big this would be”, and adds, “I delivered the app and moved on”
In late 2020, after the pandemic hit the world, another wholesaler based in Dublin asked Diskan for the same solution. Through research, he discovered that many wholesalers struggled to transform their business to e-commerce due to a lack of integration with outdated ERP systems and inefficient ordering processes.
After having conversations with a few more food wholesalers, Diskan realised that there was a huge gap in the market.
“There are so many for B2C sales, but B2B is quite different. The average value of a B2B retail order is €830, 20 times that of an order on Amazon.
“I have a potential customer who has a €100,000,000 annual turnover. They don’t have online sales. The entire operation is based on phone calls, WhatsApp messages and around 20 sales reps going shops one by one.”
He hired a developer, and the duo prepared a fully B2B-oriented e-commerce app for wholesalers, integrated with an EPR that a friend had already developed and had many customers.
“In 2022, after building an MVP and having a few customers we attended the Food & Drink Expo in the UK where we reached out to food wholesalers to understand the problems they are experiencing.
I realised most of them are unhappy with their ERP providers because they are not cloud-connected or user-friendly. They have to connect to their services through a desktop computer. They can’t even use their mobile.”
Further, Diskan discovered that only 8 per cent of wholesale ordering is done through e-commerce, leaving a huge untapped market.
Besides limiting sales to business hours, Diskan notes, “their margins and profit rate are, as a result, quite low. It was just screaming to be fixed.”
“Despite years of selling data, they still lack customer segmentation, forecasting, or product recommendations. There are folks sitting on a goldmine who don’t know it. So I started Simpisales.”
Simplisales has developed an AI-powered Commerce platform designed for B2B wholesalers, retailers, and manufacturers that streamlines ordering with no-code ERP integration
With the custom-branded Simplisales app and website, customers can place orders 24/7 using their mobile phone, computer, or tablet. Behind the scenes, the seamless no-code ERP integration and advanced AI technology work together to provide a smooth and effortless ordering experience.
The nascent startup attracted the attention of Startup Wise Guys and a €100,000 investment.
The power of research and word-of-mouth referrals
Simplisales stands out for its efforts to understand the specific challenges of B2B retailers. The company spoke to retailers directly to understand their pain points. This approach was successful, as the company has since acquired the bulk of their customers by word of mouth.
As Diskan detailed:
“Unbelievably, they heard about Simplisales from each other and wanted the same solution. Because it’s the future, and they need it.”
The company has gone from strength to strength, attracting big wholesalers such as one with a €100 million annual turnover: “These folks are replacing their entire ERP to Simplisales because they think it’s better.”
Building stronger B2B relationships
Unlike competitors who merely provide a platform for transactions, Simplisales facilitates a deeper connection between companies and their customers.
By integrating directly with a company’s ERP or Accounting systems (like QuickBooks, Xero, or SAP), ensures that its app and website are always up-to-date with real-time information.
This eliminates the need for manual data entry and reduces the risk of errors, resulting in accurate pricing, up-to-date inventory, and seamless customer management.
Diskan shared:
“When wholesalers use a generic solution, it’s easy for customers to switch to a competitor. Our integrated approach, however, creates a stronger bond with your customers. We provide them with a native app and a website branded with their logo and colours. As a result, we see a 12.5% average sales increase per retailer.”
By streamlining operations and providing a consistent, reliable experience, we help you retain customers and reduce churn.
The Simplisales platform synchronises with the ERP every five minutes, ensuring that your app and website always reflect the latest data.”
Further, retail prices can be customised to the supplier or customer and accessed via login to ensure that, unlike a B2C business, you aren’t showing your prices to your competitors.
The company has grown to 10 team members and has generated over €20 million in cumulative Gross Merchandise Volume (GMV) since its inception. Last month alone, we achieved €1 million in GMV, demonstrating consistent growth.”
There are over 100,000 wholesalers in the UK, and over 600,000 in the US, meaning the market potential for Simplisales is high.
In the near future, the company plans to launch its marketing add-on for wholesalers and enhance its AI-generated features to support cross-selling and upselling, fully integrating with customers who sell both online and offline.
By recognising the unique challenges faced by B2B retailers, Simplisales has the potential to transform B2B sales and empower businesses to thrive in the digital age.
Lead image: Freepik.
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