Tuesday, February 24, 2009

Drop Shipping Arrangements - Trap or Opportunity

I received a convo recently asking me whether I am interested to go into a drop shipping arrangement. My first reaction was, "What is Drop Shipping Arrangement?". After googling and investigation on the Etsy forums... Here's what I found..

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.

I also found some help in the following thread on the Etsy forum.

Here's my arrangement.
Retailer lists my item (use my photos) on his/her website. The customer will order from the website, he/she will in turn place an order on my Etsy shop. She will pay me for the item. I will send to her head office. She will send the item to the customer. Basically I do not have directly contact with the customer. With regards to the stock of the items, I will also keep her posted on the quantity in case I have sold out the item.

What do you think of "drop shipping arrangement"? What do you think of my arrangement?

Personally, I think it would give it a go since I have not done it before. In directly, the retailer would be like any of my customers. By listing on his/her website, it gives me some promotion and advertising exposure online.

I will let everyone know how this arrangement works for me in the next few months.. maybe my views on it will change again :)

9 comments:

bethany said...

I have been contacted about them before, but never done it because they always seem to want a discount and my prices are low to begin with. I want to make some money :)

Piggy said...

Bethany - I know what you mean. I have told them that I was unable to provide a discount as well. However, if they were to make a bulk order, then discount would be given.. Hope that works out for me.. will keep everyone posted. :)

Margaret said...

I have never heard of this. I hope it works out for you.

Thanks for coming by to enter my giveaway.

Black Rose said...

I think I've heard of drop shipping via some online consignment shops, but have never done this myself. All the best with it Piggy!

Brandon said...

I never knew.
thanks for sharing

Melissa

OliveStreetStudio said...

I too was offered this arrangement. I agreed for select items where I could give the discount, but I'm to send direct to the buyer and include the shop literature with mine. I haven't started yet, but hope to soon. I hope we both have luck!

Piggy said...

Margaret, BlackRose - Thanks! I hope it works out too!

Brandon - You are most welcomed :)

Olive - Good luck with your arrangement too! :)

Raven said...

I used to do something like this when I lived in NYC and had my fashion line. I made a TON of sales doing it. It's definitely a good thing and better than consignment or wholesale, IMO.
The website I was on was promoted by the site owners and was visited by lots of fashionistas, celeb. stylists, etc.... So, I got a lot of exposure.
I was sent the order from the site when I had a sale. I shipped directly to the client and then received a check from the site.
The site took a small commission, but I still made most of my money and I didn't have to sell at wholesale prices.

xxx

Piggy said...

Raven - Thanks for sharing your great insights and experience! I really hope this will turn out good for me :)