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

Ivan Dimitrov (), Nadezhda Koprinkova-Noncheva () and Adile Dimitrova ()
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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

Entrepreneurship and Sustainability Issues, 2023, vol. 11, issue 2, 498-515

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.

Keywords: drop-shipping; supply chain; factors and conditions; alternative; e-commerce (search for similar items in EconPapers)
JEL-codes: D22 L21 L81 M13 M15 M29 M31 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:11:y:2023:i:2:p:498-515

DOI: 10.9770/jesi.2023.11.2(33)

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