Adoption of the Dropshipping business model by merchants in Nueva Guinea

Abstract

In recent years, e-commerce has gained significant relevance, particularly since the COVID-19 pandemic, which has spurred the emergence of new business models, such as Dropshipping. This study analyzed its adoption by merchants in Nueva Guinea during the second quarter of 2024. Through surveys and a focus group, the practices, tools, strategies, challenges, and opportunities associated with this model were identified, revealing a gap between practice and the theoretical knowledge of the model, acquired through practical experience. The motivation for its adoption stemmed from third-party recommendations, the model's growth potential, and the low initial investment. Merchants use platforms like Shein, Amazon, and Temu as suppliers, and they also enhance their reach through digital marketing on WhatsApp, Facebook, and TikTok, managing their operations with physical records and tools like Excel. However, they face challenges such as losses due to long delivery times, decreased sales, and irresponsible customers.

A key feature is the use of hybrid dropshipping, which combines the traditional flexibility of dropshipping and self-warehousing with direct-to-customer shipping, reducing delivery times and improving logistical control. This research provides extensive information on how New Guinea merchants have adopted dropshipping. Ongoing training and technological adaptation emerge as key factors for success in this increasingly competitive market.