VerishopLos Angeles online retailer, founded by former Snap manager Imran Khan, was founded a little over a year ago to change the way people shop online. Now the company is launching a new initiative called Verified Shops that aims to change the way that emerging retail brands can sell their goods.
As direct-to-consumer and upstart brands seek new sales opportunities, they are increasingly turning to online partners to help them grow their business. The main concern is that some retailers are overflowing with counterfeit products or unauthorized sellers who are undercutting prices and diluting brand value through counterfeit products, the company said.
So Khan set out to transform the sales experience for these new companies that wanted a better way to communicate with their prospects … a way to really tell their story online.
“We started with the big brands,”
This pitch addressed retailers like David Manshoory, founder of the popular cosmetics brand Alleyoop.
“We don’t work with any other e-commerce retailer at the moment,” said Manshoory. “Verishop was the first online trading partner because it has a really large audience of customers in our demographic.”
The year-old cosmetics brand went with Verishop because the number of retailers and types of sellers on the platform seemed “very curated,” according to Manshoory. “There are brands that we have recognized and respected.”
The revenue-share program that Verishop is creating for the newer, smaller consumer brands joining the platform is also straightforward, Manshoory said. Brands in the Verified Shops channel only pay when they make a sale, and it’s only 10 to 15 percent depending on the category, depending on the company.
“Because they don’t buy inventory in advance, they take a lower cut … which was one reason I was drawn to it,” said the cosmetics company’s founder. “As soon as the integration is complete, we can start immediately. We have full control over our business.”
Verishop also managed to attract other online direct-to-consumer favorites like Sizes (recently acquired by Steve Madden), Dagne Dover, Athletic Propulsion Labs, Judy, and The ridge.
“E-commerce starts in 1990,” said Khan of the traditional shopping experience. “It’s a search-based experience that is phenomenal when you know what you’re looking for.” However, as brands proliferate and consumers want to identify more with certain brands and brand stories, how can they find the new companies that sell the types of products that will resonate with certain buyers?
This is the question Verishop has set as its goal and the company hopes Verified Shops can be the boom for the latest consumer brands to reach a millennial audience. Imagine an online mall where each brand has a curated shopping ecosystem where they can develop their own digital storefront and tell their own story.
“Right now we’re selling fashion and home and beauty, but in the long term, why can’t you buy a car?” Asked Khan. “It’s this virtual mall or shopping street that you can walk through and discover, learn and hang out. We let the brands tell the story and the consumers discover the stories. “
Unlike other attempts at creating a digital front-end storefront experience for brands, what Khan says is different from Verishop’s focus on back-end e-commerce infrastructure and logistics capabilities that other virtual malls cannot provide.
Brands can apply to Verishop and once they are selected as verified stores they will have the opportunity to tap into a customer base consisting mostly of Gen Z and Millennial buyers.