eCommerce Know-How

eCommerce Know-How Know-Letter Newsletters

Perspectives

August 12, 2010

Bernardine Wu

Bernardine Wu, CEO & Founder, FitForCommerce

47% of eCommerce businesses doing sub-$10 million drop ship at least some of their products. That's no small beans. Drop shipping can be a great way to start an online business, expand your assortment or experiment with new products. No inventory risk, no warehousing or fulfillment costs, no waiting for delivery - allowing you to go from idea to web store quickly and cheaply. Drop shipping often enhances in-house inventory - it need not be "all or nothing".

While an easily understood - and appealing - concept, there is a danger that the simplicity of the idea permits retailers to ignore the complexities involved in selecting, implementing and managing drop shipping.

First, choose products carefully by researching competitive sites for potential profitability. Look for higher dollar margin products (as opposed to % margin).

Second, look for suppliers that have product variety and delivery speed. Check for proof points.

Third, make sure the integration will work - getting and sending data effectively can make or break the model.

As FitForCommerce and eCommerce Know-How emphasize for every feature, function, technology or service involved in eCommerce: do your homework! Dig deep to understand the strategy, the drop ship sources and any technologies or operational changes required to succeed.

This "know-letter" can only scratch the surface but we hope it helps you understand how and where to dig deeper.



Bernardine Wu
CEO & Founder, FitForCommerce




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