Shipping costs

[KarenOH]

I was just hired to make an exclusive line of candles for a new and growing business.

The deal is I do an exclusive scent and jar that will only be offered thru the website of this company and not thru my selling blog.

I will be doing 4 scents per year...Fall/Autumn, Christmas/Winter, Spring and Summer.

I think I have everything under control...but am struggling with the shipping issue. Their customers will be ordering from a BUY NOW button linked directly to my PayPal account. Since that's not the way I normally handle my orders I have no idea what to do about shipping. I have thought about sending shipping invoices out once the candles are ready to ship(most logical way) but have also thought maybe I could include the shipping costs directly into the price of the candle(easiest way).

So my question is...does anyone include the cost of shipping with the price of their candles??

I know it's probably going to be considered a stupid question by some but it's something I am struggling with...I'm trying to make it easy and fair for everyone!!

Thanks!!

Karen

[AlwaysWondering]

Have you asked your new and growing customer? Adding shipping into the price of the candle is fine if their customer only orders one. But if they order multiples, they are now overpaying. I'm a little confused about the mechanics of this. Is this/your one candle the only item for sale on the site? What if a customer wants to buy other items on the site? Is everything shipped from different wholesalers like yourself? Will customers have multiple PayPal purchases? I know this is not your site but this can be a problematic for this new and growing business but ultimately, it could effect you. If I were a customer, I'd be a bit confused and frustrated that if I buy a candle, it is a different transaction than everything else on the site.

[SliverOfWax]

This really does sound like a nightmare in the works. Unless you have a separate 'shop' on this website, like Amazon, Ebay, Etsy, something that keeps your sales completely separate from other sales, sales you make will be subject to customer satisfaction on other products even if your product arrives in perfect condition. I'm really having trouble wrapping my brain around this. If you are doing private labeling and offering exclusive scents, why aren't they buying wholesale from you and selling the product themselves? It sounds like an online consignment kind of thing. I don't really understand it but I do know for certain I wouldn't be liking it.

As far as sending a separate invoice for shipping, I hate that with a passion and tend not to order from those websites, even though my own website is set up that way. I want to know exactly what I'm paying before I click the SUBMIT button. I am a sucker for free shipping; that will get my attention every time. If I were really going to do what you're suggesting, I would add shipping to the cost of the product and call it FREE.

I'm not liking this at all. Please post back and let us know what you decide. I have a feeling I'm completely not understanding what it is you're trying to do, and I really do want to understand, lol.

[robertgibbens]

Remember, the only stupid question is the one you never ask!

[KarenOH]

I think in my own unique way of rambling I made it sound much more complicated than it really is and I apologize for that.

After Labor Day weekend...the date of the official launch...I'll be able to give all the details.

I do believe what they are offering me is a great opportunity to get my name out there and to help my business grow. I see how they have been growing over the last year and am very impressed.

I think I am going to include shipping with the price of the candles and if people order in multiples I'll offer a discount.

Thank you again for your feedback and I apologize for not being able to be more clear!! Once it has officially been announced by the company I'll post and then hopefully it will make sense!! And I'll work on my rambling!! :-)

[SliverOfWax]

I think I am going to include shipping with the price of the candles and if people order in multiples I'll offer a discount.

Yeah. That I understand.

You've got me very curious.

[Candybee]

This sounds to me like the person handling the account for the company doesn't know what they are doing. I agree with Sliver. They want an exclusive line they should be more than willing to buy at wholesale and handle the orders and shipping themselves. Sounds to me like they have some kind of bass ackwards reverse drop ship going on. Its very weird. Personally I wouldn't do it. At least not in they way they are trying to set this up. They are trying to give you all the headaches of taking orders, doing the shipping. Are they kidding?!! Sorry--- I just think they are taking advantage of you.

[Karen M]

Sounds great!! Congratulations!!

[Johnna]

I agree that I would make them purchase wholesale and deal with the shipping.

It really isn't getting your name out since they are private branded which means your company typically isnt listed.

