{"id":18844,"date":"2016-11-18T15:44:30","date_gmt":"2016-11-18T20:44:30","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/heres-how-to-buy-anything-from-anywhere-without-shipping-costs\/"},"modified":"2016-11-18T15:48:04","modified_gmt":"2016-11-18T20:48:04","slug":"heres-how-to-buy-anything-from-anywhere-without-shipping-costs","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/heres-how-to-buy-anything-from-anywhere-without-shipping-costs\/","title":{"rendered":"Here\u2019s How to Buy Anything from Anywhere (Without Shipping Costs!)"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\"><\/a><\/p>\n<p>International travel is a Singaporean pastime. Based on Visa\u2019s Global Travel Intentions Study 2015, 95% of Singaporeans have travelled abroad for leisure in 2013 and 2014, higher than the Asia Pacific (84%) and global averages (76%)<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>. Coupled with our other favourite pastime, shopping, the world has become Singaporeans\u2019 shopping mall. Singaporeans often go overseas equipped with a long shopping list of items that are either a) more expensive locally (e.g. a Chanel bag from France), or b) not available locally (e.g. a limited-edition Starbucks mug from Seattle).<\/p>\n<p>A peculiar (and arguably poor) habit has evolved from this. To circumvent hefty shipping costs, Singaporeans impose their shopping lists on others, with 80% of shoppers relying on friends or family to purchase products that might be cheaper or available exclusively in a particular country<a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a>. This social obligation has inconvenienced travellers, especially those who are on a tight schedule.<\/p>\n<p>Airfrov, a Singapore-based tech startup, has developed a platform to address this problem. Airfrov enables shoppers to get items from around the world by connecting them to an Airfrov-registered traveller.<\/p>\n<p>As a two-sided marketplace, Airfrov has two customers: requesters and travellers. For requesters, the customer promise is to provide access to anything around the world that may not be available\/is significantly more expensive locally, without having to pay an exorbitant shipping fee. For travellers, the promise is to help monetize their additional luggage space. An underlying promise to both customers is that Airfrov transactions will be fraud-free.<\/p>\n<p>How this works is that shoppers would post product details, the country, and their willingness to pay on Airfrov\u2019s platform. A request would be accepted by an Airfrov-registered traveller. To protect both its customers, the shopper would have to a pay a deposit (to be held in escrow by Airfrov) once the request has been accepted by the traveller. The higher the willingness to pay over-and-above the retail price, the faster the request will get picked up. Airfrov generates revenue by charging a service fee of 7% + S$2 per transaction. Both requesters and travellers can rate their counterparties after the transaction.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-18631 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-2-3-300x139.jpg\" alt=\"tom-2\" width=\"725\" height=\"336\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-2-3-300x139.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-2-3-768x357.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-2-3-1024x476.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-2-3-600x279.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-2-3.jpg 1440w\" sizes=\"auto, (max-width: 725px) 100vw, 725px\" \/><\/p>\n<p style=\"text-align: center\"><strong>Figure 1: How Airfrov works<a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a> <\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-18632 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Tom-3-300x260.jpg\" alt=\"tom-3\" width=\"597\" height=\"517\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Tom-3-300x260.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Tom-3-768x666.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Tom-3.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Tom-3-600x520.jpg 600w\" sizes=\"auto, (max-width: 597px) 100vw, 597px\" \/><\/p>\n<p style=\"text-align: center\"><strong>Figure 2: Illustration of potential savings for a requester by using Airfrov<a href=\"#_ftn4\" name=\"_ftnref4\">[4]<\/a> <\/strong><\/p>\n<p style=\"text-align: center\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-18633\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-300x259.jpg\" alt=\"tom-4\" width=\"586\" height=\"506\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-300x259.