π¦ Your Weekly Pitch: Dropshipping delivers weirdness on demand
The seemingly convenient business model exploits online marketplaces like Etsy and Depop
Written by @KateMRedd, a journalist and extremely picky Etsy shopper
A 5 minute read
THE LEDE
For the last few months, weβve all been locked in our own private debates: which of our pandemic habits will we keep? Which will we shed?
Online shopping is firmly here to stay. Not just on Amazon, but on sites like Etsy and Depop, which mimic the experience of a local handmade boutique or upscale thrift store without the hassle of going.
But are the sellers behind the screen really handcrafting those items, or selecting them from a donation pile? Are they packaging them into envelopes and scrawling down your address?
Or is there another method that gets all the goodwill of a handmade or secondhand purchase⦠without being either?
BEST PITCH TEASER
The Guiding Question:
Is dropshippingβan easy eCommerce fulfillment method that embraces the role of the middlemanβmore than just a convenient business model for online sellers?
The Answer:
Itβs certainly more than a business model, with implications for a whole host of different sites, marketplaces, and micro-economies.
You probably already know what dropshipping isβ¦
Even if you didnβt know it had a name. Letβs see how Shopify, the eCommerce giant, defines the practice:
βDropshipping is a retail fulfillment method where a store doesnβt keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer. As a result, the seller doesnβt have to handle the product directly.β
Shopify and Amazon both embrace the practice, with information available for entrepreneurs who are interested in starting up a dropshipping business, typically powered by inexpensive products from websites like Aliexpress.
In fact, search βdropshippingβ on Google or YouTube to see just how popular the practice isβitβs pushed as a get-rich-quick, work-from-home hustle by entrepreneurs and companies like eCom Babes, an online course aimed at teaching women to start successful online boutiques using dropshipping.
While dropshipping isnβt inherently a shady practice, especially if you avoid the ethical and environmental concerns of dirt-cheap retailers like Aliexpressβ¦ but itβs getting undeniably weird.
Whatβs so weird about dropshipping?
Start by reading Wiredβs breakdown, which couldnβt do a better job addressing the hustle-culture-slash-entrepreneurship aspect: βdigital nomadsβ selling cheap productsβbut also their own βwisdomβ via online coursesβthat theyβll never put hands on. βThrowing junk at the internet and seeing what sticks,β as Wired puts it.
But where dropshipping starts to get questionable is when itβs not disclosedβwhen consumers think theyβre getting something handmade, sustainable, or authentic, not a third-party product that the seller doesnβt even see.
Take, for example, Etsy: the online marketplace for all things handmade which, notably, does not have a publicly posted βhow to dropshipβ policy like Amazon and Shopify. Customers turn to Etsy for all kinds of thingsβincluding a bonkers array of banned items, though thatβs a separate storyβand all of them are, as suggested by Etsyβs branding, advertising, and historyβhandmade or hand-customized.
Etsy has thrived during the pandemic, benefitting from the outpouring of support and encouragement for small, local businesses. So has Depop, the popular secondhand resale app, which scratched the secondhand-shopping itch for many consumers during lockdowns. Depop is one platform where the thrift-shopping economy has boomed, fueled by none other than Gen Z, trendsetters extraordinaire.
We already know that dropshippers have infiltrated Depop, using the appβs secondhand and thrift clothing economy to disguise new, cheaply, and often unethically made clothing as secondhand clothing. Depop specifically doesnβt allow dropshipped items, but the issue persists.
This exploits Depopβs small sellers, but also its consumer base, who are likely to be seeking out secondhand clothing for its environmental and ethical benefits.
To read more about the ethical fashion industry, check out this pitch from May.
News Peg
Etsy acquired Depop for 1.6 billion dollars earlier this month, securing what they call βthe resale home for Gen Z customersβ and capitalizing on the booming secondhand economy. With both platforms under one management, they have the potential to crack down on dropshippersβor else potentially become more vulnerable to them.
Why this story is worth pursuing
The pandemic blew eCommerce and online retail sky-high, and the convenience isnβt going away anytime soon. But it also raised visibility and popularity of small, local businessesβnot to mention woman-, Black-, and Asian-owned businesses, to name a few.
When dropshippers exploit the popularity of those small, handmade businesses, they do real damage to the reputations of creators using online marketplaces to make a living, the consumers looking to make purchases with purpose, and the goodwill of those platforms as a whole.
What we donβt have answers to
Getting the numbers on dropshippers on Etsy and Depop can be tricky, since theyβre unlikely to be disclosing that they are, in fact, not handmade or thrifted. While we all know to take disgruntled online reviewers with a grain of salt, the reviews can be a great place to see the experiences consumers have had with a seller.
A comment from Etsy regarding their dropshipping policy would be great here, too. This community post is a starting point, but itβs just user discussion, and their seller policy doesnβt mention anything using the keyword βdropshipping.β This is just a pitch, but take the time to do some digging on Etsyβs seeming avoidance of the issue.
Diverse sources worth interviewing
Like Wiredβs story, talking to an entrepreneur whoβs made money from dropshippingβespecially if theyβre willing to talk about doing it on Etsy and/or Depopβis a great peek behind the curtain. You shouldnβt have to dig too hard, since there are plenty of folks who want to tell someone how to make money this way. Iβll suggest eCom Babes again here, since theyβre female-founded-and-focused; a rarity in the world of digital entrepreneurs.
Jill Simeone, Etsyβs Chief Legal Officer, would be the top-level insight into the companyβs policies, language, and attitude surrounding dropshipping. Jessica Doyle, their Vice President of Global Communications and Engagement Marketing could likely speak to the potential damages of dropshipping to PR and goodwill, too.
PUBLICATIONS TO PITCH TO
The Cut covers all aspects of style and shopping.
The Verge is Voxβs tech and culture verticalβdropshipping and eCommerce fall right on that midpoint.
Slate adores the business and weirdness of the internet in long-form analysis.
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