Home. Com Executive Summary

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 …show more content…
Considering the costs of acquiring premises, the costs of stock and other costs that are associated with the smooth running of the business. However, the advent of drop shipping business model has completely led to turnaround of activities in the retail business landscape. Retailers can be able to operate without being compelled to purchase stock. According to Vanderbilt (2012), opening up an online business is very expensive. The costs are often related to the inventory holding costs. However, the business industry of Home.com is simpler and cost friendlier to start and operate. Starting a drop shipping business is quite cost friendly (Vanderbilt, 2012). With $ 400 or less, one can be able to set up an operational drop shipping business like Home.com. The startup cost is all the way