6 ms·
Launch HN: Convictional (YC W19) – Supplier Network for Retailers
Hey HN,
We’re Roger and Chris, co-founders of Convictional (https://www.convictional.com/ https://www.convictional.com/). Convictional makes it possible for online retailers to find, onboard, and integrate with third-party suppliers. We do this by connecting them to a network of suppliers that manage the inventory and ship those products directly to the end consumer on their behalf.
The idea behind Convictional started when Roger worked at GNC, a large natural health products retailer, at the age of 17. One of the biggest challenges was onboarding. As a retailer, you either buy inventory or ship from third parties ("drop shipping"). They decided to expand their catalog by selling some products that were shipped directly by the supplier. To do this, GNC required both sides to implement EDI (an old school, pre-internet data format for exchanging information between business systems) or manually exchange flat files for things like inventory, orders, and product information. We only got a fraction of the total vendors we wanted to onboarded because of this.
A few years later, we met while working together at Shopify on B2B. There, we saw that the challenge of onboarding third-party brands still existed for retailers, and people were experiencing the same pain trying to use EDI to get it done. Online retailers also didn’t know how to find third-party brands to work with or struggled to dropship with existing partners.
Convictional’s product is an app and API that syncs product information, inventory, orders, fulfillments, and payouts between online retailers and all of their suppliers. We do this by integrating with the systems used on both sides through an API or pre-built connectors to ecommerce platforms like Shopify. We later added a way to find suppliers after online retailers told us that they also wanted to access a network of connected third-party brands.
We’re using a generalized data model in the middle with a bunch of mapping, transformation and transmission steps on each side. Similar to what EDI does but much easier to set up. The goal is to turn what today requires a 6 month IT project into an email invite and an app install. It’s an industry that has existed since the 60s, and it’s probably the last major software industry that touches commerce but has not meaningfully been updated.
To do this we developed our own queueing system in Go that can map events from buyers and sellers, transform them from the source format into the destination format, validate and apply a bunch of domain-specific business logic to make sure what crosses the bounds of buyers and sellers actually makes sense, and then send those into another queue that passes it to their partner. We basically have to control the state of three systems for each transaction. Before us, it could take up to 24 hours to know whether that loop succeeded or not but we’re able to do it within a few seconds. There are a lot of real life things that enables, but mostly it enables a good experience for the buyer’s ultimate consumers and less inventory for both sides.
Our belief is that online retailers will be less inclined to take on inventory. That’s why we started by building the tooling necessary to automate dropship. Over time, we’ll launch tools that can enable more forms of B2B trade in a way where regardless of IT skills, both sides can have systems doing their purchasing and selling for them. Today large companies enjoy significant advantages through this integrated approach, and soon every buyer and seller can too.
Brands and suppliers can join our seller network for free. If you make or sell physical products on an ecommerce platform, consider joining. For online retailers, we charge a flat monthly fee and a percentage of GMV, depending on volume and which work gets outsourced to us.
If you have questions, we’ll be here to answer them. We’d love any feedback, ideas, and/or EDI horror stories that you may have as well. Thank you!
- windsurfer 7y agoDrop shipping has been the bane of my online shopping experience. Products are often not as advertised and returns can be a huge hassle, so it has become a word I avoid. How do you plan to raise confidence for consumers in this practice?
- rogerkirkness 7y agoWe actually agree with this, we saw that inside Shopify. Bigger retailers are getting smarter about this and enforcing vendor SLAs. Meaning requirements like: 1. Accurate product listings 2. <24 hour ship times, enforced 3. No manual steps, only automated / integrated 4. Easy returns, funded by sellers 5. Sellers based in the same country Drop ship can range from very small and generally not very durable online retailers to massive and very sophisticated retailers. In the case of the sophisticated ones, you may not even know the difference. Amazon for example has been drop shipping a lot more, but because of their vendor SLA people can't tell it's not from FBA. It's mostly just about good vendor SLAs, local suppliers and short ship times. The other thing we're seeing is a continuum where people start out drop shipping, and then move to wholesale when the volume grows. That way 1. Consumers get access to smaller / newer brands early and then 2. Eventually the experience gets more controlled. We do both, just generally because our customers are growing but also because you really need both to make the experience good.
- hef19898 7y agoTrue for Amazon. There are cases, after some really hard internal fighting, of Prime enabled Dropshippers, meaning you even see the "order in x minutes for next day delivery" message. So it is definitely doable, hard work but doable. And every tech improvement to make that easier is very welcome!
- saadshamim 7y agoI love this idea, it's kind of like an affiliate network for physical goods. The delivery time is probably the only thing the scares me.