Logicbroker Launches Dropshipping Considerations Video

Continuing with Logicbroker’s eCommerce 101 video series, take a dive into everything you need to consider before launching your dropship program. While we covered the basics, and the benefits, of dropshipping in previous videos, this latest video dives into what will commonly restrict retailers’ and brands’ dropshipping programs. 

As always, be sure to like and subscribe to our YouTube channel to learn more, and don’t forget to hit the small bell icon to receive a notification when we post our next video. 

Things to Consider When Dropshipping

The Reality of Non-Owned Inventory

Dropshipping is one of the most innovative eCommerce solutions on the market. Creating an entire fulfillment platform without having to invest in owned inventory has revolutionized the online ordering experience for consumers worldwide. But it’s not perfect; unless you tailor your solution to embrace these considerations.

Your dropshipping program will be framed by three key factors: supplier inventory, different types of suppliers, and your technology partner. 

Supplier Inventory Concerns

Dropshipping’s biggest strength is also its biggest weakness. You’re relying on supplier inventory. As your primary supplier tackles their own supply chain challenges, shifting to secondary and tertiary suppliers can be a burden to the team. 

These changes force you to evaluate if you should either: 

• Bring those products into owned inventory
• Find more suppliers that sell the same or similar items
• Understand when products will be back in stock

Staying ahead of the curve and embracing AI-powered tools could help this process through advanced trend analytics, but it’s ultimately a point to always be aware of and one to ensure your technology partner can handle. 

Suppliers Of All Kinds

In the age of social media influencers, many new suppliers are actually either strictly digitally native brands or suppliers with varying levels of size and technical sophistication. Or, up-and-coming suppliers may simply look to sell on fixed margins through a marketplace like Amazon. 

Unfortunately, Dropshipping is seen as an EDI-focused selling environment that cannot pay out suppliers quickly. Changing the narrative for your brand, and embracing innovative solutions can help combat this unfortunate connotation. 

Difficult Without the Right Tech

Implementing a fully functional dropship program with the wrong tech partner can be tedious, at best. Advanced tech partners like Logicbroker will help your organization onboard new suppliers, meet today’s needs while providing a scalable framework for the future, and give you detailed analytics and scorecards to help you evaluate supplier performance. But without these tools, either because your program is using a legacy provider or an in-house team, Dropshipping can be a tedious and labor-intensive eCommerce solution. 

But Logicbroker obviously isn’t alone in the industry. Dozens of tech partners have embraced the ability to provide portal services that offer integration options that can ease the burden of implementing both a dropship program and a visibility program as you continue to grow. 

Learn More On YouTube

To learn more about dropshipping, its basics and its benefits, please explore the rest of Logicbroker’s YouTube channel. To discover the power of multi-vendor commerce, and to take control of your fulfillment strategies, visit our solutions page. 

About Logicbroker

Logicbroker is a premier multi-vendor commerce platform that seamlessly connects trading partners regardless of integration types. Our modern solutions empower retailers and brands to take control of their customer experience by harnessing and analyzing vital first-party data, reducing inventory risk, and curating their expanded assortment. By improving the visibility into our client’s commerce programs, Logicbroker can better position retailers and brands for transformative growth.

As business needs and demand shift, Logicbroker provides the ability to quickly switch suppliers and product fulfillment between 3P to 1P and responsibly find new sources of inventory that uphold your brand integrity and meet your delivery promise. ​We work with mid-market and Enterprise manufacturers and retailers across a number of verticals including Health & Wellness, Home Improvement, Consumer Electronics, Toys & Babies, and Consumer Packaged Goods and service brands such as Samsung, Victoria’s Secret, The Vitamin Shoppe, Walgreens, Ace Hardware, and BBQGuys.