Drop shipping used to be a bit of a buzzword when it was first introduced in the ecommerce world. Today, it’s used by almost a quarter of online businesses as a primary order and fulfillment method. Here’s a look at the pros and cons of drop shipping to help you determine if it’s the right business model for your brand and business.
Drop shipping is seen as beneficial by nearly all retailers and manufacturers who take part in it, the former from an expanded SKU assortment without inventory carrying costs and both parties from increased sales, according to a new survey from Lehigh University and DiCentral. Eighty-seven percent of respondents said it boosted sales.
Critical systems functionality and efficient fulfillment are at the heart of a multichannel strategy, and merchants must meet compliance standards of marketplaces and big-box stores. Many 3PLs can bring this functionality and cost effectiveness to ecommerce sellers, manufacturers and brands. Here’s how to make it work for you.
Offering merchandise from drop shipping vendors has greatly extended the assortment of thousands of ecommerce and omnichannel brands, with many choosing to drop ship 100% of their merchandise. The challenge: Maintaining high customer service standards and vendor compliance. Here’s what we found from mystery shopping two major merchants.