A drop ship store can help your eCommerce business keep pace with the fast-moving world of online shopping. It’s a simple enough concept – you run the website, a partner handles the deliveries. You don’t hold stock, pay for a warehouse, or worry about the logistics.
Many businesses are getting in on the act. In fact, the global dropshipping market was valued at $102.2 billion in 2018 – and is set to grow by 28.8% by 2025 . Here, we talk about three businesses across the globe which have opened a dropshipping online store and taken their operation to the next level.®
Summary: SHOEBACCA used a drop ship store to reach more people – and grew its revenue by x15
SHOEBACCA is a sneaker business with a big heart. At the turn of the millennium, the founders were selling to underprivileged families at community markets in Texas, and shipping truckloads of stock to developing countries.
Before long, they branched out to eBay reselling. By 2007, the brand had launched its own eCommerce website – a permanent digital base for its retail and community outreach work.
SHOEBACCA soon became a market leader – stocking over 25,000 lines of shoes, accessories and sporting goods from their warehouse in Irving, Texas. As the business grew, it needed to cater for the needs of a far wider customer base who shopped on multiple platforms.
SHOEBACCA looked to meet its customers outside its website, on marketplaces like Amazon, eBay, Rakuten and Walmart. But with over 700,000 SKUs on its system, the team needed to streamline – so they created an eCommerce system to help.
Meeting customers where they are.
With Adobe Commerce, powered by Magento SHOEBACCA was able to connect the back end of its website with multiple marketplaces.
Dropshipping providers carried the stock, so SHOEBACCA could offer a greater selection. This reduced the back and front-end data and provided a nimble, customer-centric business model that could easily leap into new marketplaces.
From a single platform, the brand was able to manage inventory, pricing, shipping and sales for multiple marketplaces.
“We wanted a fully integrated solution that could handle our eCommerce needs across multiple sales channels, a warehouse management system, and finance – one that could also handle a high degree of customization.”
SHOEBACCA CEO Thomas Finney.
Smoother experiences, better sales.
By providing a great customer experience across multiple channels at once, SHOEBACCA was able to engage effectively with a large customer base.
The results speak for themselves. Following the launch, SHOEBACCA increased:
- Online sales and traffic by 25%
- Marketplace sales by 30%
- Average order values by 50%
The benefits were long lasting. In the following three years, SHOEBACCA saw a sales increase of 1,400%. They increased their revenue by x15.
Summary: SEAT used a dropshipping online store to create a more responsive website.
SEAT’s target audience is young people and families – digital natives who are always connected to their phones, tablets and other devices. But the SEAT Germany brand store was clunky and poorly optimized. A far cry from the seamless, engaging user experience its audience demanded.
SEAT wanted a mobile-friendly site that embodied its brand concept of ‘technology to enjoy’. To do it, the brand moved from an expensive, unresponsive Hybris site to Magento 2.
A seamless, flexible experience.
The platform’s responsive website templates and UI Library allowed the SEAT team to easily deliver a mobile-friendly experience. It helped them redesign their online shop and embody the brand concept at once.
All orders are directly linked to a dropshipping partner which handles the delivery logistics. This keeps website inventory costs and maintenance to an absolute minimum, and smooths the communication between SEAT and its vendors – reducing admin, cutting response times and providing a better customer experience.
Other key features of their Magento 2 site included:
- Streamlined checkout capability
- Easy layering of new features
- Cross-sell and up-sell engines
- Dynamic customer segmentation
- Personalized experiences and offers
Navigation and load times quickly improved on mobile, and session durations duly increased. And as a dropshipping shop, the SEAT brand store is easier to maintain, upgrade and expand. Ongoing maintenance has reduced by 10% – demonstrating cost-effectiveness and efficiency.
“We focus on using the latest technologies as a means of sustaining our brand and our leadership. The decision to implement Magento 2 is a strategic investment designed to deliver more engaging experiences while futureproofing our eCommerce platforms.”
Swen Haupt, Project Manager at SEAT Germany
Summary: A bold new shopping experience for a vast shopping mall combining eCommerce and order management software
Frankfurt is one of the biggest and busiest airports in Europe. But it’s also one of the biggest shopping malls in Germany – with over 300 outlets to suit jet-setting tastes from all over the world. It even has its own logistics company, Fraport.
Traditional, duty-free airport shopping experiences are based on browsing in stores and eating in restaurants while you wait for your plane. Fraport turned this model on its head with its new omnichannel shopping experience – which allows flyers to shop before they’ve even touched down.
An integrated solution
With hundreds of individual websites, drop shipping stores and third-party logistics companies to organise, Fraport turned to Adobe Commerce, powered by Magento. A robust solution of eCommerce and order management software helped integrate these disparate elements into a single platform.
A dedicated retailer environment also helped individual stores manage their own customer experiences within the platform – made possible by an integration layer (ESB) that connects various on premise, OMS and real-time business intelligence systems.
Unique consumer experiences
This omnichannel customer experience has revolutionized airport shopping. Customers can buy online while they fly and collect once they arrive. They can order for delivery – even within the airport itself. Dropshipping, inventory management and fulfilment practises have helped make this ambitious omnichannel dream a reality.
Ready to get started?
Adobe Commerce, powered by Magento can help you to create smooth dropshipping workflows with inventory and order management tools.
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