Kaddy, a leading wholesale marketplace for the beverage industry, announced a reduction on order processing fees for both new and existing customers on June 9.
Suppliers will now have the opportunity to access the Kaddy platform (which already boasts some 1,200 beverage brands) on a ‘freemium’ pay-to-play level, with total fees on 33 day terms sitting at 3.75 per cent and no membership fee.
This change in fees forms a part of Kaddy’s revitalised Membership Program, which now offers four different tiers. In addition to the ‘Freemium’ level, there is also ‘Starter’, ‘Premium’ and ‘Enterprise’. This final level, designed for high volume suppliers, is available for $250/month, but with significantly reduced fees of 1.25 per cent on order processing and 33 day terms.
Kaddy’s Head of Commercial, Rich Coombes, said that “as inflation makes its impact known across the global supply chain and interest rates rise, we’re pleased to give the wholesale beverage community some respite.”
“We have your back with a lower cost and more flexible pricing model to help drive growth in wholesale revenue and margin.”
The program has been introduced after ‘testing for several months’ according to Kaddy, which expects ‘to generate a deeper level of engagement with existing suppliers.’ Kaddy stated that the company hopes more customers and sales representatives would be encouraged to place a greater number of orders through the Kaddy Marketplace by the changes.
Coombes explained that the move to a new structure came after listening to the needs of the industry.
“The feedback we received was that suppliers are looking for more flexibility. For example, bigger suppliers and distributors preferred the ability to reduce the headline fees, while small producers are most interested in getting paid fast,” Coombes said.
“We will still offer suppliers access to upfront payment and expect demand for this service to remain strong, but it’s no longer packaged as a ‘one size fits all’ approach.”
Kaddy was keen to stress that the existing benefits of current Kaddy membership, such as ‘including reduced administration, guaranteed payments and easy reordering, as well as marketplace access, exposure and new trading relationships’, will remain a part of the new tiered system.
Coombes also indicated that further technological innovations, including ‘brand building features’ were on the way from Kaddy: “Our vision is to put more brands in more hands by lowering the barriers for entry and providing access to infrastructure that releases time, value and energy, which in turn, can be reinvested into growth. The new program is a major step to support this vision.”