Some models are more common with proven success while others are still in their infancy. The ability to sell goods online disrupts supply chain configurations, with new models popping up and disappearing every day. In this blog, we discuss several models that have been implemented that have been relatively successful with certain market dynamics. You can search more details about ecommerce fulfillment Toronto via https://shiphype.com/ecommerce-fulfillment/.
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This model is used by most online mass sellers and is very popular and less risky for electronics stores whose main purpose is to attract new customers. Much of the risk is passed on to the provider because online retailers do not have inventory and associated costs.
In this model, online retailers play a role as a selling factor. The same rules apply to all participants, and trust is built through features such as buyer and seller feedback, ratings, and guarantee/payment integrity.
Many early risers in online retail start with this model where they buy inventory from a supplier and then sell it through their online portal. Online retailers bear most of the risks. However, product inspection allows retailers to provide a superior post-purchase experience.
Managed market model
This model is becoming increasingly popular in emerging markets because online retailers want complete control over the quality, branding, and documentation of goods sold before they fall into the hands of customers.
Under this model, the supplier has all the risks except that the goods must undergo various checks at the online retailer's execution center before they are shipped to the customer.