If everyone is going to be brutally honest when starting a business, their prime motivation is money. In the hierarchy of needs of Abraham Maslow, first are the physical needs, followed by comfort, relationship, status, and self-actualization. BK Rivera, CEO and president of CoffeeCleanz & GlutaPaya, a young, business-minded leader from Cavite, now goes beyond earning money as he moves up the Maslow ladder.
“I was a network marketer before I started Seller’s Hub. I used to go to different provinces in the Philippines to talk to people and build a network. Eventually, I encountered digital marketing, particularly Facebook ads, and realized I could earn money without leaving Trece Martires in Cavite. My shift toward digitalization was driven by pain. I am a believer in pain, which drives us to grow. For example, the reason I am slimmer now is due to pain. My relatives used to call out my weight, and my partner used to notice that my clothes did not fit well. Likewise, the pain of earning money, exhaustion, and being away from my family helped me achieve what I have right now,” said Rivera.
On Feb. 28, 2017, Seller’s Hub, Inc. was born. With beauty, health, and wellness products in its inventory, the company now has 300 active SKUs and 200 dormant SKUs every month, making up a total of 500 SKUs in its warehouse.
Identifying himself as an ecommerce enabler, Rivera and his team take advantage of the internet and various social media channels to push products to consumers. “When we started, we were only using Facebook ads. We created a page we use to advertise our products, and people send their inquiries through that channel. When we mastered the platform, we added more products to it. Eventually, we established websites and marketplace platforms on Shopee and Lazada. We also have resellers whom we call SH (Seller’s Hub) partners. Most of them are our friends, and we taught them how to start a business. They get products and business services from us. Now, we also have TikTok as our online channel,” he continued.
“Imagine us as a huge convenience store that is based online. One product that we are proud of is a slimming coffee, Coffee Kleanz. We also have a gluta papaya soap. If you are familiar with air fryers, we are among the first to make them popular among Filipino consumers. We also have essential oils, car seat covers, sofa covers, curtains, and clothing. We are also onboarding brands such as Brilliant Skin by Glenda Victorio, Rosmar, and Dear Face. Most products are locally manufactured and sourced from Divisoria in Manila, while others come from China,” he added.
Rivera and his team want to help more small businesses in the country through life-transforming technologies. Besides beauty and health products, Rivera is also seeing products related to pet care, home interior, and fashion to further boom in the coming years.
Current challenges
Currently, one of the main struggles of Seller’s Hub is RTS (return-to-sender). Some customers fail to receive products, which eventually come back to sellers. Many of these products return to the sellers in poor condition.
“We pay when we ship the items to the customers and pay again when the products return to the sellers. There is a shipping cost, but we do not profit when RTS occurs. We can still control RTS, but there is additional cost in terms of workforce. We have people tasked to confirm with customers the details of their order, shipping address, and the estimated arrival time,” said Rivera.
Many Filipino consumers belong to the C, D, and E categories. They prefer to pay in cash and do not have credit cards or online payment channels. If their orders arrive and they are not home, the items return to the sellers. Couriers can also become a problem if they do not reattempt to deliver the items.
“The Philippine digital payment infrastructure is not strong enough. Consumers in other countries prefer using a credit card when paying online. Meanwhile, in the Philippines, while many are using their GCash or Maya accounts, not all those accounts are funded. Filipinos are also cautious when buying things online. Some prefer video recording their purchases once they arrive,” he added.
In December, Seller’s Hub had an RTS percentage of around 20 percent, valued in millions. Profit becomes much lower when the RTS percentage is higher.
“We have a projected percentage of RTS each month, and we intend to make it lower or keep it as it is. We are trying our best to prevent RTS by ensuring that products are shipped on time, tracking the movement of parcels, and sustaining consistent communication among sellers, couriers, and buyers,” he continued.
Seller’s Hub currently has one fulfillment center based in Trece Martires. The company plans to establish more fulfillment centers across the country, one in Cebu and another in Mindanao. The setup will reduce the shipping time from five to two days, lessening the possibility of RTS scenarios. Rivera shared that the two-day rule is based on a study showing that excitement toward a product fades after two days. Hence, the product must reach the customer within two days.
The future
From a group of four people, Seller’s Hub now is a force of almost 100 people, including partners. Previously, most SH workmates were below 30 years old to ensure familiarity when it comes to technology. Today, Rivera has no problem adding older individuals to his team if they are ready to adapt and can fulfill the requisites of the job.
“The future of Seller’s Hub is not just a company but an ecosystem, which we call an SH sphere. It is a group of companies that consists of ecommerce (retail), manufacturing, logistics, real estate, and investments. What we are doing right now at Seller’s Hub, we do not just develop products; we are developing people. I am a big believer that the true investment in a business is people. That said, I must ensure that I have the right people who can help the company grow. I am currently training people following the IDOL (Integrity, Driven, Ownership, and Learner) formula,” said Rivera.
As part of Seller’s Hub training and development program, the company has DNA Monday, a weekly session that preaches the core values in the IDOL formula. SH workmates also undergo training sessions for enhancing management, leadership, and communication skills.
Citing an old Chinese proverb, Rivera concluded: “If you want to be rich for a year, you grow rice. If you want to be rich for a decade, you grow trees. But if you want to be rich for a lifetime, you grow people.”