Drop Shippers Name Inventory Management and EDI as Best Investments for New Retail Channel
SPS Commerce Surveyed More Than 100 Direct-to-Consumer Leaders for Advice and Insight to New Drop-Ship Suppliers
“Drop shipping is a growing retail segment and an opportunity for both retailers and suppliers to reach more consumers,” said Mark O’Leary, Chief Marketing Officer at
Key findings on drop-ship initiatives:
- Frequent inventory updates to retailers were identified as the most troublesome part of initial drop-ship operations, followed by understanding trading partner requirements.
- Anticipated growth and signing with a retailer having complex requirements were the top two reasons given for automating the drop-ship process.
- EDI and improved inventory management ranked as best investments related to drop shipping.
- Less than one percent of drop shippers have suspended their program, while more than half of respondents report adding new online retailers.
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Source: SPS Commerce, Inc.