Drop ship commerce magento webinar
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The document presents insights from a discussion on enhancing digital retail through dropshipping and supply chain integration, emphasizing challenges retailers face as they transition to omni-channel strategies. It highlights the importance of inventory visibility and efficient cross-channel processes to capitalize on consumer demand and improve profitability. The introduction of Dropship Commerce is proposed as a solution to streamline operations and enhance partnerships with vendors via a unified platform.
Drop ship commerce magento webinar
- 1. Connecting the Endless Aisle to the Virtual Supply Chain Todd Rankin (VP Marke0ng, DropShip Commerce), Eric Chaffee (VP Product, DropShip Commerce) & Nikki Baird, (Managing Partner, Retail Systems Research)
- 2. Today’s Presenters Introduction: • Todd Rankin, VP Marketing, DropShip Commerce Market Problem: • Nikki Baird, Managing Partner, Retail Systems Research Drop 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 they’re 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 Commerce to 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 Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012
- 6. The Opportunities Are Still Significant 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% Don't know/Can't 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 4 Source: “The Multi-Channel Retailer’s Reality in a Post-Amazon World”, RSR Research, November 2012
- 8. But More Difficult to Get Cross-Channel Shoppers Are "Significantly More Profitable than Single Channel Shoppers" 50% 39% 38% 31% 28% 18% 2007 2008 2009 2010 2011 2012 Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
- 9. Focus Shifts From Brand Promise to 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 channels Allow inventory allocated for one channel to be used 67% 24% 9% for another channel's 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 Customer Expectations 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 Others Our 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 don't 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 haven't figured out how to align incentives for sales credit for 29% cross-channel sales. 52% Too many store-store and store-DC transfers 24% 20% We don’t know how to forecast demand for non-traditional selling 24% channels yet 40% Our warehouses can't move fast enough to deliver on customer 19% expectations 32% Short buying “outside of the system” by operations to replenish 14% unexpectedly fast movers throws off forecasts 16% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
- 12. Inventory & Fulfillment Remain Sticking Points Cross-Channel Process Consolidation Importance vs. Progress Very Important Synchronization Done or In Progress Customer shopping experience 32% 100% Loyalty management 35% 70% Inventory visibility 37% 61% Fulfillment 30% 59% Customer segmentation 50%57% Store Operations 27% 54% Digital marketing 40% 54% Social media marketing 43% 53% Demand Forecasting 33% 46% Pricing strategies 46% 48% Mobile marketing 30% 39% Procurement/Assortment 39% 36% Customer call center 25% 35% Traditional advertising 22% 32% Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
- 13. Visibility – The Hardest Cross-Channel Process Consolidation "No Plans" Winners Others Inventory visibility 29% 35% Store Operations 24% 26% Demand Forecasting 24% 23% Traditional advertising 24% 22% Customer call center 18% 32% Pricing strategies 12% 22% Mobile marketing 12% 17% Fulfillment 9% 12% Customer segmentation 6% 26% Procurement/Assortment 5%6% Loyalty management 0% 26% Customer shopping experience 0% 13% Social media marketing 0% 9% Digital marketing 0% 0% Source: “Omni-Channel 2012: Cross-Channel Comes of Age”, RSR Research, June 2012
- 14. Retailers Can’t See Very Far Inventory Visibility: Value vs. Actual A lot of value A lot of visibility System-wide inventory visibility 88% 44% DC available inventory 78% 60% Store inventory levels 78% 48% Online/Direct channel inventory availability 69% 41% Inbound to DC inventory or orders 62% 39% Store on-shelf inventory levels 55% 20% Inbound to store inventory or orders 52% 27% Visibility into drop-ship vendor inventory 39% 6% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
