Luxury Fashion Brands: 15 Ecommerce Tips to Sell More Online

Luxury Fashion Brands Tips

Building a luxury fashion brand is not easy. Many brands are beginning to shift focus from physical storefronts to online mediums to sell their products. Fashion is the largest B2C ecommerce market segment. A total of $525.1 billion products were sold globally in 2019, and experts predict the market will grow by 11.4% per year. By 2025, the global market size will reach more than $100 billion.

If you want your fashion brand to survive, you need to invest in your online storefront rather than the in-store cucumber water. To compete with the big retail, your brand will need to leverage a superior ecommerce platform and graduate to enterprise ecommerce operations.

Let’s dive into the ins and outs of fashion ecommerce and learn the best strategies to explode your brand’s online sales.

What is Fashion Ecommerce?

Fashion ecommerce is the process of selling fashion products electronically on the internet. Successful luxury fashion brands sell more than just clothing. They sell an experience, an image, and a lifestyle that aims to elevate their customers’ appearance.

A successful ecommerce fashion platform must replicate its in-store experience to its online storefront. If a brand expects their customers to spend hundreds of dollars for their apparel, they must provide superior customer service, user experience and embody their story on each site page. If your online experience is subpar, you can expect subpar sales.

What Makes a Luxury Brand?

A luxury brand must employ superior manufacturing, superior designs, and superior service to provide superior products for their customers. Whether it is a worldwide brand like Louis Vuitton or a new designer trying to make a name for themselves, each brand must source the finest materials, provide flawless service, and avoid any shortcuts to earn a luxury status.

You can’t just sell a shirt for a hundred bucks and claim your brand is luxurious. Your customers must understand why your logo on a plain white shirt makes it worth five times more than a shirt from Old Navy. Ensure that when a new user lands on your website, they are immersed in an experience that reflects your brand’s value.

Take your customers on a journey with interactive media, gorgeous imagery, and separate your brand from the pack. Make your customer feel like they are part of something exclusive, something special, something that makes them a trendsetter rather than a follower. Beauty is in the eye of the beholder, and so is your brand’s value.

What is Luxury Ecommerce Customer Service Experience?

Luxury prices command luxury service. Customer service is essential to the success of a luxury brand. They service an audience who expects nothing but the best, and in a physical storefront, it is more manageable to ensure your customers are treated right. However, online users need even more support when they navigate your ecommerce storefront.

Brands must elevate their web experience to cater to a pleasant and hassle-free journey. You must make your sales funnel bulletproof so that your visitors can find and purchase the products they want without having to ask questions. You must have integrated customer support on your website ready to help but should focus on creating an intuitive platform that is easy to navigate.

Brands must create product pages with informative product descriptions, multiple images from multiple angles, and detailed measuring charts. Make the visitor feel like they are touching and trying on the clothes in person. Fashion brands should also carefully define and examine their key performance indicators (KPIs) to understand where their users leave their site or fail to convert. Your guests should feel as comfortable purchasing a product online as when they are in the store. If you don’t make a connection, you won’t make a sale.

How to Successfully Sell Luxury Fashion Products

Ecommerce Sales

Gone are the days of relying on elite, seasonal runway shows and elegant, upscale department stores to sell exclusive, high-end fashion brands. These days, tech-savvy millennial consumers of luxury products are looking for personalized, interactive, direct-to-customer shopping experiences — and they expect to find it all on tiny, mobile screens.

It’s no surprise that some luxury brands have struggled to translate lavish, in-store shopping encounters involving all five senses into two-dimensional, ecommerce platforms. Fortunately, ecommerce tools are rapidly evolving to help carry that much-desired, larger-than-life runway glamour over to the smallest of digital devices — where customers are increasingly making their purchasing decisions.

Let’s discuss the most essential ecommerce tips you need to know to take your luxury brand to the next frontier.

1. Offer a Luxury Experience

Just as high-end retail stores exude opulence by being clean, well laid-out, and uncluttered, your ecommerce site should appear similarly luxurious. The site needs to display high-quality images that allow customers to see, touch, and feel (virtually) your products and contain content that appeals to the emotions historically triggered by the brand. It also needs to display plenty of white space, be simple to navigate, load quickly, and provide easy-to-find sizing information.

Luxury product consumers expect individualized, specialized sales treatment, and this expectation does not change when they shop online. Be sure that your site offers easy access to customer service representatives on every page — via live chat, phone, and e-mail. Provide free, expedited shipping, gift-wrapping services, and other perks to loyal customers. A luxury experience involves the feeling of getting something exclusive beyond what is offered to the general public.

