wholesale and dropship

[cliveant]

I have tried to keep a good spread of suppliers since my main supplier let me down a couple of years ago. I have 3 suppliers who send out shirts direct to my customers on a dropship basis...this has always been in plain packaging...so it would appear to be from my own business. I have noticed over the past 3 yrs that one particular supplier is gradually putting more and more of their own company related items in the parcels eg. labels, leaflets etc. etc. Today by pure chance a return from a customer came back to me and the whole of the outside of the packaging has changed and has the dropship company name all over it rather than just being plain. I have looked through the t&c but there is no ref to packaging. I telephoned the supplier and they have assured me it is just to reinforce their brand and they will not be starting up a retail operation in the future. I feel very let down as I have not been informed of the change and I feel it is promoting their own company rather than my own which actually made the sale.

Has anyone come across this before from a drop ship company. I only deal with 3 so do not know what the norm is. I have always been under the impression that drop ship is in plain packaging as if sent from the retailer.

This is the second time a major supplier has been rather underhand and I feel let down. I am now considering manufacturing myself (or getting my shirts made overseas) and setting up my own drop ship company. However I am not sure whether it is very credible to be running as a dropship wholesaler and also selling direct to the public / retail under the same name. I would imagine that this would put many wholesale customers off and that it may be best , if I am to do this, just to operate on a wholesale basis only and forget the retail side. I am certain that I could do well at this given that I have already learnt from others mistakes.
Advice appreciated on this point please.

 

[chrisbarnes86]

Could you get a rate reduction and supply your own packaging?

 

[KateCB]

Are you dealing with a 'drop ship company' or a garment wholesaler?

A garment wholesaler send out in their pacakaging, and their staff fill every package with leaflets - they make no distinction between a stock order going to me as a trade customer and a single shirt going to someone else, who may be a 'retail customer of a trade customer' - i.e. a drop shipping service. The key here is that last word - service.

Garment wholesalers do not sepcialise in drop shipping, but will do it if asked as you know, so if they want to promote their brand on their packging there is little you can do; even offering to supply your own would I feel not be accepted, as they would have to account for it, remember to use it (they may send out 20 parcel for you a day and 20,000 for themselves) or to be honest get their warehouse staff to know the difference and care enough to use it.

Getting your own made sounds great, but the logistics unless you have something very special with which to compete against the large garment wholesalers out there are huge - sizes, colours, fabrics, range, stock gaps, interim orders, main orders , deposits to foreign accounts, VAT, import duty, sipping, insurance, cartage, document fees to HMRC........its a minefield!

 

[deniser]

Agree with Kate.

If going out from the garment manufacturer and they do not retail and it has their logos on it then I don't see that there is a problem and it is probably a good thing if they are reinforcing brand awareness.

If it is a dropshipping company though so that the customer might be confused as to whom the parcel has come from then you need to renegotiate your terms with them.

I operate a dropship business and my customers make it very clear how they want their parcels to look. Some supply us with their own invoices and labels and others don't. We do what our customers want us to within reason.

 

[BeeDub]

If you're not happy with your Dropship manufacturer, then buy stock.

We're the same as deniser in that we offer to include any media materials/invoices in the dropshippers packages, but very few take us up on that.

Ring them and ask them direct if you can supply the packaging etc for your orders, rather than accusing them of trying to do you. Their answer will help your next decision.