Alice.com is an intriguing start-up that seeks to succeed in the online retail arena where so many businesses have failed before. The company endeavors to connect household brands with consumers and bypass retailers in the process. Their competition is not only brick and mortar giants like WalMart and Target, but well-established web presences like Amazon and drugstore.com as well.

Unlike a traditional retailer, Alice.com doesn’t actually buy the products at a wholesale price from the manufacturers, in fact they don’t make any money at all on the sales. Instead they serve as an intermediary, handling the customer service and distribution side, costs that they then pass along to the brands themselves (at around 35% of the total cost of each item), who set the actual price.

Despite the fact that Alice.com has set a minimum number of products for any individual order (they estimate the average sale comes in at about $50 for 11 items), many experts are skeptical that their low margins combined with the promise of free shipping will result in a successful enterprise. Still, founders Brian Wiegand and Mark McGuire remain undeterred, claiming that there is money to be made in their advertising programs – coupons, loyalty rewards and keywords – that work in similar fashion to Google-click.

In a recent interview with Inc.com, Wiegand explained what makes the Alice.com concept different:

“The “secret sauce” is that we’ve created a planning subscription service here. The use of [these products] is a repetitive type of pattern, so we’ve created more of a Netflix-style service. When you add paper towels to your virtual shelf, you’re actually adding a reminder and can set the re-order frequency. The site gets smarter as you order, and it knows what you use. This reminder set of tools is all drag-and-drop. We’ve created a price comparison, so if you click “check prices,” it shows you the prices at Walgreens, CVS, Target and Amazon. Then when you add a product, it goes into your personal shelf. When you want to check out, you just drag them into your cart. We’ve entered a number of Quicken-like tools to show you on a month-by-month basis how much you’re spending.”

But even with these software innovations in place, a lot will depend on participation from the manufacturers, as brands still matter with most consumers. To that end, Alice.com has secured about half of the producers that they want to bring on board and are currently wholesaling the rest during an initial trial period. If they’re not able to lure these stragglers at a certain point, however, the company will most likely drop them from their stable of offerings.

But Wiegand and McGuire are hopeful, citing the fact that as retailers increasingly look to develop and sell their own in-house products, they inevitably have to remove other products from their shelves. As a result, brands are more willing to seek alternative pathways to reach their customer base. And ultimately, those same consumers are going to have to embrace Alice.com’s new model as well, one that due to the minimums in place, requires a bit more foresight and planning. Perhaps a good fit for these tough times.