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How to Scale your Digital Supply Chain with Drop Ship

CommerceHub

We’ve moved into a time where a highly functional digital supply chain has become a necessity. The best way for retailers to scale is with a dropship platform that can enable them to adapt to changes quickly and strengthen their ecommerce capabilities. A digital supply chain with drop ship at its core can be more demand-driven and responsive, which enables retailers to lower the risk of disruption; this virtual network removes the possibility of a negative impact on sales and customer experiences while still reducing the time it takes for consumers to receive orders.  

The drop-ship model (the shipment of goods from a manufacturer or wholesaler directly to a customer on behalf of the retailer) enables retailers to be extremely agile and digitally extend their business by quickly adding products so that consumers can safely and easily purchase from the comfort of their own home.  

Successful retailers using a drop-ship model have seen an ROI of over 400% when using a trusted, external partner like CommerceHubRetailers can save millions of dollars of investment when they choose to work with a partner versus building an in-house program. Retailers we work with rely on our expertise to help streamlinprocesses, including supplier onboarding, adding products to categories, identifying new suppliers and creating a truly flexible and adaptable system to meet customer demand.  

Rapidly Scale, Increase Efficiencies, Enhance Customer Experience with CommerceHub 

CommerceHub’s commissioned Forrester Total Economic Impact™ study interviewed four large retail customers and identified the key advantages to working with usincluding: 

  • 66% reduction in time spent onboarding suppliersretailers can launch a supplier in under an hour and product details and images are collected and file exchange information is integrated. The process takes less than two months making it possible to add hundreds of suppliers to dropship program each year. 
  • Product assortment expansion of hundreds of thousands of products per yearour solution creates product profiles matched to a retailer’s requirements so that new products can be added quickly and appear seamlessly alongside other products.With our vast network of more than 15,000 suppliers, we continually alert retailers to new supplier opportunities. 
  • 99% fulfillment of drop-ship ordersretailers experience fewer instances of failure to deliver products with our hands-on management of supplier performance.  

A well-managed and strategically executed drop-ship program can increase efficiencies and save costs all while improving customer experience by providing customers with more choice and convenience. With consumers increasingly purchasing items online, retailers that are adding or expanding a drop-ship program will have the advantage when it comes to meeting evolving consumer needs.  

Interested in learning more? Download the Forrester Total Impact™ Study here.

About the Author

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. CommerceHub helps its robust network of thousands of retailers, brands, and distributors achieve over $30 billion in Gross Merchandise Value annually.