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- DW8 (DW8) launches a new membership subscription program under the Kaddy platform
- The new model allows Kaddy Marketplace to reduce its commission rate from five per cent to as low as 1.25 per cent, making the platform more attractive to customers
- The company has also launched a tiered Kaddy membership subscription program with prices ranging between $50 and $250 per month
- Further, on July 1, DW8 will launch the Kaddy Fulfilment rate card which is expected to lift revenue by roughly 10 per cent from Q1 FY23 onwards
- Shares in DW8 are up 5.56 per cent and are trading at 1.9 cents at 10:25 am AEST
DW8 (DW8) has launched a new membership subscription program under the Kaddy platform.
Kaddy provides beverage suppliers an end-to-end supply chain solution that enables simplified operations and streamlined payments.
The new membership subscription platform allows Kaddy Marketplace to reduce its commission rate from five per cent to as low as 1.25 per cent.
DW8 expects this decrease will make the platform more attractive to beverage producers, wholesalers and distributors, and accelerate growth across all metrics.
The company has also launched a tiered Kaddy membership subscription program with prices ranging between $50 and $250 per month.
There is also a “freemium” option that enables suppliers to start selling without any long-term commitments.
Further, DW8 has split the existing Marketplace commission into an order processing fee and a payment accelerator fee.
Suppliers under the “freemium” option will incur an order processing fee of 3.75 per cent while those paying $250 per month under the Enterprise option will incur an order processing fee of 1.25 per cent.
Effective July 1, DW8 will launch the Kaddy Fulfilment rate card which is expected to lift revenue by roughly 10 per cent from Q1 FY23 onwards.
“Despite all of the efficiencies and benefits that our integrated Kaddy Marketplace and Fulfilment platform brings, the feedback we have been getting is that a Marketplace commission rate of five per cent is simply not commercially viable for the big end of town who want to process large volumes of orders through our platform,” Kaddy’s Head of Commercial Rich Coombes said.
“We expect the new pricing model will help us onboard the largest suppliers in the industry and expand the product range currently available, adding the highly commercial products that many of our buyers are looking for.
“Ultimately the new pricing model strategy will increase the number of suppliers and products, in turn, helping attract more buyers, drive higher transaction volumes and increase our average basket size, which is currently circa $600-650 per order.”
Shares in DW8 were up 5.56 per cent on the market and were trading at 1.9 cents at 10:25 am AEST.
