Comments on: guest post: drop shipping

By: Charly

Charly — Tue, 09 Mar 2010 17:56:08 +0000

Oh my word! You took the words right out of my mouth! We’ve been telling our dropshipping clients over and over again to form a relationship with their suppliers before selling their products. Thanks so much for posting this; I’m sure it will help so many people.

By: Tammy

Tammy — Wed, 03 Mar 2010 20:40:18 +0000

Thanks for adding that Rebecca and Linda. I’m glad it was helpful Lana and Jessica!

By: Lana

Lana — Wed, 03 Mar 2010 04:50:51 +0000

Thank you for explaining drop shipping in detail. I was approached by an online store about drop shipping several months ago and having never done that, I was hesitant to participate.
It’s something I might consider now that I know more about it.

By: Linda @alamodestuff

Linda @alamodestuff — Wed, 03 Mar 2010 02:37:19 +0000

I’d like to add a note about pricing. My drop ship pricing is slightly higher than my wholesale pricing. For wholesale I have minimum quantities of purchase so there is always a committment up front from the retailer. As pointed out, drop shipping doens’t require the same committment and provides the retailer less overhead. To make up for my added work and packaging supplies, as well as use of my photo, I add a dollar or two to the price of my item.

I also always have the retailer pay me first. Upon payment I make and ship my item. It is another precaution for me.

By: Jessica

Jessica — Wed, 03 Mar 2010 01:59:55 +0000

Thanks Tammy & Megan, great post!

By: Rebecca - Maizie.

Rebecca - Maizie. — Wed, 03 Mar 2010 00:19:38 +0000

I have done drop shipping with a large mail order catalog. It is very interesting. The catalog used FedEx as their shipping method so I just signed up for an account with FedEx, printed the shipping labels from my home and billed the catalog through FedEx. It was a great system.

My item that was featured in the catalog was customized and personalized so it had to be made to order. I just made sure I had plenty of time during the two months my product was featured. I organized myself to a point where everything was systemized and took the plunge. I ended up selling hundreds of products making some good cash and opened up a great new avenue for my indie business. Of course wholesale pricing is lower (in my case a 50% split) so it is a lot of work for less profit than selling out of my own shop – but again – it opened up some doors for me and overall, earned me extra dough – never a bad thing!!

Thanks for the post – I found it very useful!

By: Where to Find Products to Sell | Midg's Scratchpad

Where to Find Products to Sell | Midg's Scratchpad — Tue, 02 Mar 2010 22:36:14 +0000

[...] guest post: drop shipping « craftMBA.com – business thinking for designers & makers [...]

By: Tammy

Tammy — Tue, 02 Mar 2010 21:50:22 +0000

Jessica, for us it has worked to agree on a price ahead of time. It would be billed to the retailer(me) along with the wholesale price of the item, and as the retailer it is my responsibility to pass that on to my customer or absorb the difference if it isn’t the usual rate for my store.

By: megan

megan — Tue, 02 Mar 2010 17:54:02 +0000

Jessica – that’s a good question. Perhaps Tammy can weigh in. I would say that it could be done either way, you just need to make sure that it is spelled out clearly in your agreement with the retailer.

By: Jessica

Jessica — Tue, 02 Mar 2010 17:49:45 +0000

Who pays the shipping fee in this case? Does the retailer collect a shipping charge from the customer and in turn pay the wholesaler for shipping? Or is the wholesaler expected to pay the shipping cost?