E-COMMERCE
E-COMMERCE
for more targeted marketing and in some cases, the data can also help dropshippers determine the price points for different products. With the recent implementation of the General Data Protection Regulation( GDPR), there is greater accountability and transparency in the use of consumer data. While this may limit what may be available to drop-shippers, it also allows for greater consumer confidence when transacting and making digital payments online.
Drop-shippers help retailers to adapt and cater to the change in consumer behaviour in South-east Asia.
media platforms( such as Instagram and Snapchat).
The proficiency of drop-shippers’ in certain languages, such as Mandarin, also allows them to shop on sites such as Taobao and find gadgets to sell on other social media platforms that cater primarily to English-speaking users who won’ t visit
such online sites due to the language barrier.
What is the role of data in dropshipping? Shinghal: Data helps e-commerce players determine product demand and consumer preferences. This allows
What are your thoughts on the future of drop-shipping in South-east Asia? Shinghal: In our interactions with merchants, we have noted that more and more are choosing to utilise the dropshipping business model. The concept of re-selling is not new, but three key factors are contributing to this rise in the future; the shift in consumer buying behaviour: increased digital connectivity and increasing prevalence; and ease of use of social media platforms.
We see social media platforms transform into digital marketplaces, and with the low barriers to entry for drop-shippers, it would be no surprise if this number were to continue to rise in the foreseeable future. At the same time, traditional merchants / retailers are expanding their retail strategy to include e- and social commerce, with dropshippers playing a key role in ensuring they continue to be relevant. ra
Success trickling in with drop-shipping
MANY online retailers have experienced positive outcomes from using dropshipping as their primary method of order fulfilment— evident through driving successful business results— Rahul Shinghal, managing director, PayPal South-east Asia and head of Merchant Support, PayPal APAC, shared. For example, Gabriel Seah is an online retailer who has benefited from drop-shipping in his business. Gabriel is director of Delight Prints, an online print shop which makes high-definition prints for customers to be placed on any medium of their choice whether it be a wall canvas, item of clothing or iPhone case. He strongly believes that it is dropshipping which has got his company to where it is today.“ I now employ 25 in-house designers and my company has seen strong growth. Since last year, we have already rapidly surpassed our Key Performance Indicators( KPIs) and we are soon to be tripling our sales,” Seah declared.
Drop-shipping has enabled Seah to sell his products predominantly on social media platforms.“ We sell 90 % of our products on Facebook and Instagram, and 10 % on Google or organic searches,” he revealed.
With low barriers to entry, Shinghal added ded that many e-commerce ce players are marketing their products with‘ impulse buying’ strategies tegies leveraging a combination of highly visual social media platforms and its social networks.“ With faster shipping times and good customer support and communications, online shopping has increased rapidly, and with this, more suppliers can drop-ship, which also attracts the attention of traditional retailers,” he commented. ra
With more than 40,000 units sold since September last year, this hoodie was Gabriel Seah’ s top-selling item worldwide.( Photo credit: Delight Prints and @ jocarra)
30 Retail Asia August 2018