DropMakers

Project summary

1. INVESTMENT REQUIREMENTS

Amount required: 15000 $ -400000 $

Desired financing type: equity participation / loan

Intended use: for promotion, development of additional software, for the creation of additional jobs

2. COMPANY DESCRIPTION

Brief information about the company / about the project and history of development:

DropMakers is a professional solution for automatic dropshipping (this is a direct delivery of goods from a supplier to a buyer, in which the seller (intermediary) does not store goods in his warehouse, or does without it at all. Goods are sent to the customer directly from the warehouse of the manufacturer, supplier, wholesaler or distributor) and flipping (selling and buying goods on the same trading platform, basically they work on this system for Amazon). Work on the project began in October 2020, during this time about 80% was developed, the release of a working prototype is planned for the end of 2021.

Industry: IT / SaaS / B2B

Location: Kyrgyzstan, Bishkek

Date of foundation / registration: date of foundation October 2020

Type of ownership: ----------

Constituent documents: ----------

Additional Information: ----------

3. TEAM

Information about all founders (education / experience / expertise), the number and roles of other employees: Karabay Chyngys Marat uulu - CEO, Co-Founder

2011-present - CEO of LLC "Hight Level of Service" Cleaning company "BLESK"

2017-2019 Dropshipping Amazon

Achekeev Ilyas Talantovich- CTO, Co-Founder

Python / Django, Golang Backend Developer

IT, Internet, Telecom

• Software Development

• CRM Systems

• Web Engineer

Bolotbekov Taalay Bolotbekovich

Backend Developer

Python, Django Rest Framework, Postgresql, Docker, External API integrations.

Myrzabekov Amangeldi

Frontend Developer

CSS • Scss • Sass • JavaScript • ReactJS • Redux • Node.js • Docker

Artykbaev Erlan Doolotbekovich

Frontend Developer

Vim, scss, JavaScript, react redux, HTML, docker, Java, Nginx, Git, Figma, firebase, reactjs

5. CLIENTS & MARKET & COMPETITORS

Please show me the calculation of the market for your service, is it growing? Include growth rates in%. Do not forget that in order for it to be more accurate, the calculation must be done both "from above" and "from below". You should also include a competitor analysis and detail your competitive advantage:

Market

The global dropshipping market is constantly growing, as data from the global market research platform grandviewresearch.com show, with a compound CAGR of 28.8% through 2025.

According to the same source, the global actual market size is $ 149.9 billion (as of 2020). And by 2025, the actual market size will be $ 557.9 billion.

Sales through the dropshipping model on amazon.com are 34%, which is $ 95.37 billion in monetary terms for 2020.

If we theoretically apply the dropshipping market's CAGR to our actual market size on amazon.com, the figure is $ 338.06 billion by 2025.

Average annual growth rate 28.80%

Year 2020 2021 2022 2023 2024 2025

Sales volume 95.37 122.84 158.21 203.78 262.47 338.06

Clients

The number of online shoppers is growing rapidly, which leads to the growth of our customers (dropshippers). As of 2021, the number of online shoppers is 2.14 billion.

For 2020, 27% of online merchants operate through the dropshipping model worldwide. The amazon.com platform accounts for over 2.5 million third-party sellers (50% of the total). Of these, 34% are dropshippers, which is 850 thousand sellers. On average, 3,718 new sellers register on amazon.com every day.

Our customers are dropshipping sellers on the amazon.com platform. The main target of our clients is dropshippers from the CIS countries, which make up about 20% of the global amount on amazon.com. It turns out 170 thousand dropshippers - our available market.

Competitors

Since our main customer target is CIS dropshippers on amazon.com, we will not consider other dropshipping automation services.

There are 3 main players in the market: Asinspotlight, Dropkit, InventorySource.

Competitor Advantages Weaknesses

Asinspotligh - Lowest price by market - $ 28;

- The most detailed display of search results due to the detailing of search filters. - Weak functionality, mainly used as a search engine for SKU and suppliers;

- A complex interface that requires knowledge of IT;

- there is no mobile version of the site;

- no flipping.

Dropkit - The most complete functionality among competitors;

- Lots of trading platforms (amazon, ebay, walmart); - High prices that come from the amount of profit received (from 5% to 10% commission);

- Unstable operation of servers, which greatly affects customer satisfaction;

- A complex interface that requires knowledge of IT;

- there is no mobile version of the site;

- no flipping.

InventorySource The largest number of trading platforms (12 platforms) - no Russian localization

- weak functionality

- high price for using the service (199 US dollars per month);

- A complex interface that requires knowledge of IT;

- there is no mobile version of the site;

- no flipping.

Our way to find the uniqueness of the product - focusing on the weaknesses of competitors in terms of functionality and price - to offer an optimal set that will include all the advantages of competitors and solve the client's key problems in the work.

Our advantages:

- Pricing: stable price - $ 70 per month for all functionality offered by competitors (competitors offer differentiated rates based on feature set).

- Simplicity and ease of use of the service, which does not require programming knowledge;

- Availability of convenient adaptation for mobile gadgets;

- The most complete set of functions.

- The main advantage is the function of the flipping working method.

6. BUSINESS MODEL

Description of cash flows, unit economics, pricing and payment systems:

Unit economics, pricing and fees are set out in the Pricing section of Section 7 Marketing & Sales.

7. MARKETING & SALES

Description of marketing and sales strategy:

Marketing functional strategy according to the 7P model (product, price, place, promotion, personnel, process, physical environment).

Product

Product structure

1. Main product: Automation of dropshipping and flipping on amazon.com, ebay.com platforms.

2. Actual product

Brand - Dropmakers

Additional functionality:

- Maximum total amount of inventory for monitoring

- Work with multiple Amazon and eBay accounts at the same time

- Automatic confirmation of sending and tracking monitoring

- Monitor, manage and send emails to Amazon customers

- Detailed statistics on Amazon inventory and traffic

- Convenient and easy import / export of inventory

- General and own blacklists of brands and sellers

- Limited access for employees (search, inventory, orders)

Product packaging:

- selling landing page

- commercial offers

- presentation kit of the product

- advertising banners, texts for targeted and contextual advertising

3. Advanced product

- 24/7 customer support;

- A wide range of payment systems (paypal, VISA, MasterCard, Payoneer);

- Strict confidentiality of user data;

- Recalculation of the tariff in cases of technical problems with our service.

4. Potential product:

- inclusion of additional trading platforms such as aliexpress, shopify, wildberries;

- new function: analytics of sales, expenses, profits, sales trends, customer interests;

- connection of functions for working with online arbitration and private label;

- opening an online school for teaching dropshipping and flipping.

The product launch strategy is closely related to the third P, so it will be described in the “Location” section.

Price

Our pricing strategy consists of 3 stages:

1. Freemium - free two-week access to the service so that the client can appreciate all the benefits of the product. At the same time, the client is aware of the standard billing of $ 70 per month.

2. At the end of the free period, we switch to the penetrating price strategy by offering the client a promotional campaign limited in time. Price $