By the early 2000's, drop-shipping was no longer seen as a magic cure-all for every Internet retailing woe. Many retailers who were setting up shop online carried their own inventory, giving them a competitive advantage over virtual inventory sites. Plenty of businesses began viewing drop-shipping with a pronounced disdain.
Data Translation
Fortunately, the technology for carrying virtual inventory has improved significantly. Some companies in the business of drop-shipping for big retailers, offer "universal connectivity hub," between suppliers and sellers. This hub is a central clearinghouse for data exchange, with the ability to translate as many communication protocols as the United Nations translates languages.
Retailers, instead of having to wonder about a wholesaler's inventory level, can now view those levels remotely. And store owners have a "dashboard" to monitor whether a supplier is breaking any of their pre-set delivery rules.
Although big companies handle mostly larger players, some do work with some smaller retailers. Generally, though, a retailer must be making a minimum of around 2,000 transactions per month for it to be cost efficient to work with. The company's initial implementation fee can vary wildly, ranging from $500 to $150,000, depending on factors like volume.
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