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