I keep seeing terms like digital inventory and virtual storage in various logistics and supply chain blogs. Our company runs a dropshipping business model where we sell products online but work with multiple external suppliers across the country. Does this concept apply to an operation like ours. How does a virtual setup actually work if you do not own or rent any physical real estate.

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.