No Big Boxes Need Apply
An online marketplace and social network billed as exclusively for independent retailers just launched. Called Erayo.com, it offers sources in jewelry, accessories, kids and home furnishings.
Erayo doesn’t refuse membership to large chains, but Raffi Topaz, CEO and co-founder, says “we don’t think it is likely that the large chain retailers would choose to participate” since they have other means of sourcing, and Erayo’s services and marketing are geared to independents. Topaz says Erayo defines an independent retailer as an employee-owned, small retail store or boutique with between one and six locations.
For those retailers, Erayo provides business management and trend information and a place for retailers and designers to communicate directly with one another. And, of course, product: so far the site features 110 designers from 14 countries. Erayo says its buyers attend fairs such as Bread and Butter Barcelona, Paris’ Maison & Objet, and Fierre Milan.
Erayo makes its money via a 15–25 percent commission depending on the level of services Erayo provide to the seller. (For designers, Erayo handles administration, including computing international taxes and duties and billing the retailers, as well as creating a mini-site.)
For first time orders there is a minimum of $500 and five items, though a designer may decide to approve smaller orders. Typical repeat orders are around $1,000, says Topaz. Each designer is responsible for returns and setting his or her own return policy, but Erayo requires that they enable the return of goods and pay shipping in the cases of damaged product or if the wrong products are shipped. Erayo also holds payment, made when the order is placed, until five days after the buyer receives it. Then if there are no complaints, Erayo releases payment to the designer.
What do you think? Would you source product through Erayo? Is the product selection big enough, the minimum small enough, and the design easy enough to use? What other features would you like to see in a wholesale sourcing site?
