Questions about wholesale price structure

[hamperco]

I'm trying to find a wholesaler for my food kits product and I'm approaching various UK-based gift marketplaces. One of them is asking me the following questions which Google isn't helping me answer:

Carriage Paid Value - do I add postage cost for MOQ to the MOQ order value?

Carriage Cost - does this mean shipping cost for different order values? e.g. order 100 - shipping is £50, order 10,000 units, shipping is free

What margin do you offer us on drop ship products? Do they mean like as a %? how do I calculate this?

Do you charge extra for delivery on drop ship products? Should I? what's the norm for this?

 

[JamieM]

Carriage Paid Value - do I add postage cost for MOQ to the MOQ order value?

This just means the quantity (or invoice value) they need to order to get free delivery.

Carriage Cost - does this mean shipping cost for different order values? e.g. order 100 - shipping is £50, order 10,000 units, shipping is free

Yes

What margin do you offer us on drop ship products? Do they mean like as a %? how do I calculate this?

If they sell a product for £50 (£41.67 ex VAT) and you charge them £30 ex VAT for example, then their profit margin is 28%. If the margin varies across different product lines then just give them a drop shipping price list.

Do you charge extra for delivery on drop ship products? Should I? what's the norm for this?

It's up to you and shouldn't make much difference as it's an unavoidable cost. The main thing for them is if their overall margin will be sufficient.

 

[hamperco]

That's terrific thanks - exactly the answer I needed! I'd better go do some sums now

 

[Chris Ashdown]

Do you fully understand the Distant Selling regulations and Consumer law