The last two years brought a slew of challenges for all retailers (showrooms as well as online shops). Arguably the most important one was the prolonged restock dates of goods. Empty shelves do not entice customers and the “container crisis” had overwhelming consequences for brick and mortar stores.
Online retailers, however, experienced a sonic boom in sales during the pandemic. While they also faced longer restock dates, the impact was lesser on the business model. The accelerated digitalization caused by several lockdowns around the world has driven customers towards online shopping.
With twelve years of experience in dropshipping KoKoon Design helped retailers throughout this difficult time. Here is how they did it.
A warehouse in the heart of Europe:
With a dropshipping supplier, the need for renting a space for storage is eliminated. Large warehouses guarantee a steady availability of products ready to be ordered. Suppliers also provide a live feed of stock for quick website updates. A warehouse of more than 10000m³ located in the heart of Europe provides a privileged position for the European market. The geographical location gives the possibility to access easily port cities in France, Belgium and the Netherlands. Combined with an extensive catalogue of furniture, produced in different parts of the world, this blend will help most online retailers keep stock.
Working with manufacturing plants across the globe:
Concentrating all manufacturing in one geographical zone has proved to be a disadvantage. Several countries had different periods of lockdowns, with various durations. Spreading production across the globe proved to be an excellent strategy to circumvent as much as possible prolonged production times during the lockdowns. Diversifying manufacturing plants also helps with ample references for sale. Distributing the manufacturing load to different countries offers a diversity of items for customers. The natural resources and cultural sensibilities of different continents provides a wide variety of furniture. As they say, variety is the spice of life. An ample range of items to sell offers more possibilities.
Constant communication with retailers:
Even with those improvements, a long restock or delayed restock can’t be escaped. The impact of those delays can be mitigated with a clear and transparent communication to the customers. Giving a choice of available items will also calm the customer. With almost 1600 references without any investment, retailers were able to find alternatives for out of stock items. HD photos and product information has been directly uploaded on the website for easier access. This way, clients are able to make a conscious choice regarding the alternative offered by the customer service. All items are photographed from different angles to give the most accurate depiction.
Combining all these tactics has facilitated the success of online shops. In less than 3 hours an online retailer can offer an array of available products by virtue of working with a dropship supplier. Orders are therefore dispatched quickly, driving sales upwards. The business model of dropshipping is here to stay, cementing itself as an essential part of the future of retail.