Startup Spotlight: Shoppable Business on Solving Inefficiency in the Procurement Process

Shoppable Business just raised $1.15 million (approximately P63.9 million) from its oversubscribed pre-seed funding. Backed by Foxmont Capital Partners, Speedsters International Ventures, and various angel investors, the local startup is committed to solving the “inefficiency, authenticity, and transparency in the procurement process for business owners.”

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Founded only last year by Carlo Silva, and Sam and Chris Blanquera, Shoppable Business currently supports over a thousand suppliers and several hundred buyer companies. By giving the local community access to a seamless procurement process, Shoppable Business’ impact could soon be felt across all industries.

Learn more about Shoppable Business with this exclusive Q&A.

Q&A with Carlo Silva, co-founder and CEO of Shoppable Business

How did you get interested in creating a B2B procurement platform?

The inception of Shoppable Business comes from our experiences as a diverse team operating within various startups and conglomerates in the Philippines since 2013. We noticed a glaring gap in the market for an efficient and digital procurement system. The traditional methods were slow, opaque, and painstakingly manual and it was hard to find trusted suppliers. We decided to capitalize on our extensive knowledge of e-commerce, B2B, logistics, technology, and marketing—and thus, Shoppable Business was born.

What are your backgrounds, and how does that help you run Shoppable Business?

My co-founders and I have diverse backgrounds in entrepreneurship, e-commerce, logistics, manufacturing, wholesale distribution, and technology. I have built several e-commerce businesses and have successfully exited two companies, including 2ndOffice, the first e-commerce-focused BPO company in Manila. Sam Blanquera, our COO, is an expert in e-commerce operations and logistics, while our CTO, Chris Blanquera, is a seasoned developer and startup veteran in the e-commerce space.

Our diverse experiences have helped us understand the pain points and complexities of the procurement process in the Philippines, thus allowing us to create a platform that genuinely solves the problems of our users.

What problems are you solving for business owners? Why is sourcing and procurement currently a mostly manual process in the Philippines?

We're solving the problem of inefficiency, authenticity, and transparency in the procurement process for business owners. In the Philippines, the traditional procurement process is manual, with orders usually processed through communication apps, email or in person. Quotations are made manually using Word document programs and PowerPoint. It's also difficult to search for authentic products online and to compare quotations as they are funneled through messenger apps and email, making it an inefficient process. It's an industry that's ripe for digitalization, and we're here to make that happen. Shoppable Business digitizes this process, making procurement faster, more efficient, and transparent, saving businesses time and money.

How do you convince potential customers to move from FB Marketplace to Shoppable Business? For sellers in particular, how do they keep their current customer base while switching platforms?

Shoppable Business provides a single product listing catalog feature; if the product is already in Shoppable’s catalog, the seller does not need to re-create the product listing content again. The seller can start selling the product within a few clicks. The seller only needs to put in their selling price and stock, and if they would like to give any bulk discounts, once they press save, they will be listed as a seller for that product on our Shoppable. The seller also has their own store on Shoppable that showcases just their products. Shoppable provides payment technology and allows buyers to pay from multiple payment options such as Gcash, Maya, credit card, bank transfer, and even via check or manual bank deposit. Shoppable also arranges shipping through third-party logistic partners on behalf of the seller for easy delivery to the customer. These are features not available on the Facebook marketplace.

Through Shoppable’s program called Shoppable Direct, sellers can refer their existing customers to become a buyer on Shoppable, and Shoppable will tag the seller’s customers as their direct customers. If the customer purchases anything from the seller that referred them, Shoppable will waive marketplace fees for that buyer. This is a win for the seller, as now they can use Shoppable for their existing customers without having to worry about marketplace fees.

What sectors are you targeting, and what kind of products are available on Shoppable Business?

We target a broad spectrum of sectors, ranging from businesses that manufacture their own brands to distributors and resellers. Our platform offers a variety of products from multiple categories, including computer equipment, furniture, appliances, construction supplies, made-to-order goods, food and beverage, and business services.

How many vendors does Shoppable Business currently have?

Shoppable Business currently has a vibrant network of over a thousand suppliers and several hundred buyer companies. While these numbers are impressive, they merely scratch the surface of the potential market we aim to tap into.

According to a report from the Department of Trade and Industry (DTI), the Philippine e-commerce market size is expected to reach $285 billion by 2030, and there are 71 million businesses in Southeast Asia, with 12.8 million of them in the Philippines. Our current network, therefore, represents only a small fraction of the entire business landscape in the region.

How do you use tech to ensure that products are authentic?

In ensuring product authenticity, Shoppable Business employs state-of-the-art technology in collaboration with GS1 Philippines. GS1 is a globally recognized authority that assigns unique identification numbers, typically seen in the form of barcodes, to products from over 2 million member companies around the world. These identifiers are employed in over 6 billion transactions daily in 116 countries.

By integrating GS1's identification system into our platform, we can verify that all products listed on Shoppable Business are genuine and come from legitimate sources. This means that when a product arrives, its barcode can be cross-checked with the global GS1 database to ensure it matches the registered information from the original manufacturer or authorized distributor.

Shoppable also holds payment to the seller until the product has been successfully delivered to the buyer. The buyer must mark the item as delivered, authentic, and in good condition. Once the order is marked completed, Shoppable will release the funds to the seller.

This process provides our customers with peace of mind, knowing that every product they procure from Shoppable Business is 100 percent authentic. Furthermore, this technology serves as a deterrent to counterfeiters and reinforces our commitment to maintaining the integrity of our platform. With this, we not only protect our customers but also ensure that the brands we partner with have their reputation safeguarded.

Who are your main competitors, and how do you differentiate yourselves from them?

While there are other B2B platforms in the market, Shoppable Business stands distinct due to our comprehensive and unique offerings. Unlike traditional B2B platforms that simply facilitate transactions, we operate as a horizontal marketplace for a diverse range of products and services. Our end-to-end B2B platform encompasses not only e-commerce and procurement technology, but also marketing, sales support, procurement outsourcing, logistics, financing, and payment infrastructure.

In terms of differentiation, our commitment to transparency, efficiency, and authenticity underscores all aspects of our operation. We ensure businesses can fully claim their purchases on their books by guaranteeing the issuance of official BIR-certified sales invoices and receipts with every transaction. As mentioned, we also safeguard product authenticity by being a marketplace partner of GS1 Philippines.

This multifaceted approach addresses the diverse needs of businesses in a single platform, thus setting Shoppable Business apart from competitors and providing a unique, all-encompassing solution to our users.

What do you plan to do with the funding?

We plan to use the funding to strengthen our core operations and expand our offerings. Specifically, we'll boost our business development team, enabling us to cultivate a stronger market presence. We're also investing in product development, working on procurement apps and a wholesale marketplace that aims to streamline B2B e-commerce and distribution in the Philippines. Lastly, we're setting our sights on regional expansion, targeting new markets by the first half of 2024. These steps will help us to accelerate the digitization of procurement in the region and capitalize on the expanding B2B e-commerce market.