eCommerce Strategy Consultant - Rick Watson - RMW Commerce Consulting

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Rick's First Rule Of Dropshipping: Vendors Are Lazy

I thought about creating Rick's rules of dropshipping. I think I could do it from the point of view of both the retailer/marketplace as well as the brand.

Of course these are tongue-in-cheek, but if there wasn't a degree of truth to them, it wouldn't be fun ;-)

Let's start with the retailer.

Rule Number One. Vendors are lazy.*

Left to their own devices, they will do whatever is easiest for their system - by that I mean, however their IT infrastructure is configured now.

Why is that bad? Ultimately, it's your job to do what's best for your customers, which isn't always what's easiest for your vendors to implement. The sites that generate the highest long-term value customers are the ones who provide the most consistent customer experience while growing selection. They often aren't the ones with the absolute best selection.

Yes, there are some flywheel benefits to selection. But if you're not Amazon, they may be not relevant to your business. Especially at the start of a program, pay much more attention to customer experience.

The lesson for retailers is this: Be specific. Give detailed instructions to your vendors, with clear documentation.

Peter Schwartz illustrates this point well: “Customer experience is often characterized by vague language, lofty promises and misaligned expectations. If I order a steak because that's how I interpret the menu choices, please don't bring me tartare (even if its delicious). Detailed, EXPLICIT and UNAMBIGUOUS directions are a hygiene factor and ensures that expectations set are expectations matched...or exceeded.”

Then test. And follow up. Don't go live until the tests are passed, despite what your marketing team says.

*Jim Miller raised a great point in response to my calling vendors “lazy.” He said “Let’s remember paying someone to code is expensive, and margins for distributors are thinner in these days of Amazon. Just a thought. Calling out a business for being lazy seems a jump without looking at their balance sheet.” Totally fair. But specificity of instructions and clear documentation still hold as essential to ensuring properly deployed shipments.