How this startup IS disrupting Amazon and Alibaba’s Duopoly.
Recently, antitrust concerns have been headlining the news after speculation surfaced about the US Justice Department’s interest in going after prominent tech companies. These would include Google, Facebook, and even Amazon.
Antitrust laws exist to promote healthy competition. In the past, we have seen major lawsuits arise from these issues. For Amazon, they represent over 49% of e-commerce sales annually in the United States with over 50% of US households containing an Amazon Prime membership.
Despite the boggling statistics, there are companies looking to disrupt Amazon’s market dominance, especially in other regions of the world where Amazon does not have such a stronghold yet.
One startup, Newton, is using blockchain technology to enhance the user experience of shopping online and provide users with more direct benefits. I had a chance to learn more about this model with Newton’s founder and CEO, XU Jizhe.
Joresa Blount: What are some key differentiators between you and Amazon?
XU Jizhe: NewMall is an online retailer mall based on blockchain technology. Consumers’ data on NewMall will be permanently be saved on the blockchain and authorized to users by blockchain technology. User’s consuming behavior will win NewForce, which can be changed to NEW according to incentive mechanisms. For merchants, the platform cost is reduced by half compared to traditional e-commerce platforms.
After NewPay and NewMall is released, these supporters can get token incentives by inviting friends to install NewPay and shop on NewMall, or by running a Newton community node or voting. Contributors can automatically benefit from it. NewMall will be attractive in any country and the foundation can cut a huge amount of costs to operate it.
Joresa: How does using blockchain technology improve the current e-commerce model seen around the world?
XU: Current e-commerce platforms can and will adopt blockchain technology via the supply chain, financing, and other verticals. With blockchain, anti-counterfeiting traceability becomes feasible and it improves system efficiency while enhancing a user’s shopping experience.
Joresa: What regions do you expect to be the most impacted by this technology?
XU: China is the first market that our first decentralized application NewMall is targeting. Online retail sales grew 24%in 2018 in China and we have noticed a major overlap of blockchain enthusiasts and online shoppers. We see similar growth around Asia, especially Southeast Asia as more people have smartphones and credit cards to process e-commerce.
Joresa: What are the current challenges you are facing?
XU: Users have different demands for shopping, as do the community members. Although NewMall launched on April 24th and the number of SKUs has hit nearly 4000, we cannot cover all demands. Providing more options to users is our current challenge. Meanwhile, we are also focusing on promoting NewMall to get more users involved in Newton community economy.
Joresa: What was the inspiration behind Newton Project?
XU: I believe that the current economic model is most people contribute, but only a small number of people benefit as a company pursues profit and seeks a monopoly.
In fact, from the perspective of an incentive mechanism, a better model is everyone contributes and everyone benefits. Based on these thoughts, the Newton project was inspired to create a community economy managed by a non-profit foundation through blockchain technologies, and to realize the economic model for benefiting everyone who has contributed to the economic growth.
By making a purchase on this marketplace, a client gets NEW tokens as a reward. Purchase data is fully protected and owned by clients. For merchants, the platform will be somewhat similar to tradition e-commerce platforms but will stand out by contributor contributions.
Joresa: Why is healthy competition important?
XU: There are pros and cons to each. Amazon’s scale has allowed them to do innovate things like same-day delivery. Although these features add convenience, people also desire personalization and a sense of purpose or community. Maybe these feelings come later in a customer’s purchasing process and eventually, these desires arise.
Due to different demands, it is reasonable to have different marketplaces for different needs. We want to offer a marketplace that creates a value incentive for all parties while maintaining that inclusive sense of integrity and community.
Read More : By Joresa Blount, How This Startup Wants To Disrupt Amazon’s Monopoly