September 23, 2013
Brad Lindenberg, is a veteran in the e-commerce industry from Australia. While relaxing on the couch, watching television one day, an ad for Cheezy Pepperoni Pizza came up. He wanted to order the pizza right then and there from the TV ad using his phone. Brad realized, without downloading an app or otherwise, there was no way to buy anything directly off of TV. Which led him to innovate in this space and come up with BuyReply. Six months later, his team launched the world’s first, patent-pending platform. This platform enabled merchants to sell products across any broadcast medium without needing an app.
BuyReply, an Australian-based transactional advertising platform, was Founded in December 2011, by Brad Lindenber (CEO) and launched in August 2012 with David Liberman (Director) . It also appointed Bonnie Boezeman AO (Formerly chairman at PayPal Australia) as a director. BuyReply has received a total of US $1 Mn in funding through Valar Ventures, Square Peg Captial and Adrian MacKenzie in 2013. They have signed up with organizations such as Pacific Magazines, Channel 9, Harvey Norman and others. Brands which have signed up to use BuyReply include Oroton, Guess, Kailis, Sportsgirl, Thomas Sabo, Ralph Lauren, Marie Claire Magazine and the Mercedes-Benz Fashion Festival Sydney.
BuyReply is delivered as Software as a Service (SaaS) platform hosted in the cloud. The platform is made available in AUD, USD & CAD and offers text-to-buy capabilities in all three currencies. It supports payment gateways like Stripe, PayPal, SecurePay, etc. and integration into Magento.
BuyReply’s business model is structured as an eCommerce platform which is designed to facilitate commerce in the real world, away from the browser. Consumers can buy directly from any offline medium including television, radio, print & web without requiring to download an app. Their platform minimizes payment friction using the simplified technologies like text and/or email, present on all smart devices (phones, tablets and computers). BuyReply also enables customers to buy via Twitter and QR code scans. The customer emails laptop to email@example.com or Tweets @shopharveynorman laptop to buy a laptop. On the first purchase, BuyReply creates a virtual wallet and stores customer’s payment and address details. After the first purchase, it sends an SMS with a confirmation link.
Prior to BuyReply, there has been no transaction point on the offline modes. The closest competitors are Square, Magento, PayPal and Shopify. Other startups which include Ribbon, Chirpify or Soldsie have focused primarily on selling via social media.
BuyReply's test campaigns had generated a response rate of 25 times more than those driven by an app-requiring system (need to scan a QR code). BuyReply charges on a per transaction basis, users in USA can choose from 5% plus 15 cents per transaction with no monthly fee or 3% plus 15 cents per transaction for $99 per month. There are also options available for Enterprise users.
LTP View: In Australia alone, 96.6% of the transactions occur offline. There are now over 2 Bn people using Internet on various smart devices and approximately US $2.1 Tn transfers (Australia) take place per year via e-commerce. The numbers are expected to exceed $10 Tn (Australia) in the next 5 years. This may lead to an incredible opportunity for companies like BuyReply. Through providing an intermediary platform between the online and offline worlds of commerce where most of this growth is expected to occur. One of the problems which BuyReply may face is the current transaction costs that may be termed high by a few users.