Is it illegal to dropship without a supplier knowing it?

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easyshoponline
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18 Feb 14 12:29:01 pm
Is it illegal to drop ship or resell without the supplier knowing?

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fm1234
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18 Feb 14 04:46:21 pm
You are certainly free to buy things, and then sell them, and don't really have to tell your supplier anything about that. However, how you represent yourself and market your product to your customers may be affected by how you structure your relationship with your supplier. You couldn't (or shouldn't) drop ship this way -- if you sold something to a third party, then had it shipped directly from a supplier, what happens when the customer sees not only where you got it, but how much you paid for it? And what happens when an enterprising customer manages a little social engineering and orders himself some more stuff using the payment method on file with the supplier? (Far fetched but it can happen!)


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
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fudjj
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18 Feb 14 09:11:26 pm
Just to echo Frank's point.

Not illegal, but where it comes unstuck is when the buyer gets it with the invoice and the companies name plastered all over the packaging. That's not a good way to generate good feeback on a site like eBay.

That said, if you had the ability to go and collect the item from the shop yourself and ship it yourself, then you are in far more control. To be honest, I've been thinking about doing the same with a certain supplier I know who has the coolest stuff, but doesn't sell on eBay and won't dropship either, but they just aren't close enough to me to make it worth me collecting myself.

So maybe not a bad idea if you can control that side of it. Then the only thing you would really need to be concerned about is stock levels as you will never know if the item will be in stock when you go to collect it or not.

One little tip, if you do go ahead and do something like this, pay in cash and ask for a cash discount. Almost everyone will drop at least something of the retail price if you pay in cash. Of course the keyword in that sentence was RETAIL. You have to remember that you are going to be trying to onsell something for a profit that has already been purchased at retail or very close to it.

My tip, try to find like I have, something as unique as possible in the marketplace so your competition is as low as possible.


Mark (fudjj)

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two-way_city
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19 Feb 14 01:36:17 am
easyshoponline wrote:Is it illegal to drop ship or resell without the supplier knowing?


Just a quick note on the positive of drop shipping. I have been doing it for several years and prefer it rather than keeping inventory on hand. In regards to buyers seeing who the product is really coming from, it's called a "blind drop ship". The wholesale/dropship company most likely will offer this as an option. This means that all of your information is on the shipping label as well as the invoice. The invoice will not say an amount, only what the product is and again YOUR information. Selling through eBay, the buyer's have access to their invoice so it's not a big deal if the one in the package doesn't have the amount paid, etc. You can always email the invoice separately.

A way to test this out when you start with a new wholesale/dropshipper is to buy a small purchase and have it shipped to a family members residence. This gives you a chance to see what the box, shipping label, and invoice say on it. If something needs to be changed contact your dropshipper, if not then you are good to go.

Hope this helps and makes you a little more confident with who you are dealing with.

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fudjj
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19 Feb 14 02:19:34 am
Hi Mike and welcome to the forum.

Exactly correct about using a dropshipper However I think in this situation, if I understood the question correctly, it relates to using a non-dropshipper to actually dropship products through, so a lot more complicated than just using an actual dropshipper.


Mark (fudjj)

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two-way_city
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19 Feb 14 02:42:53 am
Hey Marc, thanks.

Yeah, I just reread the question again. That was my mistake.

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fudjj
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19 Feb 14 03:35:30 am
That's cool, just so we don't confuse anyone trying dropshipping for the first time lol

So people, if you are looking for information on dropshipping, maybe don't take too much notice of this thread. This one is for the more experienced looking for more unique opportunities than the normal. If you're just staring out, go with an actual dropshipper.


Mark (fudjj)

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