How do I launch and maintain a redmart store?

Redmart is the grocery arm of Lazada, a subsidiary of the Alibaba group. Being the grandchild of a corporate grandparent, RedMart has distinct advantages in the Singapore market. Come July 2024, Redmart grocer will shift from a 30 days + 7 days payout to a NEXT DAY settler, this means everyone who sells on redmart enhances their cashflow by at least 1000%+ come July 2024.

Which is quite amazing as the only others who can offer this service are

  • Grabmart
  • Foodpanda
  • Deliveroo
  • CDC vouchers

but they have very clear locational and promotional limits. 



What should I consider when I start a Redmart Store?

  • You'll need to operate the new Redmart Store 7 days a week. You can also choose to operate the store on holidays.
  • There will be 1 pick up once a day either in the morning or afternoon.
  • Redmart charges 25% commission and $0.20 per order packed.
  • Each product must have an unique barcode or a new one must be generated and pasted on.

 

Who are Redmart Customers?

Redmart grocery customers are usually:

  • buyers who live in property that don't have easy access to a grocery store so they opt for delivery
  • buyers that want to schedule their grocery deliveries to arrive at their home at a particular time or time-belt
  • buyers who are buying for others that want the groceries to arrive at a timing of their choice, often it's loved-ones buying for their aged parents, or their family while they're at work, or overseas parents buying for their kids in Singapore, etc...  
  • also admin, HR, and other associated purchases looking to stock their office pantries and buy essential supplies outside of their retainer contacts or regular agreements.

Here's an article that supports our Redmart customer points. Attached here is an infographic report on the shopping habits of Singapore grocery purchases in 2023 conducted by Lazada and Melieu.

Why should I start a store on Redmart?

  • Redmart is the most established grocer in Singapore. Though it has rivals in NTUC Online, PandaMart, ShopeeMart, and to a lesser extent Amazon Fresh, Redmart to our knowledge has the widest selection available to their customers, hence more customers.
  • Redmart will have next day payout come July 2024.
  • Redmart products are displayed alongside with Lazada products so if the prospective customer can wait, they can opt to buy on Lazada. This allows your company and products twice the discoverability. 
  • Once listed, Redmart has attractive promotional mechanics that increases the visibility of your products to the right customers immediately. Applying for them requires some emailing but that's it. There's no invitation process so you can start growing your sales immediately. Some other platforms gate this prospect. 
  • Redmart grocer like some others offer daily per orders pick-up, which means you do not need to consign your stock outside of your warehouse to another business and lose shelf-life only for the products to be returned.
  • Redmart has a monopolistic product/barcode listing. This means that once you are selling your product, no other business may retail it. This reduces complexity and allows you to focus on selling more to the big redmart base.


How much can I expect to earn on Redmart?

  • As Redmart is an on-demand grocer that caters to the middle-class and above, your products can be priced at a small premium.
  • Depending on your product class, whether it's room-temperature, frozen, or chilled, there will be a greater return or loss of item / denature of item. For example, if you ship ice cream, there might be more wastage than if you shipped tissues.
  • As we sell over almost 2000 skus on Redmart, we can do a 'best guess' when we receive your products and do some quick checks.
  • A reasonable expectation would be a revenue of SGD$3,000 - $5,0000+ monthly before deducting transport and commission fees.

 

How do I get started on Redmart with Crazybadman.com if my products are room-temperature, chilled (4-15 degrees Celsius), or frozen (below zero degrees Celsius)?

First, we'll need to know if your products are all room-temperature, chilled, or frozen, or a blend of the three. We can arrange a call at this stage as both you and us will have the most questions here. We will also need:

    • images of your products
    • barcode of your products
    • recommended retail pricing and wholesale pricing of your products so we can advise on which sales mechanics would be best suited for you

Secondly, we will need samples of your actual products that you'd like to list on redmart to:

    • check quality
    • check packaging
    • check barcode to see if the barcodes have already be used on redmart and if we need to generate new ones for you
    • and to try your products to come up with suitable marketing activations for you

Thirdly, we'll send you a customised quote for our products and services. We usually charge like so:

    • Onboarding your company to Redmart and account activation SGD$4,000 (with your first 50 skus free)
    • Each sku thereafter will be charged $200 per sku, will take 30-60 days to come online including photography. We can offer a discount of 20% for every 10 skus. We prefer to batch process this as we've found this to be more effective.
    • After you've onboarded and have the skus you want live, we charge SGD$400 monthly to submit your skus to sales, manage day-to-day operations issues like returns, late pick-ups, missing drivers, reactivating out of stock skus, barcode generation, and more.
    • $400 for our fulfillment centre partner to ensure all your orders are properly packed and picked up. It’s $400 / 5 cartons of 40cm x 40cm x 40cm / month. It’s shelf / freezer / fridge space in their warehouse. You can top up as much stock as you’d like as long as you don’t exceed your allocated space. 
    • Ad-hoc purchases like barcode printers and sticker labels will be charged as and when needed. So please request for a quote if you need it.

 

 

What are the operational requirements on listing on Redmart as a client?

  1. At the start of every calendar month, we'll request for a stock state, where you send us the stock you'd like to make available on Redmart. We will update it on the last day of the previous month to the first day of the current month. Should you need to update the stock, you may email us or update it via the dashboard if you feel comfortable doing so.
  2. Day-to-day, there will be one redmart pick up. It will happen either in the morning (9am - 12noon window) or (1pm - 4pm window). You will get a picklist at 12midnight of the days pick up via the email you've provided us.
  3. Ensure that the pick up items are ready when the Redmart pick-up driver arrives. 
  4. Once he/she arrives, he will scan your items into his inventory. At this stage, the barcode presented must be accurate to the ones in his system. If it does not match up or is 'un-scannable' he will have to reject your product and label it 'out-of-stock'. This will trigger a Redmart internal mechanic where that particular sku will be temporarily banned from being sold. We can rectify it but it can take up to 7-14 days and that's quite a bit of loss revenue.
  5. Once the pick-up is done, you'll just need to wait for delivery to finish for your prospective customers to receive your wonderful goods, and the payment will be settled come July 2024. 
  6. For businesses that primarily operate B2B, this is an easy way to go B2C.
  7. Do note that the commission / referral fee charged by Redmart ranges for different businesses, it usually ranges from 25% - 40%. If the ordered items are unavailable, the Redmart commission / referral fee will still be charged.
  8. For the first few months of operations, you'll need to arrange for drop-off at Redmart's warehouse in Jalan Buroh, near Boon Lay, west-side of Singapore. We will need to study your products before giving you an accurate quote. << Range of rates will be provided shortly >>

If you're keen to find out more or start the process, email us below.

 

Instead of Redmart, should I start a on-demand store, like Grab, Deliveroo, Foodpanda or Shopeemart? What is the different between an on-demand platform and a grocer? <<To be updated>>

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