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• Low Overhead and Risk: Minimal upfront investment and no inventory concerns make it an attractive starting point.

• Scalability: The model allows for easy scaling, as operational efforts remain consistent regardless of sales volume.

• Testing Grounds: Sellers can experiment with various products to identify which ones resonate with customers, laying the foundation for future private labeling.

Disadvantages

• Lower Profit Margins: The disparity in margins necessitates higher sales volumes to achieve desirable profits.

• Dependence on Suppliers: Product quality and fulfillment depend heavily on the reliability of suppliers. Flaky suppliers can tarnish a retailer's reputation.