Part 2: How drop-shipments can upgrade your stock strategy
Read time: 6 minutes
Shops use different buying and selling strategies to generate sales and maintain a healthy margin to live off. In our benchmark survey we asked shops how they currently order kite equipment, how they’d like to order kites and what their future strategies will be.
Your stock strategy and drop-shipments can accelerate your business
Using drop-shipments makes doing business easy and optimizes your cash-flow. You are able to sell an extra brand without a hefty investment in stock or fixed order quantities. Kites you sell are shipped directly to your customer by the brands HQ and you get a reward per unit sold. You should be aware that not every brand offers this possibility. Additionally, extra costs can be involved making drop-shipping only worthwhile for certain price level products.
45% of the shops responding to our survey already order kites directly from the brand. A 55% of the shops buy their kites via an importer / distributor (40%) or agent (12%). By ordering directly from the brand’s HQ, shops benefit from the best margins and conditions, tailormade deals, direct support, premium after sales support and inspiring marketing content.
Ordering kites in the future
77% of the respondents of our survey would like to order kites directly from the manufacturer as this makes it easy to get fast deliveries, guaranteed stock and tailormade advise.
Drop-shipping makes it very easy to get kites directly to your customer without having the risk of keeping unnecessary stock. For shops it is a perfect way to broaden the range of brands, colours, sizes and models. More than three quarter of the shops finds it desirable to work with a brand that arranges drop-shipments directly to the customers.
By using drop-shipping, shops can open up to new target groups. Shops can now sell more kites to tourists or visitors that go back to their country of origin, therefore expanding their international presence.
Future Stock strategy
From our benchmark we can expect that more kites will be sold in 2018 as 38% of the shops plan to stock more kites. 41% will keep the same level of stock, whilst 21% of shops will reduce their stock, from which 6% will strongly reduce it. Our next benchmark study will have more in depth focus as to why and how shops makes these decisions.