Dropshipping Implementation of Online Shop Moslem Fashion Product Based on Syariah Marketing Characteristics in Surabaya

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1 Dropshipping Implementation of Online Shop Moslem Fashion Product Based on Syariah Marketing Characteristics in Surabaya Praskidila Tri Cahyaningsari * and Achsania Hendratmi** Internet marketing also can be defined as direct marketing. One of the parts of retailing without having a store is online shopping, where the selling process happens through online. The existing activity in online shopping is a dropshipping. Dropshipping is an online selling system without any investment, where the supplier will send the orders for the buyer in the name of the reseller. Because marketing is an essential function for a company to keep up the work of their business, syariah marketing has its own role of whole marketing. In this case, the characteristics of syariah marketing (theistic, ethical, realistic and humanist) are used as a guide for Moslem marketers. This research aims to determine Dropshipping Implementation Of Online Shop Moslem Fashion Product Based On Syariah Marketing Characteristics In Surabaya. This research used qualitative approach with case study strategy. The data is collected by using the questions asked method, the data is gained by concluding the interview results with the supplier, reseller, and the buyers. The result of the research shows that there are still some implementation of marketing combination on dropshipping activity that has not yet fulfilled the characteristics of syariah marketing, which are: products (not displaying the real products, they only use catalogue photos that results an asymmetrical information), promotion (a lot of spams are made), people (the given service is not maximal), process (not concerning in the agreement made between the supplier and reseller, therefore the most recent information is hard to get). Keywords: Marketing, Direct Marketing, Retailer, Non Store Retailer, Syariah Marketing Characteristics, Wakalah, Salam, Online Shop, Dropshipping I. Introduction Marketing is very fundamental for companies to maintain their business. Marketing is a business process that is used to plan products, determine price, promotion, and distribute goods and services that could satisfy customers need (Kotler and Amstrong, 2012:328) Sets of marketing tool that used by companies to produce good response is called as marketing mix; the first is product (anything that is offered to satisfy customers need), the second is price (everything that attached to the products), the third is promotion (instrument to persuade customers), the fourth is place (choose and maintain to distribute goods or services), the fifth is people (customers satisfaction is on the employee), the sixth is physical evidence (thing that influence customers decision to buy the products), the seventh is process (where customers receive services from the employee) (Kotler, 2012:92) *Undergraduate Student of Islamic Economy Faculty of Economy and Business - Universitas Airlangga. misspraskidila.cahya@gmail.com **Department of Syariah Economy Faculty of Economy and Business - Universitas Airlangga. nia_rachmadi@yahoo.com 1

2 Syariah marketing is marketing begins with creation process, supply, and value changing, cannot be contradict with agreement and principal of muamalah. There are 4 characteristics of marketing: theistic which believe the existence of Allah SWT; ethical which puts morals in the front; realistic which puts honesty and religion values in the front; humanist which is a human who do not grant all manners to gain profits (Kartajaya and Sula, 2006:28) Meanwhile, to gain the goal of marketing, marketing mix is needed in syariah perspective which is product (Islam arranges allowed and unallowed products to be sold), price (determine the price that wouldn t harm other competitors), promotion (based on Islamic rules), place (based on market target), people (developing human resources in order to match their field), physical evidence (provide good media), process (arranging speed and ease of services) (Peattie, 1997:148). Trading in recent trend has changed from physical to virtual or e-commerce. E- commerce is a modern trading transaction by using innovation of technology (Baum in Purbo, 2000:2). E-commerce cannot be separated from e-marketing, because without e-marketing, trading process will not or cannot be happened. E-marketing is companies effort to inform, communicate, promote, and market goods and services through internet (Kotler, 2010:72). Marketing through internet is called as direct marketing, which means marketing that get direct response from customers. Direct marketing is part of retail (Berman and Evan, 2012:3). Retail is splitted in to three: retailer, non-store retailer, and retail organization. One of the parts of non-store retailer is electronic retailer where retailer communicates with customers by offering goods and services through internet. (Levy and Weitz, 2007:39). Trading over internet is called as online shopping (Ollie, 2008:35). One of the online shopping activities is dropshipping. Dropshipping is a selling process that conducted by reseller by using photos from supplier. After customers pay to reseller, reseller will pay to supplier. After that, orders will be delivered to customers by supplier on behalf of reseller name (Baskoro, 2011:7). Handed business trading to other people that could substitute his or her roles according to QS.Al-Baqarah (2):282 (Amrin, 2010:25). Characteristic of syariah marketing in online is very important for these fields: theistic in business is a devotion to Allah SWT (Shihab, 2000:393)., communication through internet so, etiquette is the spotlight. is delivering his or her wares condition in proper language (Ahmad, 2006:157). Humanist makes relations between company and customer ((Martin, et.al, 2005:194). 2

