Dropshipping Strategies in Luxury and Fashion Retail - Unveiling the Potential

Abstract

Purpose: Dropshipping, a supply chain management model where the retailer does not keep goods in stock but instead transfers customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler who then ships the goods directly to the customer, has gained significant traction in various industries. However, its application in luxury and fashion retail remains unexplored. This study aims to investigate the potential of dropshipping strategies within the context of luxury and fashion retail, analyzing its benefits, challenges, and implications for businesses operating in this sector. Methodology: This research employs a comprehensive review of existing literature, case studies, and industry trends to gather insights into dropshipping practices in luxury and fashion retail. Findings: Our analysis reveals that dropshipping offers promising opportunities for luxury and fashion retailers to enhance operational efficiency, expand market reach, and provide exceptional customer experiences. Challenges such as maintaining brand reputation and managing supplier relationships are identified and discussed. Unique contribution to theory policy and practice: This paper contributes to the existing literature by shedding light on the application of dropshipping in the luxury and fashion retail sector. It provides practical recommendations for retailers to leverage dropshipping effectively, thereby advancing both theoretical understanding and practical implications for industry stakeholders and policymakers.