In December 2024, Lee Berrow reached his breaking point. For years, the 41-year-old from Altrincham had poured his life into a small, independent business selling computer hardware. His business was struggling, and one of his best sellers, computer memory sticks, was now being undercut by Amazon sellers by a few quid. His sales of the product went from 60 a month to just two.
"That's when I thought, this is just not going to work. I can't do this anymore," said Lee. It was the finishing blow. Lee decided to wind up his business and contemplate his next move.
The Birth of an Idea
After closing his business, the dad-of-two admitted he obsessively thought about how he could build something that could stand up to Amazon and its sellers who had undercut his prices. "I was sat at my kitchen table, pretty much like most days, just thinking I can't just accept this. I can't keep complaining about Amazon and big tech and these companies that are practically destroying the high streets."
The answer Lee came up with was to build his own rival to the online shopping giant. While this might sound like a fanciful pipe-dream, that's exactly what he has done – but with a twist. After months of late-night phone calls to web developers trying to fix bugs on his website, his Manchester-based online selling platform, Localito, went live in January.
The 'Anti-Amazon'
Lee calls Localito.com the "anti-Amazon". It's an online marketplace dedicated to Greater Manchester's independent businesses and, what he hopes, will be "Manchester's digital answer to saving the high street". Operating similarly to the front end of the Amazon website, the platform now hosts over 350 independent businesses with thousands of products and services listed.
This week, the independent marketplace launched its integration with Etsy. Etsy is an online marketplace where independent creators, artists, and vintage collectors sell handmade and custom items. Sellers on Localito can now import their entire Etsy shop for free.
Proving Demand
Although inspired to build an independent rival to massive online marketplaces like Amazon, Lee also conducted market research in the months before to ensure there was demand from businesses. Lee said: "I needed to prove that it wasn't just me that was having these issues, and I wasn't going to start spending a lot of time and effort and money on something without proving demand."
"So what I actually did is I started a waitlist. Between October and January, when I registered the company, we actually had 612 small businesses in Greater Manchester sign up. That's when I knew that there was plenty of demand for this."
How Localito Works
On the Localito website, it says it was created to put "independent businesses first, with fair commission rates, instant payouts, and no hidden fees." It's also designed so that when a customer buys a product from one of the sellers, the item is reserved and the customer receives a QR code to show at the store to collect the order. Some sellers on the site also offer their own delivery options.
Reserving the item for store pickup with a QR code is intentional, as Lee says it helps increase high street footfall. Buyers also earn cashback points with each purchase, which can be redeemed for discounts on future orders.
"If you shop on Localito, you know that you're not just supporting a big tech platform, you're actually supporting local people. People with dreams, people with families, and people that are working for themselves," said Lee.
Visibility for Local Businesses
Lee says Localito also offers independent sellers an opportunity to showcase their products to potential buyers. "A lot of businesses do have their own websites now, but they don't have huge advertising budgets," he said. "Nobody even knows half of them exist based on my research. Most people, if they're looking for something in particular, go online and search. But these small independent business websites, they don't show up. But a platform like Localito that's actually got them all on there, they're going to get the visibility of these big platforms."
Lee has also been out making videos of some of the local businesses now signed up to the platform, which people can watch in the 'Meet the local business owners' section of the main page. A Localito app is also available to download for Apple and Android phone users.
Success Stories
One local business owner who says he has benefited from Localito is Simon Hepburn. He runs Share Your Story, a creative hub and retailer in Altrincham that sells cameras and audio-visual equipment. Simon says his biggest camera equipment sale this year came directly from being on Localito. Simon, who has been selling on the platform since January, said: "With our website, we sell things for pickup, and Localito is for pickup as well. I think if people buy things online, it gets much more complicated. What if someone's not in and it gets returned? We've always been very keen to be face-to-face, and this means we can be face-to-face across Manchester."
Simon also agrees that the QR system helps footfall and gets people out discovering new places and venues. He adds, "It's nice because we're not in the centre of Altrincham. We're at the end of the tram line, so people can pop out here."
'All the Late Nights Have Been Worth It'
Lee says starting Localito has been more of a "community initiative rather than a profit machine." However, if it proves successful in Greater Manchester, he plans to expand it to other locations in the UK. Next month on Manchester Day (Sunday, July 26), Lee said Localito will hold an 'Amazon receipt swap' in the city centre. The company's mascots, Loca & Lito, will offer shoppers £20 Localito credit if they show a recent Amazon or Deliveroo receipt. The aim is to get people to shop locally.
So what advice does he have for anyone else who has an idea to start a business but doesn't know how or where to start? "My advice would be to do your market research. It's really important if you're going to start a business, to actually research the market and know the market you're in," said Lee. "I tested demand before I put too much time, effort, and money into it."
He adds: "But you're never going to get anywhere if you don't try. The first step is giving it a go. You need to actually go from idea to actually doing it. I lost my old business, I can't change that. But if Localito can help hundreds of others avoid the same fate, then as far as I'm concerned, all the late nights have been worth it."
