Laundry detergent, toilet paper and toothpaste are not items consumers typically buy online, as the grocery stores, Wal-Marts and big box outlets of the world can attest. A new e-commerce site aims to change all that, however, by providing free shipping, streamlined reordering and a platform that allows consumers and manufacturers to connect.
Instead of going through traditional distribution channels, which had some type of intermediate (such as a distributor, wholesaler, broker, or agent), customers may now deal with every companies directly. One important factor is a drop in the cost of servicing customers directly. Every layer of distribution will on average add at least 100% to the eventual selling price of a product. Fewer layers in between the producer and the consumer means less transport, waste, energy spending in warehouses and so on which also creates a greener situation.
Launched into beta week, Alice offers more than 6,000 unique products from hundreds of different manufacturers. Its prices are 20 percent to 30 percent lower than those at other online stores, it says, and shipping is always free. US consumers begin by creating a free account and then selecting a list of all their favorite products, ordering only the items they need right then. Each shipment is bundled together in a single "Alice" box and delivered directly to the consumer’s door. Meanwhile, Alice organizes all the products on the member's list, finds coupons and deals for them, and reminds them to reorder when they are likely to be running low.
The vast majority of consumers don’t buy their household essentials online, and we set out to change that at Alice by taking a completely fresh approach to the CPG industry,” said Brian Wiegand, CEO and co-founder of Alice.com. “By eliminating the traditional retail layer, we allowed the companies that produce these goods to connect directly with the people who use them. The result is a neutral platform for CPG manufacturers to work together as an industry and channel their resources in exciting new ways for the consumer.”
Behind the scenes the company acts more like a marketplace, allowing manufacturers to sell directly to US consumers. Alice makes no retail margin, and instead allows each manufacturer to control product assortment and pricing in its own direct sale to the end consumer. Because no retail middleman is involved, significant cost savings can be passed on to shoppers, the company says. In addition, Alice's model allows brands to form a direct relationship with consumers, enabling personalized coupons, sampling and loyalty programs.