Managing warranties and receipts is a pain and a Hyderabad based startup, Warrantify has launched its platform offering that enables retailers and consumers to easily manage warranties and receipts.
The service allows you to receive and track your retail warranty receipts online whenever you buy a Consumer Electronic device from Warrantify’s partner retail network.
Here is how warrantify works
For manual receipts, you can upload and have a digital archive of your warranty receipts on the site.
For Warrantify receipts (which is the main use case),
- The customer goes through “checkout” as normal, with no interruptions or site re-direction on the retail partner store.
- During payment confirmation, a unique userID, password & account is generated — with the information plugged directly into the retail store’s Customer Confirmation Email.
- A Warrantify-receipt is generated into a clean paperless form, and placed into the customers account.
- The customers can then login to manage all their warrantify receipts from an easy to use dashboard.
- The customer can claim the warranty for all the purchased products.
- The retailer can respond to the claims and take appropriate actions.
The challenge with this approach is that Warrantify needs to tie up with a lot (and when I say lot, I actually mean a LOT) of retailers to have the service be of relevance to consumers. Essentially, its a marketplace approach, though such C2B marketplaces are built by being (slightly) lop-sided first (i.e. be either buyer or seller centric) and then shift towards the center (once you have gathered a critical mass).
As far as the target segment is concerned, Warrantify is targeting Indian as well as US based online retailers and monetization model is a mix of transaction fee plus up selling products.
“Our business model is broken down into two key revenue streams: (a) Transaction fees; (b) Cross-sells and up-sells via both (Cost per Action and Cost per Click). We specifically generate transaction revenues from our retail partner network based upon a percentage of the value of each electronic device sold. We aim to leverage this style of fee based upon (retail account size, country of operation, and retailer product focus). This business model is scaleable in the sense that it can be implemented with flexibility, and the longer the retailer utilizes our solution, the better they can leverage its bottom-line revenue generating benefits.” – Warrantify founder, Haritash Tamvada
Do give Warrantify a spin and share your comments on the GTM approach/business model.