What's The Future of Retail?
What's The Future of Retail?
The future of the average high-street store is looking rather gloomy these days. E-commerce, on the other hand, has a future so bright that you better get your sunglasses out.
For years, we have seen the traditional retail industry battling for survival. Even established brands such as Marks and Spencer have been wielding the axe this year, desperately cutting the number of employees in the attempt of staying afloat.
For modern retailers, the move to e-commerce platforms is more important than ever. While online shopping is nothing new, some retailers might still be surprised when discovering how much opportunity exist on the e-commerce market. And it doesn’t look like the growth will be stopping anytime soon. The amount generated by e-commerce has more than doubled over the last five years, and scientists are now predicting that 95% of all purchases will be made online by 2040.
In other words, e-commerce can still offer untapped possibilities for the retail industry.
It’s Time to Drop Ship
As most transactions will soon shift online, we see more and more retailers, both small and bigger ones, building their share of the online market now. But how do you prepare for a shift like this? How do you find the cheapest and easiest ways to get products from your suppliers and straight home to your customers? If thoughts like this gives you nothing but a headache and a strong desire to jump ship, we have another option for you instead:
Is it unfamiliar to you? Well, this concept is basically a new way of distributing products. And it can fundamentally change the relationship between retailer, supplier and customer - in your favour, of course.
So how is drop shipping the future of retail?
At the moment, most retailers purchase their stock in bulk from supplier. Not only does this demand a big upfront cost, which can be tricky if you lack the cash flow, but it also means that you will need to store it and ship items for whenever a customer makes a purchase. With drop shipping, however, you dramatically streamline the process: as a retailer, you only buy the product from the supplier when a customer buys the item. Then, the supplier sends the product directly to the customer.
It’s not hard to see the appeal in what’s basically on-demand retail. As your business expands, drop shipping makes it simple to increase your sales inventory without having to cover the cost of storage. In short, it gives you potential to achieve quicker and cheaper sales.
Drop Shipping Made Easy With ERP
Drop shipping is here to stay. Recent statistics show that a third of all e-commerce transactions are already fulfilled via drop shipping, representing one in every five purchases.
So how can your business get involved?
Before you start drop shipping, it’s imperative that every step of the distribution process run smoothly and according to plan. As an example: verifying a customer’s address might seem like a small and trivial part of a sale, but if it’s not done properly it can quickly derail the entire order and end up costing you money.
Additionally, drop shipping demands that you have a complete visibility of your sales process. You will also need to approach the challenge on how you can set rates for a massively expanded range of products - without costing you precious time, money and labour.
These challenges can all be solved by an Enterprise Resource Planning (ERP) software.
ERP can give retailers both the functionality and features they need to start drop shipping their orders efficiently. The right ERP system can make it easy for you to take full advantage of the benefits that drop shipping can offer, taking you from zero to hero in no time.
For small retailers, ERP can mitigate the risks that occur when managing an unlimited product inventory. For larger retailers, it can easily process the huge numbers of orders both accurately and quickly. A good software will remove the leg-work for you, and ensure that both supplier and customer is always updated.
Drop shipping is already revolutionizing the retail industry. However, it will only be as effective as the retailers processing orders. With an ERP software, you can easily unlock the untapped possibilities awaiting in e-commerce.
Welcome to the future of retail.
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