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Ben Harley

macrumors member
Original poster
Dec 7, 2016
73
16
United Kingdom, London
I am currently engaged in an ongoing assignment related to drop shipping, inventory less e-stores and plugins that helps grow your e-commerce business.

I have been following a lot of e-commerce blogs and I don't understand the idea of outsourcing the entire store and still earning a handsome amount in return.

Source: https://www.withintheflow.com/build-kickass-online-store-no-inventory/

The author has said, "
Dropshipping, a concept where you carry zero stocks, while selling to a global audience. Numerous eCommerce professionals establish dropshipping to be the next entrepreneurial marvel.

A brick-n-mortar business is limited by the inventory it carries. However, a dropshipping store has near unlimited inventories to sell. Even large businesses are now moving towards dropshipping, furniture and home décor company WayFair is one such example."

If someone here has any idea about this concept please help. If the thread looks vague please ask for more info and I'll provide.

I hope I am putting this one in the right section.

Cheers!
 

D.T.

macrumors G4
Sep 15, 2011
11,050
12,467
Vilano Beach, FL
If you just think about how selling a product works, where there are three unique entities in the process:

Supplier -> [Reseller Warehouse - Reseller Storefront] -> Buyer

Generally the Reseller buys from the supplier and then warehouses the inventory, but this is simply the concept where the reseller provides the storefront, the transaction processing, the while UX, but the Supplier ships directly to the Buyer:

Reseller -> Buyer <- Supplier

Amazon does this, if you look at a product, they have a few different options in terms of how it's provided, but you'll occasionally see Ships from <not_amazon> Sold by <Amazon>, that the model you're talking about, you would order that through Amazon, it's shipped directly from another company.

- There has to be fulfillment handing available at the supplier
- You'd have to get enough points off to make a profit, and enough profit to cover the costs of transaction process, infrastructure, etc.
- Be visible enough, and/or offer a better user experience to the buyer over the supplier if they also provide a point of purchase


Side note: this isn't some kind of easy, "get rich" sort of model, there are significant hurdles, costs, effort involved.
 
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Ben Harley

macrumors member
Original poster
Dec 7, 2016
73
16
United Kingdom, London
If you just think about how selling a product works, where there are three unique entities in the process:

Supplier -> [Reseller Warehouse - Reseller Storefront] -> Buyer

Generally the Reseller buys from the supplier and then warehouses the inventory, but this is simply the concept where the reseller provides the storefront, the transaction processing, the while UX, but the Supplier ships directly to the Buyer:

Reseller -> Buyer <- Supplier

Amazon does this, if you look at a product, they have a few different options in terms of how it's provided, but you'll occasionally see Ships from <not_amazon> Sold by <Amazon>, that the model you're talking about, you would order that through Amazon, it's shipped directly from another company.

- There has to be fulfillment handing available at the supplier
- You'd have to get enough points off to make a profit, and enough profit to cover the costs of transaction process, infrastructure, etc.
- Be visible enough, and/or offer a better user experience to the buyer over the supplier if they also provide a point of purchase


Side note: this isn't some kind of easy, "get rich" sort of model, there are significant hurdles, costs, effort involved.


Amazon is a great example. Thanks for taking out time and filling me in on this matter.

On side note, yeah I know that. Every business has some sort of hurdles and cost associated to it.
 

D.T.

macrumors G4
Sep 15, 2011
11,050
12,467
Vilano Beach, FL
Amazon is a great example. Thanks for taking out time and filling me in on this matter.

On side note, yeah I know that. Every business has some sort of hurdles and cost associated to it.


Don't know if this just speculative on your part, something school related, but whatever the case, good luck!
 

Ben Harley

macrumors member
Original poster
Dec 7, 2016
73
16
United Kingdom, London
I was helping my younger brother with his capstone assignment.
[doublepost=1506953868][/doublepost]It's not just theoretical, one has to built an entire setup and get a sales of $500 to win the capstone and finally get a good grade.
 
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