3 But, there are still many dishonesties found in dropshipping activity, many of them are: supplier delivers the orders using cheaper courier; long time Pre Order products make reseller lost their customers; lateness delivery time. Based on explanation above, so writers decided to do research on Dropshipping Implementation of Online Shop Moslem Fashion Products Based On Syariah Marketing Characteristics in Surabaya II. Theoretical Base A. Marketing A social process where person and community gets what they need by creating, offering, and freely trading goods and services that have value with other people (Kotler and Amstrong, 2012:28). B. Syariah Marketing A business discipline that lead to process of creation, offer, and value changing from one initiator to her or his stakeholder, in the whole process based on agreement and muamalah principal in Islam (Kartajaya and Sula, 2006:26). C. Marketing Mix in Syariah Perspective 1. Product: in Islam, products must be halal, have product clarity, and use good material (Muflih, 2006:331). 2. Price: price determination is based on products condition (Amrin, 2010:30). 3. Promotion: it must be honest and forbid to sell haram products (Lupiyoadi, 2001:108). 4. Place: it has to fit with marketing target so it would be effective and efficient (Yusanto and Widjajakusuma, 2002:170). 5. People: developing human resources to match their best field (Lupiyoadi, 2001:108) 6. Physical Evidence: supplying good media to make human want to work (Lupiyoadi, 2001:110) 7. Process: Islam arranges speed and easeness of service process (Labib and Muhtadin, 1993:172). D. Characteristics of Syariah Marketing There are 4 characteristics that can be guidance for marketer according to Kartajaya dan Sula (2006:28): 3

4 1. Theistic (rabbaniyyah), that Allah SWT always watches every activity and business is part of devotion to Allah SWT (Fauroni in Shihab, 2000:393), so business is not only a matter of gaining lots of profits, but also future oriented. 2. (akhlaqiyyah), put morality and etiquette on top of everything. Etiquette in communication over internet is important to buyer (Ahmad, 2006:254). Price determination and payment method as well as fee, process to gather commodity and determine profit so party can make a deal (Beekun, 2000: 28). 3. (al-waqi iyyah), put honesty and religion value based on Prophet Muhammad SAW lesson by telling real condition of products (Ahmad, 2006:157). 4. Humanist (insaniyyah) uses good manners to gain profit. Relation between company and customer gains from giving satisfaction personally (Martin, et.al, 2005:194). E. Online Shopping Interactive and real-time process where customers buy goods, services, etc., from one seller without any agent over internet (Halim, 2010:4). F. Dropshipping A system where seller (reseller) sell products from supplier (dropshipper) to customer, that directly delivered to customer on behalf of reseller (Melashkov, 2009:149). G. Dropshipping in Fiqh Muamalah Dropshipping trading is also called as wakalah where someone (products owner) handed her or his trading business to other people, so that seller can substitute her or his business roles (Mas adi, 2002:143). The theory is on QS.Al-Kahfi (18):19. H. Trading in Islam Property exchange based on each other willingness or moving ownership based on valid reward, is on QS.An-Nisa (4):29 (Musthafa, 2003:137). I. Wakalah Agreement Antonio (2001:120), wakalah is delegation of authority by someone to others in term of things that can be represented. The theory is on QS.Al-Baqarah (2):283. J. Salam Agreement Determines characteristics by paying the price first, then the products will be handed soon (Hasan, 2004:143). The theory is on QS.Al-Baqarah (2):282. 4

