Briefing
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- 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
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Business Model and Practices
Business Model and Practices
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Sector
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Transportation and Logistics, Wholesale and Retail Trade
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Organization
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Pier 1 Imports Inc., Shoe Carnival Inc.
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Source
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Original Publication Date
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January 26, 2017
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