We have seen that e-commerce is going through a lot of change right now even though we know that they are the only ones delivering to customers due to lockdown situation everywhere. Right now, we know that the main priority for these companies is to deliver essential items as well as non-essential items and then focus on other parts of the business such as customer engagement and sales support etc. However, we know that once the situation eases out, we will see that companies focus on this aspect of their businesses a lot as well and there will be changes to their models.
Now, one change we have already seen is that e-commerce companies are starting to offer extended warranties since people can’t go out and return their products while the warranty might get expired. We have a new startup called Clyde which is working to provide e-commerce businesses with a way to extend the warranties for their customers. Clyde has also announced that funding of $14 million has been raised by them in the recent round.
We will now try and understand how exactly does Clyde help e-commerce in extending the warranty for their customers. As per the company’s explanation, Clyde is a platform that connects small retailers to insurance companies to launch and manage product protection programs. In addition, customers can access a dashboard and e-commerce apps to manage their protection programs.
Clyde’s CEO says that “We give you access to large insurance companies and we enable you to launch the program live on your website or physical point of sale and store wherever you sell.” Clyde CEO also reveals that Amazon’s extended warranty offer does not share revenue with its seller which is not the case with their company since Clyde shares revenue of warranty extension with them.