Marketplace Sellers Flock to B2B Platform to Cash-In on Side Hustle Economy
24 MAY 2023
MELBOURNE, AUSTRALIA – B2B ecommerce has stepped up to the mark, driven by a trend towards dropshipping as more Aussies start side hustles to beat the cost of living crunch.
Dropshipzone, which is unique in the Australian market, currently has more than 180 suppliers and 1,000 active retailers, as defined by the number transacting each month.
While Dropshipzone has operated since 2012, it transformed to become a B2B2C marketplace in September 2022.
In 2023, Dropshipzone is an online marketplace connecting thousands of Australian retailers and suppliers.
Among those names include Edisons, Klika and Sanity, which recently transitioned to a pure-play online seller after closing its brick-and-mortar stores.
The appetite for B2B ecommerce is strong. Despite the lingering effects of COVID-19, inflation, supply chain disruption and a labour shortage, Dropshipzone grew Supplier gross transaction value (GTV) by 280 per cent quarter on quarter to March 2023.
This is despite a general slowdown in ecommerce.
In April 2022, McKinsey forecasted that online sales would account for 31 per cent of total B2B sales by 2024, up from 20 per cent.
According to John Barkle, General Manager of Dropshipzone, B2B ecommerce is coursing a different trajectory as more Aussies look to diversify their income streams and suppliers increasingly focus on expanding their channel coverage at a lower cost.
“From the highly scaled marketplace sellers to the big brands such as Sanity, we are finding that our Suppliers want to discover new sales channels without spending all their efforts on sales and marketing,” said Barkle.
“Even as we move through a challenging economic environment, B2B ecommerce will continue to grow in 2023.”
Dropshipzone works both sides, providing Aussie suppliers with a marketplace for their products, while offering Aussie retailers the products they want. The retailer only buys the product once their customer purchases from their online store.
With the rising cost of shipping, warehousing and labor, dropshipping is a particularly attractive business model for emerging retailers, who no longer have to hold the product to sell the product.
“Retailers are responding to supply chain challenges by rethinking single-sourcing and how much inventory they keep on hand,” said Barkle.
“Retailers want the same enjoyable shopping experiences they enjoy in their personal lives for their own online stores.”
Barkle said Dropshipzone provides the technology and tools to help suppliers and retailers build smart online businesses.
“Our mission is to ‘Make Ship Happen’, inspiring Aussies to build the next generation of smart online businesses profitably.
“In this environment, profitability is what is most important,” said Barkle.
“B2B platforms like ours need to be as equally focused on the user experience as B2C, providing robust search and discovery functionality, delivering personalised experiences, and seamlessly moving customers through their journeys.
“We’re proud to be building a collaborative platform that benefits suppliers and retailers, delivering the technology, tools and products that Aussie suppliers and retailers need to thrive.”
ENDS
ABOUT DROPSHIPZONE
Dropshipzone is Australia’s leading B2B2C marketplace. Since 2012, Dropshipzone has been helping Aussie businesses start and scale with ecommerce. Launched by entrepreneurs for entrepreneurs, Dropshipzone has created an ecosystem that connects Aussie suppliers, retailers and customers.
