Is this an acceptable charge to drop ship?

Beyceo · #1 (**permalink**) 10-26-2009, 06:29 PM

I am looking to add two new websites under my wing in the next month. I have investigated several wholesalers some I have purchased from before when I was doing the flea market thing and some new ones. Anyhow, a compnay that I used to wholesale from in the past has dropship/private label option now and they charge an extra $3 to drop ship per order. I have never dealt with drop shiper before so I dont know what they normally charge to do so. I ordered from them like it was a drop ship to see the private label that would be on the packaging and was happy with it. It came in a timely fashion like everything else that I have ordered from them. Any thoughts?

ed7up · #2 (**permalink**) 10-31-2009, 07:04 AM

Dropshippers do all sorts of things - I know some who are simply retailers with fantastic suppliers and charge membership fees and sell at near cost price. Others use cost + percentage pricing, some free membership, some not.

What you describe above makes sense. Unless you're selling in bulk (and 5-10 pieces is NOT bulk!), it is more costly to sell individually. Not just shipping, but handling the order, enquiries.

I recommend having a look at the WholesaleForums: http://www.thewholesaleforums.co.uk/forum/

rodrico101 · #3 (**permalink**) 11-04-2009, 05:04 PM

I have done a ton of dropshipping over the years and don't think the $3 fee is out of line. Basically they are paying someone to package/process your order. If it's a $1 item, then yeah it's too much, but if it's a decently priced item with a good return then it's not bad.

Depending on your profit margin either absorb the fee or pass it on to your customer.

Rod

WB Sponsors