Intuit QuickBooks, the popular accounting software for small businesses, is getting into the online marketplace space with Trada by QuickBooks.
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Trada by QuickBooks is different from most online marketplaces in that it specializes in B2B (Business to Business) transactions and Intuit is not trying to compete with the likes of eBay, Etsy, or others, which are predominantly B2C (Business to Consumer) marketplaces.
The new QuickBooks marketplace platform connects brands with retailers and online sellers, by offering “a large selection of unique products at wholesale prices.”
Trada by QuickBooks is a membership-based marketplace, meaning both sellers (brands) and buyers (retailers/sellers) must join the platform to transact with each other.
This provides benefits to both buyers and sellers.
Trada by QuickBooks Buyer Benefits
Buyers gain access to a curated marketplace with pre-negotiated prices and unique items, presumably meaning QuickBooks is vetting brands to ensure the inventory, service and prices on Trada provide a real benefit to retailers/sellers.
While Trada uses the word “unique” frequently to describe the product mix on its marketplace, buyers shouldn’t expect to find these items only on Trada. In this context, it seems to mean Trada features smaller brands that are seeking a larger retail audience.
On its homepage, the company says: “Most of our brands have minimums under $200, with attractive 2x margins.”
In addition, Trada offers basic buying protection to buyers. It says sellers will not be paid until orders ship, and the marketplace will help to try to resolve disputes between parties.
The buyer protection does not appear to be at the same level as eBay for example. In its help section, Trada says: “We will work with the brand on your behalf to help facilitate a refund or replacement delivery, whichever option the brand makes available.”
This wording suggests Trada would not step in and make a decision in a dispute, but rather try to mediate a resolution.
Trada by QuickBooks also highlights that all orders come with free and tracked shipping and that it does not charge a transaction fee to buyers. That might be a time-limited benefit though.
To help launch Trada, sellers are receiving a credit to cover shipping costs, and they are not being charged a transaction fee “through the end of 2022.”
So, while buyers will not be paying a transaction fee after the promotion ends, sellers will have to pay transaction fees starting in 2023.
Along with the shipping credit going away, these are potentially significant costs sellers will incur in 2023 and that could change minimum order requirements or wholesale selling prices.
Benefits for Brands or Wholesalers
The primary advantage for brands to participate in the marketplace is that they will be working with vetted buyers (retailers/sellers).
This cuts down on the clutter of inquiries from people pretending to be retailers who then only want to purchase one or two items at a discounted price.
In addition, sellers can set minimum order requirements, further ensuring they are dealing with a retail or online seller business customer.
Another benefit for sellers is that they receive a unique storefront on the marketplace and have access to “wholesale data to help manage their business.”
Again, “unique” here is a bit of a stretch because the storefronts all look similar. But there is an “Our Story” tab where sellers can introduce their brand and products to potential buyers (retailers/sellers).
Why QuickBooks Build Trada?
In its announcement, QuickBooks says that Trada is “designed to help small businesses navigate the complexities of selling online and finding customers.”
Certainly, this is a natural extension of its QuickBooks Commerce solution which focuses on helping small businesses sell online.
With Trada, QuickBooks is trying to connect two business groups it serves in the small business retail/online world: retailers/online sellers and small brands/producers.
The company uses the tagline “Now Everyday is a Trade Show” which seems to fit well here.
“We know that product-based businesses face challenges and opportunities in discovering customers and growing their businesses.”Shilpa Reddy, vice president, QuickBooks Commerce at Intuit
“Trada by QuickBooks simplifies the customer and product discovery experience for retailers and wholesale sellers. It also automates order placement and provides rich business insights for growth,” she explained.
Trade by QuickBooks is now available in the US (tradamarket.com) and Australia (trada.io).
Interested retailers and online sellers can preview the brands and products available on either marketplace by going to https://www.tradamarket.com/shop (US) or https://www.trada.io/shop (Australia).
Business buyers must become members first to see wholesale pricing.
Trada by QuickBooks is Intuit’s latest online solution for small businesses. Last year, it acquired MailChimp, a popular email marketing service to complement its small business solutions.
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