One potential strategy for finding suppliers AND eliminating the need for warehousing is DOBA. DOBA is a drop shipping company. Their strategy is to integrate the e-biz world like the power grid, hooking up sellers with manufacturers. They have a relationship with over 300 wholesalers and millions of e-biz sellers. Most of these sellers are eBay stores, or sellers on Amazon. I think it's genius! They are located in Orem, UT of all places. A customer orders a product from an eBay store, the store owner sends the order to Doba, alerting the supplier and beginning the shipping process. So the COGS for the company essentially is whatever they have to pay to Doba, and further, the inventory turnover is maxed out!
Apr 9, 2009
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