nefitco - 10:57 am on Aug 15, 2010 (gmt 0)
In the consumers' mind I think when they visit a website where the dollar value is of consequence and the product may require warranty, parts and service in the future they're asking themselves:
Are you a source of information or are you a source of information and product and can I trust you? If you're a trusted source of information and products I think you win hands down on high value purchases and win again on even lower value commodity items since "trust" is such a driving consideration when a visitor to your website is trying answer the first question: Who are you?
A Drop shipper need two things- a computer and an internet connection. Is that a legitimate business model? The consumer decides or is oblivious. One other point- manufacturers and distributors need to build in more margin to cover the cost of drop shipping (adding staff, fulfillment, support, returns, etc.) so you could argue drop shipping is inflationary.