rachel123 - 10:29 pm on Aug 4, 2010 (gmt 0)

Because I can get it and deliver it for less.

I'm not arguing that drop shippers are inferior, or the merits of one business model over another. I do a fair amount of dropshipping myself.

My point is that the perception to the consumer is different. Even though a large percentage of ecommerce is drop-ship, it is my belief the the vast majority of consumers truly believe that the company they buy from carries inventory.

I also think that carrying inventory (or the perception of) imparts some legitmacy in the eyes of a consumer. ie less likely to be a fly by night operation. Simply because carrying inventory requires investment (not that drop shipping doesn't, but inventory is an obvious investment).

*Some* consumers will see a dropship only web store the same way as a dressed up shop window with nothing behind it.

Edit: If you are in the business of installing, that's different. You are primarily selling a service, not a retail product.

I also want to say I'm not convinced that drop-shipping has a lighter carbon footprint, unless you ship from a single warehouse. The number of miles each product travels may be less, but the number of times the miles need to be traveled may be more...if that makes sense