An Australian startup has made the biggest bet on mobile commerce ever by developing a mobile-friendly product that converts millions of dollars in transactions to tens of millions in profit for its users.
Senior management from the Australian company, Fulfillment by Design, announced the results of a new trial in Melbourne that saw more than 1,000 people purchase a product through a mobile app on the platform.
“We believe that a $100 product will change your life for the better,” Fulfilment CEO Andrew Lee said in a press release.
“This is the kind of product that will change people’s lives and help them realise their full potential, and we’re really excited to be the first company to deliver this kind of customer-centric product.”
Fulfillable is a new app that allows users to place orders for products on their smartphones.
The app is a product of Fulfilling’s chief executive, Ben Taylor, who was previously a senior executive at the tech startup Zynga and is now a senior advisor to the firm.
The product’s goal is to make it as easy as possible for consumers to place and pay for orders, with no additional effort needed from sellers or buyers.
Fulfilled by Design is offering a range of products to customers, from “smart-wall” home appliances to a mobile fitness tracker that tracks steps and calories burned.
The company said the trial had yielded more than $1.6 million in revenue, with customers also making over $3 million in profits.
“The success of this trial has been remarkable, as we have seen the value of this mobile-first strategy grow from less than $50 million in 2015 to $50.8 million in 2016,” Taylor said.
“Fulfilling is excited to continue this momentum with the next phase of FBS, and our goal is for FBS to become the most successful mobile marketplace in the world by 2020.”
The firm said the average transaction size for the FBS trial was $1,542, but the average order size for a product was $2,921.
The average transaction value was $8,868, but that was down from $13,849 in 2015.
The firm is aiming to launch the FCS product in early 2021, which is when the F1 testing will commence.
The company is targeting a market of around 40 million people, with the FBC app offering more than 100,000 products, including a variety of “smart” products like fitness monitors, smart thermostats, and home automation products.
“By offering customers a way to order and pay, FBS has created a powerful platform that enables consumers to have an unprecedented experience of the products they purchase, while also helping to drive increased value to their businesses,” Taylor added.