PBP Insights
The Dropship Effect
Dropshipping is a win-win for retailers and wholesalers. Here’s why
More choice, less risk.
That’s what every retailer is after. How can they offer their consumers the broadest array of products, while holding the minimal amount of merchandise?
In a word–dropship.
Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer.
Ginger and marigold jellies in a serving vessel by Fefo Studio.
And what does that mean in practice? Well, take Powered by People’s partnership with West Elm.
PBP supplies West Elm with a selection of unique, artisanally-made goods that dovetail with its brand direction. West Elm’s merchandise team provides PBP with guidance, and we work with our community of more than 700 sustainable-minded makers to source those goods.
PBP owns the inventory and handles fulfillment of all orders. So when a customer clicks to buy a Gharyan Stoneware coffee mug or an Osmos ceramic vase from the West Elm website, our stateside warehouse team is alerted and they ship it off. PBP benefits from the millions of unique visitors that West Elm attracts to its site, while West Elm is able to offer unique, sustainable products without having to buy hundreds or thousands of them and store them in their own warehouse. It’s a win-win.
The operation works because of clear communications. West Elm collaborates with PBP on sales projections and sell-through numbers, allowing us to source strategically and effectively.
Dropshipping allows buyers to leverage PBP’s vast network of makers in order to streamline their sourcing, while outsourcing the operations means they can provide faster and more reliable delivery to their customers. By using PBP, retailers (and brands) can focus on marketing and sales while leaving the logistics and fulfillment to PBP.
That is the power of dropship.
Ella Peinovich is the CEO of Powered by People.
