More retailers adopt drop shipping as people shop more online and less in physical stores

Briefing

More retailers adopt drop shipping as people shop more online and less in physical stores

February 8, 2017

Briefing

  • Drop Shipping to Reach Mainstream – More retailers, such as Pier 1 Imports and Shoe Carnival, are increasingly relying on suppliers to ship online orders directly to customers, with drop shipping predicted to reach mainstream in 2017
  • More People Shopping Online – More people are shopping online, with e-commerce spending growing 11% in 2016 compared to 2015, while spending in department stores dropping by almost 6%, according to U.S. Department of Commerce
  • Drop Shipping Benefits – Allows retailers to sell more items on their websites without keeping inventory and saving on warehouse space, especially for bulky products such as appliances
  • Practice Downsides – Include lack of control over key parts of supply chain, such as inventory management and shipping, as well as possible competition with manufacturers

Business Model and Practices

Business Model
and Practices

Sector

Transportation and Logistics, Wholesale and Retail Trade

Organization

Pier 1 Imports Inc., Shoe Carnival Inc.

Source

Original Publication Date

January 26, 2017

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