Super-Pharm chain is entering digital trading platforms

Posted on Sep 16, 2020 by Ifi Reporter

The Super-Pharm chain is entering the challenging world of digital trading platforms — and will launch a sales platform at the company's trading site later this month. The pilot that will be launched will sell sports products, clothing, toys, home appliances, electronics, and pharm and cleaning products that are not currently sold in the chain's branches. The investment in the course is estimated at a few million dollars, and it will operate on the French Mirakl platform.
Super-Pharm is interested in offering the consumer an unlimited range of products under one roof. However, this is a model that has had quite a few failures in Israel.
The decision to establish a trading arena was made about a year ago, but it is now in the final stages of implementation. In the first phase, the suppliers will be Israeli, and later Super-Pharm will try to add sellers from abroad as well. The suppliers will be responsible for the contracting and shipping process, which will be separate from the chain's shipments.
Super-Pharm clarifies that suppliers will be committed to the standards of service and delivery that it will dictate. However, if a supplier is poorly managed - in delivery or product quality - this may affect the positioning of the Super-Pharm website and the network itself. To try and overcome the problem, customers will be able to rate the various sellers and write feedback, similar to Amazon.
However, it is not inconceivable that, unlike Amazon Super-Pharm, it will find it difficult to monitor the ordering, service and shipping process, and to effectively penalize suppliers who have not met its conditions. Unlike Amazon, suppliers will not be charged a commission for opening a store, but a commission per sale, and the amount of commissions will differ between products from different categories - depending on the supplier's profitability percentage. The commission set by Super-Pharm is relatively high - 10% -30%. For comparison, in July 2019, Electra Consumer launched an e-commerce division of escorting Israeli sellers through Amazon, for a commission of about 30% - 15% of Amazon and 15% of it. Less than a year later, Electra liquidated the division.


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