Qoo10’s blockchain-powered marketplace hits $1.8m GMV in 3 months

QuuBe, a blockchain-powered marketplace operated by Singapore-based ecommerce firm Qoo10, is off to a good start. Since its launch in January 2019 – just three months ago – it has already transacted over US$1.8 million in gross merchandise volume (GMV). This is no mean feat, as blockchain adoption is still in its early stages all over the world.

Despite this achievement, the firm still has work to do to reach its target for the year. A Qoo10 spokesperson tells Tech in Asia that its goal is to hit US$10 million in GMV by the end of 2019.

On QuuBe, customers can buy products from sellers using the platform’s own private token called Q*coins, the only currency it accepts. This marketplace is built on smart contracts, which automates transactions between buyers and sellers.

The advantage of using smart contracts is it eliminates the need to rely on manpower for transaction-related processes. “As a result, we’re able to let merchants put their products up for sale on QuuBe with no listing fee or commission taken upon a successful sale,” says the company representative. In turn, this lowers costs for merchants to list on the platform, giving QuuBe a leg up over other ecommerce sites.

But there are some challenges to operating a marketplace on the blockchain. QuuBe initially wanted to run the platform on a public network like Ethereum, which would have provided “unparalleled immutability and transparency.” However, the team opted for a private blockchain instead to “maintain control over the token’s value,” a Qoo10 spokesperson told Tech in Asia in a previous interview. The value of tokens that are run on public blockchains remain highly volatile, making them difficult to use in an ecommerce setting.

Another reason the QuuBe team decided to run a private blockchain was because of quicker transaction speeds, which are crucial to running online marketplaces.

QuuBe has already surpassed its parent firm in terms of cart size, having an average checkout cart size of US$70 versus Qoo10’s US$25 to US$35. But QuuBe clarified that it’s early days yet, and it’s working on increasing user adoption. To do that, the firm is collaborating with their merchants to “keep a steady stream of attractive deals” and providing discounts to attract buyers.

It’s also teaming up with partners like United Overseas Bank to offer token purchase discounts and zero percent installment plans.

Moving forward, QuuBe says that even though it doesn’t have a fixed timeline for upcoming product features, it wants to help unbanked economies in Southeast Asia.

“Many ecosystems in developing markets do not enjoy access to conventional banking and the cashless options that come with it. Blockchain-based economies like QuuBe have the technological power and the opportunity to help this huge segment of people enter the world of online shopping and electronic payments,” explains the company representative.

The platform already offers different token purchase methods in Singapore, including Visa, MasterCard, American Express, eNets, PayLah!, AliPay, bank transfers, AXS, and 7-Eleven, but it hopes to roll these out to other markets soon.