Your customer sees a marvelous array of products on your website. After thoughtful consideration, she purchases the product she wants. Amazingly, you have never actually seen the product. That is because your supplier shipped the order directly to her.
1. Problems With Stocking Inventory
After deciding what products you will sell, you are immediately faced with many challenges.
First: “To stock my products, will I need to rent store or warehouse space? I was hoping to sell by Internet, mail order, or export, but I don`t have much storage space for inventory at home.”
Second: “Will the supplier even deal with me if I don`t have a retail location? I was counting on keeping my overhead down by operating from home.”
Third: “I know that many manufacturers and distributors have a minimum order, sometimes in the thousands of dollars. I don`t have that kind of money!”
Fourth: “Even if I did have the money, why should I tie it up in inventory? How do I know if the product will even sell?”
Fifth: “I guess I will have to add extra insurance coverage for my inventory. Maybe I better...
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