How to Increase E-commerce Revenue Without Adding Inventory

April 29, 2018

Building a successful retail site that customers are aware of and enjoy using might seem like a substantial objective, but it’s really just the first piece of the online selling puzzle.  The real hurdle comes in scaling that site to increase e-commerce revenue without incurring spiraling inventory costs. 

Although a primary advantage of doing business online is selling directly to your end-consumer, meeting the increased expectations of online shoppers isn’t easy. Many retailers are looking for a way to meet this demand and grow order volume without spending vast amounts of money on inventory holding and fulfillment.

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Increase E-commerce Revenue, Not Inventory

If you missed our recent webinar collaboration with DiCentral, the replay below provides a valuable primer on the ability of integrated fulfillment to boost e-commerce revenue.

The combined experience of Peter Edlund, Chief Solutions Evangelist at DiCentral, and our own Chief Strategy Officer, Thom Campbell, makes for a comprehensive perspective on the challenges facing online businesses and how to hurdle them.

Among the points raised by Thom and Peter, the following key insights emerged:

  • Consumer spending drives the U.S. economy. In 2017, 29 million American jobs depended on the $2.59 trillion spent by consumers, which itself represented a 3.3% growth rate on 2016 retail revenue.
  • Retail channels are changing, moving from multiple separate channels in the early days of online shopping to the omnichannel model we see today.
  • While 90% of revenue still comes from retail stores, fulfilling direct-to-consumer (D2C) is an increasingly popular way to test products, expand their selection and generate additional revenue without significantly increasing inventory holding.
  • DiCentral’s Enterprise Dropship is being used to drive this, sending the digital signals required for fulfillment partners like Capacity to pick, pack and ship orders straight to customers.
  • Forecasts for peak season demand can be vastly different to actual volume. An experienced fulfillment partner with the right technology in play can fill those gaps, providing a fresh perspective on expectations and ramping up resources more quickly as and when required.
  • Integrated fulfillment describes how key technology and service providers like DiCentral and Capacity work together to digitize signals between retailer and suppliers. Using a truly omnichannel fulfillment partner is the best way to consolidate inventory and avoid having to manage an incredibly complex process.

The risks and rewards of drop shipping are well-documented. Having the right technology and fulfillment partners in your corner is the difference between satisfying your customers or breaking your brand promise.

To learn more about the services provided by our friends at DiCentral, click here.

Alternatively, if you have fulfillment questions that need to be answered, please don’t hesitate to contact Capacity!