Over the years we have been fulfilling orders, aka drop shipping, for other accounts we have had a number of questions from both new and prospective customers about our program. This page provides you with some of the background information you need to make your decisions.
- 1. How long does it take to set up an account and get going?
- 2. What's involved in setting up an account?
- 3. Why is there a minimum order amount?
- 4. What charges are associated with this service?
- 5. Why can't I just see the prices?
- 6. Do you charge my customer for me?
- 7. What happens if my customer doesn't like the product?
- 8. Why doesn't my ID and password work with the "Wholesale" prices?
- 9. Why are there separate "Wholesale" and "Fulfillment" catalogs on your site?
- 10. Would I be better off just buying wholesale and shipping it myself?
- 11. If you ship for me, do you become my business partners?
- 12. What's the average mark-up on your products?
- 13. Why isn't the average mark-up meaningful?
- 14. How much should I charge?
- 15. How can I be sure that my customer orders your minimum amount?
- 16. How do I determine shipping charges for my customers?
- 17. How do you handle international orders?
- 18. Why don't you ship via the Post Office if it's cheaper
- 19. But, what about. . . ?
- 20. So where do I go from here?
1. How long does it take to set up an account and get going?
The timing varies. In some cases, we've started shipping for customers within a month; others have taken considerably longer.
2. What's involved in setting up an account?
You must complete a brief questionnaire, telling us a little about your company and the product lines in which you are interested. You must also provide us with the Uniform Resource Locator (URL) of your web site so that we might look it over.
Once we've reviewed the questionnaire and your web site, we will provide you with a draft Fulfillment Agreement. You must review it thoroughly; it defines the relationship between our business and yours.
Once you've approved the Fulfillment Agreement and we've accepted you as a customer, you will be given access to product pricing. You will need to select the products you wish to offer and decide how you wish to package them so that you can meet the minimum order amount.
The final stage in this process is our review of the products as listed on your web site. This review provides us the opportunity to catch any errors in price or product labeling prior to your accepting orders.
3. Why is there a minimum order amount?
We deal for the most part in low ticket items with a relatively slim margin. In order for us to cover our expenses, we need orders to exceed a breakeven threshhold. We've found that we need a minimum order of $15.00 if we are to continue offering this service.
4. What charges are associated with this service?
We charge you for three things: the product(s) you order, the shipping to get the order to your customer, and the preparation of your order for shipment.
The product charges are posted (and maintained) on-line; these are visible using the links in the left-hand column of this page. We pass along the shipping charges applied by UPS or other carriers at our cost. We charge you $2.00 per order to package your order for shipment.
5. Why can't I just see the prices?
These are wholesale prices. We deal with multiple manufacturers and drop ship for many organizations. We owe it to our business partners to keep confidential information confidential.
6. Do you charge my customer for me?
No. We do not deal directly with your customers in any way. It is your responsibility to obtain payment from your customer.
7. What happens if my customer doesn't like the product?
It is your responsibility to deal with your customers. We do not warranty the products we sell, nor will we deal with your customer. We can provide you with contact information for the manufacturers so that a product satisfaction issue might be resolved, but we cannot accept returns, either from your customer or from you.
8. Why doesn't my ID and password work with the "Wholesale" prices?
We retain two catalogs, one for direct wholesale customers, and one for the customers for whom we drop ship. Your ID grants you access to the "Fulfillment" catalog only.
9. Why are there separate "Wholesale" and "Fulfillment" catalogs on your site?
We make different products available for fulfillment than for wholesale; in addition, wholesale and fulfillment prices are different. A wholesale customer purchases and maintains her inventory; we maintain the inventory for fulfillment and a premium for our cost of doing so is built into the fulfillment prices.
10. Would I be better off just buying wholesale and shipping it myself?
Perhaps. But you would also need to buy your inventory up front, have a place to store it, have a place and materials to pack it, and make arrangements to ship it.
11. If you ship for me, do you become my business partners?
No, we do not. We are a company with whom you have contracted to hold inventory and ship on your behalf. We are in no way involved in your business, legally or otherwise. We merely perform a service for which you pay us.
12. What's the average mark-up on your products?
The average mark-up at present between the fulfillment cost to you and the Manufacturer's Suggested Retail Price (MSRP) is 51.6%. It's a lovely number, but it's not all that meaningful by itself.
13. Why isn't the average mark-up meaningful?
There are two considerations which (I believe) make this seemingly wonderful number much less valuable: 1) it's based on MSRP, which you may or may not choose to charge; and 2) a 50% mark-up on a $3.00 item gives you a much smaller margin for error than 50% of $25.00.
14. How much should I charge?
That, my friend, is your decision. I can only tell you the MSRP and what your cost is; I cannot presume to set your prices. It's like any other business: shop around and set your prices based on what you see and on what your expectations are.
15. How can I be sure that my customer orders your minimum amount?
By packaging lower cost items together. Instead of selling a lotion, sell a three-pack. Instead of selling a single bar of soap, make a package consisting of the soap, a lotion, a shampoo, and a conditioner. Be creative! Your packaging will also help to distinguish your site from the many others on the Internet.
16. How do I determine shipping charges for my customers?
For this there is no easy answer. Your products that we supply will be shipped from Vermont; the UPS charges vary by distance as well as weight. To effectively calculate your charges, you're going to need to learn about the UPS zones, their rates, and the surcharges they apply to "outlying areas."
To assist you in estimating shipping costs, we are working up weight estimates for each of the products we offer for fulfillment; these will be added to our fulfillment price pages as they become available. While they are not there yet, we hope to have it all completed by late May.
This problem is compounded when you have multiple companies drop shipping for you. Your customer might order three items, one provided by each of three different companies. You will likely be charged shipping three times, once by each drop shipper, yet you may only be able to charge your customer once.
17. How do you handle international orders?
We don't. At present, our fulfillment services are limited to destinations within the 48 contiguous United States. We do not provide drop shipping to Alaska, Hawaii, or areas outside of the US.
18. Why don't you ship via the Post Office if that's cheaper?
We are not aware of the amount that you might have charged for shipping. If it's greater than the amount of postage on the shipment, you will likely receive a complaint from your customer. To preclude that situation, we do not drop ship via the Post Office.
19. But, what about. . . ?
So, you have a question that has not been posed and answered above? Feel free to drop us an e-mail at Fulfillment@KokopelliLtd.com and we'll try to get an answer for you.
20. So where do I go from here?
Make sure you've seen the products we offer; our natural and environmentally friendly products are showcased at Kokopelli's Green Market. Review our Business Policies and Practices if you haven't already done so. I you feel that our products would be a good addition to your site, and you agree to these policies, fill out the questionnaire ro request access to our fulfillment prices.
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