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Distribution channel with high growth rates

Online retailing is likely to grow further in the pet supplies sector in the next few years, but only those with a good concept will be able to reap the rewards of this new distribution channel.
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Setting up shop effectively on the Internet isn't easy, yet in spite of this, many people in the pet business think that they can earn big money quickly and effortlessly with an online shop. As is often the case, however, the devil is in the detail, even in online retailing. Getting hold of goods, a fast logistics system, networking on the Internet, especially with Google - establishing a successful website requires hard work in advance. Many people underestimate this. If a certain brand is not available in a high street store, it may be annoying for the customer but it's not likely to have any major consequences; but if an online retailer can't deliver the products that he offers on the Internet, this does far greater damage to the image of the business than would be the case for a high street shop. And if it happens quite often, it's the beginning of the end for the online shop. The inability to deliver is severely punished on the Internet - those are the rules of the game.Help from the wholesale tradePet supplies retailers, inspired by the success of many online companies to open an online shop, often feel overtaxed. Their main problem lies in linking the high street store sensibly to the online outlet. In many countries, help is available in the shape of the wholesale trade; more and more speciality wholesalers offer so-called drop shipping, where they assume responsibility for shipping the goods directly to the speciality retailer's customers on the retailer's behalf. The advantage for retailers is that they no longer require warehouse storage, but can nevertheless offer a wide range of goods in their online shop. The drawback is that the trader must adopt rigorous financial planning to be able to keep track of the rapidly growing transactions between wholesaler, retailer and consumer. If this planning is in place, however, drop shipping offers pet supplies retailers a good opportunity to concentrate closely on marketing their virtual store. Communication with the customers also calls for meticulous planning: a retailer must consider how to get across the message that it now has an online store in which the pet owner will find more products than in the high street store. Here there are no limits on creativity - online competitions, discount promotions that are only available on the Internet on certain days, exclusive products that are only offered online. The main objective is that the customer's attention is drawn to the shop. FressnapfEurope's…
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