The ecommerce industry is one of the few sectors unscathed by the ravaging coronavirus pandemic. A significant shift in consumer culture and the growing appeal of online shopping have had a positive global impact so much so that cross-border ecommerce surged by 82% in 2020. What this means is that more consumers are taking to online shopping amid the growing uncertainties that come with health crisis-induced economic woes.
The growing appeal of online retail services is indicative of the pressure put on manufacturers, wholesalers, and retailers to suddenly meet the ever-expanding requirements for running online stores. Those who are yet to invest in their online channels at the peak of the coronavirus crisis had found it a lot harder to weather the economic effects on brick-and-mortar stores. In contrast, those with functioning online shopping outlets fared better. A survey revealed that 38% 0f established 100 ecommerce players across Europe and North America reported an increase in online profit margin during the lockdown.
It is worth noting that this ecommerce trend has had a direct impact on dropshipping. Dropshippers are leveraging the surge in online shopping and attracting significant traffic. The changing consumer behavior is favoring this ecommerce sector because these businesses directly interact with consumers and reduce the mounting pressure on retailers, manufacturers, or wholesalers. Hence, it comes as no surprise that this market segment is expected to reach US$ 591.77 billion by 2027. However, this venture does come with its own set of unique challenges, as exemplified by the resource and experience required to maintain an above par customer-centric retail service.
To become a profitable dropshipper, you have to understand the current market dynamics and integrate the appropriate systems. One of the individuals that have grasped this fundamental truth is Can Tayfun Mandir, a 20-year-old entrepreneur based in Hannover. Can Mandir has built a successful dropshipping venture from the bottom up, and he has rightly positioned himself to capitalize on the ongoing ecommerce boost. Mandir is aware that online retail has evolved from a convenience-inspired shopping experience to a necessity. And so, he has put in place the resources needed to demystify consumer behavior and get the most out of an explosive market segment.
In a recent interview with Can Mandir, he shared that dropshipping is a less risky ecommerce venture since dropshippers do not have to stock products in warehouses. Regardless, it is imperative to set up the appropriate strategy to establish a sustainable business. Most of the factors that determine the profitability of a dropshipping business boil down to customer services, marketing, and shipping. Below are more excerpts from the interview.
How did you discover the ecommerce landscape?
What is your take on the performance of the ecommerce sector in the past year?
Do you think that online shopping will still retain its current appeal in a post-pandemic era?
What are the requirements for setting up a dropshipping venture from scratch?
What are the major barriers to running a successful dropshipping business?
Considering that new shipping policies are being enacted by different regions as coronavirus measures, how can dropshippers track these regulations and ensure that they comply?
As a dropshipper, you interact with consumers frequently. How do you think the pandemic has changed consumer behavior?
What are the technologies that an average dropshipper can use to gauge the alterations in consumer behavior?
What other integrations will you advise dropshippers to implement for optimum operation?SHOP
Speaking of technologies, what is your take on cryptocurrency in the ecommerce sector? Why is it harder than imagined for digital assets to become a prominent component of this market?
Tesla (NASDAQ:TSLA) revealed recently that it plans to accept Bitcoin in the future. Does this exemplify the growing demand for digital asset payment channels in the ecommerce scene?
Do you see more ecommerce and dropshipping players accepting crypto as a payment method soon?
Considering that you are a young businessman with a high tendency of adopting unconventional methods of doing business, do you think that your age had a major impact on your current outlook on cryptocurrency?
How has the bull market changed the way people approach crypto payment or the technology itself?
What are your projections for the ecommerce market, particularly the dropshipping subsector?