Stocky is a platform for micro-retailers to connect with other like-minded retailers and wholesalers from their category to trade new merchandise and sell off their slow-moving stock

A couple of years ago, Satayu Basu started selling merchandise on various online social platforms to generate some additional income. But more often than not, he struggled to deal with excess inventory. He could not immediately find a buyer or a retailer, who can buy his inventory when he got stuck with excess stock.

As he started working on this, he realised the gravity of the problem of managing excess inventory, especially for the micro-entrepreneurs out there, who are selling on social sites like Instagram, Facebook, WeChat, Etsy, Amazon, or Elanic.

“I was wondering how the millions of these young micro-entrepreneurs, who have very little inventory management skills and are low on capital, tackle this challenge. Many a time, they get stuck with their excess merchandise due to reasons beyond their control. Sometimes they end up closing their business, or running at huge losses — being unable to mobilise their merchandise on time,” says Basu.

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This drove Basu to start Stocky, a hyperlocal online marketplace for micro-retailers to sell unsold inventory to other retailers. Stocky, to be launched next month, will act as a secondary marketplace for micro-retailers, who could use the platform to connect with other like-minded retailers and wholesalers from their category to trade new merchandise and sell off their slow-moving stock, mutually befitting each other.

Stocky was conceived in 2017 by Basu, a college dropout and a serial entrepreneur with 14 years’ experience in technology. He has earlier co-founded/headed Zolo (online talent marketplace), FlyPrivate (private jet rental marketplace), and Comroids (full-service digital marketing), among a few other ventures.

Traditional way

Traditional B2B platforms like Alibaba, AmazonBusiness and business directories are not dedicated to solving the surplus inventory problem, according to Basu. On the other hand, there are startups like Optoro building surplus inventory solutions, but they cater only to big-box retailers and brands.

While there are startups dealing with the problem of reverse logistics, inventory management and surplus inventory liquidation solutions , they are also targeting only big names.

“Micro retailers and online sellers, who face this problem on a daily basis, have no way out when they get stuck with unsold stock. They often tap into their personal network, or use one of the many Facebook groups that have cropped up in the recent past,” he says.

“But Facebook groups do not offer the features needed for a successful wholesale marketplace environment, which should ideally include categorised products instead of linear timeline approach, stock specifications, custom filters, custom bulk buying features, advanced search within categories & seller base, distance radius sorting, anonymous engagement, time bound offers, reviews & ratings, sponsored listings and so much more,” Basu explains.

Basu claims Stocky is building all these on a single platform. This platform is meant for micro-retailers, who have no access to working capital or are critically cash-strapped and hit the dead-end when dealing with slow-moving stocks.

How Stocky works?

Let’s say a retailer is stuck with 500 pieces of panda-print linen bedsheets among other merchnadise. He creates a listing with photos, description, tentative price and location. A potential buyer searches on the app for deals within the area he’s in, spots this deal, expresses his interest by connecting with him, and the seller releases his contact info.

Both parties then chat within the app, or contact over phone to share more pics and details. If all goes well, they meet and close the deal offline. “Stocky is the only platform that allows a dedicated space to buy and sell surplus stock. Also, it helps retailers and wholesalers make new connections benefitting them in sourcing new inventories and growing their business,” Basu goes on.

While the app is still in private beta, it already has a wait list of 55,000 people/retailers as of today, claims Basu. The company anticipates 1,000-plus organic listing in the first week. The startup is running a vendor acquisition activity on various social networks, connecting with micro retailers from key areas in Asia.

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In the initial phase, Stocky will majorly focus on micro retailers. In the long run, it will target retailers, wholesalers and traders of all types, including businesses/offices trying to get rid of their excess furniture, electronics and equipment.

The company plans to generate revenues by charging for premium listing, unlimited listings and a few premium features. That said, almost 95 per cent of the features on the platform will be free, including chat and contact.

Stocky’s primary goal is to launch and actively market across India, China and Southeast Asia, as micro retail has taken off in a big way in these markets.

“We expect to bring the same convenience of other successful mobile marketplaces like LetGo, OfferUp and Carousell to the bulk-buying space, helping retailers mobilise their inventory and be an integral part of the booming e-commerce ecosystem,” he adds.

The company is currently in the midst of raising a seed round at a valuation of US$3 million to US$4 million.

Massive opportunity

As per some research, global online retail sales is poised to double from US$2.2 trillion in 2017 to $4.4 trillion in 2021, which will directly increase the corresponding number of online retailers, wholesalers and traders at a similar rate. Stocky intends to be the go-to marketplace for this growing community of sellers.

“Every year trillions of dollars are lost in mismanagement of surplus inventory. Inventory being the biggest investment for retailers and wholesalers, its mismanagement may even kill businesses overnight. At Stocky, we’re building a parallel ecosystem for the consumer products inventory to be mobilised with more ease among buyers helping increase profitability for retailers and reduce waste of merchandise across the globe,” he concludes.

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