The nature of retail is changing from holding inventory to dropshipping. Retailers have realized how much inventory distortion costs them, so they try to minimize distortion and risk as much as possible. Inventory distortion is out-of-stock and overstock inventory that causes revenue loss. It’s an $800 billion issue for retailers worldwide. Dropshipping is an attractive strategy for retailers because they pay for an item after collecting payment for it.
Financially, it can be challenging for brands to support this fulfillment model, but it is a profitable way to create relationships and to widen distribution!
Dropshipping is the Solution!
Seize the opportunity with dropshipping. In today’s world of e-commerce and retail, more and more brands are supporting the demand of dropshipping by holding their own inventory. Dropshipping is the perfect opportunity to expand your product into new channels and access consumers that were previously out of reach. Since retailers carry less risk by not paying for inventory in advance, they may be willing to accept smaller margins on drop ship fulfilled products. Our dropshipping program automatically enables brands to keep 60% of the MSRP, leaving more money in brands’ pockets.
