Dropshipping return of goods etc

[Ian PES]

I am in the process of setting up a webshop (launching in the new year) and so far have 3 dropshipping suppliers. Has anyone any advice about dealing with faulty goods as a dropshipper?. The returns policy for instance of one supplier states "... Any shipping costs incurred in returning product to us are the reseller's responsibility.. ..".....that seems rather favourable towards them!

Any pointers gratefully received!

 

[tony84]

Business to Customer to responsibility lies with the Business - IE when you sell to the end customer the cost is for you to pay.

Business to Business may be a little different so you will need someone else to clarify but i imagine it is quite legal as their are less rules to protect the business than their are to protect the customer.

 

[deniser]

You need to negotiate this with your supplier. Common practice seems to be that they will refund or replace the goods but not pay any consequential losses such as postage.

If you find a dropshipper sending out a high proportion of faulty goods then you probably don't want to be dealing with them.

 

[Ian PES]

Thanks....I was really hoping to hear from someone who has had experience of the problem of returned goods as reseller of dropshipped goods. I am optimistically hoping that I will be able to make a reasonable level of sales eventually and its not unlikely that this issue will crop up sooner or later.

 

[J-Wholesale]

Check the time windows with your dropshipper for returns. Remember that the Distance Selling Regulations apply to you, and not to your dropshipper. This means that you must accept returns if notified by the customer within 7 days, but the dropshipper is governed only by their terms and conditions. The two do not have to match up, which means you could be stuck with refunding a customer without your supplier refunding you.

 

[profitxchange]

I agree with J wholesale- like you I am setting up an e-business and I have come to the conclusion that any returns - except perhaps for warranty - are my responsibility. I have to take them into stock and try and resell them. There is no obligation for the DS to take them back based on a customers whim.

Thats why you need high margins and good products

 

[deniser]

Thanks....I was really hoping to hear from someone who has had experience of the problem of returned goods as reseller of dropshipped goods.

You have. I have. As I said you need to negotiate this point before you start dealing with the dropshipper. There is no law which is going to protect you; it is what you agree which forms the basis for your contract.

I faced the problem some way down the line after a series of faulty goods had been delivered. This caused some arguments which led to a breakdown in the relationship. I now always tackle the issue in advance.

Ultimately, whatever you agree, damaged goods are a nuisance and not good for your reputation so you need to make sure your dropshipper is 100% reliable and checks things before they go out.

 

[Chris Ashdown]

The basics are the dropshipper is in a B2B relationship with you and is not covered by the DSR

You are the sole retailer to your customer and if they are private customers then the DSR applies

Returned good would naturally come back to you maybe at your cost and you have to send back to the drop shipper (if they accept returns) and also if applicable the extra shipping costs from drop shipper to your customer for replacements

You are also responsible to ensure anything you sell is legal, fit for purpose and meets current regulations if any

If the item say a TV breaks in say six months then you would be responsible for repair or replacement under fit for purpose and trading standards take action against you

 

[crazyrccars]

Hey There,

I have a dropship supplier and have been using them for 2 years now. As far as returns go I would follow these rules depending on what you sell;

1) If a customer has a problem, listen to their problem first and then try and strike up a resolution over the phone first of all

2) If the customer wants to return the goods to you as an unwanted/unused item, and it is within the standard 7 days, then you will need to refund their return costs as well as the full refund. But your drop shipper will refund you for what you paid for the goods in the first place etc.

3) If the product is returned as faulty you need to be tactile here to avoid hassle. Mention to the customer you need them to send in the product for inspection to inspect for faults so that a resolution can be reached.

4) If the product is deemed faulty, you will need to offer a full repair, replacement or refund along with refunding all P7P costs.

5) If the item is not faulty and has been used then your dropshipper will most likely not refund you for the goods and hence you will have to make a decision about what to do. You can either say to the customer that you will not refund them as the product is not faulty and hence you will return it to them. Or if the customer is very difficult, you could offer to repair the product or come to a sensible compromise to keep the customer happy.

6) As a dropshipper, you are very much goverened by your suppliers decisions when it comes to returns and if they will not refund you for a return, then the buck lies with you completely to deal with your customer.

7) If you have to offer a refund to a customer and your dropshipper is not refunding you, then recover your costs by selling the returned product on to try and recoup as much of the losses as possible.

8) Pick a good dropshipper. If you have bad dealings with a supplier then ditch them quickly and find another as you will lose money hand over fist in refunds, make big losses and will leave your business vulnerable.

9) Finally, dropshipping is a great place to start when setting up an ecom site but there are limitations as you are not in full control of the prosses such as delivery and refunds etc. When you have the money/confidence, I would always advise buying your own stock and sorting your own deliveries as you are 100% in control of your processes which will make your life a lot easier plus you will have bigger profit margins.

I hope this helps

Cheers

Grant

 

[quikshop]

As mentioned above its all about the contractual arrangement you have with your dropshipper. Our fightwear dropshipping scheme takes all liability away from the reseller but that's quite rare.

Faulty goods should be the responsibility of the dropshipping company. Other returns such as a change of size, unwanted gift etc are usually yours to deal with.

 

[Ian PES]

Thanks for the thoughtful replies -very useful.

 

[dropshippersuk]

actually dropshipping is a risky business in terms of returning of goods etc..

"dropshippersuk" is best and reliable dropshipper within uk, just experience the service by them..

 

[applemaidcleaning]

Your drop ship supplier has the right not to take them back but might offer to fix it, replace or offer you parts to re sell! most do that.
But some even take faults back and credit you.

If you are drop shipping i advise that you send orders out on Monday and Thursday's and send your money over in the morning on them days. Or you could ask your drop shippers if you can places orders daily when your customers do and they invoice you every 2-3 weeks - this way payment gateways like PAYPAL will think this is a wholesale purchase (as they do not like doing business with drop shippers) And you will also have an invoice that dose look like you have a Wholesale invoice! - if you see my point.

Some might be confused over that.