MGR eCommerce Edge Weekly | March 10, 2021
Top News This Week
Is Dropshipping Making a Comeback?
Online retailers are doing everything they can to reduce their inventory footprint, and for some that means turning to the somewhat looked down upon strategy of dropshipping. However this could end up being a good deal for brands and retailers as it lowers the barrier of entry for rising brands to get listed on larger sites.
What is dropshipping? It simply means that instead of owning all of the inventory listed on one’s site, the site owner takes orders and then send those orders to the brand or manufacturer who then sends the product to the customer. The advantage is that obviously the site owner doesn’t have to pay up front for inventory, the downside is the fulfillment often takes longer and the quality control is left in someone else’s hands.
For example, companies like Nordstrom’s and Macy’s are embracing this approach for many products they sell, including opening the door to DTC partnerships. For DTC brands this is an easy opportunity to expand sales channels. Brands are able to fulfill in the same way they already do but with access to legacy retail’s customers.
As DTC brands look to go omni-channel, and retailers look grow their online presences, I would expect dropshipping partnerships to rise as it’s a win-win for both sides.
Other Notable Links:
1. Jay Z sells 50% of his Champagne brand to LVMH – WALL STREET JOURNAL
2. Youtuber Logan Paul sells $5 million worth of NFTs – COIN TELEGRAPH
3. Should hotels be in the subscription business? – INSIDE HOOK