Australia’s largest private e-commerce outfit New Aim has announced the transition of flagship dropshipping product Dropshipzone into a B2B marketplace, marking a shift from an inventory-led model to a B2B marketplace enjoying engagement with a diverse variety of suppliers.
The pivot for New Aim’s dropshipping product is one that Dropshipzone General Manager and Head of Brand for New Aim John Barkle describes as the “biggest” in the venture’s 10-year history.
“Not only is this our biggest pivot yet, it’s a win for suppliers, retailers and customers – it’s the most efficient way to offer the right price to customers,” says Barkle, “For suppliers, it means they’re able to reach a much larger audience without spending extra on marketing. For retailers, they get more choice within a single platform, and the natural competition of a marketplace gives them better options.”
The pivot also sees New Aim and Dropshipzone embracing a lucrative opportunity, with B2B marketplaces having been identified by e-commerce research company Digital Commerce 360 as being the fastest-growing e-commerce channel in 2021, with sales for these marketplace strategies growing at rates faster than seven times that of overall B2B e-commerce sales. This embrace of opportunity is the latest evolution in New Aim’s goal to lead with innovation in Australia’s e-commerce market.
“It was New Aim that brought the dropship model to Australia through our co-founder Cecilia Chiu. We know that small retailers, especially start-ups, don’t necessarily have the buying power or investment to do business with wholesalers. The dropship model eliminates those barriers of entry,” Barkle tells Power Retail, “Our vision is to democratise ecommerce in Australia and we believe dropshipping is the model which brings that vision to life. Some of the most famous ecommerce brands either used the dropship model in their early days to achieve rapid growth or continue to use it to this very day.”
“Now, small-to-medium retailers, who are the up-and-comers in our industry, can also avail themselves of that kind of growth via a turnkey solution.”
The innovations and opportunities offered by solutions such as that of dropshipping might well be even more valuable, Barkle suggests, as economic conditions continue to worsen. And while this is true in how it can help businesses withstand the economic turbulence, Barkle believes it might well have even greater influence on how businesses can hope to emerge from this turbulence.
“History shows us that a tougher economic environment will disrupt the status quo. It was the global financial crisis that gave rise to Amazon in North America. Businesses are going to need to be leaner, more nimble and more innovative as their bottom lines are squeezed,” Barkle says, “The dropship model enables a retailer to be inventory-free and can mitigate any temporary cash flow issues that are brought about by an economic downturn.”
And, of course, the ambitions for its dropshipping venture in Dropshipzone are no exception to the ambition driving the remainder of New Aim’s business goals.
“We want to expand into new product categories that New Aim has never touched. I’m talking about fashion, apparel, tech, and branded goods. If we are truly to become an A to Z marketplace, then we need these products,” says Barkle, “Therefore, we need to grow our supplier network by focusing on partnering with those amazing sellers and suppliers out there. The old adage is ‘if you build it, they will come’, and if we can grow our range to be more diverse then we will attract many different kinds of retailers to the marketplace. Then you will see the Network Effect take hold.”
“I really do believe the sky’s the limit for Dropshipzone.”
The e-commerce landscape is changing. With a Power Retail Switched On membership, you get access to current e-commerce revenue and forecasting, traffic levels, average conversion rate, payment preferences and more!