ahh I see.
Well what my plan calls for is that I use Amazon's FBA system as a method for shipping and storing products or Stamps.com as a way to get cheap shipping and packaging.
I'm not gonna have any employees, it'll just be me. The business in general will probably start out small. I'll partner with either Ingram or the Ascii group. Biggest hurdle in my honest opinion are what the rates are for wholesale purchasing because I dont actually know what they are for either group. Also, maybe this lack of knowledge of what the rates are what keep me thinking that this is still possible. Returns are dealt mostly with the Wholesaler/Distributor you're with and I think some give you some kind of insurance on faulty goods.
Also what do you mean by insurance, you mean buyer's insurance or employee insurance.