Forrester TEI Study Confirms Value of Drop-Ship Model

CommerceHub

As the retail industry continues to shift to meet consumer demands, it’s clear that retailers making strategic investments in digital solutions are making smart moves. Forrester’s analysis proves that a drop-ship model is a clear competitive advantage for enterprise retailers as they shift more of their focus to online sales.

Forrester based their Total Economic Impact™ (TEI) framework on a composite business in North America, a multi-category, large format store with annual sales totaling $20 billion, of which $4 billion comes from ecommerce. They interviewed four CommerceHub customers that had fully operational in-house drop-ship programs or newly implemented these programs to determine their findings.

Based on interviews, Forrester found that CommerceHub customers experienced quantified benefits that include:

  • Product assortment expansion of hundreds of thousands of products per year
  • 99% fulfillment of drop-ship orders
  • A 66% reduction in time spent onboarding suppliers to their drop-ship network

The study’s participants realized additional performance results, including millions of dollars in savings from not having to build their own drop-ship network, opportunities to grow their networks with qualified suppliers from CommerceHub’s network of 12,000+ suppliers along with the ability to quickly meet heightened demand for ecommerce to address shifting consumer demands in times of uncertainty. These benefits are expected to have a further impact on ROI results.

Download the Total Economic Impact™ of CommerceHub study here.

And register for one of two joint webinars—Drive Profitable Online Growth Through Drop Ship—hosted by CommerceHub and Forrester’s Corey McNair to learn more about the study’s key findings.


About the Author
CommerceHub

CommerceHub

CommerceHub is a leading ecommerce enablement platform connecting supply, demand and delivery that helps retailers and brands increase sales by expanding product assortments, promoting products on the channels that perform, and enabling rapid, on-time customer delivery. With its robust platform and proven scalability, CommerceHub helps more than 12,000 retailers, brands, and distributors achieve over $20 billion in Gross Merchandise Value annually.