Businesses operating in the retail sector should consider drop-shipping as a part of their supply chain and multichannel strategy this year.

Retail has an $800bn problem, according to research firm IHL Group. That is the collective cost of inventory distortion in out-of-stocks and overstocks among retailers today, and it could increase same-store sales by 9.2 percent if completely fixed.

Retailers in the non-food sector, are set to invest some £5bn ($7.7bn) in making the transition to omni-channel over the next five years. A study by LCP Consulting, Retail Supply Chain Management: The Omni-channel Revolution, suggests that the "omni" revolution is accelerating with retailers, now spending on average the equivalent of three percent of annual turnover on the change.

The success of online retailers has been linked to the demise of many high street shops in the UK, most recently HMV and Jessops. The remaining retailers have clear strategies which incorporate on-line shopping with home delivery and are often further supported by other initiatives, such as click and collect, where goods are ordered online but delivered to a third-party address, such as a local garage or convenience store, to avoid the disappointment of missed home deliveries.