Does offer a dropship?

Does offer a dropship?

No, does not offer dropshipping.

Makers frequently receive requests from online stores to sign on to their drop shipping program.  Most sellers are unaware of the downside to this growing industry.

What is Drop Shipping?

A new way to make a living has taken shape -- drop shipping.  What is drop shipping?

It's a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party (you or your wholesaler) and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.

This means that for the merchant, there’s no storefront, warehouse or inventory to manage. According to "there’s big money to be had in drop shipping businesses". Everyone is getting in on the action, whether it's Walmart or an Amazon seller running a "store" out of their parent's basement.

Drop Shipping Impact

There are two ways drop shipping is impacting brand owners.

  1. Multi-seller (3rd Party) marketplaces, like Amazon, have exploded with sellers (Amazon now has over 2 million sellers). These "dropship sellers" are fighting each other for the Buy Box and as a brand owner, you are the loser. Product descriptions and images are changed.  MAP (minimum advertised price) is not maintained and pricing can go extremely high as well as extremely low.
  2. Other online stores (such as The Grommet, Houzz, Food52, etc) tend to add promotional value but take at least a 50% margin. Plus the brand owner must pick up the cost of order handling.

Not Good for Consumers

Brand owners are not the only ones impacted, consumers are too. In most cases the dropship sellers do not add value. As a consumer it's hard to differentiate the product between sellers except by price.  Some may say that it's good because it helps drive down prices.  The reality is that the sellers have introduced knock-offs and there is little to no monitoring of the sellers by the marketplaces.

All this affects your brand.

What To Do

You can control your brand on 3rd party marketplaces (3PM's - Amazon, eBay, Walmart, etc) by:

  1. Create a Minimum Advertised Pricing (MAP) policy and monitor it
  2. Create Terms & Conditions (T's & C's) that prevent wholesale customers and distributors from selling on 3PM's.
  3. Sell on the 3PM's or create an exclusive partnership with someone who will comply with MAP.

When selling to other online stores be sure to count the cost.  Will they purchase goods outright or reimburse for handling?

Consider joining Mason Jars MakerPlace. We hand-select sellers that are brand owners and are building a collaborative seller experience with affordable selling fees.