Big River Electronics is a large online merchant. Although Big River takes title to the goods it sells, it seldom actually takes physical possession of them. Instead, it arranges to have the goods shipped directly from the producer to the customers placing orders on its site. What does this suggest that Big River uses?

Question

Quizplus · Accepted Answer

The fact that Big River arranges for goods to be shipped directly from the producer to the customer suggests that they use a drop shipping model. In this model, the retailer does not keep physical inventory on hand and instead relies on suppliers to ship directly to customers. This allows the retailer to avoid the costs and risks associated with holding inventory.

Big River Electronics Is a Large Online Merchant