The Main Tab Raises $1M to Revolutionize Luxury Goods Marketplace

The Main Tab Revamps Platform After $1 Million Pre-Seed Funding

The Main Tab, a luxury wholesale marketplace, is undergoing a significant platform redesign. This follows a successful $1 million pre-seed funding round secured earlier this year.

The investment was led by Jason Bright, a seasoned entrepreneur who has since assumed the role of the company’s CTO.

New Platform Launch and Waitlist

Based in New York, The Main Tab is preparing to launch its revamped website and accompanying app this fall. Approximately 200 brands will be featured initially.

However, demand is high, with a current waitlist exceeding 1,000 retailers, as founder Liseda Shelegu revealed to TechCrunch.

Technology Investment and Sales Rep Integration

A substantial portion of the funding has been allocated to technological advancements. The company is rebuilding its website from the ground up.

The Main Tab distinguishes itself as the sole marketplace specifically designed to be accommodating to sales representatives. Initially, integrating sales reps presented challenges due to contractual complexities, but they are now integral to the company’s operations.

Strategic Growth and Marketing Approach

Further funding will be used to expand the team, currently comprised of three members, and to bolster sales and marketing efforts.

Shelegu, leveraging her sales background, has prioritized direct engagement with retailers, brands, and sales reps over extensive advertising expenditure – employing a more traditional outreach strategy.

Addressing Inventory Challenges

The company anticipates potential difficulties related to inventory. Current e-commerce challenges, such as supply chain disruptions and inventory shortages, are impacting retailers on the platform.

For instance, one retailer reported a projected 20% reduction in candle inventory due to sourcing issues with glass components.

“Significant revenue impacts are possible if typical monthly sales of $20,000 are reduced to $5,000 due to stock limitations,” Shelegu explained.

Curated Sourcing and Brand Selection

Shelegu attributes the company’s product sourcing to her personal passion for shopping and her extensive experience within the brands sector.

She also actively connects with brand owners through targeted social media advertising, focusing on retail price points, packaging quality, and the brand’s unique story.

Brand Approval and Commission Structure

While 500 brands are currently seeking inclusion on The Main Tab, the company maintains a selective approval rate of around 30%. This curated approach saves buyers time by reducing the need to sift through numerous SKUs.

Brands are subject to a commission fee only when orders are placed by retailers. They are not charged commission on sales generated through retailers they directly refer and collaborate with.

Retailers benefit from options such as buy-now-pay-later programs and other rewards tied to their business standing.

Connecting Brands, Reps, and Retailers

The platform showcases curated luxury brands, including Agraria and Bodewell Living, facilitating connections and transactions between brands, independent sales representatives, and retailers all within a single online environment, according to Bright.

Responding to the Evolving Retail Landscape

“The global health crisis has fundamentally altered how retail stores discover new products,” Bright stated via email.

“I consistently seek investment opportunities in companies that address critical issues, and I was delighted to invest in and join The Main Tab as CTO.”