5 K. Khiyar 2011:83). Choose to continue trading agreement or to cancel (take back, no trade) (Suhendi, L. Proposition Marketing mix implementation in Moslem fashion product dropshipping activity must be based on syariah marketing. M. Theoretical Thinking Business Syariah Business Marketing Syariah Marketing Trading Agreement: 1. Wakalah Agreement 2. Salam Agreement Pemasaran Syariah E-Marketing Online Shop Dropshipping Characteristics of Syariah Marketing: 1. Theistic Humanist Dropshipping Implementation of Online Shop Moslem Fashion Product Based on Syariah Marketing Characteristics in Surabaya Details : Examined Unexamined III. METHOD RESEARCH A. Research Approach This research used qualitative approach. Qualitative research is research procedure that produces descriptive data as utterance or writing and people behavior that being inspected (Bogdan and Biklen, 1992:21). This research used descriptive case study strategy. Case study fits for how or why questions, and researchers directly involved in the research, 5

6 and the focus of this research is at contemporary phenomenon (today) in the context of real life, multi-source exist, and there is proportion inside. The goal of this descriptive research is to make description, illustration or systematic picture, fact and accuracy about facts, characteristics and relations between inspected phenomena (Yin, 2009:4). B. Type and Data Sources 1. Primary Data, data which is collected from observation results and direct interview from dropshipper, supplier, and buyer. 2. Secondary Data, research data which is gained indirectly through media agent (collected and recorded by other). C. Data Analysis Technique Data analysis is process of searching and arranging collected data systematically with data organization into category, explaining into units, synthesizing, arranging into pattern, choose which one is important and which one is going to be examined, and make conclusion (Sugiyono, 2012:244). 1. Data reduction, stage of choosing data collection through interview, document study, and observation. 2. Data display, collected from reduction process and categorized based on problems and arranged into one pattern. 3. Verification, stage of taking conclusion based on data and has been cross-checked with points of major criteria of research focus. 6

7 IV. Results and Discussion 7P Marketing Mix Analysis Based on Syariah Marketing Characteristics 1. Product a. Good quality 7P Marketing Mix According to Supplier Three things of concentration in offering products, they are: having clarity; products must be halal; and must be honest 2. Price a. Profit is determined by product quality. Prophet Muhammad SAW teach that good products sold with good price and vice versa a. Gain fair profits b. Trade for looking money in halal way We cannot harm other competitors in determining price because doing business in Islam is part of devotion to Allah SWT. 3. Promotion a. Inform seller data and buyer testimony. Work professional, such as honest promotion, trusteeship. 4. Place a. Unlimited marketing area b. Target buyer from all class of ages Flexibility has been given by Allah SWT, so that Syariah Marketing Characteristics (Kartajaya and Sula, 2006:33) and (Muflih, 2006:331) (Ahmad, 2006:254) and (Amrin, 2010:30) (Ahmad, 2006:254) dan (Amrin, 2010:30) Realistis (Kartajaya and Sula (2006:35) and Lupiyoadi (2001:108) (Kartajaya and Sula, 2006:38) and (Yusanto and Widjajakusuma, 2002:170) 7

8 syariah implementation always realistic and up to dated. 5. People a. Honest when trading b. Give best services, choice for payment methods Flexible marketers, professional with clean, simple, and neat appearance in every activity. a. Make good relations with tailors, reseller and buyer b. Give bonus and discount Create relations between buyer and company 6. Physical evidence a. Design online shop and products catalogue Flexible, so that syariah implementation always up to dated by using technology 7. Process a. Initial deal b. Check before deliver Price determination, payment method and fee, can be done on initial deal a. Give time to continue and cancel order. b. Choose tailor, reseller and honest buyer Always professional in every activity Source: Research Interview (processed) (Kartajaya and Sula, 2006:38) and (Kotler, 2012:62) Humanist (Kartajaya and Sula, 2006:38) and (Martin, et.al, 2005:194) (Kartajaya and Sula, 2006:38) (Ahmad, 2006:254) and (Kartajaya and Sula, 2006:38) (Ahmad, 2006:158) 8