- 15. Fixing Internal Systems is a Long Road Top 3 Supply Chain Execution Organizational Inhibitors Winners Others Inventory and order management systems are not integrated 60% across channels 41% Our systems and processes are too channel specific 60% 50% Our supply chain is not designed to support omni-channel 50% fulfillment 59% We don't have the right metrics or incentives to drive supply 40% chain efficiencies 36% The dominant channel fears cannibalization 20% 14% Lack of confidence in inventory accuracy 20% 18% Lack of active top-level support for a cross-channel strategy 15% 41% Facilities costs in stores are too high, posing a barrier to in- 10% store fulfillment or shipment 18% Lack of active top-level support for supply chain issues 5% 23% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
- 16. Why Isn’t Drop Ship on the List? Current Fulfillment Capabilities Implemented/Rolling Out Budgeted/Evaluating Planned/Desired No Plans Direct to consumer fulfillment from our DC 55% 15% 12% 18% Drop ship from vendor direct to store 45% 5% 16% 34% In-store purchase of online inventory for shipment direct to 41% 13% 38% 8% consumer Ship from store direct to consumer 38% 18% 23% 21% Online visibility into in-store inventory 37% 24% 29% 11% In-store inventory pick for consumer in-store pick-up 37% 18% 24% 21% Store-to-Store transfer for pick-up in-store 34% 16% 34% 16% Ship to store from "Direct" DC for consumer in-store pick-up 34% 16% 39% 11% In-store reservation of inventory for consumer in-store 29% 16% 32% 24% purchase Drop ship from vendor direct to consumer 28% 8% 21% 44% Source: “Executing on the Promise: Retail Fulfillment 2012”, RSR Research, July 2012
- 17. Ask Yourself These Questions • What is my growth strategy for my online channels? – More customers? – More from existing customers? – More assortment? • What visibility does my company have today? • When was the last time my company explored virtual inventory? • How many of my suppliers have “gone direct”? • What percent of my suppliers’ inventory do I carry on my site?
- 18. TURNING YOUR MAGENTO STORE INTO AN ENDLESS AISLE
- 19. What do you need? 1. Lots of Products 2. Which means lots of vendors 3. Which turn into a lot of orders 4. Which turn into a lot customers And do it all with out it costing you lots of time and money …
- 20. How do you plan on … • Getting Products into your Magento store? – What file types will you accept – What data do you want – Do you want to put everything on or just some things • Getting orders to your vendors? – Can you take a Magento order from multiple vendors and break them up into individual vendor orders? – Can you get up to date status on those orders for your $ $ $ customers
- 21. You need to be able to do … • These tasks prior to exchanging data with your trading partners: 1. Create the requirements and business processes you want your vendor community to follow 2. Publish your Trading Partner Specifications with required and optional fields 3. Determine the vendor setup process • These tasks concurrently with the vendor on-boarding process 1. Determine which systems need data for drop shipping 2. Develop the Integration points between Magento, your ERP and your vendors 3. Automate the integrations
- 22. Typical Drop Shipping Integration Challenges Consumers ERP Consumer Orders Product (x 1,000’s) Data Product Vendor Vendor Data ✖ Multiple Formats for Product Orders Orders Data ✖ Your ERP needs to create vendor orders out of a consumer/retailer order ✖ Each vendor is a unique integration for each document (x 100’s)
- 23. Introducing DropShip Commerce Dropship Commerce is the scalable online platform for integrating and managing drop ship partners, inventory, data, and orders. By handling the exchange of data through a single connection and integration point, Dropship Commerce helps trading partners streamline operations, generate more sales, and fulfill more orders using the virtual supply chain.
- 25. Robust User Interface Provides: 100% Open Standard based SaaS - No Hardware or Software required A single place to aggregate, normalize and filter vendor product information. Visibility to the entire drop ship order lifecycle Get up to the minute view of your inventory-less supply chain
- 26. Drop Shipping Simplified Consumers ERP Consumer Orders Product (x 1,000’s) ü Single integration point to your vendors and Magento Vendor Product Vendor Product Orders Orders ü Ability to split consumer orders into vendor orders ü Ability to support multiple vendor formats (x 100’s)
- 27. GETTING STARTED
- 28. Magento Extension • Connector Overview • On Connect Marketplace Today • Sign Up with Us First
- 29. Set Up Process • Easy to get set up • Month to Month SaaS subscription • To get started: – [email protected] • Webinar on Magento & QuickBook Extensions – March 27th – Visit www.dropship.com to sign up
- 30. Thank You Questions & Answers For additional information: [email protected] (801) 765-6869