What CommerceHub Customers Say about the Impact of Drop Ship on their Business

CommerceHub

CommerceHub commissioned a Total Economic Impact™ (TEI) Study with Forrester Research to help quantify the financial and non-financial benefits customers realize when choosing the CommerceHub drop-ship platform. Over the course of several months, Forrester conducted in-depth interviews with four large-format retail customers that use CommerceHub to manage and augment their drop-ship program. They determined that customers implementing the CommerceHub platform realize a 461% ROI in a payback period of less than three months.

Excerpts from the study:

Prior to using CommerceHub, the retailers had little control over exception management for order fulfillment with many suppliers failing to update if items were out of stock and inaccurately estimating delivery dates. Additionally, the integration of suppliers to the retailers’ drop-ship program took months of time and still resulted in performance issues.

Since adopting CommerceHub, the retailers have been able to quickly scale their digital supply chains. CommerceHub manages the integration and onboarding of suppliers to their drop-ship programs and qualifies and directs the strategic increases in the number of products (hundreds of thousands of products per year) a retailer can add to its offerings. CommerceHub provided the technology to ensure a streamlined relationship with suppliers (66% reduction in time spent onboarding suppliers), driving improvement in operational efficiency, a better customer experience (99% fulfillment rates for drop-ship orders) and ecommerce sales growth.

Here’s a sampling of what customers had to say about their CommerceHub experience:

“CommerceHub is a great partner. They are aligned with us in understanding our goals, and they’re very engaged in all levels of strategy from supplier management to technical support teams.” “…We’re also deepening our relationship with core customers, improving loyalty and retention of them. We’re now covering sizes, colors and styles that meet all our customer’s needs.”

VP of Product Management, Multi-Brand Retailer

“It’s all net new sales. We were ignoring categories like, lighting, which is a very décor-forward category, that there’s a stylistic change that happens on an annual basis. We were losing shares in certain categories, just because we weren’t keeping up with trends on specific products that people were looking for. Categories like that, it’s a huge lever.”

VP of Online Merchandising, Houseware Retailer

“If we didn’t have CommerceHub, we’d have to do integrations for each of our 1,100 suppliers. If that was the case, we probably wouldn’t have the staff to do it, it wouldn’t be possible.” “…They do a lot of heavy lifting on the backend for us.”

SVP of Global Ecommerce, Wholesale Retailer

“Our fallout or cancel rate is less than 1%, so, it’s really, really good. Everything that we show online is always available for sale and if it’s not available for sale, you won’t see it available online.”

VP of Ecommerce and Merchandising, Department Store Retailer

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 Research’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.