9 7P Marketing Mix Based on Syariah Marketing Characteristics According 1. Product a. Good quality 7P Marketing Mix b. Filter Moslem fashion product Choose product based on customer need by giving priority to product quality 2. Price a. Supplier give freedom to raise the price Initial price deal between customer and seller. b. Gain fair profit We cannot harm other competitors and buyers 3. Promotion a. Upload delivery receipt and buyers testimony b. Tag product catalogue to social media users such as Facebook Promotion in Islam must be done honestly 4. Place a. Unlimited market areas b. Target buyer from all class of ages Flexibility has been given by Allah SWT, so that syariah implementation always realistic and up to dated to Reseller Syariah Marketing Characteristics (Kartajaya and Sula, 2006:33) and (Muflih, 2006:331) (Ahmad, 2006:254) and (Muslich, 2010:426) Theistic and Humanist (Fauroni in Shihab, 2000:393) (Kartajaya and Sula, 2006:32) and (Kotler, 2012:62) (Kartajaya and Sula, 2006:38) and (Yusanto and Widjajakusuma, 2002:170) 5. People Humanist 9

10 a. Honest in trading b. Make good relations between supplier and buyer, for example by calling buyer with intimate name c. Give bonus, discount and free delivery fees Build relations with buyer that will be beneficial for the future a. Business or working is part of devotion to Allah SWT b. Seek a living in halal way Business in Islam is not only a matter of gaining lots of profits, but also future oriented because doing business is part of devotion to Allah SWT a. Give best services Moslem marketers must give best services a. Not cheating and harm other people Trading happens because of ridho or like each other in order to not harming other people a. Inform product failure and persuade to change the product b. Give choice for payment methods c. Responsible Buyer satisfaction is important by giving professionalism in every activity 6. Physical Evidence a. Design online shop b. Upload buyer testimony then give stamps (Kartajaya and Sula, 2006:38) and (Ghazaly, 2006:89) Theistic (Fauroni in Shihab, 2000:393) dan (Arham, 2010:149) (Kartajaya and Sula, 2006:38) and (Kartajaya and Sula, 2006:32), (Kartajaya and Sula, 2006:38) (Kartajaya and Sula, 2006:38) and (Ahmad, 2006:157) (Kartajaya and Sula, 2006:32) and (Lupiyoadi, 2001:110) 10

11 or his/her online shop labels Put morality on top of everything 7. Process a. Initial deal b. Product quality check if not doing dropshipping c. Give time for order d. Give honest information Deal must be made before by two sides (seller and buyer) a. Choose honest buyer and supplier, full attention and trusteeship. Must be selective in selecting partner in online trading dropshipping must be selective so there will be no one gets harm Source: Research Interview (processed) and (Ahmad, 2006:254), (Suhendi, 2011:83), (Lupiyoadi, 2001:108) and (Kartajaya and Sula, 2006:38) (Ahmad, 2006:159) 11

12 1. Product 7P Marketing Mix Analysis toward Supplier and Reseller Based on Syariah Marketing Characteristics According Buyer 7P Marketing Mix a. Must have good product quality Product quality in Islam have impact on customer satisfaction 2. Price a. Compare price between one online shop and others b. Malls standard price c. Expensive and cheap price when: - Price from first hand seller - Price from second hand seller Buyer do this in order to avoid deception between product photo in catalogue and the real product 3. Promotion a. Product sharing by uploading to social media and buyer testimony b. Product info by updating status Work professional,such as do honest promotion, trusteeship, and do promise 4. Place a. Choose place near house and consider fees Consider every decisions, because Moslem Syariah Marketing Characteristics (Kotler, 2012:62) and (Beekun, 2000: 28) (Kartajaya and Sula, 2006:33), (Poon and Jevons, 1997:30) and (Peattie, 1997:147) (Kartajaya and Sula, 2006:35) Theistic (Fauroni in Shihab, 2000:393) 12

