This may cause a bit of controversy, but I’m going to make a bold statement here.
“Companies with poor shipping times will die a slow, painful death in 2018”
There! I said it, the arbitrage of drop shipping products is going away, and being replaced by actual businesses. Although I am biased this position, it isn’t just my opinion. It is backed by data. So let’s take a look.
According to L2 Insights, an overwhelming majority of fashion brands are beefing up their shipping. The reason for this is simple, shipping is the make or break between a one night stand with a customer, or a relationship. The consumer has spoken, and shipping is a priority for a continued relationship.
It’s also practical. If you’re a store owner, you most likely know this to be reality. The majority of CS time is spent on fulfillment with people wondering where their package is, or frustrated because there was a breakdown in communication.
Brands need to be focusing on becoming vertically integrated, because the vulnerability of not controlling your lead and shipping times is becoming a killer. With 67% of US brands offering next day or two day shipping, if you’re not competing in this area you are exposing a weakness that other brands can leverage to beat you.