Drop shipping came to the rescue for the eCommerce industry and consumers during this era of Covid – with the quick shift from large shipments sent to retailers to have on hand, to suppliers carrying the brunt and drop shipping to consumers across the world. 

Unfortunately, this holiday season is expected to come with its own set of challenges, but suppliers have inventory stacked high and shoppers are quickly preparing their lists for holiday gifts this season. With labor shortages and Covid outbreaks in other parts of the world, suppliers who are not ahead of the game may not fair well this extended holiday season.

With holiday sales expected to be an at an all-time high and grow at least 7% compared with last year, is your business prepared for the drop shipping frenzy ahead?

Drops Shipping Challenges
In eCommerce, customer service is paramount and there are numerous challenges suppliers will have to deal with as they approach this extended holiday season.

1. Speedy Delivery Expectations

The customer experience is top of mind for retailers and partnering with suppliers who are able to deliver on this gold standard is key to both being successful.  

 

Quick and efficient delivery relies upon inventory systems, order processing, and minimizing errors to name just a few.  Every portion of the process relies on accuracy to get the correct product to the correct consumer in the quickest time possible.

 

2. Delayed Shipping Challenges

USPS just announced that they will begin to implement new service standards for first class mail and is expected to slow its target delivery time by approximately 30%. And for those going cross-country, its expected to increase delivery time even more drastically. 

 

Ports, railway and airlines have all been impacted by increased covid cases around the world and worker shortages in the US, making it even more challenging for suppliers to get products into the country and to both consumers and retailers.

 

3. Tight Profit Margins

The expected quick turnaround time leaves little to no room for errors on the supplier’s part.  Simple errors like pulling the incorrect product or shipping to a wrong address could be the difference between having the product and not having the product this holiday season with such high demand and limited supply.

 

Increased shipments for suppliers could also potentially mean additional EDI expenses if it is not included in the price of your software solutions, decreasing your profit margin even more.

 

Importance of Software Solutions

Software solutions and self-driving automation can impact your business drastically when seeking to simplify your order management and warehouse management processes – increasing capacity for additional customer orders with no additional cost and without having to hire or train new staff.  

Not only does self-driving automation allow your business to reach additional customers, but you are able to build trust and prove dependability with your many retailers.

Simplify with OPAL’s 4-in-1 Software Solution
EDI | Order Management |Warehouse Management | Shipping

OPAL is the innovative solution to simplify your business fulfillment needs in today’s rapidly transforming retail world 

Implementing OPAL software into your businesses’ warehouse is proven to increase productivity by as much as 50%, significantly improving your chances for keeping up with the ever-increasing demand for eCommerce products this upcoming holiday season. 

 

OPAL is the innovative solution to simplify your business fulfillment needs in today’s rapidly transforming retail world.  To learn more, click here

Click here to book your customized demo today.  We are here to support you through this time of change and are here to help you innovate and thrive!