Charge before dispatch

[Gforster]

Can someone clarify the rules for me.

If you get an online / mail order and charge for it, then order the goods from the supplier and dispatch them when they arrive, have you done anything wrong ?

 

[Geoff T]

Sorry - but there's more to this than the question asked - isn't there?

 

[Gforster]

Sorry - but there's more to this than the question asked - isn't there?

Not really just need to know whether it is wrong to take payment for an order before the item is dispatched.

If the customer orders the item and pays for it on Monday and we are not going to dispatch the item until thursday when we receive the delivery from our suppliers then have we done anything wrong or is there some law / rule that states that you cannot take payment until you have or are physically dispatching the item ?

 

[The Resolver]

No - you can sell and take the payment before you have the item. However, if you fail to acquire and deliver the item or otherwise fail to fulfill the order then you are in breach of contract. If you fail to deliver on a consumer sale within 30 days (or later period as agreed) then you breach the DSR (Distance Selling Regs). If you have no proper terms you could be sued for all losses arising from the breach not just the return of the purchase monies.

Of course you also run the risk that the price that you have to buy at increases after sale destroyng your resale margin.

Now if you took the monies and failed to deliver in circumstances in which there was real doubt that you could acquire and deliver, eg you did not have the source/resource, then you skate close to a criminal offence.

 

[Geoff T]

^^^^^^^^^^^^^^ works for me!

 

[Gforster]

Many thanks for the reply, it has answered the question perfectly and is as we expected. We generally deliver within 4 working days but today received a complaint that the money had been taken 2 days before the item was depatched and needed to confirm that we had done nothing wrong.

I couldn't find the answer to this question on any of the places like the OFT site for example.

Thanks for the answer !

 

[skyhi2]

Standard practice,payment received then send goods.

Reading between the lines though Gforster,i think you might be saying you dont actually buy the goods in until you have actually sold the item in question.

That could be somewhat tricky if anything goes wrong ( item lost/stolen,have to reorder,putting in a claim,buy another item at your expense Etc ).

You must send the good within 28 days ( TDR will correct me if i am wrong ).
Although i personally ship within 24 hours as its good all around,customer thinks you are fab,tells his/her friends,word gets around Etc Etc,you get the idea

Skyhi2

 

[The Resolver]

You must send the good within 28 days ( TDR will correct me if i am wrong ).

If its a consumer distant sale, ie covered by the DSR (Dustant Selling Regs) , then its 30 days. If not then its whatever your T&Cs say.

 

[Gforster]

No thats not true apart from with a few specialist items you wouldn't expect in stock.

This generally happens when we place an order with a supplier and we have a rush on a particular item, we then have items sold that we are waiting for in the delivery from the supplier.

In an ideal world we would always have the item in stock and ready to go but the world isn't ideal and neither am I

If we had to keep enough stock to fulfill every eventuality I would have to find an AWFUL lot of extra cash.

 

[skyhi2]

I see what you mean GF,Did`nt realise you were in the Trade your in ( i should have looked at website ).

I stand corrected TDR.

Skyhi2

 

[Gforster]

I see what you mean GF,Did`nt realise you were in the Trade your in ( i should have looked at website ).

I stand corrected TDR.

Skyhi2

No problem, glad you understand... we still have customers that expect a 1200mm shower enclosure costing in excess of £2,000 to be in stock and delivered by 9am the next morning (even if they ring at 4pm !!!).

 

[Paul Kelly ICHYB]

No.

You should clarify your delivery leadtimes on the site, though.

Bare in mind that unless you are selling something relatively unique or at a great price, having a delivery leadtime of more than a few days will probably return few orders.