New Steel E-commerce Platform to Launch May 20

FeLUX was created by managing partners John Camenisch and Chris Day, both former technology managers with Majestic Steel USA. Majestic and its owner Todd Leebow are financial backers of FeLUX, but the e-commerce site operates completely separate from Majestic. “We believe we need to be totally independent from Majestic to get traction in the marketplace,” sasid Day.

FeLUX uses the same approach as more well-known ventures such as Uber and eBay. “We are a true platform model; we don’t buy or sell steel,” Day explained. “We have created a platform to bring buyers and sellers together and allow them to transact business very efficiently.”

The partners believe it is time for a steel industry website to succeed where others have failed in the past. Business-to-business e-commerce surpassed a trillion dollars in 2018. The demographics of the workforce are changing as millennials who are tech-oriented are now in leadership roles. “People are comfortable doing business online as consumers, and now they are becoming more comfortable with it on the business side,” Day said.

FeLUX is focusing initially on bringing together buyers and sellers of carbon steel, though it could eventually handle stainless, aluminum and other products, both prime and secondary/excess. Camenisch said FeLUX has been extensively tested “and there’s a robust network already committed to use the site.”

Initially, the site primarily will handle the sales and quoting process. Over time, the company plans to add functionality for credit, logistics and other applications.

FeLUX is not involved in setting prices. The seller sets the posted price, which a buyer can accept or make a counteroffer. “The software has a negotiation mechanism that makes it easy for the buyer and seller to go back and forth,” he noted.

Buyers and sellers are identified on the site so they know with whom they are doing business. Once identified, they could transact offline. But FeLUX believes the functionality of the platform will discourage that behavior. “We decided not to hide names or do anonymous listings. The site is streamlined and efficient and adds value for both the buyer and the seller. It’s our job to make them want to transact business on the site and not use it as just some sort of matchmaking system. And I’m confident that’s what we have done,” said Camenisch.

FeLUX does not charge any membership fees, only a transaction fee of less than 1 percent (0.875 percent) paid by the seller. “If you are a buyer on FeLUX, you will never see an invoice from us,” Camenisch said.

“We believed firmly that an online marketplace and community would take shape in the steel industry and we are determined to be the driving force behind that,” he added.