Historically, one of the biggest issues for retail businesses has been the problem of overstock. Businesses buy too much of a product that simply doesn't sell. Not only is money lost, but also the need to store these items only increases the problem. Businesses have to resort to costly markdowns in order to move the merchandise. What if this problem could be eliminated all together? What if you didn't have to guess how many products your customers want to purchase?? What if you didn't have to pay for a single piece of merchandise up front--not until it sold?
Of course, as drop shipping businesses know, you do not have to deal with overstock or markdowns. You don't have to risk your profits on a new line of merchandise that may not sell either. Fortunately, the supply chain has evolved to remove guesswork from the standpoint of merchandising so that businesses can sell more efficiently.