Internet-based retailers usually maintain little or no inventory and order directly from vendors to fill customer orders received via their websites.

Question

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Internet-based retailers often use drop-shipping, where they forward customer orders to vendors who then ship the product directly to the customer without the retailer ever physically handling the inventory. This allows the retailer to maintain lower overhead costs and avoid the risks of carrying excess inventory.

Internet-Based Retailers Usually Maintain Little or No Inventory and Order