Wal Mart 's Drop Ship Essay
In the initial days during the dot com era, Zappos understood that many of the brands they required to carry could not drop ship. The manufacturers were set up only to ship orders straight to retail distribution centers (or stores).
Also, the more widespread shoes from the bigger brands which had drop ship competences were often sold out. The inventory and cash flow rewards of drop ship have led many retailers to use such an approach for B2C e-commerce, but as we can see from Zappos experience there are plentiful disadvantages to customer service as well.
The present model of value chain is:
Suppliers and Manufacturers: The Zappos vendors and manufacturers are renowned small scale shoe industries. Zappos follow a step wise procedure for vendor…