[jefflinwood]

Is your problem the working capital required to maintain your inventory, or that your inventory is aging out, or that you simply don't want to be in the business of running a warehouse and putting together boxes to ship?

Your suppliers can't necessarily drop ship to your customers, because their items will need to be combined with others - if you have your suppliers drop ship to you, your gift boxes will take too long to come out.

Your core business (at least from the web site) is the ability to customize these boxes.

The good news is that you can keep track of which shipments your recipients have received, and that your buyers have purchased. As long as you vary the contents of the boxes if either one of those is a repeat for the same theme, you can get away with carrying a lot less SKUs in inventory - if I ship a "nerdy" gift to someone, I don't really care if someone else gets the same exact box, as long as I don't find out about it -after all, you're selling customization.

[cegascon]

"Your suppliers can't necessarily drop ship to your customers, because their items will need to be combined with others - if you have your suppliers drop ship to you, your gift boxes will take too long to come out." - Jefflinwood

That is exactly the issue simplified! Thank for such a good explanation.

You are absolutely right on the last point but we are looking to build a model were our customization is from the item picking part not the warehousing part. Be a tech play more than a warehousing play. Now we currently ship to us the items, repackaged and send back which is a very non-scalable way to grow not to say non-profitable too.