Dropshipping has a stigma problem and Droppery plans to remove it
One of the biggest accomplishments for businesses from the pandemic is how ill-equipped they were to deal with changing consumer buying habits. As customers purchase varied goods and products from different outlets, including importing them from outside their own country, businesses like online stores have become less relevant to them. Can you change this scenario and give online stores a new lease on life?
Amsterdam-based Droppery wants to do this by enabling online stores to stock themselves with the range and variety of products that consumers are looking for. By combining intelligent commerce automation, dropshipping and collaboration, Droppery aims to make retailers more competitive. However, it doesn’t stop there. The Dutch startup also brings value to suppliers by focusing on high-end brands/suppliers and high-end retailers.
Eliminate the stigma
Droppery not only acts as a technical bridge between suppliers and resellers, but also eliminates the stigma associated with dropshipping. “We believe in suppliers and brands from Europe with reliable logistics, good quality and fair margins,” says Marco Mulder. “There are many, but not yet collected on a central platform and often not yet automated.”
Droppery sees an opportunity where a number of professional online stores want to work with vendors who want to do business with them. Marco says that these online stores have experience in the industry, understand the omnichannel strategy, have their own stock and some of them even have a physical store. With Droppery, Marco and a small team have built a platform that matches these online stores with expert vendors.
For businesses, dropshipping meant terrible quality, poor delivery times, and no guarantees. Mulder says 85% of dropshipping orders came from outside of Europe. Now that Droppery is focusing on active suppliers in Europe and building on dropshipping, businesses are gearing up to see the benefits.
This goal is clear when you look at the number of resellers available to a supplier on Droppery. The vendor can also decide whether or not they want to endorse a reseller, as there is a demand from vendors to do so.
An e-commerce experience
Founded in 2021 by Marco Mulder, Droppery is young but comes with experience and expertise in e-commerce. Mulder, Founder and CEO, and Cathelijne Mooren, CCO, have years of experience in online marketing and e-commerce.
During their years working in the e-commerce industry, they have had the opportunity to speak to a number of brands and online stores on a daily basis. They offered them help with data migrations and custom API projects. Mulder says he also noticed that “current dropshipping opportunities in the professional market are very limited and outdated, both for suppliers and resellers.”
He cites the use of CSV or XML files and a login portal as an option to complete dropshipping orders. They also felt that dropshipping as a model was not beneficial to suppliers.
Dropshipping, according to Mulder, creates a great opportunity for vendors to display and sell many of their products through their resellers. This contrasts with the wholesale trade where resellers work with a limitation in terms of budget and storage area. According to Mulder, this is an opportunity to transform dropshipping and they have done so by turning to suppliers.
Droppery now offers a fully automated dropshipping ecosystem with multiple integrations from different data sources. It connects suppliers and brands with a new channel of resellers to increase their sales in different countries. With a cross-border strategy, Droppery is active in 15 countries to optimize the supply chain. Droppery suppliers, brands and resellers have been in the business for years and focus on the high end of the market.
Solve the problem of manual processes
Before we even get into the problem that Droppery solved, it is important to note the challenges it overcame. With the proposition of connecting premium brands and suppliers to experienced retailers and online stores, Mulder says they faced the challenge of finding those customers initially.
They overcame this challenge by “finding the right partnerships, developing their needs and focusing on a small target group to create a domino effect”. The domino effect has allowed Droppery to now have a good portfolio of customers and to create more value with a strong network of resellers.
As a business, Mulder says he’s seen many companies struggling with manual processes. “Creating custom connections is expensive, time-consuming, and not scalable. Additionally, we also find that customers struggle to find the right connections that match their expectations, especially across borders, and we are working to address these issues with Droppery,” says Mulder.
Droppery solves some of these problems by offering integrations with any data source and the ability to connect an existing or new reseller in just five minutes. Since Droppery handles questions, businesses don’t have to worry about support. With a scalable sales channel and order information passed automatically to a supplier, Droppery ensures there are no mistakes.
Droppery is also designed as a plug and play infrastructure that can connect a store to different vendors in a single catalog. It eliminates manual CSV/XML files by offering all product data with translations, stock information and order data in a single overview.
“Dropshipping is now indispensable in the Benelux region,” says Marco Mulder. The Droppery founder also sees the market only growing in Europe in the coming years. However, to start, Mulder and Mooren did not raise any funds and funded the startup themselves.
The business model of the startup is an accessible license fee, both for the reseller and the supplier. Starting in Q1 2023, Mulder says they plan to implement two more solutions to make Droppery more scalable for their customers.
The team is aware that it will need to raise funds to expand internationally. If they raise additional funds, Droppery will use these funds to expand its development and expand the sales team in different regions.
Plans to disrupt e-commerce
One of the most surprising things about Droppery is that the startup is made up of only 5 people. However, armed with several freelancers, Droppery seeks to not only grow but also disrupt the e-commerce industry across Europe.
Droppery has set itself the goal of recruiting a sales team dedicated to the DACH region. The startup is also busy building a customer success team and investing in development. Marco says the goal is to grow the team from 5 to 15 to 25 people in 2023.
“We now have momentum with Droppery, it’s important for us to focus on Benelux and the DACH region and find opportunities in different markets,” says Mulder.
While Droppery is focused on building its team and product, it also aims to disrupt the industry by always staying “two steps ahead of its competition”. With the scalable solution in place, the startup is also looking to offer sustainable solutions.
The advantage of Droppery is that it basically competes with dropship-focused platforms, marketplace integrators, and 3PL providers. As a strong proponent of an omnichannel strategy, Droppery can work with market integrators and 3PL providers. With a different perspective and option to collaborate with these platforms, Droppery is in a unique place to offer value and services to businesses looking to grow their D2C channel.
Watch our interview with Paul Down, Head of Sales at Intigriti.