Drop Ship is a High-ROI Growth Driver for B2B Distributors
With increased pressure on B2B distributor business models coming from the likes of Amazon Business, fast growing startups, and manufacturers’ direct-to-customer selling efforts, the very value of the traditional distribution supply chain is being challenged. When it comes to digital transformation, B2B companies can learn a lot from B2C retailers and brands.
B2B buyers are embracing digital channels as a way to increase productivity, streamline interactions and expedite orders and fulfillment. With buyers accustomed to the ecommerce standards set by B2C retailers and brands, B2B distributors need new strategies to meet customers’ expectations for a seamless digital experience.
expect 40% of revenues online by 2025.
Adopting drop ship can drive massive growth
Home Depot, Staples, Walmart, Costco, Target, and dozens of others have used drop shipping to:
Drive tremendous top and bottom-line growth
Diversify and de-risk the supply chain
Drive efficiencies in fulfillment
Deliver exceptional customer experiences
These same compelling benefits are available to B2B along with significant return on investment.
Retailers and Distributors that drop ship typically see a significant reduction of cost in many of these key areas:
• In house staffing costs
• Ongoing technology maintenance costs
• New platform features and capabilities cost
• Ongoing training costs
• Ongoing professional services costs
• Fewer order status call to contact center
“Drop shipping, when well implemented with an experienced partner, can arm distributors with a powerful weapon in the ongoing competitive battle for buyers’ attention, while simultaneously enabling the delivery of an exceptional customer experience.”
- Brian Beck, Ecommerce industry pioneer and author of “Billion Dollar B2B Ecommerce”