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Originally Posted by bathgems
It looks great on paper but when you get a bunch of frantic follow-up emails everyday from customers who expect 1-2 day shipping then responding to the followups takes even more time away from shipping. Or else you are too slow in responding and get in trouble for that. Then the retailer wants me to take returns. Why, I am selling wholesale not retail?
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Why did they expect 1-2 day shipping, did you tell them that on paper? If not simply point them to the agreement that stated how soon items would ship, what would happen in the event of backorder. That system could be almost automated with a good web site and good programming.
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Originally Posted by bathgems
Being a dropshipper is the same amount of work as being the retailer but without the added profit. Usually selling in bulk makes up for the lower profits but with dropshipping you are selling individual orders.
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You pack and ship the orders just as you are right now, only for lower profit per piece. When you sell in bulk you realize profits because of shipping an enire truck has a lower per piece cost than shipping one item as well as offering near wholesale prices - I will agree with you on that one. However, most dropshippers offer some sort of markup over the true wholesale cost for the simple fact they will lose money if they don't and most people looking for a dropshipper should understand this, and if they do not, the will probably be the ones who have no business being in business anyway, and will also probably be the ones trying to find out where their 1-2 day shipping is.
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Originally Posted by bathgems
Also, running up accounts receivable on the shipping charges with UPS, which I was not even making money on, was unnacceptable. Then billing was another hassle not worth the wholesale markup.
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Why were you not chargint your dropshippers real-time shipping charges? I have not seen a drop-shipper that didn't ask for the final destination zip code in order to provide real-time UPS charges to the end customers zip code. The dropshipper then charges the retailer that charge, and the retailer charges their customer that charge (or more if they feel the need to profit on shipping). A real-time inventory push system from the dropshipper will give the retailer the originating zip, the package dimensions and weight so they can interface directly to UPS on their web site and obtain the most accurate shipping quotes.