A Silicon Valley startup says it has taken on the challenge of opening up the plastic scrap trading industry. Scrapo Inc. seeks to make it easier for buyers and sellers to discover, negotiate and close deals from around the world.
Sellers can list materials in seconds and receive instant bids from interested buyers, the company says, while buyers can browse through available offers and make a bid. The Scrapo mobile app allows users to use the network from their phones.
To facilitate trade in the platform, Scrapo says it has integrated real-time communication tools so traders don’t need to check emails or make phone calls.
“The idea is to promote free market philosophy through use of technology,” says Rashad Abbasov, co-founder and CEO of Scrapo. “If you as a trader, big or small, have access to hundreds of offers instead of a few, you obviously would end up making a much better deal for yourself.”
One of the factors that can undermine market efficiency and create barriers to trade is the lack of trust between buyers and sellers, according to Scrapo. Buyers in some cases don’t know suppliers, nor can they be sure of the quality of the material they should expect to receive unless they visit and inspect materials at the sellers’ sites. This is of greater concern for international buyers.
Similarly, from a seller’s perspective, guaranteed on-time payment is a concern, the company says. Some marketplaces verify traders’ identities when they register on their platforms. However, Scrapo says this is not enough. “Guaranteeing quality and payment is equally important to facilitate a smooth and secure deal,” the company says.
Abbasov says, “We understand that trust is the biggest concern surrounding this industry. That’s why we have come up with an innovative solution—an on-demand service called ScrapoSure—to ensure trust and security.” He says with the Scraposure service, the company’s team personally visits the sellers’ sites, verifies their identities, inspects the materials, supervises the loading process and assists with the logistics. “We have also integrated an escrow payment system in the platform so that if all goes well with the deal, the seller receives the payment as soon as the material is shipped,” Abbasov says. “We want to make recyclables trading as easy and secure as buying a book on Amazon.”
More information is available at www.scrapo.co, and the company’s app can be downloaded from the App Store or from Google Play.