2. Use Personalization Tools

In an industry steeped in heritage, tradition, and exclusivity, you might be surprised to learn that artificial intelligence (AI) has a central place in modern-day fashion. AI-powered personalization tools can be a powerful method to collect online data about customers’ shopping habits and recommend relevant products to create a more satisfying shopping experience. Directing customers to tailored product suggestions with prompts of “You may also like” or “Recommended for you” can help speed up (and up-sell) the entire shopping process.

3. Integrate Augmented Reality

Stunning, high-quality images that display multiple product angles and offer a zoom feature are an excellent start to any ecommerce site, but to really up the ante, explore ways to incorporate augmented reality (AR) into the shopping experience. When possible, allow customers to try on virtual products with an online avatar or with photos of themselves.

4. Strengthen Communication

While you should make your brand presence known on social media platforms like Instagram, Facebook, and Pinterest, it is also essential to find ways to cross-market between all sales channels. This multi-channel approach will keep your customers more consistently engaged and interactive with your brand.

Get creative. Embed user-generated social media videos into your website to show how much customers love your brand; live-streaming behind-the-scenes videos from your office or production facility; posting shop-able Instagram posts; using AI features on smartphones to enhance retail shopping excursions, and generally encouraging online communities to rave about your products. All of these channels give you (and your customers) the opportunity to tell the compelling stories behind your brand.

5. Benchmark Brands that Have Made the Leap

One successful example is Nogin’s client Halston — an iconic fashion powerhouse that recently launched a contemporary diffusion line, Halston Heritage. Halston’s approachable digital strategy supports its ready-to-wear brand with direct customer communication on a highly shop-able flagship ecommerce site through expanded retail locations, various social media platforms, and multi-channel marketing techniques. In other words — anyone, anywhere, can now discover the Halston brand and purchase their products.

6. Reach Out to Emerging Global Markets

The world is at your fingertips — and, reciprocally, your brand is at the fingertips of a global customer base. Think bigger and create country-specific ecommerce storefronts that cater to local languages and appeal to various international inclinations.

7. Embrace Change

There’s little doubt that ecommerce is having a profound impact on the fashion industry and luxury enterprises. For continued success in our digital, global economy, high-fashion brands everywhere embrace various ecommerce sales strategies to share brand stories and simultaneously appeal to consumers’ senses and emotions.

With the help of rapidly developing technology, today’s ecommerce strategies can effectively capture the quality, tradition, and appeal of luxury products. Learn more about how Nogin technology can fuel best-in-class ecommerce services and solutions for your brand.

8. Focus on the Emotional Experience

Luxury fashion brand shoppers seek more than just new clothes or accessories — they expect a complete physical and emotional transformation. Luxury shoppers want to look good, feel good, and, ultimately, be noticed. Because they are shopping with their hearts and wallets, the most successful brands engage their customers’ emotions to sell products successfully.

9. Fashion Shoppers Expect to be Entertained

High fashion and entertainment have always been intertwined as consumers look to fashion brands for excitement, exclusivity, pleasure, and even comfort. Fashion brands — now almost co-operating as media organizations — answer the call for entertainment with everything from extravagant runway shows and fashion blogs to frequent social media posts and next season’s video lookbooks. To remain competitive, brands need to continually engage customers through constant communication, using various marketing channels.

10. Customers Take a Leap of Faith when They Click “Buy”

If you’ve ever abandoned an online shopping cart because you’re not sure whether an item will fit right or look good, then you’ve experienced firsthand one of the inherent weaknesses of fashion ecommerce. Customers often don’t know if the clothing items they admire online will fit well or flatter them “IRL.” Fortunately, newer technologies and strategies are developing that provide additional information to any customer who might be giving pause.

Some of these include: high-quality professional images that offer multiple angles and 360-degree views, in-context product videos, improved sizing charts, more details on materials, and cutting-edge solutions like digital dressing rooms. Such strategies are increasing online conversion rates — and even reducing returns.

11. There’s a Virtual War on Returns

Return rates — as high as 50% — continue to be a problem in the fashion industry. One of the most frequent reasons cited for product returns is a poor fit. However, with improved online sizing information and other virtual fitting solutions, retailers can expect a future reduction in this area. For now, to convince customers to take the risk, offering free returns and exchanges is essential to reduce your ecommerce return rate.

12. Focus on Personalization

These days, it’s all about personalization tools: augmented reality, smart fitting technologies, or AI-driven recommendations for products based on consumer searches or purchasing histories.