But on the other hand you have to do what you feel is best

[KarenOH]

They made the official announcement tonight so I can now give more details!!

A Primitive Place and Country Journal Magazine has chosen me to make their exclusive line of seasonal candles.

Each season I will working with them to provide a scent that will only be offered thru their magazine and on their website.

They will design the labels and mail them to me. The labels will have their name on them...but will say that they are made by Star Mills Candles.

Orders will go directly to me...BUY NOW button linked to PayPal.... candles will be poured as ordered so it won't be any different than if I had my own website. APP takes a minimal amount from each sale.

A Thank You card will be included with each order with information on how to order my regular scent line directly thru me.

I'm really excited about this opportunity and think it's quite an honor to be selected.

Thank you all for taking the time to offer feedback...I hope now that I can give more details it makes more sense!! :-)

[LadyJo]

Congratulations Karen. Sounds like an awesome opportunity for you !!!!

Jo

[Candybee]

I'm glad you feel this is a right move for your company and I hope it works out for you. I spoke with one of my wholesale account shop owners and he says the mechanics of this set up are not right. He did say that when he orders from companies that drop ship for him he has to pay fees for the service; storage, shipping of the product, along with the cost of the product. Remember you are also keeping inventory and doing the accounting so add that into your costs. You should also consider doing an accounting spreadsheet for the customer so they have a breakdown of product costs, your services, and shipping and handling fees.

All I'm saying is make sure you work out the details so you aren't getting gypped. You make the product, store it, label it, ship it, do the accounting and inventory, so make sure they are paying you a fee and or percentage for your service(s) along with your shipping costs on top of the product price. This is normal procedure for companies to pay a fee and/or percentage so they should not bat an eyelash when you bring it up. You may want to consider billing them for the service and shipping so its easier for the customer to just click on the buy now button and purchase.

Want to add, figure out your costs then discuss it with them. Don't let them talk you into something you are not willing to do or that does not benefit you. You are in charge of how you run your business and sometimes a customer needs help understanding how you need to approach and handle the sale so you both benefit. Hope that makes sense.

Good luck! This could be a wonderful step forward for you. They are a magazine so think of the readership they reach out to. Could be future customers for you! Way to go!!

Edited August 28, 2011 by Candybee

[KarenOH]

Thank you Jo! I think it's a wonderful opportunity!! But this time next year I may think differently!! :-)

Candybee...thank you so much for your input. What your saying does make sense. I'm obligated for one year, so at the end of the year I will be looking at the numbers to see if it really does pay me.

I will also be taking into consideration if any of the customers who buy the special edition candle also starts buying from my regular lin.

I'm thinking it's definitely going to be cheaper than buying an ad in the magazine! :-)

Karen

Edited August 28, 2011 by KarenOH

[Candybee]

Just wanted to add that you may want to bring up the subject of how large their readership/membership is and how many customers (what percentage they expect) would buy the special candle. They may not be able to answer the second part but they should tell you how large their membership is. Also find out who their target audience is. Just thinking out loud. You probably already asked them this.

[beans]

Sounds good.

[SliverOfWax]

You say APP gets a minimal amount from each sale, but the payment goes to your Paypal account. How do they get their money? Do you cut them a check each month?

It sounds like a fantastic opportunity and could certainly lead to many repeat customers.

[KarenOH]

You say APP gets a minimal amount from each sale, but the payment goes to your Paypal account. How do they get their money? Do you cut them a check each month?

It sounds like a fantastic opportunity and could certainly lead to many repeat customers.

Wow..that's a good question!! She's never mentioned how they want payment. Guess I had better go send her an email!! :-)

I realize that this is a really unusual way to sell anything....but we always say you have to think out of the box to make it in business, and this is out of the box!!! LOL I see it as a great opportunity and a real honor...they could have chosen anyone!!! Am hoping their readers like my candles enough to continue to buy from my regular line...even if I just get a hand full of new customers it will be well worth it!!!