The concept applies perfectly to a dropshipping or multi-supplier business model. A virtual setup does not mean the inventory is fake, it just means you use a centralized software layer to view all your scattered physical stock across different suppliers as a single, unified pool. You can read a very clear explanation of how it works right here
https://incora.software/insights/wha...tual-warehouse to understand the underlying technology stack. It connects your e-commerce store with supplier systems via APIs, allowing you to track inventory levels in real time, automate order routing, and completely prevent the risk of overselling products you don't have.