The more a brand can tailor product suggestions to the individual customer, the more likely it is she will not only complete check out but also purchase additional products — both right now and in future transactions. Today’s busy consumers don’t want to spend time searching, making it easy for them to locate their personal preferences.

13. It’s an Omni-Channel World Out There

Consumers expect seamless transitions between brick-and-mortar stores, ecommerce sites, and mobile devices. They will often use more than one channel to complete a purchase. For example, if they see something they like in a store, they might look up additional colors or care instructions on their mobile phones. If they browse your brand on a smartphone, they might complete the sale on a laptop. (Make sure that cart contents transfer between platforms!) If they send an inquiry via your website, they might want the response via text message. Always explore your full brand experience through your customers’ eyes to make online and experiences as fully integrated as possible.

14. Presentation Matters

Let’s face it; fashion consumers care about appearance. Be sure your online brand appears luxurious by maintaining a well-designed site, using consistently high-quality images, ensuring a smooth check-out process, giving as much information as possible upfront about your products, providing superior customer service, and frequently communicating with your customers about how your products can improve their lives. Also, a celebrity collaboration with your brand can do wonders to support a valuable image.

15. Don’t Twist Yourself into a Knot

The importance of being flexible in this rapidly changing world of fashion ecommerce cannot be emphasized enough. As technologies develop, trends change, and digital natives continue to impact the overall digital landscape — today’s effective strategies will need to be adjusted to meet tomorrow’s demands.

Evolution of Ecommerce: Trends, Innovation, and What the Future Holds

evolution-of-ecommerce

The world has changed quite drastically over the first half of 2020. The ongoing pandemic has forever altered the way people work, live, and shop. The ecommerce revolution that was once promised with the dot-com boom of the 90s seems to have finally come to fruition.

People are shopping online more than ever before, and ecommerce is growing and evolving in real-time. Large or small, the digital landscape has forced retailers to overhaul their entire operations and move towards omnichannel software solutions. Large retailers are building their platforms and whole teams of web developers to make the shift, while smaller brands find themselves hamstrung by the development costs and operational shifts necessary to make the change.

So, where does ecommerce go from here?

Every day more and more platforms are popping up to accommodate the need for ecommerce. For every entry point software like Shopify, three new companies pop up. Even Salesforce has moved quickly into the space with its CommerceCloud suite. So how do these platforms compare? How do they distinguish themselves from one another? We know that nothing is certain. This revolution started 30 years ago, and the coronavirus pandemic has exponentially sped up the process.  

However, when looking at the last 30 years, it becomes pretty clear where these trends are taking us. Moreover, by analyzing those trends and insights, we can better understand where online retail goes from here. Let’s discuss how ecommerce has transformed business in our country and the latest trends that will guide the future of commerce. 

How Has Ecommerce Changed the American Economy?

ecommerce-trends-statistics

There are between 12-24 million ecommerce sites across the world, and new merchants continue to enter the marketplace to capitalize on consumer shifts to online retail. In 2020, the new coronavirus ecommerce landscape launched online shopping into the stratosphere. Online shopping accounted for 21.3% of total retail sales in 2020 alone, compared to 15.8% in 2019. Additionally, consumers spent $861.12 billion online with U.S. merchants in 2020, a 44% increase from the $598.02 billion spent in 2019. 

Ecommerce is the fastest growing sector in the United States marketplace. Businesses can run more efficient and cost-effective operations using online storefronts by leveraging 3pl ecommerce fulfillment and ecommerce conversion funnels. Also, online retailers have access to a bounty of informative analytics to help them understand their target audience and refine their marketing strategies. They can establish ecommerce KPIs and effectively assess their results month-over-month to improve their operations. 

Why is Digital Commerce Important?

Digital commerce is becoming more important for businesses since customers continue to shift their time, attention, and money towards online mediums. It will be tough for a company to survive if they have little online presence and can only rely on foot track for transactions. 

Consumers rely on digital content, such as written descriptions, images, and videos, to learn more about the products and services they want to buy. No longer can a shopper ask retail employees for recommendations or physically touch a product before checking out. 

Businesses must invest heavily into their online presence and create a dynamic and attractive experience for visitors. 65% of customers feel that a company’s app or website impacts their overall experience. 92% of people also are more likely to purchase from a company that provides an emotional journey. 

