drop ship commerce magento webinar

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Webinar on Connecting the Endless Aisle to the Virtual Supply Chain using DropShip Commerce platform.


  • 1. Connecting the Endless Aisle to the Virtual Supply ChainTodd Rankin (VP Marke0ng, DropShip Commerce), Eric Chaee (VP Product, DropShip Commerce) & Nikki Baird, (Managing Partner, Retail Systems Research)
  • 2. Todays PresentersIntroduction: Todd Rankin, VP Marketing, DropShip CommerceMarket Problem: Nikki Baird, Managing Partner, Retail Systems ResearchDrop Ship Challenges & Magento: Eric Chaffee, VP Product, DropShip Commerce
  • 3. What Is RSR? Market Intelligence, focused on retail Context: the business challenges & opportunities that drive technology investments Pragmatic insights Powered by extensive retail experience Fueled by a deep bed of research data We help retailers keep their IT strategies aligned with corporate objectives We help solution providers align their products and messages with retailers needs
  • 4. My Role Today: Context The Gold Rush days of digital channels are nearly over Retailers are getting down to the hard parts of execution But theyre ignoring a big opportunity related to endless aisle Visibility is a solution that solves lots of problems, and its time has come
  • 5. Retailers Expect Digital Commerceto Continue to Grow Digital Channel Growth Today In 3 Years 72% 49% 29% 15% 14% 8% 8% 5% Less than 10% 10-24% 25-74% Greater than 75%Source: Survey The Multi-Channel Retailers Reality in a Post-Amazon World, RSR Research, November 2012
  • 6. The Opportunities Are StillSignicant Cross-Channel Shoppers Are... Winners Others Significantly more profitable than single 48% channel customers 30%Slightly more profitable than single channel 19% customers 27% 10% Equally profitable 7% Less profitable than single channel 14% customers 10% 10% Dont know/Cant tell 27% Source: Omni-Channel 2012: Cross-Channel Comes of Age, RSR Research, June 2012
  • 7. For Every Kind of Retailer Number of Unique Online Sites or Brands Operating Today 37% 29% 22% 13% None One Two to Four More than 4Source: The Multi-Channel Retailers Reality in a Post-Amazon World, RSR Research, November 2012
  • 8. But More Dicult to Get Cross-Channel Shoppers Are "Significantly More Profitable than Single Channel Shoppers" 50% 39% 38% 31% 28% 18% 2007 2008 2009 2010 2011 2012Source: Omni-Channel 2012: Cross-Channel Comes of Age, RSR Research, June 2012
  • 9. Focus Shifts From Brand Promiseto Execution Cross-Channel Opportunities Very Important Some Importance Little or No Importance Allow the customer to purchase, take delivery, or 79% 19% 2% return a product through the channels of their Create a single brand identity across channels 79% 21% Improve operational execution across all channels 75% 23% 2% Leverage customer knowledge and information 73% 22% 4% assets across channelsAllow inventory allocated for one channel to be used 67% 24% 9% for another channels fulfillment Leverage product knowledge and information assets 66% 30% 4% across channels Use the digital channels to provide rich content 64% 32% 4% about our products and services Use the digital channels to drive traffic to stores 54% 35% 11% Use the digital channels to build a sense of 52% 43% 4% community around our Brand Source: Omni-Channel 2012: Cross-Channel Comes of Age, RSR Research, June 2012
  • 10. Retailers Know CustomerExpectations Only Rise Top 3 Supply Chain Execution Business Challenges Winners Others Consumers expect retailers to provide a more 64% seamless omni-channel experience 60% Consumer demand is erratic, making it difficult to 50% predict 40% Digital channel growth outpaces store growth, 50% putting new pressures on supply chain 40% Competitive pressures drive us to create shorter 46% customer order-to-delivery cycles 60% Capital constraints make investments in inventory 32% more challenging 36%Variable supply chain costs (fuel, weather, etc.) have 32%exposed weaknesses/risk-points in our supply chain 20%Contract compliance with suppliers causes quantity, 18% quality, and timeliness issues 20% Source: Executing on the Promise: Retail Fulfillment 2012, RSR Research, July 2012
  • 11. Supply Chain is Running Out of Runway Top 3 Supply Chain Execution Operational Challenges Winners OthersOur supply chain is not designed for the current/projected volume of 57% direct-to-consumer shipments 36% Difficulty managing the right level of labor or warehouse capacity 43% against order volumes 16% We dont have the flexibility to respond to unexpected supply chain 38% exceptions like late shipments or short shipments 28% Store demand is erratic and difficult to predict 33% 48% We havent figured out how to align incentives for sales credit for 29% cross-channel sales. 52% Too many store-store and store-DC transfers 24%


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