What it is:
A one-stop shop is a single location where all of the needed services for a particular activity are provided.
How it works (Example):
One-stop shopping is a popular concept for packaging products and service oriented businesses. In the financial sector, for example, commercial lending and mortgage brokerages offer one-stop shops. The marketing, origination, underwriting, inspection, appraisal, documentation, settlement, escrow management, and servicing are all handled under a single entity for the client. Real estate companies often set up one-stop shop operations to handle brokerage and property management services, along with all of the lending and service activities needed to service real estate buyers and sellers.
Why it Matters:
One-stop shops are convenient for buyers and sellers. However, the one-stop shop can sometimes hide the true costs of each service and then limit the competition for the lowest cost provider. In addition, having all of the function in a single "shop", even when certain services such as inspection and appraisal are required by regulation to be contracted out, may pose a conflict of interest between the clients and the one-stop shop operator.