Merchants must develop a comprehensive online experience and shift budgets towards ecommerce rather than a physical storefront. They have to create a complete marketing plan that encompasses social media, SEO, PPC, and digital content to attract customers from various avenues. They have to cater to mobile shoppers because mobile transactions continue to become more prominent. In fact, 51% of website traffic comes from mobile alone. 

If you need help building your online empire, invest in the best ecommerce software and enterprise ecommerce solutions to dominate your market before your competitors take your spot. 

What Percentage of Ecommerce Businesses Fail?

Around 90% of ecommerce startups fail within the first four months of operations. Merchants cite the main reasons for failure include poor marketing and search engine visibility. It is especially hard for new brands and merchants to reach their audience if they are battling goliaths in their industry. Many top brands invest millions into marketing to capture and convert leads. 

If you want your business to thrive, it is imperative to carve out a niche and develop an effective marketing funnel to draw in your target audience. Check out our guide to learn how to properly scale your ecommerce business from scratch and our ultimate product listing strategies to ensure your customers convert. 

The Impact of Ecommerce on Emerging Markets and Consumer Behavior

Ecommerce has changed the way people approach shopping. The ecommerce industry is part of the larger digital ecosystem, and different components influence how consumers find and buy products. Social commerce is an integral part of electronic commerce, and digital social interaction is directly tied to the online shopping experience. For instance, brand partnerships and celebrity collaborations can support a product’s growth and entice consumers to purchase items. The marketing is embedded into social media posting rather than a traditional advertisement. 

Online merchants can employ retail pricing strategies coupled with their marketing efforts to entice consumers. People can discover discounted products by searching for particular items in search, and PPC links can display links to exclusive deals. They can also run A/B tests to evaluate the best prices for their products. 

Consumers also are much more invested in a company’s mission rather than just their products. For instance, a visitor may feel more compelled to purchase from a particular brand if they work with charitable organizations or humanely produce their products. Ecommerce has transformed how sellers must approach branding and interaction with their customers. They must design a storefront that is not just a place to buy something but an immersive experience to guide consumers on a journey, especially in the luxury ecommerce industry. 

How to Grow a Category in Ecommerce

There are many ecommerce myths out there, but there are several strategies that are sure to compel your business to the next level:

  • Develop content with high-purchase intent. Once consumers land on your product listings, make sure to include value-based descriptions, high-definition images, and video demonstrations. 
  • Have a comprehensive marketing plan that encompasses web and search engine optimization, social media ads, and Pay-Per-Click (PPC) ads. Test which channels are best for reaching your audience and generate the best return on ad spend. 
  • Use a variety of keywords to categorize your product listings. Always have a main category listing but use subcategories to help match user search intent with your product pages. 
  • Utilize testimonials on your website and compel your customers to leave reviews on your Google My Business listing or product pages. Products with many high-star reviews are an excellent way to demonstrate your product’s quality and build trust with new visitors.

Top Ecommerce Trends and Innovations

ecommerce-trends

Let’s discuss some of the most noteworthy ecommerce trends and innovations in the industry and how you can use them to your advantage:

1. Your Store lives on Social

People live their lives on social media. Whether it’s Facebook, Instagram, Twitter, YouTube, WhatsApp, Tumblr, or another burgeoning platform, most people share their lives on some medium of social media. It’s only natural for shopping to evolve to be a part of that experience.

Over the last year, social media has gained tremendous momentum in the world of ecommerce. According to Forbes, there has been a 146% year-over-year growth in online retail orders alone, and almost all social platforms now have some sort of commerce offering.

Understanding the value of placing products where people shop, Facebook first introduced Marketplace in 2007. Although it may have been a bit ahead of its time as it never really gained traction and was spun off to Oodle, they continued building the platform. They re-introduced a new marketplace in 2017 with the idea of engaging shoppers through social interaction.  

Likewise, in March of 2019, Instagram launched an ecommerce checkout feature to allow brands to meet customers where they live. The feature enables users to make product purchases without ever leaving the app while enabling IG brands to build actionable consumer profiles.

Instagram order screen

Seamless purchases through social media are essential in today’s marketplace. If consumers find your brand in their social feeds but have to leave the platform to make a purchase, chances are, the sale is lost. Whether it’s email marketing, webpage optimization, or social sales, the fewer clicks it take to complete an action, the better, and conversion rates agree. An impulse buy should never take more than three clicks.

Suppose your brand is not utilizing all that social media offers. In that case, you are quite simply missing a critical opportunity to connect with your audience (and future audiences) on a far more profound, emotional level. From chasing trends and hashtags to laser-focused audience targeting and utilizing influencer marketing, brands should be using every tool they can to access those that directly align with their brand.

