[FW Radar] Dropy wants to transform e-commerce sites into a marketplace
Launched in June 2016 by Antoine Dematté, Dropy offers e-merchants to turn their merchant site into a marketplace.
More details with Antoine Dematté, founder of Dropy.
FrenchWeb: What needs does your service meet?
Antoine Dematté, founder of Dropy: At Dropy we are convinced that e-commerce is undergoing one of its most profound transformations. Marketplaces impose themselves with their model without stock and have brought with them a certain number of problems (loss of customer confidence, tax complications, suppliers exploited). The solutions to transform your site into a marketplace today are complex, expensive, cumbersome to operate and above all provide no added value other than the technical tool (no integrated sellers or additional services).
Badly managed, these solutions are sometimes the reason for great successes in e-commerce such as Rueducommerce, Pixmania or more recently Menlook.
It is therefore to this problem that we are responding with Dropy, the first new generation marketplace engine.
What is your value proposition?
Dropy transforms high visibility e-commerce sites into a new kind of marketplace. The technical integration is much lighter than the competition because Dropy only sends product feeds and receives order feeds which are then sent to suppliers. The difference with the current solutions is that there is an act of buying and selling the products supplied via our tool, which makes it possible to be exempted from the regulations on marketplaces (money management on behalf of third party – ACPR approval) and to offer only one offer per product instead of several, which reassures the customer. We have pooled the technology of the marketplace in a Cloud and thus achieve economies of scale. Instead of deploying cumbersome solutions on our customers’ sites, we are devoting our resources to finding and integrating new suppliers to Dropy, whose catalogs are then salable on each e-commerce site transformed into this new kind of place. Steps.
Who are the users of your solutions?
We have several types of users:
Curious people who try their hand at e-commerce because our basic offer is free and limited in quantity of products marketable on its site.
Suppliers (wholesalers, brands, traditional traders, e-traders, manufacturers, etc.) who seek to increase their sales through e-commerce. It is sometimes a new lever for them and again, the use is free.
Brands that work in “manual” Drop Shipping and want to automate flows / invoicing.
E-commerce sites or brands with a strong identity looking to launch their marketplace / diversify their catalog, which is our main target.
What is your development plan?
After 1.5 years of R&D and six months of closed beta with a few dozen players, we officially opened our platform last January. We brought together 700 players and more than 400,000 products in a few months, exceeding our initial objectives. We are targeting 1,000 players by the end of the year and 1 million products. We devote our efforts to looking for quality suppliers at the highest level in the chain to benefit from the best margins and high visibility / high potential e-merchants to accelerate their development.
With feedback from our customers, we develop our product with each major production launch. We have set up prospecting services on behalf of our merchants and after-sales service management.
We do not communicate on the growth of the company, this is confidential because in development and in preparation for fundraising.
We are targeting the European market initially by the end of 2018.
What are your challenges?
We were targeting high visibility e-merchants who want to transform into a new kind of marketplace in order to increase their product offering and test new markets. Marketplaces are booming according to the latest FEVAD report, since they represent nearly 20% of turnover for a partner merchant and nearly 40% of e-commerce in France.
Who are your competitors?
Strictly speaking, we have no equivalent since we are the first to embark on this new form of marketplace. However, there are two types of competitors: marketplace engines like Mirakl or Izberg which are a technical solution to be plugged into an existing e-commerce site (generally expensive and time-consuming integration). It is then up to the e-merchant to build up its base of sellers and therefore of products. “Drop-shippers” like BigBuy, Doba or Modalyst, which are warehouses which group together products and which offer to distribute their products to thousands of e-commerce sites. Most of the products from these brands are often low-end oriented and the follow-up leaves something to be desired. At Dropy, we have brought together the best of both worlds by offering a lightweight technical solution that is quick to deploy, products in our cloud and quality suppliers.
Founder: Antoine Dematté
Creation date : August 2010, product launched in June 2016
Fundraising : 1 million euros from private funds and BPI
Seat : Paris