Why Is Dropshipping Important? Dropshipping benefits everybody in the ecosystem! Dropshipping creates a bit more of a level playing field in the world where e- commerce’s importance is growing. 1. Retailers benefit from wider assortment of SKUs without carrying inventory • Thanks to dropshipping retailers can dramatically expand their SKU assortment from ~100K in a store to millions on a website – virtual inventory • Virtual inventory does not have to be stored in a warehouse => no storage costs and no working capital tied up in inventory. • No CapExspent on bigger warehouses. 2. Customers benefit from wider selection. 3. Customers benefit from getting their orders faster. 4. Retailers and consumers benefit from less shipping costs. 5. Supplier benefits because it becomes easier to get “shelf space”. Caro-Kann Capital LLC 16