2. Tell Your Audience What They Want

Predictive analytics is nothing new, but it is primarily utilized by big box stores and those brands with billion-dollar budgets. However, through the growth of Big Data and machine learning, coupled with the surge of online shopping, platforms such as Nogin have helped brands leverage their data to deliver solutions to brands at a much more affordable entry price.

Predictive Analytics allows brands to:

  • Predict what people are planning to purchase
  • Determine a successful pricing strategy
  • Improve logistics
  • Grant more significant insights into promotions
  • Minimize fraud

The future of retail is entirely reliant on predictive data, regardless of product or vertical. If your brand isn’t utilizing statistical techniques, data mining, predictive modeling, and machine learning to analyze historical data and make predictions relevant to your business, you are left behind. Understanding customer behavior is one of the keys to competing with big retail.

3. Improved Logistics: The Future of Ecommerce Delivery

Consistent delivery across all of your sales channels is pertinent to a brand’s success. When Amazon can ship almost any item within 24 hours at no cost to the brand, this can seem like a daunting task for small to mid-market brands to keep pace. Brands need to self-reflect on what they can deliver and be honest with their customers as to delivery times. That may still leave your brand behind and needing to pay for a logistics solution that can compete, which can shrink profitability.

Finding a solution to handle all three flows of logistics while maintaining competitive SLAs can be difficult. Therefore, your primary focus must start with inventory management; knowing where everything is along your supply chain is critical. Utilizing a system that manages reordering, deliveries, fulfillment, and more is essential.  When completed, you will have created that high-level view of your inventory. It becomes time to focus on a delivery service that aligns with your brand’s needs.

Once your brand has determined the necessary services, the next step is to ensure they display them everywhere. They should ensure that they appropriately optimize them for search rendering with quick access to delivery options.  Every page should clearly present the offer and a link to the delivery options. 

Merchants should display shipping rates, delivery time, and other information clearly and concisely throughout the buyer’s journey.  Then repeat it. And repeat it again at checkout.  Managing customer expectations can be a brand’s greatest promotional tool.

4. Talk to Your Customers

To put it into terms that Visa gave us:

Getting a customer to your website: $10 in SEO. Getting direct one on one conversation with your potential buyer: Priceless.

However, hiring the staff necessary to handle direct inquiries does have a price. It wouldn’t be financially feasible for many brands to hire an entire call center in-house to deal with direct customer interactions.  Therefore many brands have created AI chatbots loaded with answers to common questions to limit human customer relations.  

Over the years, these chatbots have become unbelievably proficient in solving customer’s needs, and in the future may be impossible to distinguish between a real human interaction.

As brands continue to fight to improve their customer service with chatbots and various instant messaging applications, outsourcing to a call center is always an option. Either way, ensuring that the potential customer has productive, practical, and timely information in response to their inquiries is once again critical to the success of competing with larger retailers.

What is Dropshipping? A Practical Solution to Maintain Profitability and Grow Your Ecommerce Business

dropsipping ecommerce guide

Dropshipping might not sound like the flashiest segment of the high-tech world of fashion ecommerce, but it’s a strategically crucial component of expanding product line visibility and increasing revenues.

“As many retailers continue to see downward pressure on their sales, they are looking for innovative ways to sell their products,” explains Howard West, Nogin’s Chief Product Strategist. “While most retailers continue to see overall sales shrink year over year, large and small retailers alike are seeing significant growth opportunities in the ecommerce space. Dropship services for retailers are a significant part of any brand owner’s ecommerce growth strategy.”

Learn more about dropshipping, how it works, the advantages and disadvantages, and how Nogin has the most innovative solution for enterprise ecommerce merchants to leverage 3pl fulfillment while maintaining MAXIMUM ROI.

What is Dropshipping?

Dropshipping is when another party—other than the brand owner—is marketing and selling products, but when an order is placed, the products are shipped directly from the brand owner to the consumer. This process allows large retailers to expand their product selection via an app or online store without having to stock inventory for that product.

Dropshipping is one of the biggest ecommerce trends. Brands can integrate their dropshipping provider in many common ecommerce business platforms, including Shopify and BigCommerce. However, many do not feature 3pl EDI integration which is the FUTURE of dropshipping.

Advantages of Dropshipping

There are numerous advantages and benefits of dropshipping that ecommerce merchants can leverage, including:

1. Storage, Shipping, and Fulfillment

Since you don’t have to worry about storing your products in a physical location, it’s simple to get your ecommerce business started. Your dropshipping partner will coordinate managing your warehouse supply, packing, managing and shipping inventory, and handling returns. 

