With Q4 underway, time is running out to properly prepare for product assortment before the holiday season. A good way to start the holiday preparation is to look back and reflect on last year’s holiday rush—where did you succeed and where was there room for improvement?
According to eMarketer.com, the 2019 holiday season will see healthy US retail spending growth of 3.7% to $1.035 trillion.
A projected growth in sales undoubtedly will contribute to more sales on your site. A key component of a successful holiday season is ensuring you have plenty of inventory and are efficiently processing each order.
The solution? Enabling expanded product assortment through drop ship automation.
How to Expand Product Assortment
In simpler terms, the retailer gets a third-party company to manufacture and ship the goods to the customer. This enables retailers to quickly add new brands to sell on their digital commerce sites and expand product assortment. Brands can connect to new retail channels to get in front of a wider audience.
Drop shipping is a great way to test out seasonal goods that have limited ‘shelf’ life and expand product assortment. Adding ugly sweaters, winter decorations, seasonal scented candles, and holiday celebration items are attractive seasonal purchases to buyers, but can take up precious shelf life. And if they don’t sell you could be on the hook.
With drop shipping, a retailer will not have to worry about storing the items while they’re fulfilled by a third party. Meanwhile the brand/vendor that is doing the shipping benefits by selling through multiple retailers,. This increases the likelihood of depleting inventory.
The Benefits of Drop Shipping
Beyond seasonal items, adding drop ship to expand product assortment helps to pad inventory. This process sources the same product from alternate vendors.
Vendor performance can be monitored by the drop ship automation solution to ensure top performers receive orders before alternate vendors, in addition to eliminating the complexity of managing multiple trading partners.
While EDI technology is the primary method of data exchange for many B2B suppliers and major retailers, you can leverage API, JSON, CSV or XML exchange too.
With drop ship automation, brands and retailers enjoy a highly automated order life cycle, while eliminating manual touch points. This efficiency ensures happy customers and channel partners while procurement information is exchanged electronically.
Not to mention it reduces shipping costs, eliminates chargebacks and increases margins
Additionally, with a solution for drop ship automation in place, retailers can leverage a portal to track vendor compliance, manage orders/exceptions, and resend EDI documents if necessary.
With this high-level of visibility, issues in the order fulfillment process can be addressed quickly. With tight deadlines to receive orders before the holidays, there is no time for order delays.
Implementing a drop ship program means retailers can grow their business without growing their warehouse. Brands can also sell through limitless retail channels with better product assortment.
With the ability to offer numerous virtual products that won’t crowd 3PLs or warehouses, retailers appeal to a broader range of clientele and ensure happy customers.
Plenty of stock and real-time updates allow for faster orders, which is vital for the holiday shopping crunch. Brands that drop ship can easily connect with limitless retail channels to get their product assortment in front of a wider audience.
With Logicbroker’s certified channel connections, integrations can be completed in a few hours to a few weeks. This ensures there is just enough time to open up an endless aisle of products before holiday peak.