What is the standard drop ship commission

Discussion in 'General Business' started by mcdeere02, Aug 5, 2009.

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  1. #1
    Hi
    We are expanding into online surf stores using a drop ship arrangement where the online store takes orders from customers and emails us the invoice and we send out the product.

    I am curious as to what the average or standard commission price we should be paying this online store for such an arrangement?

    Octavio
     
    mcdeere02, Aug 5, 2009 IP
  2. debunked

    debunked Prominent Member

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    #2
    Lots of details there. For one I recommend the drop-shipper to use a higher price pricelist for online only merchants - too many want to use small percentage markups destroying the value of the products.

    Also, since you are entering in an address each order charge a drop ship fee per address/order - these range from $2-$5 in most cases depending on the wholesale cost of the item.

    Don't let an online retailer ruin the value of your product!!!! A good example of this would be the number of things sold on Ebay.
     
    debunked, Aug 5, 2009 IP
  3. mentos

    mentos Prominent Member

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    #3
    The commission is tier is better option coz it increase sales volume.
    For example,if sales is within $1million/month the commission is 1%.
    While if the sales is $2million/month the commission is 2%.
     
    mentos, Aug 5, 2009 IP
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