Coordinating fast and efficient ecommerce return rate solutions is imperative to any ecommerce business since poor customer experiences can lead to poor reviews and tarnish your reputation. A professional dropshipping partner will ensure your ecommerce operations run smoothly. 

2. Minimal Capital Investment

A dropshipping model requires minimal capital investment, and ecommerce merchants do not have to commit to a high upfront purchase order. Although buying products in bulk brings down the cost of each product, ecommerce businesses are forced to store, manage, and sell their inventory. If the products don’t sell, they are stuck with a high investment without suitable ROI. 

However, for merchants using a dropshipping supplier, products are only made when there is a verified purchase to fulfill. Merchants no longer have to commit to a hefty upfront payment to get started, so there is less risk. Dropshipping merchants must also factor in paying a premium to produce each product based on a confirmed purchase, so you must have an effective conversion funnel and customer retention strategy to make a sufficient return on your investment. 

3. Scable and Testable With a Variety of Products to Sell

Merchants using a dropshipping supplier can offer a variety of products on their websites. You can test trending products and use your marketing analytics to analyze your best-selling items. Testing various items and selling the products that work without a significant upfront investment in inventory is a massive advantage for emerging ecommerce merchants. It also helps to have marketing automation software to ensure your marketing dollars are maximized. 

If you do experience a boost in sales, you will have the facilities to support larger orders without the additional headaches of scaling your business. It’s also important to use traditional marketing strategies, including product listing strategies and retail markdown 

strategies to ensure consistent purchase orders and growth.  

Does DropShipping Work? Dropshipping Challenges

Dropshipping will reach a predicted market valuation of $557.9 billion by 2025, and around 27% of online ecommerce merchants use dropshipping. Although it is a frequently talked about ecommerce myth that dropshipping is “dead,” that is clearly not the case. However, there are clear challenges many enterprise-level merchants will face using a dropshipping model, including:

1. Meeting Customer Expectations

High-end retailers like Nordstrom and Macy’s, have high expectations of the customer experience. Brands must keep an accurate inventory reading so that retailers aren’t selling products that can’t be fulfilled and negatively impacting this experience. You can harm your brand by opening yourself up to a dropship scenario if you don’t have the infrastructure in place to support these expectations.

2. Managing Logistics

Being able to meet SLAs (Service Level Agreements) consistently is another challenge for brand owners. For example, a department store might expect that when they send an order to a brand by noon, that order needs to be picked, packed, and shipped the same day. If you’re not meeting the agreed-upon expectations, they may no longer carry your products.

3. Processing Returns

Many retailers handle the return process themselves under their previously established returns process. However, there are some situations when the order comes back to the dropship brand owner—for instance when a product is undeliverable or refused upon delivery. Combining these returns quickly and communicating with the retailer is imperative to a healthy consumer relationship.

Complying with packaging requirements: Packaging must be appropriate for the product being shipped. Retailers may require custom packaging and inserts as well as branded packing slips and shipping labels. Being able to manage multiple shipping accounts across multiple retailers can introduce challenges. Many nuances go into building a successful dropship program—and brands need to have effective and accurate systems and processes to ensure success.

4. Operational Infrastructure

For many brand owners, dropshipping a single order to a customer can be a significant challenge. Often, fulfillment systems and processes in place are designed for bulk sales, so a single product order in many cases can result in manual intervention and introduce room for error.

For example, for some brand owners, picking a single item order might look something like this: a worker grabs a lift truck, pulls down a pallet, opens a box, then opens up a master case, opens another box, finds the right size, re-boxes that item, and then ships it. Automating and managing inventory to provide an excellent shopper experience is where Nogin can help provide technology and services that help manage these types of scenarios.

Is Dropshipping Profitable? Is It Worth It?

The short answer is it can be, but for most ecommerce business businesses, dropshipping is not the most profitable approach. Most ecommerce businesses using a dropshipping model have their product margins eaten away by the expensive costs of dropshipping fulfillment. It’s a convenient way to run an ecommerce business, but it costs a pretty penny to get it done. Not to mention, companies also have to generate traffic to their shops using Google or social media ads, further dipping into profit margins. 

