A virtual store insists on real experience in drop-shipping
One of the web’s early promises was the virtual storefront, where a retailer could be the customer-facing window on suppliers and manufacturers, providing sales and customer service without ever possessing inventory. It was a model that contributed to the demise of some earlier e-retailers, but it works at Long Island, NY-based gourmet gift basket e-retailer DelightfulDeliveries.com.
With drop-ship partners ranging from Mrs. Field’s cookies to Belgian chocolates flown in fresh every week, automated order processing gets orders entered and on their way on time. CEO Eric Lituchy grants that the drop-ship model produces lower margins and that the loss of some control, such as the ability to mix and match basket contents by special request, is a downside. Yet the nature of his product–-perishable goods–-offered no other choice unless he was willing to invest heavily in refrigeration and a warehouse operation, something he knew he didn’t want to do based on his experience with a previous direct gift business.
Lituchy has found that a secret to a successful drop-ship operation is to take extreme care in choosing partners. To protect himself and his site from representing suppliers that don’t deliver as promised, he’s very particular in selecting them. “We look for companies that have been doing drop-ship for a number of years,” he says. “Most of the partners we work with either already have their own site or they have been doing mail order for a long time. They’ve already gone through their growing pains.”
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