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EBAGS: Managing Growth - Case Study Example

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The name-brand products that are dropped-shipped from the manufacturers are confined with the primary business operation of eBags. These various branded products are all brought under one store location through effectively utilizing the internet. …
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EBAGS: Managing Growth
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Download file to see previous pages Private label products, on the other hand, were introduced by the firm for satisfying the lower end of the market who demands reliable products at low costs.
The former products i.e. drop-shipped products are sold by the firm through online retailing and the latter i.e. private label products through the traditional business of retailing. The pros and cons of one form of the products are the cons and pros of the other. For example, in the case of online retailing or name-brand drop shipping products, eBags can reduce the cost of inventory holding through direct product shipping process from the vendors to the customers which is a disadvantage in the case of private label products where inventory is mandatory to hold. Similarly, in the case of private label products, high profit can be earned along with building up of long-term trusted relationship with the customer due to its physical presence whish is not possible in the case of online relating.
By sourcing globally, the manufactured products from the Asian manufacturers, eBags was being able to perform successfully with the private label products but problem aroused when it had to maintain inventory and the cost increased. ...Download file to see next pagesRead More
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