Is it better to hold local stock or dropship?
The e-bike market is booming in the EU: over 37% of bikes sold were electric power assisted in 2022. The UK is behind at 23%, but predicted to match the EU over the coming years as demand increases.
To cater for this rapid growth, retailers in the UK face a crucial decision: should they hold e-bike stock locally, opt for dropshipping from the EU and China, or find some middle ground and do both?
Holding stock in the UK
Faster delivery and reduced costs
Local stock means faster delivery times for customers and lower shipping costs for retailers, making e-bikes more accessible and affordable.
Enhanced customer service
Local stock facilitates quicker response times, efficient handling of inquiries, and streamlined post-purchase support, contributing to an improved customer experience.
Simplified returns and warranty claims
Dealing with returns and warranty claims becomes easier with local stock, fostering customer trust and loyalty.
Inventory risks
If managed efficiently, holding stock means that retailers can better manage inventory, respond swiftly to market trends, and optimise stock levels to meet customer demand. However with cash locked in stock, retailers run the risk of reduced cash-flow.
Inventory management requires accurate forecasting to hold the right stock and the right amounts with the longest shelf life to tie up the least amount of cash and reduce excess stock and risk of waste.
Dropshipping from Europe and China
Cost savings
Dropshipping can lead to lower initial costs for retailers, as they don't have to invest in stocking and storing inventory.
Reduced operational burden
Retailers can focus on marketing and sales without the operational burden of managing inventory and warehouse logistics.
Flexibility in product range
Dropshipping offers flexibility in testing new products and quickly adapting to changing market preferences without the risk of holding unsold stock.
Delivery risks
Shipping from China can take weeks, making it viable only to patient customers. Also, the risks of damage are high with unreliable packaging, producing unhappy customers, more delays and costly returns.
Reduced risk and better inventory control
We manage stock levels so you don't have to worry about over stocking or delivery issues.
Streamlined post-purchase support
Dealing with warranty claims and returns is simpler when stock is held locally. Retailers can rest assured they are dealing with a UK based organisation that can replace faulty items, replace or accept returns back into Cyan Cycles fulfilment centre.
UK fulfilment services
The e-bikes are shipped to the UK and received by Cyan Cycles for further quality assurance checks. They are then re-packaged and stored in our fulfilment centre. The retailer never has to worry about damaged stock, shipping delays or unreliable suppliers.
Great products from trusted manufacturers
We create high quality, ready-to-sell e-bikes with our manufacturers by specifying the right components and working with their quality assurance teams, ensuring a high quality build. With feedback from retailers, we can specify e-bike builds and source them for you.