THE FAST-PACED CROSS-BORDER E-COMMERCE INDUSTRY

Darlene Zammit sits down with Simon de Raadt, VP Business Development Europe of HyperSKU, winners of the AGS Pitch 2021, to talk about the landscape of cross-border e-Commerce, their buisness model and offerings, and the predictions of 2022, among other topics.

“WHILST THE ENTRY BAR IS LOW, THE COMPETITION IS FIERCER THAN EVER.”

What is the e-Commerce dropshipping business model? What are its benefits and risks?

Dropshipping describes an online store that doesn't necessarily keep stock. The store owner purchases the products from a third-party supplier when receiving orders from shoppers, and the supplier ships the products directly to the end consumers. Dropshipping stores can be the first step to creating a DTC brand.

It requires minimum capital to kickstart, and anyone with an entrepreneurship heart can tap into the eCommerce world. Whilst the entry bar is low, the competition is fiercer than ever. COVID-19 and language barriers made it difficult for dropshippers to connect with the supply chain and efficiently manage the business.

Cross-border e-Commerce has given rise to huge opportunities for the global economy which in turn influences all countries and jurisdictions. How do you see the current landscape of crossborder e-Commerce? How do you envisage it?

Cross-border e-Commerce has given global consumers access to more choices and better prices when shopping online. This is because the merchants are able to respond to demands, trends, changes, and opportunities faster. COVID-19 is pushing everyone to adapt to online shopping.

We predict that e-commerce will be everyone’s next normal, embedded with rich formats, from social shopping, live streaming commerce, to AR shopping.

ةرباعلا ةينورتكللإا ةراجتلا ترفو

لود ةفاك نم ءلامعلل دنع لضفأ راعسأو رثكأ تارايخل لوصولا ةردق لضفب اذهو .تنرتنلإا ىلع قوستلا تاهجوتلاو تابلطلل ةباجتسلاا our typical users are e-commerce sellers, from dropshippers to brand owners. A typical persona would be someone who is in the early 20s or 30s, lives in Dubai as an expat, manages a team remotely, purchases products from Chinese factories, and sells them to US consumers.

What is HyperSKU and how does it work? What is your business model and what are your offerings?

HyperSKU provides streamlined sourcing and hyper-efficient shipping for eCommerce sellers. With first-hand access direct to suppliers and the infrastructure of a well-developed reliable global delivery system, eCommerce sellers can improve sales performance and margin across its full ecosystem.

Dropshippers and DTC sellers can get everything done in an automated online system, from sourcing, customisation, purchasing, fulfillment to shipping, and inventory management.

Who is your typical user? What importance do you give to building synergy with your users?

Sellers who work with HyperSKU claim to see significant cost drop, margin improvement, and better work-life balance in one month.

What new concepts do you bring to the dropshipping business? What unique advantages do you bring to the industry?

The so-called last generation dropshipping fulfillment suppliers are efficiency softwares or ERPs, while the complicated part of dropshipping remains invisible and hidden. The seller or the service provider has no control over the supply chain and logistics, resulting in customer complaints and store suspension.

We are among the first to bring offline operations to a REAL online experience. Everything is trackable and simplified.

What can you tell us about your tracking system and backend API?

Our API allows us to work with any compatible marketplaces, platforms, 3PLs, and service providers in the ecosystem. Our clients can access the best resources in the industry to support their business.

What happens from purchase to delivery?

Our system connects suppliers, warehouses, and 3PLs (thirdparty logistics). Once an order is placed, all parties involved work seamlessly and sellers can track everything from one stop.

We were told by sellers that they used to work with partners that are semi or completely manual, which ended up in low efficiency and piles of errors. That’s the least cool thing for any online business!

What is your next step and what is your growth plan?

We want to be the infrastructure that empowers young and talented entrepreneurs to succeed in their businesses. We plan to build a stronger overseas presence tap into emerging markets such as LATAM, integrate with more SaaS platforms, and connect with more service providers in the ecosystem.

I also want to point out that live-streaming e-commerce will be a megatrend in the upcoming years, and HyperSKU keeps a close eye on Kwai’s and TikTok’s moves.

What are your predictions for 2022?

The cross-border e-commerce industry evolves so fast and on such a large scale.

Facebook’s dominance of contributing traffic to webshops will be challenged. More and more sellers are going to omni-channels. Marketplace sellers start their own webshops and expand across GEOs. Additionally, DTC brands will become mainstream. To win the competition, online sellers must get their homework done and bring true value to consumers. Building a brand is fundamental.