Dropshipping

[mikeyred]

Hi,
We have been asked to dropship our products for another companies website but not sure if it is a good thing at the moment. We can cope our end alright but just thinking outside the box..... they might be taking some of the trade i might have got if they where not there and obviously i will will be loosing the commission paid from the margin i would have got - if that makes sense.

So wondered what your thoughts might be on the matter

[mikepayn]

Hi,
..... they might be taking some of the trade i might have got if they where not there and obviously i will will be loosing the commission paid from the margin i would have got -

Hi Mike,

I think the operative word really is "might".

We dropship for two quite small websites and only give a 10% commission. The way I look at it is that it is just increased sales. We already offer 10% off to schools as they order such a lot in one go so it's a similar sort of thing really.

Just have to play it by ear. Our ¼ly sales are still slowly increasing whilst our profits are too but not at the same rate. All of us are frantically offering discounts and sales incentives just to pull the business in.

Best of luck though, let us know how it goes.

[Lilly]

Hi Mike

More and more people are offering drop shipping so its a market not to dismiss, I would say. The thing to do is to have a different pricing for the drop shipping companies (so 25% off your retail price is the trade price they would get). Companies who look for drop shipping do expect to pay more on wholesale prices .

Anyway hope you've figured things out by now!
Best

[mikeyred]

Thanks for your comments guys. I have got them down to 17% commission but hope to get them down a tad more if pos.... can but try.... or am i being a tight old southerner :o)

[Gillf]

Thanks for your comments guys. I have got them down to 17% commission but hope to get them down a tad more if pos.... can but try.... or am i being a tight old southerner :o)

Not at all! don't forget you still did all the work sourcing the product, took the risk to stock, paid the transport costs... etc, etc.... etc. So push them down as far as possible and don't forget to add a P&P plus handling charge. :)

Gill
Designer Lingerie (http://www.ever-so-sexy.com/diki-silk-lingerie.html)