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.

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.