This business model involves listing products found on a major retailer’s website on an online marketplace and fulfilling orders by having that retailer ship directly to the marketplace customer. Specifically, one might identify items available from a large, general merchandise chain and offer them for sale on a popular auction and shopping website. When a customer purchases the item on the marketplace, the seller then purchases the item from the retailer, directing them to ship it directly to the customer who made the initial purchase.
The appeal lies in the potential for profit without the need to manage inventory or invest in storage space. Historically, this practice arose as a way for individuals with limited capital to enter the e-commerce space. The practice can offer flexibility and scalability, allowing individuals to experiment with different product categories and adjust their offerings based on market demand without significant risk. It presents an accessible point of entry into the world of online retail, allowing individuals to act as intermediaries without traditional overhead costs.