Worst of all, big retailers have the resources and infrastructure to squeeze you. Most growing ecommerce businesses fail to scale and maintain their profitability. They have to offer colossal sale prices to stay competitive and simply cannot bring their operating costs down enough to stand a chance against Amazon, Walmart, and other retailers. Big retailers can also invest in their own knock-off products that you may try to sell in your store. Although they may be popular items, Amazon or Walmart will be able to offer a more inexpensive alternative with free shipping and better fulfillment infrastructure. 

The only way to compete is by using Nogin. We have the power of big retail to fight big retailers. You’ll never be able to match the free shipping, fulfillment, and marketing solutions needed to compete with big retailers. Fortunately, we have a different approach. We can migrate your storefront on our proprietary intelligent ecommerce platform. You’ll never have to worry about replatforming again and save thousands on internal development costs and essential internal resources. We also have our own fulfillment centers and intelligent shipping solutions to help you save on all your ecommerce expenses. 

Dropshipping can be profitable if you use your Nogin.dropshipping-solutions  

How is Dropship Evolving?

Retailers are embracing innovative, omnichannel marketing strategies as they continue to combat the ecommerce revolution. This requires brand owners to keep up with technology and infrastructure investments to meet the demands of their most successful retailers.

Making products, wherever they are, readily available to the customer is just part of the overall picture. To create seamless experiences, it is necessary to access accurate inventories—which may be in a store or a warehouse or transit—and to be able to communicate the right product information consistently and deliver on customer expectations.

The key is not to focus on keeping up with Amazon or Walmart but on differentiating your brand experience from the rest. Having the right partner to provide consistent operational expertise and infrastructure so that brand owners can innovate and differentiate their products is the only way to compete. 

Picture this: a customer visits a retailer with a personal shopper. As the personal shopper finds products and styles for this customer, they might use technology like augmented reality to show how styles that the retailer does not hold in stock might look on the customer. The shopper can make the purchase right there and have the products delivered directly to the home, or the shopper can pick them up and try them on the next day at the retailer.

For a brand owner, this means making certain they have provided the retailer with the right mix of photography and product content, making sure that inventory and sizes are 100% accurate, and having the infrastructure to dropship that order immediately following the decision of the customer either to the shopper or to the retailer. As a brand owner, being able to support these retailer innovations is a must to succeed.

Imagine going into a high-end boutique, standing in front of a mirror, and being able to interact with digitally, drag and drop, and try on clothes virtually thru technology, then trying on shoes or accessories via the mirror, placing an order with your phone via a mobile payment app, and having all of these products delivered from multiple brands directly to your home via dropship. This is happening today, and as a brand owner, you must be looking ahead to make sure you can support these types of sales processes.

Dropshipping FAQs

We are sure you have other questions about dropshipping and if it is right for your business. Check out the answers to some of the most frequently asked questions about dropshipping. 

How Much Do I Need to Invest to Start Dropshipping?

The minimum amount needed to start a dropshipping business is around 150 dollars. New merchants simply need to purchase a domain name, a hosting website, CMS, and dropshipping software to fulfill orders. 

Do I Need GST for Dropshipping?

If your business operates out of Canada, you will have to fill, apply, and collect Goods and Services Tax (GST) instead of sales tax which is a flat-rate percentage based on the individual transaction value. 

How Do Dropshippers Make Money?

The profit margins are slim, and competition is fierce. Suppose you want to make money with your dropshipping business. In that case, we recommend learning more about what our enterprise ecommerce solutions can help increase profitability, lower internal operating costs, and scale your business. 

Is Dropshipping Legal?

Dropshipping businesses can run into legal troubles if they work with a shady supplier. Some suppliers provide illegally trademarked logos or products that use a company’s intellectual property. If you sell their illegal products, then you are liable and complicit. Make sure to choose your supplier carefully and sign a solid Dropshipping Agreement Contract. 

How to Find Dropshipping Suppliers?

There are many dropshipping suppliers to choose from but some of the most popular include:

How to Make Dropshipping Work? Use Your Nogin!

The reality is that ecommerce operations and logistics are not what many ecommerce leaders want to worry about. Managing inventory, infrastructure, marketing, development, and the endless other components of running an ecommerce business is not only challenging but draining. 

