mtt Posted August 26, 2011 Share Posted August 26, 2011 I was contacted yesterday from a person name Susan from Calif. that wanted me to do a drop ship with there company (energy levels.com) which they will be launching in 2 weeks. Something about them with E Comerce and Ladies Aid. Has anyone else gotten a call? They are to call me back today and I do not have a good feeling about this. I do not know much about drop ship and is it worth it money wise. any information would be very helpful. Quote Link to comment Share on other sites More sharing options...
Angelique Posted August 26, 2011 Share Posted August 26, 2011 I would only do drop ship with a very well established company that had a solid internet presence, mainly because you will be doing all of the work anyway, they would just be submitting a third party order. Quote Link to comment Share on other sites More sharing options...
number2of7 Posted August 27, 2011 Share Posted August 27, 2011 You get those "I don't have a good feeling about this" moments for a reason... In my opinion, drop ship = nothing but trouble Quote Link to comment Share on other sites More sharing options...
Candybee Posted August 28, 2011 Share Posted August 28, 2011 I agree. Your gut instinct is usually correct.My opinion is that if you have not already considered and worked out the details of offering drop ship as a way of selling then don't. Not only does the customer have to pay the wholesale price of the product but the shipping and services you provide for doing it. That means you have to bill them for product, shipping & handling, labeling, inventory, storage, labor, accounting, etc. As you can begin to see it can be a lot of work. Also, you need to keep a spreadsheet on the fees for services, product, shipping, etc so you can bill them. If you feel comfortable doing that and want to anyway then go ahead and do it. If not, it could be one big headache for you. Quote Link to comment Share on other sites More sharing options...
jackbenimble Posted August 28, 2011 Share Posted August 28, 2011 Candybee- what kind type of dollar amount fee would you charge? Do you add it to the price of the candle or charge the company a monthly service fee per month? Quote Link to comment Share on other sites More sharing options...
Candybee Posted August 28, 2011 Share Posted August 28, 2011 (edited) I don't drop ship. At least I am not prepared to do it and frankly don't want to put up with the headaches that come with.But if I did, I would probably charge a percentage (maybe 10-15%) to cover fees plus the cost of the product plus the shipping/handling charges and send the bill to the customer. Also, if I did do it I would only do this for a customer I know and can trust to pay me. Dont know if I would do it monthly or per item. Depends on how much merchandise is being moved and the details of the wholesale purchase. I'm certainly not gonna offer wholesale prices per item. If they want wholesale prices they have to buy wholesale minimum. Thats where storage fees and accounting come in. I'm not a warehouse so I am not offering drop ship.What the customer could also do is buy product from you at wholesale and then use a drop ship company of their own choice to do the drop shipping. That way you don't have the headaches. Its what I would advise a wholesale account that wanted to do a drop ship. Edited August 28, 2011 by Candybee Quote Link to comment Share on other sites More sharing options...
IndyGalSews Posted August 31, 2011 Share Posted August 31, 2011 That means you have to bill them for product, shipping & handling, labeling, inventory, storage, labor, accounting, etc. As you can begin to see it can be a lot of work. Also, you need to keep a spreadsheet on the fees for services, product, shipping, etc so you can bill them. If you feel comfortable doing that and want to anyway then go ahead and do it. If not, it could be one big headache for you.I don't drop ship. At least I am not prepared to do it and frankly don't want to put up with the headaches that come with.But if I did, I would probably charge a percentage (maybe 10-15%) to cover fees plus the cost of the product plus the shipping/handling charges and send the bill to the customer. . Thats where storage fees and accounting come in. I'm not a warehouse so I am not offering drop ship.Have you considered using a fulfillment services provider? All the things that you say cause a headache are actually what they do. Especially if your company is growing rapidly or if you are looking for growth, they can work with you to customize exactly what your needs are - including providing warehouse space for seasonal products (like Christmas time). They may even help out with product photography and marketing in addition to storage, billing, and shipping services. Quote Link to comment Share on other sites More sharing options...
Candybee Posted August 31, 2011 Share Posted August 31, 2011 Have you considered using a fulfillment services provider? All the things that you say cause a headache are actually what they do. Especially if your company is growing rapidly or if you are looking for growth, they can work with you to customize exactly what your needs are - including providing warehouse space for seasonal products (like Christmas time). They may even help out with product photography and marketing in addition to storage, billing, and shipping services.Thats what I was suggesting if a customer of mine wanted to do drop ship. I don't intend to do it nor do I want to deal with a fullfilment company. The retail customer can buy wholesale from me and use their own fulfillment company. I've had to deal with these companies before when I worked for a publishing company. No thanks! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.