What is your business strategy? Typically it involved expanding your customer base to grow sales and deliver a higher profit margin through economies of scale produced by producing more of the same product. However, there is a strategic development channel often ignored by many companies, which can be leveraged by introducing dropship software. Interested? Let’s take a look at this business strategy and see if it could work for your business.
Dropship Software Creates Product Opportunities
Rather than bring in lots of new customers how about if you just focus on your current customers? That’s been the secret to the success of many distributor and retailer businesses. By looking after your current customers, by word of mouth you also gain plenty of new customers too. In the age where online reviews and social media are strong brand advocation channels, you can leave your happy customers to rave about you to their followers while you focus on other things.
So here’s the scenario, you have a great set of products, maybe a limited product line of ten core products with one hundred SKUs with color variations and size options etc. Your current customers love them and they love your brand too. So in an ideal world you continually add more products to your line up and expand your SKU count. That can be a constant battle in all honesty, with your new product development team working hard to come up with new ideas, and you trying to manage the logistics of production, parts delivery, and order management as well.
Stop thinking about your company as a stand alone company that has to do it all. You probably already have great suppliers who are producing some of your products for you. What else do they manufacturer for their other clients? How about what your customer wants? Are there products they want they can’t find, or suppliers from which they buy that they’re not happy with. Suddenly your eyes are opening, what if you could supply one thousand SKUs to your customers rather than just one hundred, giving them products they want from a brand they can trust.
Logistics though! Crash, boom, that’s not going to work. Hang on did you know about drop ship software? A lot of the large distributors and retailers are using it now. They no longer handle the goods. Their customer places an order, and that order is automatically channeled to their supplier who manufacturers that product, who then prepares and ships the product direct to their customer. The retailer or distributor has had very little cost incurred in that process, and therefore profit margins are a lot healthier for these drop ship products.
Now think of the possibilities with this, no more warehouses to manage, no more logistical nightmares. All you have to focus on is quality control. Ensuring your suppliers adhere to the quality standards you have set and your product gets delivered with your branding on time every time to your customers.