As retailers build out their omnichannel capabilities, many of them are simultaneously launching their own marketplaces as a way to deliver the enhanced selections and limitless online shopping aisles that online consumers increasingly demand. Expanded virtual inventory delivers the breadth of choice consumers seek, offering retailers a reliable tool for growth without the infrastructure costs that physical inventory brings.
Frank Poore
With millions of Merry Christmases and Happy Hanukkahs on the line, it's important that omnichannel newcomers like Wal-Mart and Sears adjust for the effects of increased online shopping. One solution is for retailers to offer more products, while simultaneously ensuring faster delivery by transferring the shipping responsibilities to the manufacturer or supplier via drop shipping.
Consumers spent approximately $13.3 billion on Father's Day gifts last year, and 30 percent of that came entirely from online purchases. That number will only increase this year, and CommerceHub estimates that one-third of the products consumers order for Father's Day this year will go untouched by the retailers that sell them. Instead, suppliers will warehouse this virtual inventory and then deliver products directly to consumers through third-party fulfillment via drop shipping or marketplaces. Leaving one-third of inventory untouched poses risks for any brand.
