SPECIAL FOCUS
So how can it result in revenue?
E-commerce is a fast moving,
emerging market and as retailers
scramble to keep their channels
up to date and booming, drop
shipping will only continue to
become a way for retailers to
invest risk free in their inventories.
From getting products up on their
website, to taking returns, the risks
July 2017 | jewelleryfocus.co.uk
‘‘
Brands are
also changing
roles, moving
into the drop
shipping game
as retailers
offering their
products
directly to
consumers
‘‘
customer support. They would
rely on drop-ship suppliers to
pick, pack and ship products
directly to the consumer.
Many independent jewellery
retailers fall into the pure-play
e-commerce retailer category,
especially with the rise of social
selling and Instagram stores,
making drop shipping a highly
effective way to offer customers
a wider range without the
associated warehouse investment
and inventory risks.
of investing in more inventory can
be significant.
Those retailers who therefore
think about drop shipping as
an option may see sales grow
even faster. They will be able
to increase assortment without
buying new inventory, which will
directly affect the bottom line.
How? An expanded assortment
drives demand, which drives an
increase in sales. Savvy retailers
are the ones who will seek out new
suppliers and products expanding
their network to include thousands
of drop ship suppliers.
What’s next?
Consumer
demand
and
expectation will continue to put
pressure on retailers, but this only
enforces the need for them to
expand smartly and understand
the products their customers
expect from them and offer the
broadest assortment within their
demographic.
Brands are also changing
roles, moving into the drop
shipping game as retailers
offering their products directly
to consumers. They recognise
that controlling the direct-to-
consumer distribution of their
goods themselves is critical to
combatting grey market sales and
keeping control of their brand.
For
independent
jewellery
retailers, drop shipping can
become an essential tool for
increasing their bottom line and
increasing inventory size, risk free.
The pressure is on for all brands
and retailers to provide larger
assortments. Retailers simply
cannot afford the risk of building
warehouses or investing in enough
inventory to sustain growth
necessary for survival.
Drop shipping is here to stay.
JEWELLERY FOCUS
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