13 buyer know that every activity will be counted and asked for responsibility soon 5. People a. Fulfill needs and personal needs b. Different service according to the owner. Owner hospitality is measured by the emoticons usage in the whole conversation c. Owner must responsible d. Offer and type of payment methods e. Information collected by contacting owner personally Customer satisfaction is number one a. Build relations by giving bonus, discount, sale, or gift Build personal relations with buyer 6. Physical Evidence a. Well organized social media account b. Give online shop logo or symbol Work professional and put religion values, piety, morality aspect,and honesty in every activity 7. Process a. Think product usage before buying Grateful for everything given by Allah SWT by thinking usage or benefits before buying a. Give option for delivery b. Give time to continue or cancel order c. Choose trusted online shop (Kartajaya and Sula, 2006:35) and (Ahmad, 2006:158) Humanist (Martin, et.al, 2005:194) (Kartajaya and Sula, 2006:35) and (Kotler, 2010:250) Theistic (Kartajaya and Sula, 2006:28) and (Shihab, 2000:393) (Kartajaya and Sula, 2006:35) and (Suhendi, 2011:83) 13

14 Professional in every marketing activity, such as allowing customer to choose to continue or cancel order Source: Research Interview (processed) A. Research Findings 1. Process: Delivery process is done personally instead of using common courier services, where order will be received on the same day and sender will fully responsible. According to Kartajaya and Sula (2006:28), as Moslem seller, besides of obeying syariah rules, we also have to avoid prohibitions. This matches with realistic characteristic, which is a flexible and professional marketer (Kartajaya and Sula, 2006:35). 2. Promotion: By endorsing (free gift for public figure to use his or her goods or services) and join SFS (promoting each other products between one online shop and other). Based on theory of Peattie (1997:148), promotion is a way to promote products superiority and convince buyer to buy the products. This matches with realistic character, which is a flexible and professional marketer (Kartajaya and Sula, 2006:35). V. Conclusion And Suggestion A. Conclusion a. Product: In the research, product choosing is based on product quality. This activity needs ethical base. according to Kartajaya and Sula (2006:32) is guidance for syariah marketer to maintain morality and etiquette in every decision. b. Price: In the research, there is a different between supplier and reseller price. This activity needs ethical for characteristic base. according to Kartajaya and Sula (2006:32) is guidance for syariah marketer to maintain morality and etiquette in every decision. c. Promotion: In the research, giving evidence by providing buyer testimony. This activity needs ethical for characteristic base. according to Kartajaya and Sula (2006:32) is guidance for syariah marketer to maintain morality and etiquette in every decision. d. Place: in the research, broad distribution system and unlimited areas. Good distribution system to ease buyer to reach, reach here for delivery fees. This activity needs theistic for characteristic base. Theistic according to Kartajaya and Sula (2006:28) is syariah marketing must have higher value, better brand. 14

15 e. People: in the research, Moslem behavior is directly connected with buyer response. This activity needs character of realistic and humanist. according to Kartajaya and Sula (2006:35) is work professional and put religion value on top of everything. While humanist according to Kartajaya and Sula (2006:38) is creating relation between seller and buyer. f. Physical Evidence: In the research, designing online shop can attract buyer. This activity needs realistic as the characteristic base. according to Kartajaya and Sula (2006:35) is work professional and put religion value, piety, morality and honesty in every marketing activity. g. Process: In the research, marketing activity from the beginning to the end. This activity needs realistic as the characteristic base. according to Kartajaya and Sula (2006:35) is work professional and put religion value, piety, morality and honesty in every marketing activity. B. Suggestion A. There are still few researches that investigate marketing mix in dropshipping activity based on syariah marketing characteristics. For the future, there is a hope to revise this research about syariah marketing characteristics (theistic, ethical, realistic, and humanist). B. For policy in Marketing Mix 1. Product: Show real product, if this suggestion is done, so it will fit with ethical character. 2. Promotion: No spamming. If this suggestion is done, so it will fit with ethical character. 3. People: Give best services and feedback to buyer. If this suggestion is done, so it will fit with realistic character. 4. Process: Searching for information in order to avoid asymmetric information between supplier and reseller. If this suggestion is done, so it will fit with ethical character. Reference Ahmad, Mahdi Rizqullah Al-Sirah al-nabawiyyah fi Dhauq i al-maṣādir al-aṣliyyah: Dirasah Tahlīliyyah, transl. Yessi HM. Jakarta: Qisthi Press. Amrin, Abdullah Strategi Pemasaran Syariah. Jakarta : Grasindo. 15

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