Mandala Green the ONLY "Amazon" of Online Head Shops

Revenue issues of the "traditional" online head shop business model

A normal online head shop will have 100-200 items to choose from, the largest sites have 1,000-1,500 items, glass blowing is an art and there are millions of different varieties of products available on the market today, no where is their a centralized niche marketplace that allows the aggregation of the millions of different types of styles, accessories. Our business model solves this problem and turns the liabilities of the traditional business model into revenue generating opportunities. The number of categories of vendors varies widely from glass blowers, niche cannabis product makers, retail head shops, online head shops, glass blowers, and drop shippers. This business model gives vendors the opportunity for a zero up-front cost store to have another positive revenue stream.

The mistakes of the traditional business model

  1. They will rent a warehouse or storage space to hold all of the items, this does not produce revenue.
  2. They will purchase large amounts of product at wholesale pricing, this leaves a lot of capital in product that is sitting around not producing more revenue.
  3. They hire employees to breakdown the incoming products, shelf, store, pick, and pack the products, take pictures, write descriptions, and post on the website, then finally market and sell the products. This is a long expensive process before returns on profit can be realized.
The Old Business Model

How we turn the traditional expenses into revenue generating assets

We sell through many channels. We have developed a responsive website, marketplace app (Android & iOS), and a sellers app (Android & iOS coming soon) this  allows people to add products to their store right from their phone, all at no cost to setup and list products in the marketplace. 

We hold no physical inventory of our own, we make a commission off of each and every sale. (Amazon’s commission rate for a sale is 15%-24% depending on the category.) Our main focus can then be in revenue generating opportunities such as developing marketing plans that convert customers to sales, and Glass and accessory sellers to convert into our vendors.

How we monetize the mistakes of the "traditional" business model

How we turn the losses from the traditional business model into profits is as follows:

1. Warehousing: If our vendors do not want to pack, ship, and deliver their products they can send the items to our warehouse we make money every time an item is stored and stocked, when an item is sold we make money from picking, packing, and shipping the item. This turns a warehouse into a revenue generating model.

2. Stock: We never have to buy wholesale or hold any stock, all of our vendors provide the stock, ship the stock, drop ship, or ship through our warehouse program. This saves us capital for other revenue generating opportunities.
3. Shipping: When we sell shipping because we are shipping such large amounts we receive wholesale shipping prices, we can then make a profit off of selling shipping, turning it into a revenue generating opportunity.

Additional Revenue Opportunities from New Business Model

Internal Advertising & Product Boosting

Advertising: Revenue can be created with an internal advertising feature. This would give vendors the ability to promote their stores, promote individual products, boost their listings to the top of the product category.

Branding: If a vendor wants to create a branded line of glass, vendors will be able to pay a fee to be listed under the brands section of Mandala Green.

Sold for $1,000,000 in 2019
A bong that sold at auction in 2019 for $1,000,000

Limited yearly high-end auctions

Auctions are a unique revenue feature that we have integrated into our platform. Recently a new trend and category of ultra-expensive artistic glass pieces, specialty artistic dab rigs and bongs have sold for $1,000,000 dollars each, giving us the opportunity to do a high-end auction a few times per year. Check out this link of 21 Bongs that sold for between $7,000 to $1,000,000 each in 2019. Page Link: https://helpingpot.com/most-expensive-bongs/ 

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