A Report On The Business Strategy Of Drop Shipping Industry Essay

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Home.com is a retail company that operates in the drop shipping industry with an inbuilt distinct functionality that allows the user to place an order on the various major retail outlets like eBay and Amazon. Home.com is a virtual business that allows the customer to place their order on an e-commerce platform and get their goods delivered as per their convenience and requirement. Customers can place orders on the company’s websites via email indicating all the items on the order. Home.com uses a technology that automatically generate orders and at the same time manage inventory. The system is organized in a manner that order placement, inventory management and shipments are aligned in an organized way. The efficiency of the business is enabled because it doesn’t hold any inventory and therefore will not incur the inventory acquisition costs.
Operating this model of business only require to one to form a partnership with a wholesaler or a supplier with the required stock of inventory. Therefore, when a customer places an order with Home.com, the company automatically sends the customer orders details to the suppliers. Once the supplier receive the order requirements, they execute them and then organize for the shipment directly to the customer. However, the customers cannot realize that you are drop shipping because the invoice is customized on the name of Home.com. To set up a retail business can be cost prohibitive. Considering the costs of acquiring premises, the costs…

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