Question

Topic: Other

Price/cost Guide For 3rd Party Drop-ship

Posted by FairTradeDesigns on 4/15/2013 at 8:50 PM ET 350 Points
I own an online retail store. I've been approached by a new, high-profile multimedia site that wants to sell some of my products in their online store. I would drop-ship orders placed on their store site.

They're asking me to present them with a draft agreement of the margins, service fees, and other costs I would want. While I'm on top of my own costs, pricing, and margins, this is new territory for me.

Has anyone had experience with this who could share examples? This could be a big opportunity to expand my business, so I don't want to rip myself—or them—off.

Thanks for any advice you can provide.
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RESPONSES

  • Posted by Moriarty on 4/16/2013 at 3:08 AM Accepted
    If you're worried about ripping each other off, just get in touch with them - go along and see them and sort out something that is mutually beneficial. That way you find that unique balance between your two businesses. So frame your needs on paper, and add a bit for profit take them along.

    If they start whingeing about price, take care. They want to be in control, and more importantly they don't respect you. You'll know when they respect you, it's all about delivery schedules and organization - how YOU can meet THEIR needs. That's them saying that you're equals. That's when you talk turkey.
  • Posted by CarolBlaha on 4/16/2013 at 7:14 AM Accepted
    I would make it very easy. Just create a price list for them. This is what you will sell the product for to them. Let them decide the price on their end, and list on the website.

    This is how any retailer does when they buy and resell. As far as handling fees, establish a shipping cost you will add to your invoice. You will bill when a product ships the agreed price, plus shipping to the website owner.

    Beyond that, establish terms. You expect to be paid in x days, you can give a discount if paid earlier (usually only 1 or 2%) or you want paid before shipment. They can pay you instantly with paypal.

    Sell Well and Prosper tm
  • Posted by FairTradeDesigns on 4/16/2013 at 11:05 AM Author
    Different but very helpful perspectives on my question from Carol and Moriarty. Thank you both!
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