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How Would This Work?


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I was approached by someone who wanted to 'partner' with me in that she'd want to purchase my candles at wholesale and then place them on her website with my label. What threw me off was that she would want me to drop ship. I can't understand why I'd need to even ship if they were offered on her site....or am I missing something?

I wrote to ask her to be more specific on how this would work but, so far, haven't heard back.

Any thoughts?

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Occasionally I offer drop shipping to my private lable customers in the event they have something come up and they desperately need some candles but not enough for a minimum order. In those cases I get my money up front just like if it were an order coming from my web site including the shipping - from my clients - they use their customer's order information for shipping, I don't extend my normal wholesale cost to my clients, because they are not ordering within the minimums and I have to label them personally, so they get a reduction in the retail price but only about 20% off, it keeps them from making it a routine, and it helps them in a pinch keep their customers happy. If this lady is not willing to meet the minimums of a wholesale customer and I was doing all the work, including the shipping, I would just as soon make her an independent sales rep and give her a discount or bonus for referring a sale. Personally I would not do it - too much hassle - don't like being caught in the middle!

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Personally I would not do it - too much hassle - don't like being caught in the middle!

That's what I'm thinking, too. But if she's purchasing at wholesale and never handles the candles, having my candles appear on her site....isn't this more like a "consignment"?

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My thought on this is Never ever be a partner with someone in any biz unless you have a lawyer draw up paperwork.

Been there before with another biz and it cost me a lot!!

Just one time I didn't have a lawyer look at one paper and it messed up everything. Even if its a long time friend.



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What she is asking for is drop shipping and no way would I give wholesale for that.

I have a scale for my drop shippers it start at 20% and goes to 45% but it broke in to levels they have to meet monthly to get each level of discount.

It is something like this

Monthly sale of

Up to $100 get a 20%

$101 to 250 get 25%

$250 to 750 get 30%

$750 to $1000 get 35%

$1000 or more get 40%

I reserve the right to review the account every 3 month to lower percent if needed. I will raise and issue a new code when they reach each level I will even prorate it back to the first of the month and issue a store credit but I do not give them a refund. If my drop shippers do not maintain $100 in sales 4 out of 6 months I will drop them.

I do not do private label for drop shippers. I do how ever have the return address and packing slip with their info on it not mine. If they provide a brochure I will also include it for them.

Drop shipping can be profitable but if can also be a royal pain.

I am also careful about my drop shippers they have to apply to become one and I refuse to have more than 4 total at any given time. I have to approve the web site my product are going on too.

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Thanks, Vicky! That makes sense. I haven't heard back from the lady since I wrote to ask so I assume she either thinks my ignorance isn't worth working with (okay..but y'all have made me wiser now! :D ) ...or she was just looking for a deal with wholesale prices which I wasn't willing to immediately jump on.

Oh well...onward with this knowledge! Thanks again for the great help!


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