• 2014 May 01

Company Description

Intraxio enhances e-commerce profitability through marketing a brand new online shopping experience.

Intraxio, a nascent Boston start-up, is planning to revolutionize the way electronics are sold on the Internet. As an ad-tech marketing firm, Intraxio has designed and developed a way to drastically increase e-commerce profitability and customer satisfaction. It features a proprietary method of product advertising, and Intraxio’s new technology promises to increase online retail profitability by approximately 365%. And it already has. Intraxio has used its expertise to e-retail $1.9M in tech merchandise by approaching marketing in a practical manner: informing customers exactly where the item can be used. How does it work? Intraxio simply incorporates traditional advertisements with data analytics about product-use trends. For example, a “hard drive” is sold as a “Dell Latitude D610 hard drive,” and so-on. The resulting ADs boost sales conversions by being more relevant to customers, and they reduce product returns by guiding product usability. Intraxio calls this marketing invention PUMA, short for Product-Use Marketing Analytics. Surprisingly, pay-per-click advertising with PUMA is a lot less expensive than traditional marketing. Within one market segment, for example, average cost of comparable PPC AdWords (Google) is about ½ that of standard AD keywords. Additionally, the available daily click volume is up to 10X higher. And online customers arrive in droves to buy PUMA-backed products because their inherent relevance saves them time. Before a 2011 change in eBay listing policy resulted in an operational shutdown, Intraxio had sold over 70,000 product orders—40,000 of which were backed by the PUMA technology. Seeking to exit the e-retail space, Intraxio is now pursuing a venture capital infusion of $1.4M to re-tool its processes and enter the broader e-commerce market as an online marketing-only service. The company intends to generate hi-profit and hi-volume product orders before delivering them to 3rd-party vendors at a small premium. The service, which does not compete with traditional marketing, will reduce ad-spend risk for vendors like NewEgg.com, supplement their sales, and raise their net profitability (currently 8%)—even after Intraxio takes its commission. Intraxio estimates that industry-wide net profitability can reach as high as 20% using an advertising methodology like PUMA. Through its US patent-pending process, Intraxio will undoubtedly disrupt the way online shopping is conducted. E-commerce, a $1T market growing at 20% per year, is ripe for innovation. Advertising for product lines like computer hardware, cell-phone accessories, and interchangeable parts will never be the same again. Expect to see Intraxio at the leading edge of a new online marketplace.