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-768x662.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4-600x517.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOM-4.jpg 926w\" sizes=\"auto, (max-width: 586px) 100vw, 586px\" \/><\/p>\n<p style=\"text-align: center\"><strong>Figure 3: Illustration of potential earnings for a traveller by using Airfrov<a href=\"#_ftn5\" name=\"_ftnref5\">[5]<\/a><\/strong><\/p>\n<p>This nascent platform raised seed funding early this year, and has been doubling its user base every quarter since its launch in March 2015<a href=\"#_ftn6\" name=\"_ftnref6\">[6]<\/a>, and has expanded its presence from Singapore to the region.<\/p>\n<p>As with any new disruptive service, of course, Airfrov is not immune to potential regulatory setbacks. For instance, Singapore levies a goods and services tax (GST) of 7% on all goods brought into the country, with exemptions only for goods valued only up to S$600 (US$430).<\/p>\n<p>In comparison with other businesses that leverage on a sharing economy, what I find particularly interesting is its potential to <strong><em>infringe<\/em><\/strong> <strong><em>on<\/em><\/strong> (the verdict is not out on whether it has effectively\u00a0<strong><em>disrupted<\/em><\/strong>) businesses across several industries. Previously, a requester would turn to an online marketplace, such as eBay, to purchase an item that was not available locally. Airfrov infringes on two different industries here \u2013 the online marketplace, as well as the fulfillment and logistics providers. It intrigues me that Airfrov seems to be \u201cdisrupting the disruptor\u201d of retail (i.e. online marketplaces), shifting some of the consumption in this space back to brick and mortar stores.<\/p>\n<p>I think Airfrov also has the potential to reshape shoppers\u2019 behaviour. A recommendation that I propose would be for travellers to list the items they intend to buy overseas on Airfrov. Rather than only visiting Airfrov when a requester needs an item, requesters can now turn to\u00a0Airfrov as an alternate shopping platform. If implemented successfully,\u00a0a Airfrov-registered traveler becomes a one-stop solution for both the purchase and the fulfillment of a product, as opposed to being traditionally done by two parties\u00a0(e.g. buying a product on eBay but transportation being fulfilled by DHL).<\/p>\n<p>There is also potential to replicate this model in international markets. For instance, this model can leverage on the varying tax rates across the different states in the USA to connect requesters and travellers (barring no regulatory push back). Given the low barriers to entry, the challenge now for Airfrov is to get as many users onto their platform in the quickest time possible. (790 words)<\/p>\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> \u201cSingaporeans Travel More Than Regional\u00a0and Global Counterparts\u201d, Visa Global Travel Intentions Study 2015. http:\/\/www.visa.com.sg\/aboutvisa\/mediacenter\/NR_SGP_270815.html<\/p>\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> \u201cHere\u2019s How to Earn Extra while you Travel\u201d, CNBC, 18 Jun 2015. http:\/\/www.cnbc.com\/2015\/06\/18\/earn-extra-while-you-travel-with-airfrov.html<\/p>\n<p><a href=\"#_ftnref3\" name=\"_ftn3\">[3]<\/a> Airfrov website. https:\/\/www.airfrov.com\/how-it-works<\/p>\n<p><a href=\"#_ftnref4\" name=\"_ftn4\">[4]<\/a> \u201cSingapore-based platform Airfrov helps you buy overseas brands without shipping costs\u201d, Vulcan Post, 2015. https:\/\/vulcanpost.com\/232531\/airfrov-singapore-based-platform-overseas-shopping\/<\/p>\n<p><a href=\"#_ftnref5\" name=\"_ftn5\">[5]<\/a> \u201cSingapore-based platform Airfrov helps you buy overseas brands without shipping costs\u201d, Vulcan Post, 2015. https:\/\/vulcanpost.com\/232531\/airfrov-singapore-based-platform-overseas-shopping\/<\/p>\n<p><a href=\"#_ftnref6\" name=\"_ftn6\">[6]<\/a> Startup tapping travellers to bring you stuff from abroad raises seed funding\u201d, Tech in Asia, 1 Mar 2016.\u00a0\u00a0 https:\/\/www.techinasia.com\/airfrov-seed-funding<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Airfrov, a Singapore-based tech startup, has developed a platform that enables shoppers to buy anything from anywhere by connecting them to Airfrov-registered travellers. <\/p>\n","protected":false},"author":1904,"featured_media":18859,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-18844","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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