The Top 10 Challenges of Enterprise Drop Shipping for Brands and Suppliers

Drop shipping is not just another distribution method but an entirely different way of doing business that involves the integration of suppliers and retailers into many of the supply chain roles that are typically kept separate in wholesale. Despite its many advantages, therefore, drop shipping also has a lot of unique and complex challenges that must be navigated correctly in order to function at peak efficiency.

Do You Know What to Look for in a Retail Drop Shipping Partner?

Finding the right retail partners to drop ship with will lay a solid foundation for the growth of your operation. Some of the ROIs you might reap include lower cancellation and return rates, lower oversell risk, lower data exchange overhead, higher volume with reasonable predictability, more inventory turns, quicker times to shipment, less tax liability, the ability to bring products to market faster, lower production and logistics costs, and hopefully, increased sales and marketshare.

Why Amazon Sells Books But Gives Bananas Away for Free

If you’re just starting out with drop shipping, it’s a good idea to begin by offering products from your catalogue that are more ecommerce friendly.

The logistics required to ship items similar to books is much less complex than bananas and can give you the necessary experience to later tackle difficult categories.

Marketplaces, Are they Worth it?

Besides weighing the various benefits and drawbacks, you must be comfortable with the fact that marketplaces are not just neutral platforms for selling products but competitors in their own right who will have access to your sensitive customer and supply chain data.

Four Takeaways From the D3 Conference in New York

As usual the sessions and panels were also top notch, with speakers from Target, Amazon, REI, and JD.com to name a few. In the coming weeks we’ll be writing a few in-depth blog posts based on some of the topics that were discussed. In the meantime, here’s an overview of important takeaways from the panels and speeches attended.