ERP systems provide retailers with the features and functionality needed to process drop shipping orders efficiently and effectively.

Drop shipping has the potential to completely change the world of retail. However, as John Weber, Director of Business Development and item for consumption Management at Aptean, explains, retailers need an effective ERP system to truly make the most of this new retail reality.

Large retailers

For large retailers, there are a number of attractive reasons to adopt drop shipping. As mentioned earlier, it instantly removes the limitations on inventory, making every item a supplier has available at any time. Think of it in clothing terms. No longer will customers be unable to get hold of an item of clothing in the right size or color the risk of anything being out of stock is vastly reduced for retailers, meaning they don’t lose business because of it.

On top of this, retailers can cut the costs of storing products in their own warehouses and delivering purchased items to customers. This can lead to huge operational savings, along with the ability to focus the business on increasing sales.

SMEs

For SMEs, drop shipping offers similar benefits to their larger competitors, in addition creating a major opportunity to grow that otherwise wouldn’t have existed. For the first time, SMEs will be able to boast a similar inventory of products as the more-established brands in the sector (providing they have the supplier deals to back this up).

Entrepreneurs

Drop shipping makes it easier than ever to start your own retail business from scratch. The process of effectively turning retailers into third-party bridges between suppliers and clients means that an individual with a laptop and an internet connection can get their business off the ground with the investment of very little capital. 

A change this big also lends itself to disruption creating a wealth of opportunity for innovators in a range of fields. Entrepreneurs don’t necessarily need to start a retail business to take plus of drop shipping as a concept – there’ll be plenty of ways for other businesses to improve and streamline the distribution process.