Resellee: The Pinduoduo of Southeast Asia?

Social commerce startup Resellee, launched in the Philippines, aims to replicate the rapid success of Pinduoduo, a leading e-commerce company in China, throughout Southeast Asia. A significant aspect of Resellee’s operations involves delivering groceries, including fresh produce, and the company has established collaborations with governmental bodies and agricultural organizations to fulfill demand heightened by the COVID-19 pandemic.

The company recently announced the completion of a $1 million seed funding round led by Mintech Enterprises and Hofan Capital. These funds will be used to further develop the company’s technology and facilitate expansion into new markets. Resellee was co-founded last year by Marc Concio, who previously served as the head of e-commerce at Voyager Innovations, the parent company of PayMaya, a major online payment service provider in the Philippines.

According to Mr. Concio, the Resellee platform currently hosts approximately 40,000 resellers, each averaging around 20 customers. These Resellee sellers generally earn about P5,000, which is equivalent to US $100, per month.

Similar to Pinduoduo, Meesho in India, and other social commerce platforms, Resellee does not require its sellers to maintain their own product inventory. Instead, the company manages a network of suppliers, encompassing manufacturers and farmers, and showcases available products on a central marketplace. Sellers then select items to feature in their online stores, promoting them to potential customers through their existing social media connections.

While Resellee provides a diverse product selection, including electronics and fashion, its current focus is on grocery deliveries and prepaid credit for mobile phones and online games, all of which have experienced increased demand due to the COVID-19 pandemic.

Mr. Concio’s interest in social commerce was sparked by observing Pinduoduo’s remarkable growth in China, where it quickly became the nation’s second-largest e-commerce platform within five years of its 2015 launch. Pinduoduo’s group buying approach utilizes users’ established social networks, particularly on WeChat, to consolidate demand for products at reduced prices, proving particularly effective in smaller cities and rural regions.

“Resellee intends to draw lessons from this model and become the Pinduoduo of Southeast Asia by spearheading social e-commerce and group buying initiatives in the Philippines, with subsequent expansion planned for Vietnam, Myanmar, Thailand, and Cambodia, where social commerce is either nascent or still developing,” Mr. Concio stated.

He added that social commerce is poised for significant growth in the Philippines due to several factors. Notably, Filipinos spend a substantial amount of time on social media – an average of four hours daily, compared to two and a half hours in India and two hours in China. The Philippines also boasts a young median age of around 23.5 years, a demographic particularly receptive to social commerce.

Furthermore, many individuals are seeking opportunities to start their own businesses or supplement their income, especially during the pandemic, but often lack access to initial capital. Resellee addresses this by allowing sellers to launch stores without upfront investment, leveraging the platform’s established supply chain and logistics network. The primary task for sellers is to encourage purchases from their social media networks, such as Facebook or Viber.

“We anticipate similar rapid expansion for social commerce in the Philippines, with Resellee leading the way in both social e-commerce and group buying,” Mr. Concio explained.

Resellee faces competition from established regional e-commerce giants like Lazada, Shopee, and EZBuy, which have integrated social commerce features. Mr. Concio highlighted Resellee’s commitment to empowering sellers and its partnerships with farmers’ groups and the Philippine government as key differentiators. This includes a project to create an online platform that consolidates supply information from farmer cooperatives nationwide, connecting them directly with Resellee’s sellers and buyers, thereby removing intermediaries from the supply chain.

Initially, Resellee relied on outsourced logistics, but experienced delivery prioritization issues, leading to customer complaints, particularly regarding fresh produce. Consequently, the company established its own logistics division, Resellee Riders, in Metro Manila, where the majority of its grocery customers are located. This allowed for the launch of next-day delivery services in the area this week (deliveries to other locations still utilize third-party logistics providers).

While Resellee supports online payment methods, including digital wallets and bank cards, the majority of customers prefer the convenience of cash on delivery. Sellers earn revenue through commissions, which can be transferred to their online wallets or bank accounts. The platform also provides sellers with the option to use their earnings to purchase discounted mobile or gaming prepaid credits, which they can then offer to their customers. Alongside fresh produce, prepaid credits represent a core component of Resellee’s business strategy, with the platform guaranteeing the most competitive commissions and discounts from leading Philippine providers like Smart, Sun, and TalknText.

“The mobile prepaid market represents a US $4 billion annual opportunity, compared to the total e-commerce market in the Philippines, which is valued at only US $2.3 billion,” Mr. Concio said. “This is a key strategic focus for us, alongside fruits and vegetables, mirroring Pinduoduo’s approach.”