Inventory Summer School #3: Offer Dropship Solutions
Brought to you by… One Source Supplier
In the last edition of Inventory Summer School, we discussed leveraging VMI (Vendor Managed Inventory) partners to stay on top of your inventory needs.
Another great way to limit the amount of inventory you need to have in-store is by offering your customers dropship options, which many VMI suppliers provide. Incorporating dropship capabilities into an inventory management solution allows wireless retailers to offer an expanded array of products and accessories, without taking up valuable peg space in what are generally small-footprint stores. It also means that retailers don’t have to tie up valuable inventory funds stocking items that may have a low turnover rate.
Customers know how much variety is on the market and they value a wide product offering, so when a store can’t offer what they want, they’ll go elsewhere. However, hosting that many SKUs isn’t viable for any telecom retailer. Dropship solutions open access to a digital library of virtual products for purchase so your store never has to turn down a sale. As a retailer, you can reduce the risk of stale inventory with per-order shipping so you’re never over-stocked and the customer is never left empty-handed.
Dropship is also an invaluable tool for telecom store associates hit their sales metrics, which is great for both them and the retailer. Justin Drage, Vice President of Partner Management at iQmetrix, explained, “Dropship is one great way to remove barriers for sales associates to achieve their goals. One of the biggest reasons store associates cite for not being able to meet accessory sales targets is not having the right products to sell in stock. When retailers have access to dropship, it removes that obstacle entirely. Having dropship also helps keep sales morale high, because associates have more options to sell to customers, which in turns boosts their earnings.”
How Dropship Works
When the customer orders a specific item instore, the supplier ships it directly to the customer or to the store for pickup. Invoicing only occurs when the order is placed, so retailers get the benefit of satisfying their customers at a minimal cost.
High margins may mean more revenue, but the cost of high-priced products sitting in storage isn’t worth the risk. Whereas, with dropship, virtual inventory means that you have a luxury offering without paying a luxury cost.
What’s more, getting insight into return rates helps you understand which products are not worth the storage space. By analyzing purchase patterns for items that are dropshipped, retailers (or their VMI supply partners) can determine whether it makes sense to stock those SKUs in their stores in the future. Removing these less desirable items from your in-store inventory can save you time and money.
This edition of Inventory Summer School was brought to you by…
One Source Suppliers
One Source Suppliers is a full-service supplier to the wireless retail market that manufactures and distributes a complete line of“best in class” wireless accessories. With its factory-direct model, One Source Suppliers is able to supply partners with extremely competitive pricing while supplying top-tier accessories. Its premium line of accessories include chargers, screen protection, portable power, cases, Bluetooth accessories and more.
One Source Suppliers was founded in 2000 with the mission of being a One-Stop accessory supplier for wireless retailers. To give outstanding value to its customers and supply best-in-class premium accessories, One Source cuts out the middleman. To do this, the company adopted a factory-direct model by manufacturing a full line of premium accessories and distribution directly to retailers.
For more information, go to the One Source Suppliers partner page.