Why you really need to drop ship

Let’s face it, no retailer’s marketplace will be able to compete with Amazon (or Walmart) when it comes to general assortment size. It’s also very difficult to compete in terms of shipping costs, membership perks, and delivery speed. So what other value prop can retailers who are considering opening a marketplace offer their consumers?

How to build for omnichannel scale

Without robust omnichannel programs, retailers have less assortment, sell less of their inventory, and offer much less customer choice. All of which translates into lower growth and revenue. And yet building a scalable omnichannel program is a labyrinth of financial, technical, and multi-team challenges that can quickly turn into a money-pit with little or no growth to show for it.

Should you open a marketplace?

A lot of retail companies are wondering if they should open a marketplace. Such models offer the promise of unlimited assortment without the need for upfront investment, inventory risk, or costly trading partner integrations. Additionally, marketplaces seem to be one of the reasons why Amazon and Walmart have seen amazing growth in their ecommerce, even during the recent pandemic.

Do you really need a marketplace?

Let’s face it, no retailer’s marketplace will be able to compete with Amazon (or Walmart) when it comes to general assortment size. It’s also very difficult to compete in terms of shipping costs, membership perks, and delivery speed. So what other value prop can retailers who are considering opening a marketplace offer their consumers?

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.

Four NFL-Proven Ways to Avoid Dropping the Drop Shipping Ball

Super Bowl assortments, filled with apparel, home goods, and jewelry merchandise, are usually drop shipped because of inventory availability and other supply chain considerations. Unfortunately, a small number of retailers are dropping the drop ship ball by including products featuring the likenesses of players no longer on rosters of the Super Bowl teams. In one example, a major retailer is featuring a wall decal of a former player that has not been on the roster since 2012!

D3 New York Takeaway: Retail Is Going All in With In-Store Fulfillment

From all of the presentations and panels that I attended, it’s clear that retailers are going all in with using their store fleets to fulfill online orders.

This is a really interesting strategic move considering that, as noted above, stores have the lowest accuracy of any inventory asset in retail. It therefore highlights the difficult choice that retailers face.

If order volume grows at 20% per year, a retailer will have to invest in doubling its fulfillment capacity every five years. This is what we’re seeing with Amazon but it’s not something anyone in the supply chain would look forward to doing. Building new FCs is expensive, time consuming, and risky.