Photo - INSTASHOP
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INSTASHOP

USA, Florida
Market: Internet and IT, Other, Mobile applications
Stage of the project: Operating business

Date of last change: 22.01.2024
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Idea

Turn influencers` pages into online stores.
Selling brand products with 50+% margin.
With 15x LTV/CAC ratio.
In 5 minutes.

Current Status

30,000 sales
50 interested- or already integrated brands providing 50+% margin
50 interested- or more or working recruiters of influencers, influencers with over 1M followers combined already posting
However, those sales had been abroad and interrupted (meaning we had to turn advertisement on - receive an amount of orders - turn posts down to give us time to fulfill a batch of orders, reveal and address issues). Regular sales are 4-6 months away from now

Problem or Opportunity

There are here 5 billion users of social networks following influencers and communities.
Yet, virtually no influencers and communities pages have built-in shopping functions.
We provide any influencer or community page with shopping functions, with 20+% profitability, egocentric style and loyalty-focused manner.
In 5 minutes.

Solution (product or service)

INSTASHOP’s system has 3 superpowers
1) it’s connected to brands’ catalogs, inventory and can arrange product reservation and shipping in real time
2) it can deploy a store - a site with selected brands, loyalty features and style - to any influencer - in 5 minutes
3) it coordinates processing of sales, 3PL centers, logistics operations to provide brand and influencers with finances, and their followers with styles and other products they see on their favorite pages

Business model

On apparel market, brands provide us about 50% or higher margin from MSRP.
Per agreement with influencers, we reserve 10% of revenue for operating expenses.
And split the rest 2x20% between influencer and our company.
After reaching about 15M followers / 250 orders a day, overall profitability of business is estimated to be over 20%, with over $1.6M annual profit, and higher.
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