http://shorages.com

Rayan Osseiran – Founder @ Shorages.com

This marks the first episode of the founderOasis Podcast Series, where we bring you real-life stories from entrepreneurs in the Gulf region. We will cover countries such as Dubai, Saudi Arabia, Qatar, and Bahrain. The podcast intends to bring you the interviews of founders and investors, highlighting how they have set up their businesses.

On our first podcast, we have our feature guest Rayan, the founder of the eCommerce delivery fulfillment startup Shorages.com. We will be discovering what Rayan has been doing so far with his startup and his experience with the startup market. Rayan will tell us where shortages are and what is happening in the market.

Rayan explains that being in the e-commerce fulfillment center means helping eCommerce companies manage their operations. His company helps to manage their process concerning warehousing order preparation and packaging. Rayan terms his company as an outsourced operation model for eCommerce companies.

He explains that we fulfill orders for eCommerce sellers who sell on Amazon and other marketplaces such as noon. Shorages gives eCommerce companies access to their platforms to complete visibility of their inventory operation. The clients must send their inventory to the warehouse, where the company’s team will receive the stock. The company then stores the order in warehouses and process them accordingly.

Initial Challenges

Rayan mentions that when he first entered logistics fulfillment in the middle eastern market, he faced issues due to low cash or investment. He didn’t have enough money to rent a warehouse, so he went on to look for warehouses that could host his clients. After searching extensively, he came across a few warehouses willing to host them on an on-demand basis.

Rayan explains that all startups start small before achieving their desired milestones. He mentions how his company focused on an on-demand basis and negotiated pricing throughout the initial phases.

Rayan states that a common saying in the startup world is not to fall in love with your product. This is because, with time, the product will adapt to the customers’ new requirements. Changing your product’s idea to cater to your customers’ needs is challenging.

Getting access to investors

Rayan believes that the most significant problem is e-commerce companies not having access to fulfillment centers and investors. Many entrepreneurs in the UAE know that it is impossible to get a Venture Capitalist (VC) on board without having revenue or customers already working with you.

He tried approaching several VCs and investors with his startup roadmap. To his disappointment, everyone mentioned that it was too early and that he should come back later when hitting a particular milestone.

In the initial stages, Shorages used excel to manage their few customers. As the company started getting more revenue, it digitalized its solution and moved into a web app. This process happened gradually, and the company learned something new in their transition from excel to the web app. At a point, Shorages reached a stage where they had 50-60 clients and could make the proposition to institutional investors.

Rayan claims he dramatically values his investors, who helped them in their initial phases. He states that the investors who helped him make a change will give them some form of equity.

Although UAE is the largest hub for venture capitalism compared to other countries, Rayan says it is tough to secure investment even from a single VC firm. After facing rejections from VC firms, Rayan went on to strengthen his ecosystem and attract investments from his friends and family. Shorages has multiple angel investors but does not have any VC firm associated with it.

According to Ryan, the key takeaway is to build the startup yourself instead of looking for traditional investors.

Entering a New Market

Rayan states that entering a new market entails several steps and is not an easy task. First of all, lawyers will be needed, which is then followed up by opening a bank account. The founder will then require a license before hiring new employees.

To avoid the hurdles, you can seek the help of Shorages. With Rayan’s company, the founder has to send their inventory, and the company will act as an importer and receive it in their warehouse. The company will then store big packs and deliver your products directly to customers.

Shorages has invested in technology that helps to view the operation in real-time. Order fulfillment and inventory management allow you to track your orders and stock.

The Importance of Software

The core of every startup lies in its software. A startup needs hardcore coders on the back end to ensure the best software quality. As a visionary, the founder knows how the software should work and the automation that comes with it.

Anyone who is looking to be an entrepreneur has to look into automation. The founder needs to have critical ideas for improving automation through software. This can be achieved by having the right team and expertise.

The software helps to improve the company’s operation, which is essential for improving customer relationships. To develop the best software, Shorages introduced a global development software workforce. It allowed people worldwide to apply to developing software for Shorages. Rayan’s company finally selected the top two candidates for their software development team.

Through remote working tools such as slack and Zoom, Shorages could utilize hidden talent for their software development. Rayan advised that startups should hire remote employees so that they can use skills across the globe.

Eliminate Communication Barriers

Startups must establish proper communication channels to streamline operations and improve customer service. For instance, customers talk directly to the operations team if they want to change something. They do not speak to an account manager. If a customer has a finance issue, he can now speak to the finance team.

The whole startup team should be set to ensure customers’ utmost satisfaction. The startup is more likely to excel and grow its services by having satisfied customers.

Advice For New Startups

Concluding the interview, Rayan advises that someone looking to set up a startup should seek help from experts in the field of local regulations . These Experts can tell the ground reality since the facts on the ground can contradict the information available online and save your startup and the investments from a major setback.