Nogin provides comprehensive ecommerce support for our partners. Nogin believes in a partnership model to ensure that we can serve your business to the best of our abilities. Typically, ecommerce giants must rely on outsourcing their marketing, development, website maintenance, fulfillment, and more. It is expensive but requires significant oversight to ensure they are working in tandem with your business’s goals to meet your website KPIs

Nogin invests in your business upfront and migrates your business on our proprietary headless ecommerce platform. We have a team of Nogin Nerds to ensure your ecommerce business maximizes efforts front to back. More importantly, our technology features marketing automation and continuous research and development to deploy the most effective tactics for all our partners. You also NEVER have to replatform again, which can cost ecommerce businesses tens of thousands of dollars. You won’t have to worry about updating your website with every Google algorithm or iOS update. dropshipping-savings

Our partners save on every facet of their business to become scalable, profitable, and nimble. You’ll finally have the tools, resources, and support to fight big retail while maintaining complete control over your brand. Get in touch with us to see if you qualify for a FREE site audit. You could be wasting thousands of dollars each day, so don’t let your opportunity slip by. Use your Nogin! 

Nogin New Client Announcement: Spyder

spyder

Spyder Teams with Nogin to Bolster Cross-Channel Operations, Fuel Overall Revenue Growth

 Leading Performance Apparel Brand Reports Increase in Customer Leads

Media Contact:
Jack Scullin
jscullin@nogin.com
(949) 864-8136

 LOS ANGELES – Feb. 14, 2019 – Nogin, a full-spectrum ecommerce partner and leading provider of customized, end-to-end digital commerce solutions for retail brands, today unveiled its partnership with Spyder, the world’s most recognizable and trusted performance apparel brand. In less than three weeks, the companies successfully rolled out the new, comprehensive digital commerce channel on Nogin’s next-generation Encore platform.

Nogin offers a unique set of services and technology solutions that enables Spyder to easily and effectively manage commerce across all channels and to intelligently utilize data to offer the polished, curated experiences their customers desire.

Spyder selected Nogin based on the company’s deep roots in digital commerce and proven track record of leveraging technology to enable brands to consistently outpace the industry-standard ecommerce growth rate. Spyder’s new commerce platform features full electronic data interchange (EDI) integration, a single catalog to serve both wholesale and retail orders, and simplified management of marketing and data analytics across all channels.

“Today’s retail environment is changing rapidly and becoming more complex; to remain relevant and profitable, brands must be nimble and evolve their cross-channel operations to accommodate a wide array of new customer and partner requirements,” said Jan Nugent, CEO of Nogin. “We are thrilled with the results already achieved since the launch of Spyder’s new platform – a 62 percent increase in orders and overall reduction of operational costs – both of which position the brand strongly for continued growth and enable the team to focus on what they do best, crafting iconic, elevated performance apparel that customers around the globe love.”

In addition to building and managing Spyder’s digital commerce platform, Nogin is handling the company’s order processing, product photography, warehousing and fulfillment, email and retention marketing, and related promotional campaigns, all supported with its world-class customer care.

For more information about Nogin, visit https://nogin.com, and view the latest from Spyder at www.spyder.com.

Nogin New Client Announcement: Dogeared

DOGEARED

Nogin And Dogeared Inc. Unveil New Online Store, Features Stunning New Aesthetic and a Data-Driven, Omnichannel Ecommerce Framework

Media Contact:
Jack Scullin
jscullin@nogin.com
(949) 864-8136

LOS ANGELES – Feb. 1, 2019 – Nogin, a leading provider of customized, end-to-end digital commerce solutions, and Dogeared Inc., a trendsetting provider of handcrafted American-made accessories, today debuted the jeweler’s new online store. The revamped website focuses on inspirational imagery and is designed to enhance the shopping experience for guests. Its mobile-optimized design, intuitive user interface, and underlying data-driven platform make it easy for customers to explore personalized recommendations, discover new products, and access exclusive deals based on their interests.

“Dogeared Inc. has always been market-leading as one of the first jewelry brands to include and popularize ‘mantra’ cards and inspirational aspects to its pieces,” said Jan Nugent, CEO of Nogin. “Like its jewelry, this new online store is inspirational and visually breathtaking.”

In addition to providing the overall design and technology infrastructure for the retailer’s digital store, Nogin provides full-service support for the brand including creative and marketing as well as development, logistics, and fulfillment services.

For years, Nogin has pioneered fashion ecommerce, and we are excited to leverage that deep experience to revamp Dogeared’s cross-channel operations. With its nimble experienced team, Nogin has completed the custom integration and launch of its new shopping destination quickly and seamlessly.

Nogin’s ecommerce platform provides a single interface for managing and deploying products across multiple sales channels. This unified system increases operational efficiencies, ensuring that the end consumer receives the underlying product faster while increasing the margins of the brand.

For more information about Nogin, visit https://nogin.com, and indulge yourself in the stunning new aesthetic of Dogeared Inc. at www.dogeared.com.