Wholesale & eBay Forum Supplier Reviews, Complaints and Scams Suppliers Charging Fees to Sell their Products

Suppliers Charging Fees to Sell their Products


webcom
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  • Karma:
21 Aug 16 10:33:53 pm
I can't believe it....there are suppliers who actually MAKE YOU PAY MONEY upfront in order to sell their products....

and the one that carries a lot of possible saleable products wants a one-time FEE of $125.00 !!!

BALONEY !!!!! Wholesalers and manufacturers should NEVER charge potential sellers a fee for doing them a favor
and offering to sell their products....AND YOU ALLOW THIS ON HERE, SALEHOO?


fudjj
Site Admin
  • Posts: 6305
  • Joined: 27 Jul 07
  • Karma:
22 Aug 16 12:33:05 am
Hi Paul,

As you've noticed. Not all, but many suppliers do charge an upfront account fee and some also charge monthly fees as well, it just depends on the supplier. You will find that it is becomming for more mainstream for business's to do this now as well.

In regards to us allowing it, we have no say in a way any independent business structures itself, that's entirely up to the business itself. What we do is verify a business is safe to trade with for our members, it's up to our members to choose who they want to do that trading with. If for whatever reason you're not happy with a supplier, be it their account fees or whatever, then we would always recommend choosing another supplier.


Mark (fudjj)

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buysforu
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  • Joined: 22 Jul 16
  • Karma:
29 Aug 16 01:13:24 pm
I don't disagree with what you say Marc. However, you have the same ability. Perhaps you should inform businesses who wish to post on Salehoo they cannot charge a fee to Salehoo members. You can make this a benefit feature to members.


fudjj
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29 Aug 16 07:25:07 pm
Hi Frank,

It's definitely already an issue and is only going to become more so as more suppliers move into that space in the future, so it is something that we are well aware off and we looking at options currently. In fact this exact topic was raised by me as a topic for discussion at the last monthly admin meeting just past, so it's on the table and options are currently being discussed as how to best combat it.

That said, I don't think we could ever get to a position where we banned suppliers for doing it. Apart from having actual proof, and that can be hard to get as many will sell through different branded accounts. That aside, my biggest issue is that we have many member who do use supoplier with account establishment and other related fees because they see value in other areas,

For example, some suppliers who have account fees offer better product prices. So in that instance, the cost is more upfront, but the potential is there to make more on the products, especially if the sales volume is high.

So I we ban supplier with account fees, then we're remving quite legitimate trading options for members and the way things are going, with many now adding account fees, we could very well end up with an extremely limited directory, which then benefits no one. So I know it's a pain and no one reallt likes it, but as traders, we're kind of stuck with it.

As always, we do our best to provide members with as much of a variety as possibly, given the fact that suppliers do have to pass our set criteria to gain entry to begin with, but that gives members the choice to deal with someone one that best suits their own requirements. If anyone doesn't want tp pay an account fee, then we always try to have free options also available, but the one thing I would say is to not automtaically write off a supplier due to the fact that they do have an account fee of some type.

Take a complete look at the overall value and then make the decision if they are providing value for you or not.

Cheers


Mark (fudjj)

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Last edited by fudjj on 30 Aug 16 11:53:42 pm, edited 1 time in total.
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ksackett
Full Member
  • Posts: 2
  • Joined: 24 Dec 16
  • Karma:
2 Jan 17 12:52:17 pm
I came upon this thread because I was specifically looking for topic of drop shipper membership or general fees for doing business. The reason I was looking up this topic in the forums is because for literally all of the drop shippers whom I've contacted from the Salehoo directory, none will do business without some kind of membership fee, initiation fee, or per product sale fee.

I've learned through training and reading to never do business with a drop shipper who asks for a drop shipping fee. This is shady, under-handed, and a sign of a crooked drop shipper. Today, a few weeks after signing up for my Salehoo membership, I literally cannot find a drop shipping company in the directory who doesn't ask for some kind of fee for doing business.

As a result, I'm forced to reconsider my drop shipping business and my Salehoo membership. I'm a newbie, and I didn't plan on this barrier to entry. So I have to pause and ask: Realistically, given all of the other competitive head winds drop shippers already faced, how is it possible for a newbie to enter the market and turn a profit? For example, $5 margin on a product can make a profit, until a drop shipper has his hand held out asking for that in transaction fees.

We need to keep asking, WHY IN THE WORLD WOULD I PAY SOMEONE TO SELL HIS/HER PRODUCT? They ought to be paying me to sell their product. This just doesn't make sense, yet somehow these companies who are offering drop shipping services are managing to turn around the economics.

If there's more to the game I'm not understanding, please reply. I guess I'm a little frustrated by the fact that I've spent days and days pouring over products in the directory to find ones I can sell at some kind of acceptable profit, getting excited upon finding a potential product to drop ship - one that hasn't been picked over by other sellers - only to be beaten back by this drop shipping fee which renders the math unworkable.


Kevin S.
Prima Tech Plus

fudjj
Site Admin
  • Posts: 6305
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  • Karma:
16 Jan 17 03:45:46 am
Hi Kevin,

I can really only give you my opinion on drop-shipping fees.

For me, it comes down to what value that fee a supplier is asking for is going to deliver me, either short or long term. For example, is that fee giving me access to better prices than another competitor or is it giving me access to a sales incentive scheme where by I can get some sort of bonus with x amount of sales and so on.

It's all about what am I getting for the money!

Sure, no one wants to pay a fee, on top of all the other costs of drop-shipping, but if there is a benefit there, then the fee may well be fine. If on the other hand, there is no benefit being offered and I can find a competitor offering me the same price, without any fees, then you know who's going to get my business.

How do they get away with charging fees, well that's just basic economics. People are prepared to pay the fees, so they keep charging them. If everyone deserted a supplier charging such fees over night, those fees would be gone in a matter of hours or the supplier themselves would be gone.

They throw up a whole range of reasons why they charge the fees, admin costs and so on, but at the end of the day it means that they are making money, whether you're selling their products or not. So it takes more pressure of them and puts more pressure on the sales agent ....... welcome to drop-shipping.

Now not everyone charges a fee, but it definitely seems to be fast becoming the industry standard to do so and of course it's a case of follow the leader. If one does it and gets away with it, then others are sure to follow unfortunately.


Mark (fudjj)

Community Manager
SaleHoo.com

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