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Key factors and conditions for implementing the drop-shipping method as an alternative to traditional supply chain

Author

Listed:
  • Ivan Dimitrov

    (Prof. Dr. Assen Zlatarov University, Bulgaria)

  • Nadezhda Koprinkova-Noncheva

    (Prof. Dr. Assen Zlatarov University, Bulgaria)

  • Adile Dimitrova

    (Prof. Dr. Assen Zlatarov University, Bulgaria)

Abstract

The drop-shipping method is an innovative alternative to the traditional supply chain, rooted in the principles of e-commerce. Drop-shipping has gained increasing popularity over the years. The main objective of this research is to identify the key factors and conditions for its implementation as part of the traditional supply chain. An empirical study was conducted among Bulgarian Small and Medium-sized Enterprises (SMEs) from various industries using survey and interview methods to gather the necessary data. Descriptive analysis was employed to examine the characteristics and distribution of the studied variables. Furthermore, regression analysis was conducted to explore the influence of various factors on delivery times and the average number of annual sales. Additionally, a correlation analysis was performed to examine the relationships between suppliers, delivery times, and levels of customer satisfaction when implementing the drop-shipping method. A variation analysis was also carried out to delve into the connections and changes between the two categories of factors – supplier-related and customer-related. The data from this study can serve as guidelines for implementing new innovative delivery methods within SMEs, aiming to provide the necessary factors and conditions for their successful operation.

Suggested Citation

  • Ivan Dimitrov & Nadezhda Koprinkova-Noncheva & Adile Dimitrova, 2023. "Key factors and conditions for implementing the drop-shipping method as an alternative to traditional supply chain," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 11(2), pages 498-515, December.
    • Handle: RePEc:ssi:jouesi:v:11:y:2023:i:2:p:498-515
    DOI: 10.9770/jesi.2023.11.2(33)
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    References listed on IDEAS

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    1. Ayanso, Anteneh & Diaby, Moustapha & Nair, Suresh K., 2006. "Inventory rationing via drop-shipping in Internet retailing: A sensitivity analysis," European Journal of Operational Research, Elsevier, vol. 171(1), pages 135-152, May.
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    More about this item

    Keywords

    drop-shipping; supply chain; factors and conditions; alternative; e-commerce;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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