Blog
Business

How my shop offered a large range without stock

In January 2012, I wrote that my shop Groovy Gadgets offered more than 1,700 products without holding stock. That figure was a snapshot, not a current inventory. I had first bought and resold products myself, but saw that a larger range would demand capital and storage. I therefore looked for partners who could ship orders directly to customers.

Who did what?

In my model at the time, the shop handled marketing, hosting, payments and customer contact. Partners supplied products and shipped them with my packing slip. At month end, I settled orders with the partners. For customers, the shop remained the place where the purchase began; several businesses worked together behind the scenes.

A broad range became possible without buying each item in advance. But “no stock” did not mean “no costs”. Advertising, technical maintenance, payment processing and support still belonged to the shop. I noted then that marketing costs can consume a shop’s profit. The old claim of good margins is not a proven general result; without costs per order, it cannot be judged.

The difficult side of partnership

Every additional partner requires agreements on stock data, delivery times, returns, damage and who helps when something goes wrong. A product that appears available online but cannot be delivered damages trust. More products help only when information and fulfilment keep up.

This is a dated case from my first shop, not an invitation to become a partner now. Dropshipping moves the stock, but it does not remove responsibility for a clear promise to customers.

— GijsDiscuss this article

Was this article useful?

Give it 1 to 5 stars.

4.7/5 · 15 ratings

Something to think about, now and then

Fresh ideas in your inbox.

New articles, lessons from my startups and projects I’m building. Only when there’s something worth sharing.