In this case, the process entails different items; each item on its own is essentially a finished good but assembled by a domestic third party fulfillment warehouse into a final product for delivery to the company’s customer.
As with goods drop shipped directly to the company’s customer, the risk is transferred to a third party entity in the handling of the goods in fulfilling the order to the company’s customer. However, risk parameters increase due to funds being employed by the purchase order financing to suppliers, either foreign or domestic, for goods to then be delivered to the fulfillment warehouse for final assembly of the finished good. Although this does not eliminate an early stage or a startup company, some history of the company of utilizing the suppliers and fulfillment warehouse will obviously offset a considerable amount of the risk. Regardless, the suppliers and fulfillment warehouse will be vetted out in the due diligence process confirming their ability to perform.