Manufacturers selling directly to consumers have certainly become more common. On the surface, it seems like a smart move. But it also means they’re now handling all the service questions, expectations, and follow-up that small businesses have traditionally managed. Over time, they may find that working with individual consumers is more demanding than anticipated, and this shift could prove to be cyclical.
If manufacturers build additional margin into direct sales, it may only increase price shopping. Interestingly, I’ve often found that when products I carry are featured on Amazon or even sold directly by the manufacturer, they’re sometimes priced higher than what I offer in-store. In addition, lead times can be longer, customers may be required to purchase multiples, and shipping costs are often higher.
Dropshippers may serve as a bridge between manufacturers and consumers, but it’s an extremely competitive space with tight margins and operational headaches. As more questionable dropshipper sites appear and consumers experience poor service, the appeal of the lowest price may begin to fade. After all, the old saying still holds true — you get what you pay for.
Elizabeth
Owner
www.westendflorist.com
"Filling your life with flowers since 1908."
Small, Generational, Family Business
