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Launch HN: Convictional (YC W19) – Supplier Network for Retailers

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Launch HN: Convictional (YC W19) – Supplier Network for Retailers

#1
Hey HN,

We’re Roger and Chris, co-founders of Convictional (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!

Re: Launch HN: Convictional (YC W19) – Supplier Network for Retailers

#3

Drop 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?

We 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. 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.

Re: Launch HN: Convictional (YC W19) – Supplier Network for Retailers

#5

I 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.

Us too. We're keeping data on sellers and their fill, ship and complete time. Fill time meaning how fast they fill when the order gets to them, ship time meaning how long it takes from the order time until the shipment occurs, and complete time meaning from time of order to time you get notified.

Re: Launch HN: Convictional (YC W19) – Supplier Network for Retailers

#6
Congratulations on the launch.

Would it be fair to say Convictional operates in a similar domain as https://supplier.meesho.com does in India? If not, what are the differences?

Is EDI specific to North America or a global phenomenon?

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The hamburger-menu doesn't work when I block google-analytics and hs-scripts domains.

The links in the footer viz Retailers -> Marketplace Platform and Brands & Suppliers -> Brands simply load the homepage. Is that intentional?

Personally, I believe Convictional connects online retailers to brands. Focus on selling, let brands handle fulfillment. is wayy better than the abstract Become the Digital Destination for all of your customer needs without inventory risk.

Another nit-pick is that the entire page is all about retailers, but the top section has a link to Solution for Brands and it isn't clear really why the link exists top-of-the-fold when the entire page has no copy re Brands? That, or I hopelessly misread the copy.

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All the best!

Re: Launch HN: Convictional (YC W19) – Supplier Network for Retailers

#9
Minor nitpick but: your logo seems to blend into the background because there's not enough contrast. Also, seems like the top is cut off if you zoom enough (it's also very tiny) https://imgur.com/a/gIgGpRp

Congratulations on the launch and best of luck for the road ahead!

Re: Launch HN: Convictional (YC W19) – Supplier Network for Retailers

#10
Is this more for established retailers or mom/pop shops who are wanting to get into shopify? Is this similar to Oberlo except not 100% reliant on aliexpress and more cross-platform support?

Have you thought about creating retailer plans for hobbyists/new entrepreneurs who want to just test a few ads/products on fb, then signup for bigger plans later on, or maybe a freemium/pay-per-sale model?

I ask as a developer, who's thought about doing dropship quite a bit (whenever I get dev burnout), original plan was buy shopify account, onboard products from oberlo, and get some product vids up on fb ads for the cooler products.

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