DHgate Launches MyyShop to Build Decentralized Ecosystem

(Source: Myyshop)

Due to uneven international trade, cross-border e-commerce trade has become an indispensable part of a win-win global inclusive growth model. According to China Customs’ data, in the first half of 2020, China’s overall trade in goods decreased by 3.2% year-on-year. However, cross-border e-commerce imports and exports have grown against the trend, export volumes via cross-border e-commerce platforms, under the oversight of customs authorities, increased by 28.7%.

The Chinese government has rolled out favorable policies to promote this industry at the national level, including the newly launched customs pilot districts for cross-border e-commerce business-to-business exports.

When cross-border trade is hindered by national border blockades and unavailability of logistics, DHgate, one of the leading B2B cross-border e-commerce marketplaces in China, officially launched MyyShop, a new Software-as-a-Service (SaaS) product for decentralized cross-border e-commerce, on Monday at the China World Summit Wing in Beijing.

For centralized e-commerce, the moment of its transaction is on e-commerce platforms such as Taobao and JD.com that have huge traffic. Based on this, they distribute traffic to platform merchants and charge fees (such as through trains, drill exhibitions, pit fees) and many more.

Decentralized e-commerce, however, needs merchants to attract traffic through their own operations. Centralized e-commerce platforms mostly rely on search and accurate recommendations to make purchases. Customers do not belong to a certain merchant but belong to the platform. Therefore, merchants must “retain customers.” In the decentralized consumption scenario, customers have more brand loyalty. They generally pay attention to the official account of the merchant and the merchant can do more refined customer maintenance.

Myyshop creates a unique decentralized ecosystem in global trade, to enable everyone to participate in international trade easily, the company said.

The decentralized e-commerce model is a consumer-centric ecosystem combining e-commerce infrastructure and multiple private domain channels, such as Facebook, Instagram, WhatsApp, TikTok, and offline stores.

MyyShop focuses on two businesses: online store creation and advanced dropship services for private domain traffic monetizers or social commerce influencers.

Those drop shippers have massive fans or groups, but they are newbies to e-commerce without relevant capabilities to monetize traffic. The biggest challenges for them lie in finding suitable products, arranging logistics, and providing after-sales services.

According to the company, MyyShop offers rapid website creation, strict supplier selection, AI-based product recommendations, smart finance, dropshipping, local delivery, full-channel logistics services, 24/7 customer support, and worry-free after-sales services.

Users can quickly build their online websites or seamlessly connect products on MyyShop to their existing stores on Shopify and eBay. When resellers receive orders from customers, they pay the wholesale cost, and sellers drop-ship orders directly to the customers. The AI-based product recommendation function can introduce more popular and higher profit goods for customers. Smart logistics can provide the most cost-effective logistics solution for customers.

With more resellers joining the dropshipping business, the global dropshipping market size is expected to reach $557.9 billion by 2025, recording a CAGR of 28.8% growth from 2020 to 2025, according to Grand View Research. With the increased penetration of e-commerce during the pandemic, decentralized e-commerce will record considerable growth in overseas markets.

According to data from the World Bank, the added value of China’s manufacturing industry accounted for 27.2% of annual GDP in 2019, second only to Ireland and Switzerland among the more than 200 countries in its statistics. Several high-quality industrial chain clusters have been formed in China, which can achieve “low price + fast response” through fast delivery and small batch production.

Diane Wang, founder and CEO of DHgate said, “We are excited to launch this product. MyyShop connects China’s powerful supply chain with global private domain traffic monetizers or influencers, helping overseas drop-shippers to serve their local customers. Such an ecosystem built with social networks connects every function of international trade, empowering every role of the supply chain.”

According to the PMI of various countries’ manufacturing industries, China’s supply chain showed a strong resilience during the pandemic and basically recovered in March.

Michael Liu, head of MyyShop, said one week after MyyShop went online, more than 6,000 users registered. He added that a large proportion of the existing users come from eBay and Shopify.

Wang added that DHgate has coverage in existing markets and global markets.

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“In the past, European and American countries had relatively complete e-commerce equipment, so they were also the first to be very active in cross-border countries. Relatively speaking, the proportion of customers in these countries is relatively high,” Wang said. “At present, the emerging market of cross-border e-commerce is growing fast in decentralization, because it is within the scope of large e-commerce. In the next few years, its contribution to the increase of e-commerce is 30% to 60%, so you can imagine that the momentum of decentralization in emerging markets will be stronger and faster.”