This may cause a bit of controversy, but I’m going to make a bold statement here.
“E-commerce 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 in 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 a 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.
E-commerce brands need to be focusing on becoming vertically integrated because of 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.